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Best ARK ETF UK

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ARK’s range of innovative ETFs has taken the market by storm, producing returns that far exceed many market indices. Through smart investments in innovative technologies, ARK ETFs can be used as a diversification method for investors interested in the particular asset class.

This guide will review some ARK ETFs UK, looking at the type of assets they include in their portfolio and showing you how to invest in these ETFs.

ARK ETF UK 2021 List

The list below highlights eight popular ARK ETFs available in the markets. In the section that follows, we will discuss each of these ETFs in detail.

  1. ARK Innovation ETF ]
  2. ARK Fintech Innovation ETF
  3. ARK Next Generation Internet ETF
  4. ARK Genomic Revolution ETF
  5. ARK Autonomous Technology & Robotics ETF
  6. ARK Space Exploration & Innovation ETF
  7. ARK 3D Printing ETF
  8. ARK Israel Innovative Technology ETF

ARK ETFs UK Reviewed

Before investing in any asset, you must perform your due diligence before investing your money.

In the section below, we review eight popular ARK ETFs available on the market.

1. ARK Innovation ETF 

The flagship product of Ark Invest, the ARK innovation ETF invests in a selection of some of the popular companies that are included in other ETFs in ARK’s range. These companies are all thought of as innovative disruptive in terms of the products and technologies they are developing. Some examples of the industries that these companies operate in are Fintech, Genomics, and Next-Generation Internet.

ARK Innovation ETF

With over $22 billion worth of assets under management, the ARK Innovation ETF is a favourite of many investors worldwide. This fund has experienced high returns in the last few years. Over the past one-year period, this ETF has produced a return of 175.20% for investors. In terms of these fees, the ARK Innovation ETF charges a modest expense ratio of 0.75% each year.

67% of retail investor accounts lose money when trading CFDs with this provider.

2. ARK Fintech Innovation ETF

A recent report by Deloitte noted that, although Fintech companies’ growth is slowing down, the amount of investment into the Fintech sector remains robust, even amid the Coronavirus pandemic. ARK Fintech Innovation ETF is another popular ETF in this sector. This ETF aims to provide long-term growth to investors through an active management style that involves investing in domestic and foreign equities of fintech companies. These companies tend to be involved in areas such as blockchain technology, transaction innovations, and frictionless funding platforms.

ARK Fintech Innovation ETF

Much like other ETFs in ARK’s range, this fund has performed strongly, returning 107.91% to investors in 2020 alone. Furthermore, the fund is already up 11.20% in 2021. Similar to the ARK Innovation ETF, this fund also charges an expense ratio of 0.75% per year – meaning that if you invested £1000 into the fund, you’d pay £7.50 each year in fees.

3. ARK Next Generation Internet ETF

Next-generation internet technologies are poised to become the norm over the next decade, with companies involved in this sector predicted to grow at a rapid rate. The ARK Next Generation Internet ETF holds a portfolio of these companies. With over $6.9 billion of assets under management, this ETF is a popular ARK ETF in the sector.

ARK Next Generation Internet ETF

A large portion of this fund’s investments focuses on cloud-based technology. Due to these investments, this ETF has produced some high returns in recent years. It returned 157.07% in 2020 alone and has previously returned 87.17% in 2017. Also, the fund has not produced a negative return in any of its six years of existence. Finally, this ETF even offers a small yield of 1.18% each year – providing an additional stream of income for investors.

4. ARK Genomic Revolution ETF

The rate of medical innovation is increasing each year, with more advanced technology being developed which can extend and enhance human life. One  ARK ETF which invests in this industry is the ARK Genomic Revolution ETF. The companies that this ETF focuses on are involved in areas such as CRISPR research, Targeted Therapeutics, and Stem Cell research.

ARK Genomic Revolution ETF

Looking at this ETF’s holdings, some of the largest weightings are given to companies such as Teladoc, Exact Sciences, and Pacific Biosciences of California. Through investments in these companies, the ARK Genomic Revolution ETF produced a remarkable return of 180.56% for investors in 2020. This is in addition to the 44.06% return it made in 2019. Finally, this ETF charges an acceptable expense ratio of 0.75% each year, similar to other ETFs within ARK’s range.

5. ARK Autonomous Technology & Robotics ETF

The ARK Autonomous Technology & Robotics is one-of-a-kind when it comes to the exchange-traded funds available in the market currently, as it focuses on companies that operate in exciting sectors such as robotics, 3D printing, autonomous transportation, and even space exploration. Looking at its holdings, the ARK Autonomous Technology & Robotics has significant stakes in Tesla, Trimble, and NVIDIA, amongst other innovative companies.

ARK Autonomous Technology & Robotics ETF

Much like the other ARK ETFs in the rage, this ETF has performed strongly over recent years. Looking at annual returns, this fund produced 106.73% for investors in 2020 alone – meaning that if you’d invested at the beginning of the year, you would have more than doubled your investment. Also, this ETF has produced a positive return in four of the six years it has been in existence.

6. ARK Space Exploration & Innovation ETF

With companies such as SpaceX raising awareness of space exploration’s potential in the coming years, more and more companies are launching within the industry to try and get ahead of the curve. The ARK Space Exploration & Innovation ETF invests in a diverse selection of these companies. This fund is extremely new, having only been incepted on the 30th March 2021. However, it already has $63 million of assets under management.

ARK Autonomous Technology & Robotics ETF

This ETF is already up 2.15% since inception – although this figure seems small, the ETF has been in operation for just a few weeks. Following the standard set by other funds in ARK’s range, this ETF charges an expense ratio of 0.75% each year to investors.

7. ARK 3D Printing ETF

The 3D printing industry was valued at approximately $11.58 billion in 2019, with annual growth expected to total 14% each year between now and 2027. The ARK 3D Printing ETF aims to track a benchmark index composed of companies involved in the 3D printing industry to generate consistent capital growth for investors.

ARK 3D Printing ETF

This ETF invests in countries from across the globe, including the US and Taiwan. With $557 million of assets under management, the ARK 3D Printing ETF has produced high returns in the past few years, generating 39.48% for investors in 2020 and 12.90% in 2019. In addition, it has made a positive return in three of the four years the ETF has been in existence. Furthermore, this ETF has a slightly smaller expense ratio than the other ARK ETFs, stated at only 0.66% per annum.

8. ARK Israel Innovative Technology ETF

The last fund we will discuss on our list is the ARK Israel Innovative Technology ETF. This ETF is designed to track an index composed of Israeli companies that display innovative or disruptive characteristics. These companies come from various sectors, including genomics, healthcare, biotechnology, industrials, and more.

ARK Israel Innovative Technology ETF

Much like the other funds on this list, the ARK Israel Innovative Technology ETF is equity-based. This ETF produced a return of 32.41% in 2020 and 21.98% in 2019, with both returns comfortably beating indices such as the FTSE 100. Furthermore, this ETF has the lowest expense ratio on our list of only 0.49% per year.

What are ARK ETFs?

ARK ETFs are exchange-traded funds provided by Ark Invest, an investment management firm based in New York City. The firm was founded by Chief Investment Officer Cathie Wood in 2014 and currently has over $50 billion in assets under management. Ark Invest is popularly known for its innovative investment options, showcased by its range of ARK ETFs.

These ETFs mainly focus on investing in companies that display extraordinary innovation levels and look to disrupt the industry they currently operate in. This investment strategy sees ARK ETFs invest in companies in the ‘growth phase’ of their development. what are ARK Etfs

In terms of the industries that ARK ETFs invest in, there is a multitude of sectors on offer that focus on various ground-breaking technological inventions or exciting new services. Some examples of industries that ARK ETFs invest in are space exploration, 3D printing, Robotics, and Genomic Revolution.

Through investments in these companies, ARK ETFs offer an aggressive growth strategy via a fund set rather than investing in individual stocks. The fund managers who are in charge of ARK’s range of active ETFs are constantly researching and analysing companies that might benefit the fund’s overall performance.

Are ARK ETFs a Valuable Investment?

The previous section has explained what ARK ETFs are and the type of assets that they invest in. In the section below, we examine if these ETFs are a valuable investment.

Exposure to High Growth Industries

The nature of the companies that ARK ETFs invest in means that investors get direct exposure to various industries that exhibit high-growth characteristics. Industries such as space exploration and robotics are typically not a focus of the majority of popular ETFs in the market today. As such, the options for investors who wish to gain exposure to these industries are pretty limited.

ARK ETFs invest directly in companies within these industries. It is worth noting that high-growth industries are theoretically much riskier to invest in; this is because companies will tend to be in the growth phase. Therefore, there is a higher chance for them to suffer revenue shortfalls and exhibit return volatility.

Diversification

Another reason to invest in an ARK ETF is due to the diversification benefits that they offer. Thanks to their investments in innovative industries, ARK ETFs tend to be uncorrelated to many asset types.

In addition, ARK also offers an Israel Innovative Technology ETF. This exchange-traded fund focuses on disruptive companies based in Israel, which can provide investors with a significant degree of geographical diversification if this ETF was included in their portfolio. Furthermore, combining the geographical diversification with the diversification factors based on the industries invested in will ensure an asset that can optimise an investment portfolio’s correlation coefficient. However, users should make sure to conduct their own research and analysis prior to any investments.

ARK ETF UK Investment Platforms 2021

To facilitate your ARK ETF investment, you must decide on a reliable broker that makes these ETFs available to trade. With so many brokers available on the market, and so many factors to take into account, we have reviewed two popular stock brokers that allow users to trade in ARK ETFs in the UK.

1. eToro

etoro

eToro is regulated in the UK by both the FCA and the FSCS, ensuring both your capital and personal details are protected by the highest security standards. What’s more, with over 26 million active users worldwide, eToro caters to a large demographic across the globe.

etoro invest in ark etfs

eToro also provides users with a cost-effective fee structure. Many brokers will charge a commission each time you place an order. However, eToro offers commission-free investing, meaning that you may trade as much as you like without incurring any fees. In addition to this, eToro allows you to invest in ARK ETFs for as little as $10 (around £8).

eToro also provides extensive asset selection. If you’re investing in ARK ETFs, you may want to invest in other assets too. eToro offers over 2500 stocks to invest in from 13 different stock markets. Furthermore, users can also trade FX, commodities, and even cryptocurrencies such as Bitcoin.

 etoro invest in best performing ark etfs

Finally, eToro allows users to finish their sign-up process in under 10 minutes, through their web account and mobile apps – available on iOS and Android. eToro also offers a solid range of deposit methods, such as credit/debit card, bank transfer, or e-wallet.

Stock Broker Minimum Deposit Fractional Shares? Pricing System Cost of Buying Stocks & ETFs Fees & Charges
eToro $10 Yes – $10 minimum 0% commission on ALL real stocks, spreads for CFDs Market spread is not included when buying real stocks No Deposit fees, $5 withdrawal fee, $10 inactivity fee, no account management fees.

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2. Capital.com

Capital.com

Capital.com is  regulated by both the FCA and CySEC. Furthermore, with a minimum deposit of only $20, Capital.com ensures they are accessible to a wide range of investors.

As Capital.com offers CFD trading facilities, you will not actually own the assets you invest in. Instead, you will own a contract based on the price of the asset. You have the option to then utilise Leverage on your investment which will boost your position size. Capital.com offers up to 1:5 Leverage on their fund offering, however this multiplies the chances of making and losing money by up to 5x.

capital.com invest in ark etfs

Capital.com does not charge any monthly account fees, inactivity fees, deposit fees, or withdrawal fees. When investing with Capital.com, you will pay the spread between the bid and ask prices as a sort of ‘commission’. This spread is usually minimal and is competitive with other brokers within the market.

Finally, Capital.com offer CFDs on many other types of assets. They offer over 3000 stock CFDs, along with CFDs on commodities and ETFs.

 

79.17% of retail investor accounts lose money when trading CFDs with this provider.

How to Purchase ARK ETFs UK

If users are looking to invest in ARK ETFs in the UK, you should look to choose a suitable broker that can provide you with low fees, multiple stock options and additional tools & features.

After choosing your preferred brokerage, here is how you can begin investing in 4 steps:

Step 1: Open Your Trading Account

Head over to the homepage of your chosen broker and begin the account set-up process. You will be required to fill in your personal details – including your full name, email address and mobile number. Create a username and password for the platform to continue.

Step 2: Identity Verification

Most reputable brokers in the UK are regulated by the FCA – which is why users may be required to verify their accounts. To do this, simply upload proof of ID (a copy of your driver’s license or passport) and proof of address (a copy of a bank statement or utility bill). Once these documents have been uploaded, your broker should verify them in a couple of minutes.

Step 3: Deposit funds

The next step is to deposit funds into your trading account. Most brokers may support 1 or more of the following payment methods:

  • Credit card
  • Debit card
  • Bank transfer
  • e-wallet

Choose your preferred payment option and deposit the funds into your account.

Step 4: Invest in ARK ETFs

Once your account has been funded, proceed to search for any ETFs or stocks you wish to purchase on your platform’s search bar. Fill in the amount you want to credit into the trade, and confirm your transaction.

Conclusion

Throughout this guide, we have taken a detailed look at some of the popular ARK ETFs available on the market, discussing each one in detail and examining their future prospects. Since this asset class has risk associated with it as well, users should properly research and analyse the available ETFs before making an investment.

Should you choose to begin trading in ARK ETFs, you may want to do so with a reputable stock broker that caters to your investing needs and requirements.

FAQs

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Connor Brooke author check sign Pro Investor

Connor is a Scottish financial expert, specialising in wealth management and equity investing. Based in Glasgow, Connor writes full-time for a wide selection of financial websites, whilst also providing startup consulting to small businesses. Holding a Bachelor’s degree in Finance, and a Master’s degree in Investment Fund Management, Connor has extensive knowledge in the investing space, and has also written two theses on mutual funds and the UK market.

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