ARK Rockets Into ETF Issuer Top 10

ARK Rockets Into ETF Issuer Top 10

ARK ETFs have picked up $6.8 billion of fresh cash this year, more than any other issuer except Vanguard. 

sumit
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Senior ETF Analyst
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Reviewed by: Sumit Roy
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Edited by: Sumit Roy

The strong demand for ETFs continued as investors added $18.3 billion to U.S.-listed ETFs during the holiday-shortened week ending Thursday, January 21. Year-to-date inflows now stand at $55.3 billion, compared to $42.7 billion at this same time last year.

ARK Stays Red Hot

Once again, the most noteworthy flows activity of the week came from none other than ARK. Two of the issuer’s funds found themselves on the top inflows list: the ARK Innovation ETF (ARKK) and the ARK Genomic Revolution ETF (ARKG), with inflows of $1.2 billion and $1 billion, respectively.

ARK’s seven-ETF suite has now pulled in $6.8 billion of new money through the first three weeks of the year, ahead of all ETF issuers other than Vanguard, which is No. 1, with inflows of more than $18 billion. Over the past year, investors have added $27.3 billion to ARK’s exchange-traded funds.

Thanks to strong performance in its holdings tied to “disruptive technology” themes, ARK has come from obscurity to become one of the hottest and largest ETF issuers. According to the latest ETF League Table, ARK is now the ninth-largest ETF issuer and climbing fast.

Its $47.5 billion in assets trails ProShares by just $1.1 billion. It’s also within sight of VanEck’s $55.5 billion in AUM. There’s a wider gap after that, with First Trust commanding $116.7 billion in U.S.-listed ETF assets, followed by Schwab with $207.5 billion, and Invesco with $304 billion.

Stellar Performance Fuels Interest

Still, $47.5 billion is an enormous amount of assets to be controlled by a firm that had a relatively modest $3.4 billion in assets under management only a year ago, and $1.1 billon in assets three years ago.

Ignited by the pandemic, many of ARK’s next-generation technology and health care stocks have skyrocketed. From Tesla to Roku to Square to Teladoc, many of ARK’s holdings are up triple-digit percentages over the past several months.

Strong performance invariably leads to strong investor interest, thus it’s not a total shock to see ARK become the most successful active manager in the ETF space.

The question now is whether ARK can satisfy the plethora of new investors who have bought into its funds based on a strong track record and expect the stellar performance to continue. ARK certainly has the motivation to succeed. Its seven ETFs, with expense ratios ranging from 0.49% to 0.75%, generate annual revenues of $359 million.

For a full list of this week's top ETF inflows and outflows, see the tables below:

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
IUSBiShares Core Total USD Bond Market ETF3,074.509,111.3133.74%
EFViShares MSCI EAFE Value ETF2,941.4010,539.1227.91%
XLFFinancial Select Sector SPDR Fund1,314.2630,948.704.25%
MTUMiShares MSCI USA Momentum Factor ETF1,286.6515,064.518.54%
ARKKARK Innovation ETF1,176.4423,909.554.92%
ARKGARK Genomic Revolution ETF996.6211,490.698.67%
IJRiShares Core S&P Small-Cap ETF938.3662,880.271.49%
IEMGiShares Core MSCI Emerging Markets ETF866.7677,481.101.12%
GLDSPDR Gold Trust777.4870,070.021.11%
VOOVanguard S&P 500 ETF769.23184,101.850.42%

 

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
SPYSPDR S&P 500 ETF Trust-2,669.94334,739.64-0.80%
IVViShares Core S&P 500 ETF-2,349.92242,680.09-0.97%
LQDiShares iBoxx USD Investment Grade Corporate Bond ETF-1,456.6152,908.65-2.75%
USMViShares MSCI USA Min Vol Factor ETF-1,307.4231,410.40-4.16%
FTCSFirst Trust Capital Strength ETF-999.707,099.28-14.08%
IWMiShares Russell 2000 ETF-985.9165,403.88-1.51%
SHYGiShares 0-5 Year High Yield Corporate Bond ETF-840.535,069.89-16.58%
ESGUiShares ESG Aware MSCI USA ETF-704.9013,362.96-5.28%
IHIiShares U.S. Medical Devices ETF-551.738,918.11-6.19%
HYGiShares iBoxx USD High Yield Corporate Bond ETF-480.4323,440.97-2.05%

 

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity1,027.473,231,794.180.03%
International Equity9,243.971,140,675.820.81%
U.S. Fixed Income4,378.73977,579.090.45%
International Fixed Income1,246.68125,967.340.99%
Commodities1,277.33143,429.200.89%
Currency-3.902,000.86-0.19%
Leveraged434.5343,751.420.99%
Inverse276.2815,329.941.80%
Asset Allocation113.8413,662.710.83%
Alternatives272.205,844.374.66%
Total:18,267.125,700,034.920.32%

 

Asset Classes (Year-to-Date)

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity12,626.073,231,794.180.39%
International Equity27,058.821,140,675.822.37%
U.S. Fixed Income10,757.45977,579.091.10%
International Fixed Income2,751.66125,967.342.18%
Commodities1,069.11143,429.200.75%
Currency77.542,000.863.88%
Leveraged-965.0843,751.42-2.21%
Inverse1,275.4315,329.948.32%
Asset Allocation140.5613,662.711.03%
Alternatives529.505,844.379.06%
Total:55,321.065,700,034.920.97%

 

Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data is believed to be accurate; however, transient market data is often subject to subsequent revision and correction by the exchanges.

Sumit Roy is the senior ETF analyst for etf.com, where he has worked for 13 years. He creates a variety of content for the platform, including news articles, analysis pieces, videos and podcasts.

Before joining etf.com, Sumit was the managing editor and commodities analyst for Hard Assets Investor. In those roles, he was responsible for most of the operations of HAI, a website dedicated to education about commodities investing.

Though he still closely follows the commodities beat, Sumit covers a much broader assortment of topics for etf.com, with a particular focus on stock and bond exchange-traded funds.

He is the host of etf.com’s Talk ETFs, a popular video series that features weekly interviews with thought leaders in the ETF industry. Sumit is also co-host of Exchange Traded Fridays, etf.com’s weekly podcast series.

He lives in the San Francisco Bay Area, where he enjoys climbing the city’s steep hills, playing chess and snowboarding in Lake Tahoe.