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Should You Invest in the ARK Genomic Revolution Multi-Sector ETF (ARKG)?

Zacks Equity Research
Wall Street finished in the green reversing its five-day negative trend on Thursday following news that United States and China have ramped up their efforts to resolve lingering trade disputes

Looking for broad exposure to the Healthcare - Broad segment of the equity market? You should consider the ARK Genomic Revolution Multi-Sector ETF (ARKG), a passively managed exchange traded fund launched on 10/31/2014.

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.

Index Details

The fund is sponsored by Ark Investment Management. It has amassed assets over $231.92 M, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market.

This ETF is active and does not track a benchmark.


Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.75%, making it one of the most expensive products in the space.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

Looking at individual holdings, Intellia Therapeutics Inc (NTLA) accounts for about 11.59% of total assets, followed by Illumina Inc (ILMN) and Invitae Corp (NVTA).

The top 10 holdings account for about 55.58% of total assets under management.

Performance and Risk

The ETF has added roughly 22.99% so far this year and was up about 31.59% in the last one year (as of 07/27/2018). In that past 52-week period, it has traded between $21.86 and $31.69.

The ETF has a beta of 1.68 and standard deviation of 28.22% for the trailing three-year period, making it a high risk choice in the space. With about 38 holdings, it has more concentrated exposure than peers.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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ARK-GENOMIC RVL (ARKG): ETF Research Reports
Invitae Corporation (NVTA) : Free Stock Analysis Report
Illumina, Inc. (ILMN) : Free Stock Analysis Report
Intellia Therapeutics, Inc. (NTLA) : Free Stock Analysis Report
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Zacks Investment Research