ETF Launches: CTRU

ARK's latest launch targets companies offering transparency.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

 

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FEATURED ETF
CTRU  ARK Transparency ETF

ARK Invest Management debuted its second new ETF of 2021 in early December. The fund aims to track companies with a high level of transparency around their actions.

The ARK Transparency ETF (CTRU) launched on the Cboe Global Markets with an expense ratio of 0.55%, making it the second-cheapest fund in the ARK lineup.

CTRU tracks approximately 100 companies that rank high on a proprietary scoring system from index provider Transparency Invest. Firms get boosted in Transparency Invest’s rankings for having shorter terms and conditions pages and fewer lawsuits, or posting full costs of items and services on their sites and scoring higher on corporate reputation rankings.

The index rebalances quarterly, and companies with less than $1 billion in average market capitalization and less than 200,000 shares in average daily volume over the quarter are disqualified.

The index also has several industry screens commonly found in ESG ETFs. Fossil fuels producers, mining firms, alcohol and tobacco makers, and gambling companies are disqualified from the index, as are banks and confection makers.

That produces an index heavily weighted toward information technology companies, which hold 41% of the index weight. Tesla and Chipotle are the only nonsoftware firms in the top 10 holdings.

Source: ETF.com. Data and information as of 12/31/2021.
The above sidebar covers launches for the month of December 2021.

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.