ARK Innovation ETF·Financial Services

Wood's Ark Investment Management operates a dozen exchange-traded funds that invest in companies across the technology sector. Its flagship fund, the Ark Innovation ETF, has handily outperformed the S&P 500 over the last year -- but that's far from the whole story.

Cathie Wood's flagship Ark Innovation ETF (ARKK) has been on a rather bumpy ride over the past six months.

ARK Innovation ETF has added a ~3% allocation to OpenAI via its Series C private placement, seeking exposure to frontier AI labs. I view OpenAI as overvalued at an $852B post-money valuation, as it is highly unprofitable and facing intensifying competition and shrinking market share. ARKK's inclusion of OpenAI increases portfolio risk, as the company's massive cash burn and product cancellations signal deteriorating fundamentals.

There's a growing number of ways you could gain exposure to OpenAI, months ahead of its highly anticipated initial public offering.

While geopolitical tensions provide a constant drumbeat of anxiety for the average investor, the underlying fundamentals of the AI sector tell a much different story.

ARK Innovation ETF is an actively managed fund that invests in companies pursuing disruptive innovation. Such stocks have been highly volatile.
ARKK is an actively managed Exchange Traded Fund (ETF) that seeks long-term growth of capital by investing under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund’s investment theme of disruptive innovation.
Financial Services
Asset Management
2014-10-31
2.64
Market Peers





