ETF Watch: ARK Launches 3D Printing Fund

ARK Invest today is rolling out its first index-based ETF, the first-to-market 3D Printing ETF (PRNT), which covers the developing 3D printer industry and comes with an expense ratio of 0.66%. The fund will list on the Bats Global Markets stock exchange, which owns ETF.com.

The fund tracks an index that selects its components from the U.S. and other developed markets as well as Taiwan. Eligible companies must be involved in the development and production of 3D printing-related hardware or software, and of materials and equipment related to 3D printing. The components fall within five buckets and are equally weighted within each bucket.

The prospectus notes that the index had 35 components as of January of this year ranging in size from $77.1 million to $404.8 billion.

“ARK focuses on disruption in the marketplace and on innovation. That’s really our starting place for any fund that we would launch,” said Tom Staudt, director of product development.

Indeed, the firm’s fund is the first to focus on the virtually brand-new 3D printing industry. ARK’s first four ETFs are a suite of actively managed funds targeting “disruptive innovation” in the industrial, biotechnology and internet spaces.

“ARK’s research shows that the 3D printing industry has one of the highest growth projections in the economy. As the technology evolves and costs continue to decline, the 3D printing industry has the potential to steal market share from traditional manufacturing and transform every sector of the economy,” said Catherine Wood, ARK’s founder, CEO and CIO.

According to Tasha Keeney, one of the firm’s analysts, ARK projects that the 3D printing market—now valued at about $5 billion—will grow to $40 billion by 2020. She says that while many investors perceive the 3D printing space to be focused on the individual ownership of 3D printers, the real growth will likely come from a more industrial direction as the space shifts to a focus on printing customized parts for the aerospace and medical industries.

The fund fills a gap for investors, because so many tech sector funds target large-caps, smaller companies, like those in the 3D printing space, don’t have any representation. “It’s difficult to get access to 3D printing through funds,” said Staudt.

Contact Heather Bell at [email protected].