The new product will follow ARK’s handbook and aims to give investors exposure to early stage growth potential and diversified investments in underrepresented companies, according to the Guggenheim fact sheet. Its selling costs were set at $ 0.275 per unit.
Exposure to early stage disruptors will include five “defined innovation platforms of artificial intelligence, DNA sequencing, robotics, energy storage and blockchain technology.”
The trust will be made up of approximately 80% small cap companies and 20% mid cap stocks. Growth stocks will account for around 48% of holdings, while value will represent around 37%.
Guggenheim says he sees the global economy going through a transformation, “as hasn’t been seen in over a century,” and disruptive early-stage companies are leading the charge. These disruptors “offer the potential to stimulate substantial growth or even create new markets, while disrupting existing sectors,” he adds.
Some of the unitary investment trust‘s holdings include artificial intelligence companies such as cloud computing company 2U Inc., blockchain technology companies such as digital wallets Opendoor Technologies, DNA sequencing companies such as CareDx, energy storage companies such as Kratos Defense & Security Solutions and robotics. companies like Materialize NV.
Wood, who is at the forefront of investing in these types of businesses, offers what she sees as key industries in her annual Big Ideas Outlook.
Although Wood’s performance grabbed the headlines, the performance of its flagship ARK Innovation ETF (ARKK) has been down slightly since the start of the year. It peaked at $ 156.58 on February 12, but traded at $ 123.04 on August 6. As of June 30, ARK reported $ 84 billion in assets, up from $ 51 billion in the previous quarter.