K&L Rock Group / News / Cathie Wood prepares new space-focused ETF with ARK Invest
Cathie Wood prepares new space-focused ETF with ARK Invest
Published by: 29.03.2021 20:22:52A new space ETF from Ark Investment Management could debut as early as early next week following regulatory filings that would cap a stellar year for manager Cathie Wood.
Cathie Wood's ARK funds have been bruised by the sell-off in the technology sector in recent weeks, but the flagship fund is still up 154 percent over the past 12 months (Bloomberg)
Cathie Wood may be about to cap off a stellar year with a suitably thematic new product.
Ark Space Management, a new space ETF, could debut as soon as early next week, following a filing with regulators. The actively managed exchange-traded fund would track U.S. and global companies involved in space exploration and innovation.
If it does come, it will be the first new product from Ark since the launch of the ARK Fintech Innovation ETF (ARKF) in 2019, and will follow a stellar 12 months in which the Wood's ETF assets have soared to 47 billion from just 3.3 billion.
Its funds (which include five actively managed and two tracking indexes) have been selling off in recent weeks. But the flagship fund is still up 154% over the past 12 months and its products have taken in about $16.4 billion this year, suggesting a new fund would be in high demand.
"That's certainly what the market has an appetite for right now," said Matt Benkendorf, chief investment officer at Vontobel Quality Growth. "Ark has shown a tremendous propensity to attract money and all eyes are on them."
Wood applied for the fund on Jan. 13, meaning the oldest Ark could complete the Securities and Exchange Commission approval process and release the ETF to investors on March 29, according to Bloomberg Intelligence, though its application may be delayed. A spokesman from Ark declined to comment because the fund is still in the SEC's quiet period.
News of the upcoming fund earlier this year sparked a sector rally, with both peer ETFs and individual stocks such as Virgin Galactic Holdings Inc. soaring. Assets in the Procure Space ETF (UFO) have more than tripled since Ark filed for ARKX, now up to $130 million.
ARKX's sister products offer a compelling performance picture. Three of them - the $22 billion flagship ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW) and the ARK Genomic Revolution ETF (ARKG) - are up more than 150% in the past year.
"They've certainly built a loyal following of investors who will deploy this fund well," said Ross Mayfield, investment strategy analyst at Baird. "It looks like a good encapsulation of the market momentum we started the year in, with all the money going into these long-term, very high-growth ideas."
In fact, retail traders have been eagerly awaiting the launch of the new product, with TikTok videos hyping the fund. 43-year-old Mark Leclair, who lives in Texas and provides software support, has already set aside some money to invest in ARKX when it debuts.
"I'm going to skip all that," he said in a phone interview. "Cathie does his own research and analysis and makes conclusions that the street just doesn't see." Indeed, this is consistent with what I believe, that they are trying to make smart investments in industry disruptors. "
SOURCE : BLOOMBERG
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