Investing

Anyone investing in ARK ETFs?

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  • Nov 20th, 2022 1:34 pm
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[OP]
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Apr 12, 2012
2855 posts
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Toronto

Anyone investing in ARK ETFs?

Solid sector investment options and amazing performance thus far. The US listed ones have more performance history, the CAD options are newer but they hold the same stocks.

CAD https://emergecm.ca/

USD https://ark-funds.com/innovation-etfs

The USD options have a lower MER.


UPDATE: Good news Emerge ARK MERs are far more competitive now, you may not need to buy the USD ARK ETFs anymore since the convenience of CAD ETFs.


The MER (Management Expense Ratio)) that you may see quoted was for our first 5 months of existence as a firm. Our firm’s total assets at the end of 2019 was approximately $10 million.

The Emerge ARK ETF management fee is 80 bps + other expenses = 105 bps approx. + hst for a total est. MER of approx. 1.15% currently for 2021, including TER, however we expect this to continue to decline close to 1% by year end.

In 2019 we launched our 5 ETFs all at once at the end of July, and our Management fee was 80 bps + expenses for 5 months involved in the launch of 70 bps + hst = for 2019 Total MER of 1.7%.

As a firm, we also absorbed a considerable amount of expenses in 2019 as well to protect the funds from the burden of launching 5 ETFs simultaneously.

In 2020, the Emerge ARK ETF management fee was 80 bps + other expenses = 120 bps approx. + hst for a total est. MER of approx. 1.3%. We have also achieved top 10 performance rankings for all 5 ETFs in 2020 with each ETF surpassing 100% return for the year after expenses (Total MER) on a trading basis.

Our MER has gone down continuously as our ETF family has grown, and in 2021 this consists of the Management Fee of 0.8% and Fund Expenses of est. 0.25% = 1.05% + applicable taxes hst = approx. 1.15% (currently).

Our firm AUM at the end of December 2020 was $ 204 million and as of today Feb 3/ 2021 our assets are over $324 million CAD.

Based on the current growth of our AUM, we expect this to decrease further and be closer to 1.0% (all in) or just under, as our fixed expenses for the fund decline as a percentage of the total assets.

It is our objective to have the most cost effective, actively managed and top performing Innovation series of ETFs in Canada.
Last edited by zobi123 on Feb 3rd, 2021 12:53 pm, edited 1 time in total.
722 replies
Deal Addict
Dec 4, 2011
2312 posts
2380 upvotes
Montréal
I keep waiting on a dip to buy ARKK but it never happens, congrats to those who hold!
Deal Addict
Oct 16, 2013
2405 posts
762 upvotes
New Brunswick
Was looking for these types of ETF, thanks.
Jr. Member
Nov 2, 2018
137 posts
149 upvotes
Vancouver
Was thinking of the CAD version but the MER's are a killer.
Deal Addict
Dec 3, 2014
2348 posts
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Ontario
Timely post. I’ve been looking at the ARK ETFs quite a bit. Have not bought any yet. I have signed up for their trade notices. I’ve come to realize that picking new up and coming stocks no longer seems to be my forte. I was pretty early in some of the FANG stocks, but those stocks seemed very obvious to me around 2014 and they had actual earnings. The new growth stocks are measured in a way that do not fit within how I analyze stocks so I think I am better off paying 0.75% for a certain amount of my portfolio to have the pros do it. Given the results the fee is actually quite cheap. I think they could probably double the MER and still have a lot of interest.

At any rate, the reason I have not yet invested in ARK IS twofold:

1. Since they have gone straight up, my risk aversion is telling me no. However, I believe the trends are for real and so an upward trajectory is consistent with my own view of how they should be performing. To stop my paralysis by analysis I think I will DCA regularly.

2. The 5 or so ETFs has caused me to second guess which one to buy into. My desire for simplicity sees ARKK as a logical choice but some of the others are interesting as well. I have heard of people just buying ARKK, others buy all 5. Others pick 2-3. I don’t know what is best and therefore have been wasting my time thinking about this and not buying any.
[OP]
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Apr 12, 2012
2855 posts
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llpresident wrote: Timely post. I’ve been looking at the ARK ETFs quite a bit. Have not bought any yet. I have signed up for their trade notices. I’ve come to realize that picking new up and coming stocks no longer seems to be my forte. I was pretty early in some of the FANG stocks, but those stocks seemed very obvious to me around 2014 and they had actual earnings. The new growth stocks are measured in a way that do not fit within how I analyze stocks so I think I am better off paying 0.75% for a certain amount of my portfolio to have the pros do it. Given the results the fee is actually quite cheap. I think they could probably double the MER and still have a lot of interest.

At any rate, the reason I have not yet invested in ARK IS twofold:

1. Since they have gone straight up, my risk aversion is telling me no. However, I believe the trends are for real and so an upward trajectory is consistent with my own view of how they should be performing. To stop my paralysis by analysis I think I will DCA regularly.

2. The 5 or so ETFs has caused me to second guess which one to buy into. My desire for simplicity sees ARKK as a logical choice but some of the others are interesting as well. I have heard of people just buying ARKK, others buy all 5. Others pick 2-3. I don’t know what is best and therefore have been wasting my time thinking about this and not buying any.
I only hold 2 of them, the fintech one and the AI/internet one. Overall more mid and large cap and lower volatility. The internet one is actually their best performer over 5 years. I don't really understand the healthcare focused ones and the companies are a lot smaller and more speculative it seems.
Member
Aug 15, 2003
489 posts
22 upvotes
I really like the ARK funds and hold most of them. Yes, the management fee is high, but to me the important thing is the return after management fee's, and these have been doing great. They have had a great run-up this year so I understand the reservation jumping in right now. I'm also DCAing into these for those reasons. They are only a percentage of my overall portfolio and I consider them to be the high risk/growth part.

I didn't realize there were CAD equivalent funds, thanks OP.
Deal Addict
Oct 3, 2007
3180 posts
523 upvotes
I have ARKK and recently ARKG. ARKK is one of my largest holdings at about 8-9% of my portfolio. I like how the funds are more actively managed and Cathie Wood will buy and sell if she feels there is too much or too little exposure. ARKK ran the Tesla train to glory but has done well even since it has steadied off. I bought ARKG because I believe in the future of genomics. Will likely grab ARKF at some point too.
Deal Addict
Dec 3, 2014
2348 posts
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Ontario
Am I understanding correctly that ARKK is their best ideas aggregated into one ETF?
[OP]
Deal Addict
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Apr 12, 2012
2855 posts
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Toronto
llpresident wrote: Am I understanding correctly that ARKK is their best ideas aggregated into one ETF?
Yes, exactly.
Deal Fanatic
Feb 4, 2015
8686 posts
4928 upvotes
Canada, Eh!!
llpresident wrote: Timely post. I’ve been looking at the ARK ETFs quite a bit. Have not bought any yet. I have signed up for their trade notices. I’ve come to realize that picking new up and coming stocks no longer seems to be my forte. I was pretty early in some of the FANG stocks, but those stocks seemed very obvious to me around 2014 and they had actual earnings. The new growth stocks are measured in a way that do not fit within how I analyze stocks so I think I am better off paying 0.75% for a certain amount of my portfolio to have the pros do it. Given the results the fee is actually quite cheap. I think they could probably double the MER and still have a lot of interest.

At any rate, the reason I have not yet invested in ARK IS twofold:

1. Since they have gone straight up, my risk aversion is telling me no. However, I believe the trends are for real and so an upward trajectory is consistent with my own view of how they should be performing. To stop my paralysis by analysis I think I will DCA regularly.

2. The 5 or so ETFs has caused me to second guess which one to buy into. My desire for simplicity sees ARKK as a logical choice but some of the others are interesting as well. I have heard of people just buying ARKK, others buy all 5. Others pick 2-3. I don’t know what is best and therefore have been wasting my time thinking about this and not buying any.
Was introduced to ARKK when it was in mid 70s... over analyzed as thought MER too high and like you could not decide which one... think I will just start small position and be done with it :)

Did buy WFH small position in low 50s but should have bought ARKK at that time :(
2022: BOC raised 6 times and MCAP raised its prime next day.
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Oct 14, 2015
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First topic: Josh and Michael discuss the video that ARK INVEST published about a week ago.

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Dec 4, 2011
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Montréal
IrwinW wrote: First topic: Josh and Michael discuss the video that ARK INVEST published about a week ago.

Man I wish Ritholtz was in Canada as well, have followed JB for a long time, I really like his approach. He took the time to write me a detailed response about a question I had emailed him about their firm.

Video was clever but I agree about hubris (they speak rather glowingly about the manager apart from all that).
Newbie
Sep 6, 2016
22 posts
8 upvotes
Definetely a solid long term ETF that has the potential to make you alot of money in the long term. However it seems many of their holdings are overbought at the moment IMHO, be wary of a correction.
Deal Addict
Dec 3, 2014
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Ontario
admiralackbar wrote: Man I wish Ritholtz was in Canada as well, have followed JB for a long time, I really like his approach. He took the time to write me a detailed response about a question I had emailed him about their firm.

Video was clever but I agree about hubris (they speak rather glowingly about the manager apart from all that).
Also a JB fan. I appreciate how he gives zero F’s about being a stereotypical finance person and is comfortable goofing around. Podcast starts: “Yo, it’s Downtown”. Can’t help but laugh.
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Aug 4, 2014
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ARKK bounced off its MA(50) twice in September, and is half way there now, so I’m getting really interested.. to start a small position and then DCA, like @llpresident :)
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Member
Jul 20, 2019
235 posts
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There are only two Canadian stocks in ARK's portfolio.... SHOP and LSPD.
Deal Addict
Dec 3, 2014
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Ontario
freilona wrote: ARKK bounced off its MA(50) twice in September, and is half way there now, so I’m getting really interested.. to start a small position and then DCA, like @llpresident :)
Very wise! DCA is the move here I think given how much it has run and how volatile it could become if the market corrects.
Deal Addict
Dec 3, 2014
2348 posts
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Ontario
BatmoBeal wrote: There are only two Canadian stocks in ARK's portfolio.... SHOP and LSPD.
How does that make you feel?

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