In the past few years, the world of finance has gone through a significant transformation. Technological advancements have given birth to innovative payment systems, lending methods, and other cutting-edge financial services. As a result of these technological advancements in finance, fintech ETFs have emerged as a popular investment vehicle, offering exposure to a range of disruptive companies that are making waves in the financial industry.
These ETFs are designed to track the performance of fintech companies. This gives investors the chance to gain exposure to a diverse range of firms. All of whom are leading the push for transformation in finance. Fintech ETFs have been a bright spot for investors, as some have delivered strong returns. This makes them an attractive option for those seeking high-growth investments in the financial sector. Fintech ETFs are expected to see continued growth in the future. Technological advancements in finance show no sign of slowing down.
Recognizing the growth potential of this fintech boom, the renowned investment management company ARK Invest, established by the investor and entrepreneur Catherine Wood, has continued to put focus on their ARK Fintech Innovation ETF (ARKF).
How Does ARKF Work?
ARK Invest has carved its identity in the market with its disruptive investment strategies, and ARKF is no exception. The fund zeroes in on the vast potential for fintech advancements, including blockchain technology, innovative transaction methods, and next-gen customer platforms. By identifying the companies at the forefront of this wave of transformation, ARKF aims to capitalize on the emerging fintech trend. Wood’s exclusive research techniques and the team’s proficiency in the financial industry empower them to handpick the most promising stocks and stay ahead of the competition.
ARKF is an actively managed ETF that has set an impressive track record. With under 30 holdings, the fund offers investors a manageable concentrated portfolio. The top three holdings of ARKF are Shopify Inc., Coinbase Global Inc., and Block Inc. The fund boasts a 39.45% year-to-date return and an impressive $2.37 billion in three-year net flows. It has an expense ratio of 0.75%.