Should You Invest in the ARK Web x.0 ETF (ARKW)?
The ARK Web x.0 ETF (ARKW) was launched on 09/30/2014, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Internet segment of the U.S. 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 also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Internet is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Ark Investment Management. It has amassed assets over $532.86 M, making it one of the average sized ETFs attempting to match the performance of the Technology - Internet segment of the U.S. equity market.
This ETF is active and does not track a benchmark.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.75%, making it the most expensive product in the space.
It has a 12-month trailing dividend yield of 0.23%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Tesla Inc (TSLA) accounts for about 5.51% of total assets, followed by Amazon.com Inc (AMZN) and Twitter Inc (TWTR).
The top 10 holdings account for about 45.36% of total assets under management.
Performance and Risk
So far this year, ARKW has gained about 21.75%, and was up about 55.10% in the last one year (as of 06/08/2018). During this past 52-week period, the fund has traded between $34.43 and $56.88.
The ETF has a beta of 1.27 and standard deviation of 21.60% for the trailing three-year period, making it a medium risk choice in the space. With about 43 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- WEB XO ETF (ARKW): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Twitter, Inc. (TWTR) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
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