ARK’s much-anticipated space ETF rolled out today. The ARK Space Exploration & Innovation ETF (ARKX) has caused quite a stir before even hitting the market, as ARK hasn’t launched an ETF since 2019, even as some of its funds exhibit breathtaking performance.
The new ETF launched on Cboe Global Markets tomorrow with an expense ratio of 0.75%.
By late afternoon on Tuesday, the fund had already traded 13.2 million shares, worth roughly $260 million. By comparison, the ARK Fintech Innovation ETF (ARKF), ARK's most recent prior launch, only traded 58,000 shares on its first day.
The actively managed ARKX invests in companies that are involved in space exploration and innovation, which encompasses companies that offer services and products “beyond the surface of the earth,” or that fall within the theme of space-related disruptive innovation.
ARKX draws its companies from four different categories: orbital aerospace, suborbital aerospace, enabling technologies and aerospace beneficiaries, according to the fund’s prospectus.
Source: Ark Invest
The new ETF will compete directly with the $130 million Procure Space ETF (UFO) and the smaller SPDR S&P Kensho Final Frontiers ETF (ROKT), which both track indexes. ARK has made its name with concentrated actively managed portfolios that can make significant bets within their disruptive themes.
The prospectus notes that the fund’s managers rely on both bottom-up and top-down analysis, in keeping with ARK’s devotion to rigorous research.
ARKX will also take into consideration ESG factors as part of its top-down analysis, though that will not necessarily force the exclusion of any individual companies.
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