ARK, in a statement provided to Pensions and investments through a spokeswoman, said that while he cannot comment on specific existing or potential clients, institutional interest and investment in ARK’s strategies has increased over the past few months.
The statement cites several likely reasons for this, one of which is that stocks related to disruptive innovation “have sold off disproportionately over the past 18 months in response to rising inflation and rate fears. interest rate, and are now at attractive valuations”.
The ARK Innovation ETF saw $1.7 billion in net inflows year-to-date through July 20, while the ARK Genomic Revolution ETF saw net outflows totaling $157 million, according to Todd Rosenbluth, Head of Research at VettaFi LLC.
But for the June 20-July 20 period, both ETFs saw inflows, with the ARK Innovation ETF receiving $318 million and the ARK Genomic Revolution ETF bringing in $60 million, Rosenbluth said.
“Funds have performed better so the losses incurred earlier in the year have narrowed,” Rosenbluth said, adding that while the ARK Innovation ETF was down 48% since the start of the year to July 21, it was up 26% over the past month to July 21. “So we are seeing a rebound.”
The ARK Genomic Revolution ETF was down 36% year-to-date through July 21, but up 33% for the month ended July 21, he said.
“Investors have found these ARK ETFs attractive with a long-term time horizon,” Rosenbluth said.
While investors in such disruptive tech strategies are likely to experience more volatility, the case with these products is that they invest in longer-term themes involving things that will unfold over the next five or 10 years, did he declare.
However, not all ARK ETFs manage to accumulate billions of dollars in assets under management. On Tuesday, ARK announced in a press release that it would shut down the ARK Transparency ETF. This fund, launched in December, had only $13 million in assets as of June 30.
ARK was informed earlier this month that Transparency Global would stop calculating the Transparency Index effective July 31, according to the release.
ARK had approximately $24 billion in assets under management as of June 30.