Daily ETF Watch: ARK Plans Tech Index Funds

ARK Investments plans ETFs targeting 3-D printing and Israeli tech stocks.

Reviewed by: Heather Bell
Edited by: Heather Bell

ARK Investments, the firm that launched four actively managed innovation-focused ETFs last year, has filed for two more ETFs along similar lines that take a passive management approach. The ARK 3D Printing ETF (PRNT) and the ARK Israeli Innovation ETF (IZRL) will both track indexes designed in-house by ARK and calculated and distributed by Solactive AG.

PRNT’s underlying index targets the 3D printing space, dividing it into five different lines of business. The index, which had 35 components as of mid-October, gives each business line an assigned weighting in the index and then equal-weights the components within that business line, the prospectus said. It lists the business lines as 3D printing; computer-aided design and simulation software; service centers; scanning and measurement; and materials.

Companies included in the index are selected from developed markets (including Taiwan) and range in size from $118 million to $375 billion.

IZRL’s underlying index echoes the “disruptive innovation” theme of ARK’s previously launched ETFs, focusing on firms in the areas of genomics, health care, biotechnology, industrials, manufacturing, the Internet or information technology that are also incorporated or based in Israel. Components are selected from FactSet Research Systems’ health technology, communications, technology services, electronic technology, consumer services and producer manufacturing economic sectors.

As of mid-October, the equal-weighted index had 49 securities ranging in size from $90 million to $51 billion, the prospectus said.

PRNT will come with an expense ratio of 0.65 percent, while IZRL will charge 0.57 percent.

Contact Heather Bell at [email protected].

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.