Leverage Shares has introduced a suite of nine ETPs in Europe providing unleveraged and leveraged long and short exposure to three of ARK Invest’s most popular US-listed actively managed thematic technology ETFs.
Catherine Wood, CEO and CIO of ARK Investment Management.
The three ARK ETFs are the $18.4 billion ARK Innovation ETF (ARKK US), the $5.5bn ARK Genomic Revolution ETF (ARKG US), and the $4.7bn ARK Next Generation Internet ETF (ARKW US).
The ETFs are managed by prominent stock picker Cathie Wood, ARK’s founder, CEO, and CIO.
Each fund invests in up to 50 US-listed equities, including American Depository Receipts, of companies aligned with sub-themes related to its core investment mandate.
The ARK Innovation ETF, which is ARK’s flagship fund, targets companies across sectors that are exhibiting ‘disruptive innovation’, defined as the introduction of technologically enabled new products and services that can potentially change the way the world works. Eligible sub-themes include areas such as DNA technologies, automation & robotics, energy storage, artificial intelligence, the future of the internet, and fintech innovation.
The ARK Genomic Revolution ETF focuses on companies poised to benefit from technological and scientific developments in DNA sequencing, gene editing, targeted therapeutics, bioinformatics, and agricultural biology.
The ARK Next Generation Internet ETF, meanwhile, focuses on companies poised to benefit from breakthroughs in internet-based products and services, new payment methods, blockchain technology, big data, the internet of things, and mobile, social, and streaming media.
Leverage Shares ARK-tracking ETPs
Leverage Shares has introduced three ETPs for each underlying ARK ETF, providing investors with the choice of unleveraged (+100%), triple leveraged (+300%), and inverse triple leveraged (-300%) exposure.
Each ETP has been listed on London Stock Exchange in US dollars, pound sterling, and euros, as well as on Euronext Paris and Euronext Amsterdam in euros.
The unleveraged ETPs come with expense ratios of 0.35%, while the leveraged and inverse leveraged ETPs cost 0.75%.
Dobromir Kamburov, COO of Leverage Shares, commented: “Leverage Shares has always sought to provide investors with access to the world’s most traded and popular stocks so it makes sense for us to do the same for ETFs. These highly innovative ARK funds were an obvious offering for us, giving European investors domestic access via our low-cost ETPs. Our products enable investors to make directional trades and express their convictions, whether they are supportive of a stock or ETF, or whether they believe it is over-hyped.”
The full suite of Leverage Shares’ ARK-tracking ETPs include:
LS ARKK Innovation Tracker ETP (ARKA)
Leverage Shares 3x Long ARKK Innovation ETP (3ARK)
Leverage Shares -3x Short ARKK Innovation ETP (ARKS)
LS ARKG Genomic Tracker ETP (ARKC)
Leverage Shares 3x Long ARKG Genomic ETP (3ARG)
Leverage Shares -3x Short ARKG Genomic ETP (SARG)
LS ARKW NextGen Internet Tracker ETP (ARKB)
Leverage Shares 3x Long ARKW NextGen Internet ETP (3ARW)
Leverage Shares -3x Short ARKW NextGen Internet ETP (SARW)
Inverse and leveraged ETPs provide an efficient means for sophisticated traders to obtain tactical exposures; however, they tend to decay in value if held for an extended period of time, potentially leading to significant losses, especially in volatile but range-bound markets.