Launched on 10/31/2014, the ARK Genomic Revolution Multi-Sector ETF (ARKG) is a passively managed exchange traded fund designed to provide a broad exposure to the Healthcare - Broad segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs are also funds of convenience, offering many ways 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 5, placing it in top 31%.
The fund is sponsored by Ark Investment Management. It has amassed assets over $302.13 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.
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are 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
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Intellia Therapeutics Inc (NTLA) accounts for about 10.61% of total assets, followed by Invitae Corp (NVTA) and Illumina Inc (ILMN).
The top 10 holdings account for about 56.80% of total assets under management.
Performance and Risk
So far this year, ARKG return is roughly 34.10%, and it's up approximately 29.65% in the last one year (as of 09/12/2018). During this past 52-week period, the fund has traded between $23.87 and $34.45.
The ETF has a beta of 1.72 and standard deviation of 28.03% for the trailing three-year period, making it a high risk choice in the space. With about 37 holdings, it has more concentrated exposure than peers.
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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