Ark ETF Trust
10/08/2024 | Press release | Distributed by Public on 10/08/2024 14:49
Annual Report by Investment Company Form N CSR
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22883
ARK ETF Trust
(Exact name of registrant as specified in charter)
c/o ARK Investment Management LLC
200 Central Avenue, Suite 220
St. Petersburg, FL 33701
(Address of principal executive offices) (Zip code)
Corporation Service Company
251 Little Falls Drive
Wilmington, DE 19808
(Name and address of agent for service)
Registrant's telephone number, including area code: (727) 810-8160
Date of fiscal year end: July 31
Date of reporting period: July 31, 2024
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
| (a) | The Report to Shareholders is attached herewith. |
ARK Genomic Revolution ETF
ARKG | Cboe BZX Exchange, Inc.
ANNUAL SHAREHOLDER REPORT | JULY 31, 2024
This annual shareholder report contains important information about ARK Genomic Revolution ETF (the "Fund") for the period of August 1, 2023 to July 31, 2024. You can find additional information about the Fund at https://www.arkfunds.com/download-fund-materials/. You can also request this information by contacting us at (727) 810-8160.
What were the Fund's cost for the period?
(based on a hypothetical $10,000 investment)
|
Fund
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
ARK Genomic Revolution ETF
|
$64
|
0.75%
|
Management's Discussion of Fund Performance
SUMMARY OF RESULTS
The Fund underperformed both the S&P 500 Index and the MSCI World Index for the 12-month period ending July 31, 2024. As 2024 began, markets anticipated lower interest rates that would favor long-duration assets. However, the Federal Reserve shifted its stance to "higher for longer." As a result, equity markets became increasingly concentrated, with investors gravitating towards the cash-rich "Magnificent Six" stocks-Apple, Microsoft, Amazon, Alphabet, Meta Platforms, and NVIDIA-where the fund holds minimal exposure.
In our view, having already paid dues with tight money and higher interest rates in this cycle, the next few years could prove fertile for a broad swath of the equity market beyond the "Magnificent Six." For example, many companies in the genomics space are sacrificing short-term profitability for potential long-term gain. As many of these companies are at an early stage, they are "burning cash" as they invest in ways that we believe will enable them to dominate their spaces.
Top contributors to relative performance
• The top contributor to performance during the period was Twist Bioscience Corporation (TWST). Shares of TWST rose during the period. The company reported strong fiscal second-quarter 2024 financial results. Revenue increased 25% year-over-year, thanks to growth in the company's synthetic biology product line, including Express Gene, which they commercialized in 4Q2024.
• Additional contributors to performance included CareDx, Inc., Nurix Therapeutics, Inc., Ionis Pharmaceuticals, Inc., and Vertex Pharmaceuticals Incorporated.
Biggest detractors from relative performance
• The biggest detractor from performance during the period was Pacific Biosciences of California, Inc. (PACB). Shares of PACB traded down during the period after the company preannounced fourth-quarter 2023 results, including better-than-expected sales of sequencers but lower-than-expected pull-through of the more profitable consumables-a short-term mismatch, in our view.
• Additional detractors from performance included Ginkgo Bioworks Holdings, Inc., Exact Sciences Corporation, Schrödinger, Inc. and Teladoc Health, Inc.
Fund Performance
Growth of an Assumed $10,000 Investment
|
ARK Genomic Revolution ETF - NAV
|
Nasdaq Healthcare Index
|
MSCI World Index (Net)
|
S&P 500 Index
|
|
|
10/30/14
|
$10,000
|
$10,000
|
$10,000
|
$10,000
|
|
7/31/15
|
$11,340
|
$12,110
|
$10,602
|
$10,711
|
|
7/31/16
|
$9,370
|
$9,736
|
$10,553
|
$11,312
|
|
7/31/17
|
$11,119
|
$10,778
|
$12,254
|
$13,127
|
|
7/31/18
|
$14,877
|
$12,263
|
$13,710
|
$15,258
|
|
7/31/19
|
$17,833
|
$11,694
|
$14,207
|
$16,477
|
|
7/31/20
|
$28,605
|
$14,963
|
$15,234
|
$18,447
|
|
7/31/21
|
$45,335
|
$18,356
|
$20,577
|
$25,170
|
|
7/31/22
|
$19,825
|
$12,750
|
$18,691
|
$24,003
|
|
7/31/23
|
$20,511
|
$13,740
|
$21,211
|
$27,127
|
|
7/31/24
|
$14,569
|
$15,072
|
$25,100
|
$33,135
|
|
AVERAGE ANNUAL TOTAL RETURNS
|
1 Year
|
5 years
|
Since Inception 10/30/2014
|
|
ARK Genomic Revolution ETF - NAV
|
-28.97%
|
-3.96%
|
3.93%
|
|
ARK Genomic Revolution ETF - Market
|
-29.08%
|
-4.01%
|
3.94%
|
|
Nasdaq Healthcare Index
|
9.69%
|
5.21%
|
4.30%
|
|
MSCI World Index (Net)
|
18.34%
|
12.06%
|
9.90%
|
|
S&P 500 Index
|
22.15%
|
15.00%
|
13.07%
|
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.arkfunds.com.Additional information about fees and expense levels can be found in the ARK ETFs' current prospectuses. Net asset value ("NAV") returns are based on the dollar value of a single share of an ARK ETF, calculated using the value of the underlying assets of the ARK ETF minus its liabilities, divided by the number of shares outstanding. The NAV is typically calculated at 4:00 pm Eastern time on each business day the New York Stock Exchange is open for trading. Market returns are based on the trade price at which shares are bought and sold on the Cboe BZX Exchange, Inc. using the last share trade. Market performance does not represent the returns you would receive if you traded shares at other times.
The returns for the Fund do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or upon sale of Fund shares.
Fund Statistics
The following table outlines key Fund statistics that you should pay attention to:
- Fund net assets$1,463,401,954
- Total number of portfolio holdings41
- Total advisory fees paid$12,638,417
-
Period portfolio turnover rate
26%
Graphical Representation of Holdings
The table below shows the investment makeup of the Fund. The allocations may not be representative of the Fund's future investments.
|
Sector Diversification
|
% of Total Investments
|
|
Health Care
|
97.7%
|
|
Information Technology
|
1.5%
|
|
Materials
|
0.6%
|
|
Financials (Money Market Fund)
|
0.2%
|
|
Total
|
100.0%
|
Distributor: Foreside Fund Services, LLC
Availability of Additional Information
If you wish to find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting information, please see the website address https://www.arkfunds.com/download-fund-materials/or contact number (727) 810-8160 included at the beginning of this shareholder report.
ARK Autonomous Technology & Robotics ETF
ARKQ | Cboe BZX Exchange, Inc.
ANNUAL SHAREHOLDER REPORT | JULY 31, 2024
This annual shareholder report contains important information about ARK Autonomous Technology & Robotics ETF (the "Fund") for the period of August 1, 2023 to July 31, 2024. You can find additional information about the Fund at https://www.arkfunds.com/download-fund-materials/. You can also request this information by contacting us at (727) 810-8160.
What were the Fund's cost for the period?
(based on a hypothetical $10,000 investment)
|
Fund
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
ARK Autonomous Technology & Robotics ETF
|
$74
|
0.75%
|
Management's Discussion of Fund Performance
SUMMARY OF RESULTS
The Fund underperformed both the S&P 500 Index and the MSCI World Index for the 12-month period ending July 31, 2024. As 2024 began, markets anticipated lower interest rates that would favor long-duration assets. However, the Federal Reserve shifted its stance to "higher for longer." As a result, equity markets became increasingly concentrated, with investors gravitating towards the cash-rich "Magnificent Six" stocks-Apple, Microsoft, Amazon, Alphabet, Meta Platforms, and NVIDIA-where the fund holds minimal exposure.
In our view, having already paid dues with tight money and higher interest rates in this cycle, the next few years could prove fertile for a broad swath of the equity market beyond the "Magnificent Six." Our research indicates that many names underrepresented in the broad-based benchmarks will likely drive value creation over our investment horizon.
Top contributors to relative performance
• The top contributor to performance during the period was Kratos Defense & Security Solutions, Inc. (KTOS). Shares of KTOS contributed to performance during the period in response to the acquisition of Sierra Technical Services, Inc., its autonomous fifth-generation fighter developer. Additionally, they highlighted several AI initiatives, such as the integration of Shield AI's artificial intelligence pilot into its Valkyrie drone.
• Additional contributors to performance included AeroVironment, Inc., NVIDIA Corporation, Teradyne, Inc., and Taiwan Semiconductor Manufacturing Company Limited.
Biggest detractors from relative performance
• The biggest detractor from performance during the period was Iridium Communications Inc. (IRDM). Shares of IRDM traded down as the company has seen increased competition from Starlink in its Maritime segment.
• Additional detractors from performance included Markforged Holdings Corporation, Archer Aviation Inc., Unity Software Inc., and Velo3D, Inc.
Fund Performance
Growth of an Assumed $10,000 Investment
|
ARK Autonomous Technology & Robotics ETF - NAV
|
MSCI World Index (Net)
|
S&P 500 Index
|
Nasdaq Industrials Index
|
|
|
9/29/14
|
$10,000
|
$10,000
|
$10,000
|
$10,000
|
|
7/31/15
|
$9,730
|
$10,530
|
$10,815
|
$11,599
|
|
7/31/16
|
$10,479
|
$10,481
|
$11,423
|
$11,936
|
|
7/31/17
|
$14,937
|
$12,171
|
$13,255
|
$14,200
|
|
7/31/18
|
$17,903
|
$13,616
|
$15,408
|
$16,948
|
|
7/31/19
|
$17,427
|
$14,109
|
$16,638
|
$18,020
|
|
7/31/20
|
$27,784
|
$15,130
|
$18,628
|
$22,962
|
|
7/31/21
|
$43,151
|
$20,436
|
$25,416
|
$29,699
|
|
7/31/22
|
$30,086
|
$18,564
|
$24,237
|
$25,160
|
|
7/31/23
|
$31,544
|
$21,066
|
$27,392
|
$26,077
|
|
7/31/24
|
$30,328
|
$24,929
|
$33,459
|
$27,895
|
|
AVERAGE ANNUAL TOTAL RETURNS
|
1 Year
|
5 years
|
Since Inception 9/29/2014
|
|
ARK Autonomous Technology & Robotics ETF - NAV
|
-3.86%
|
11.72%
|
11.94%
|
|
ARK Autonomous Technology & Robotics ETF - Market
|
-3.96%
|
11.70%
|
11.94%
|
|
MSCI World Index (Net)
|
18.34%
|
12.06%
|
9.73%
|
|
S&P 500 Index
|
22.15%
|
15.00%
|
13.06%
|
|
Nasdaq Industrials Index
|
6.97%
|
9.13%
|
10.99%
|
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.arkfunds.com.Additional information about fees and expense levels can be found in the ARK ETFs' current prospectuses. Net asset value ("NAV") returns are based on the dollar value of a single share of an ARK ETF, calculated using the value of the underlying assets of the ARK ETF minus its liabilities, divided by the number of shares outstanding. The NAV is typically calculated at 4:00 pm Eastern time on each business day the New York Stock Exchange is open for trading. Market returns are based on the trade price at which shares are bought and sold on the Cboe BZX Exchange, Inc. using the last share trade. Market performance does not represent the returns you would receive if you traded shares at other times.
The returns for the Fund do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or upon sale of Fund shares.
Fund Statistics
The following table outlines key Fund statistics that you should pay attention to:
- Fund net assets$791,819,829
- Total number of portfolio holdings37
- Total advisory fees paid$6,997,809
-
Period portfolio turnover rate
20%
Graphical Representation of Holdings
The table below shows the investment makeup of the Fund. The allocations may not be representative of the Fund's future investments.
|
Sector Diversification
|
% of Total Investments
|
|
Industrials
|
35.8%
|
|
Information Technology
|
35.2%
|
|
Consumer Discretionary
|
16.4%
|
|
Communication Services
|
8.4%
|
|
Health Care
|
1.6%
|
|
Energy
|
1.3%
|
|
Utilities
|
1.1%
|
|
Financials (Money Market Fund)
|
0.2%
|
|
Total
|
100.0%
|
Distributor: Foreside Fund Services, LLC
Availability of Additional Information
If you wish to find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting information, please see the website address https://www.arkfunds.com/download-fund-materials/or contact number (727) 810-8160 included at the beginning of this shareholder report.
ARK Innovation ETF
ARKK | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | JULY 31, 2024
This annual shareholder report contains important information about ARK Innovation ETF (the "Fund") for the period of August 1, 2023 to July 31, 2024. You can find additional information about the Fund at https://www.arkfunds.com/download-fund-materials/. You can also request this information by contacting us at (727) 810-8160.
What were the Fund's cost for the period?
(based on a hypothetical $10,000 investment)
|
Fund
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
ARK Innovation ETF
|
$71
|
0.75%
|
Management's Discussion of Fund Performance
SUMMARY OF RESULTS
The Fund underperformed both the S&P 500 Index and the MSCI World Index for the 12-month period ending July 31, 2024. As 2024 began, markets anticipated lower interest rates that would favor long-duration assets. However, the Federal Reserve shifted its stance to "higher for longer." As a result, equity markets became increasingly concentrated, with investors gravitating towards the cash-rich "Magnificent Six" stocks-Apple, Microsoft, Amazon, Alphabet, Meta Platforms, and NVIDIA-where the fund holds minimal exposure.
In our view, having already paid dues with tight money and higher interest rates in this cycle, the next few years could prove fertile for a broad swath of the equity market beyond the "Magnificent Six." Our research indicates that many names underrepresented in the broad-based benchmarks will likely drive value creation over our investment horizon.
Top contributors to relative performance
• The top contributor to performance during the period was Coinbase Global, Inc. (COIN or Coinbase). Shares of COIN rallied along with the broad crypto asset market. Coinbase also received positive news in its legal battle with the U.S. Securities and Exchange Commission (SEC) as the court dismissed the SEC's charges against Coinbase Wallet, its self-custody solution - a significant win for Coinbase and for decentralized financial services in the US broadly.
• Additional contributors to performance included Robinhood Markets, Inc., Twist Bioscience Corporation, Palantir Technologies Inc., and Roblox Corporation.
Biggest detractors from relative performance
• The biggest detractor from performance during the period was Unity Software Inc. (U). Shares of U traded down after the company reported mixed fourth-quarter 2024 results, guiding to 3% year-over-year revenue growth at midpoint for the full year 2024, well below Wall Street estimates of 9%.
• Additional detractors from performance included Ginkgo Bioworks Holdings, Inc., Roku, Inc., Teladoc Health, Inc., and Pacific Biosciences of California, Inc.
Fund Performance
Growth of an Assumed $10,000 Investment
|
ARK Innovation ETF - NAV
|
MSCI World Index (Net)
|
S&P 500 Index
|
|
|
10/30/14
|
$10,000
|
$10,000
|
$10,000
|
|
7/31/15
|
$10,725
|
$10,602
|
$10,711
|
|
7/31/16
|
$10,540
|
$10,553
|
$11,312
|
|
7/31/17
|
$15,126
|
$12,254
|
$13,127
|
|
7/31/18
|
$23,047
|
$13,710
|
$15,258
|
|
7/31/19
|
$25,847
|
$14,207
|
$16,477
|
|
7/31/20
|
$43,118
|
$15,234
|
$18,447
|
|
7/31/21
|
$65,387
|
$20,577
|
$25,170
|
|
7/31/22
|
$24,819
|
$18,691
|
$24,003
|
|
7/31/23
|
$27,725
|
$21,211
|
$27,127
|
|
7/31/24
|
$25,021
|
$25,100
|
$33,135
|
|
AVERAGE ANNUAL TOTAL RETURNS
|
1 Year
|
5 years
|
Since Inception 10/30/2014
|
|
ARK Innovation ETF - NAV
|
-9.75%
|
-0.65%
|
9.86%
|
|
ARK Innovation ETF - Market
|
-9.75%
|
-0.68%
|
9.88%
|
|
MSCI World Index (Net)
|
18.34%
|
12.06%
|
9.90%
|
|
S&P 500 Index
|
22.15%
|
15.00%
|
13.07%
|
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.arkfunds.com.Additional information about fees and expense levels can be found in the ARK ETFs' current prospectuses. Net asset value ("NAV") returns are based on the dollar value of a single share of an ARK ETF, calculated using the value of the underlying assets of the ARK ETF minus its liabilities, divided by the number of shares outstanding. The NAV is typically calculated at 4:00 pm Eastern time on each business day the New York Stock Exchange is open for trading. Market returns are based on the trade price at which shares are bought and sold on the NYSE Arca, Inc. using the last share trade. Market performance does not represent the returns you would receive if you traded shares at other times.
The returns for the Fund do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or upon sale of Fund shares.
Fund Statistics
The following table outlines key Fund statistics that you should pay attention to:
- Fund net assets$5,965,698,028
- Total number of portfolio holdings34
- Total advisory fees paid$54,966,688
-
Period portfolio turnover rate
39%
Graphical Representation of Holdings
The table below shows the investment makeup of the Fund. The allocations may not be representative of the Fund's future investments.
|
Sector Diversification
|
% of Total Investments
|
|
Health Care
|
24.1%
|
|
Communication Services
|
20.1%
|
|
Financials
|
19.1%
|
|
Information Technology
|
18.9%
|
|
Consumer Discretionary
|
16.4%
|
|
Industrials
|
1.1%
|
|
Financials (Money Market Fund)
|
0.3%
|
|
Total
|
100.0%
|
Distributor: Foreside Fund Services, LLC
Availability of Additional Information
If you wish to find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting information, please see the website address https://www.arkfunds.com/download-fund-materials/or contact number (727) 810-8160 included at the beginning of this shareholder report.
ARK Next Generation Internet ETF
ARKW | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | JULY 31, 2024
This annual shareholder report contains important information about ARK Next Generation Internet ETF (the "Fund") for the period of August 1, 2023 to July 31, 2024. You can find additional information about the Fund at https://www.arkfunds.com/download-fund-materials/. You can also request this information by contacting us at (727) 810-8160.
What were the Fund's cost for the period?
(based on a hypothetical $10,000 investment)
|
Fund
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
ARK Next Generation Internet ETF
|
$81
|
0.75%
|
Management's Discussion of Fund Performance
SUMMARY OF RESULTS
The Fund underperformed both the S&P 500 Index and the MSCI World Index for the 12-month period ending July 31, 2024. As 2024 began, markets anticipated lower interest rates that would favor long-duration assets. However, the Federal Reserve shifted its stance to "higher for longer." As a result, equity markets became increasingly concentrated, with investors gravitating towards the cash-rich "Magnificent Six" stocks-Apple, Microsoft, Amazon, Alphabet, Meta Platforms, and NVIDIA-where the fund holds minimal exposure.
In our view, having already paid dues with tight money and higher interest rates in this cycle, the next few years could prove fertile for a broad swath of the equity market beyond the "Magnificent Six." Our research indicates that many names underrepresented in the broad-based benchmarks will likely drive value creation over our investment horizon.
Top contributors to relative performance
• The top contributor to performance during the period was Coinbase Global, Inc. (COIN or Coinbase). Shares of COIN rallied along with the broad crypto asset market. Coinbase also received positive news in its legal battle with the U.S. Securities and Exchange Commission (SEC) as the court dismissed the SEC's charges against Coinbase Wallet, its self-custody solution - a significant win for Coinbase and for decentralized financial services in the US broadly.
• Additional contributors to performance included Grayscale Bitcoin Trust, ARK 21Shares Bitcoin ETF, Robinhood Markets, Inc., and Spotify Technologies SA.
Biggest detractors from relative performance
• The biggest detractor from performance during the period was Unity Software Inc. (U). Shares of U traded down after the company reported mixed fourth-quarter 2024 results, guiding to 3% year-over-year revenue growth at midpoint for the full year 2024, well below Wall Street estimates of 9%.
• Additional detractors from performance included Roku, Inc., Teladoc Health, Inc., Block, Inc., and Zoom Video Communications, Inc.
Fund Performance
Growth of an Assumed $10,000 Investment
|
ARK Next Generation Internet ETF - NAV
|
S&P 500 Index
|
MSCI World Index (Net)
|
|
|
9/29/14
|
$10,000
|
$10,000
|
$10,000
|
|
7/31/15
|
$11,845
|
$10,815
|
$10,530
|
|
7/31/16
|
$12,371
|
$11,423
|
$10,481
|
|
7/31/17
|
$18,829
|
$13,255
|
$12,171
|
|
7/31/18
|
$28,754
|
$15,408
|
$13,616
|
|
7/31/19
|
$30,907
|
$16,638
|
$14,109
|
|
7/31/20
|
$58,763
|
$18,628
|
$15,130
|
|
7/31/21
|
$88,184
|
$25,416
|
$20,436
|
|
7/31/22
|
$33,560
|
$24,237
|
$18,564
|
|
7/31/23
|
$41,361
|
$27,392
|
$21,066
|
|
7/31/24
|
$48,193
|
$33,459
|
$24,929
|
|
AVERAGE ANNUAL TOTAL RETURNS
|
1 Year
|
5 years
|
Since Inception 9/29/2014
|
|
ARK Next Generation Internet ETF - NAV
|
16.52%
|
9.29%
|
17.34%
|
|
ARK Next Generation Internet ETF - Market
|
15.57%
|
9.07%
|
17.26%
|
|
S&P 500 Index
|
22.15%
|
15.00%
|
13.06%
|
|
MSCI World Index (Net)
|
18.34%
|
12.06%
|
9.73%
|
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.arkfunds.com.Additional information about fees and expense levels can be found in the ARK ETFs' current prospectuses. Net asset value ("NAV") returns are based on the dollar value of a single share of an ARK ETF, calculated using the value of the underlying assets of the ARK ETF minus its liabilities, divided by the number of shares outstanding. The NAV is typically calculated at 4:00 pm Eastern time on each business day the New York Stock Exchange is open for trading. Market returns are based on the trade price at which shares are bought and sold on the NYSE Arca, Inc. using the last share trade. Market performance does not represent the returns you would receive if you traded shares at other times.
The returns for the Fund do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or upon sale of Fund shares.
Fund Statistics
The following table outlines key Fund statistics that you should pay attention to:
- Fund net assets$1,394,382,172
- Total number of portfolio holdings42
- Total advisory fees paid$11,264,165
-
Period portfolio turnover rate
54%
Graphical Representation of Holdings
The table below shows the investment makeup of the Fund. The allocations may not be representative of the Fund's future investments.
|
Sector Diversification
|
% of Total Investments
|
|
Financials
|
32.3%
|
|
Communication Services
|
25.6%
|
|
Information Technology
|
24.6%
|
|
Consumer Discretionary
|
17.1%
|
|
Health Care
|
0.4%
|
|
Financials (Money Market Fund)
|
0.0%
|
|
Total
|
100.0%
|
Distributor: Foreside Fund Services, LLC
Availability of Additional Information
If you wish to find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting information, please see the website address https://www.arkfunds.com/download-fund-materials/or contact number (727) 810-8160 included at the beginning of this shareholder report.
ARK Fintech Innovation ETF
ARKF | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | JULY 31, 2024
This annual shareholder report contains important information about ARK Fintech Innovation ETF (the "Fund") for the period of August 1, 2023 to July 31, 2024. You can find additional information about the Fund at https://www.arkfunds.com/download-fund-materials/. You can also request this information by contacting us at (727) 810-8160.
What were the Fund's cost for the period?
(based on a hypothetical $10,000 investment)
|
Fund
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
ARK Fintech Innovation ETF
|
$80
|
0.75%
|
Management's Discussion of Fund Performance
SUMMARY OF RESULTS
The Fund underperformed both the S&P 500 Index and the MSCI World Index for the 12-month period ending July 31, 2024. As 2024 began, markets anticipated lower interest rates that would favor long-duration assets. However, the Federal Reserve shifted its stance to "higher for longer." As a result, equity markets became increasingly concentrated, with investors gravitating towards the cash-rich "Magnificent Six" stocks-Apple, Microsoft, Amazon, Alphabet, Meta Platforms, and NVIDIA-where the fund holds minimal exposure.
In our view, having already paid dues with tight money and higher interest rates in this cycle, the next few years could prove fertile for a broad swath of the equity market beyond the "Magnificent Six." Our research indicates that many names underrepresented in the broad-based benchmarks will likely drive value creation over our investment horizon.
Top contributors to relative performance
• The top contributor to performance during the period was Coinbase Global, Inc. (COIN or Coinbase). Shares of COIN rallied along with the broad crypto asset market. Coinbase also received positive news in its legal battle with the U.S. Securities and Exchange Commission (SEC) as the court dismissed the SEC's charges against Coinbase Wallet, its self-custody solution - a significant win for Coinbase and for decentralized financial services in the US broadly.
• Additional contributors to performance included Robinhood Markets, Inc., DraftKings Inc., NVIDIA Corporation, and Mercado Libre, Inc.
Biggest detractors from relative performance
• The biggest detractor from performance during the period was Bill Holdings, Inc. (Bill Holdings). While total revenue for Bill Holdings surpassed consensus expectations during the third quarter of 2023, management guidance missed expectations. Management cited continued macroeconomic pressure as customers cut back on spending and opted for lower-cost payment methods at the expense of payment speed.
• Additional detractors from performance included Block, Inc., Teladoc Health, Inc., Global-E Online Ltd., and Roku, Inc.
Fund Performance
Growth of an Assumed $10,000 Investment
|
ARK Fintech Innovation ETF - NAV
|
MSCI World Index (Net)
|
S&P 500 Index
|
|
|
2/1/19
|
$10,000
|
$10,000
|
$10,000
|
|
7/31/19
|
$11,421
|
$10,901
|
$11,121
|
|
7/31/20
|
$18,314
|
$11,689
|
$12,450
|
|
7/31/21
|
$25,746
|
$15,789
|
$16,988
|
|
7/31/22
|
$9,098
|
$14,342
|
$16,200
|
|
7/31/23
|
$12,275
|
$16,276
|
$18,308
|
|
7/31/24
|
$13,843
|
$19,260
|
$22,363
|
|
AVERAGE ANNUAL TOTAL RETURNS
|
1 Year
|
5 years
|
Since Inception 2/1/2019
|
|
ARK Fintech Innovation ETF - NAV
|
12.78%
|
3.92%
|
6.10%
|
|
ARK Fintech Innovation ETF - Market
|
12.48%
|
3.89%
|
6.08%
|
|
MSCI World Index (Net)
|
18.34%
|
12.06%
|
12.67%
|
|
S&P 500 Index
|
22.15%
|
15.00%
|
15.78%
|
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.arkfunds.com.Additional information about fees and expense levels can be found in the ARK ETFs' current prospectuses. Net asset value ("NAV") returns are based on the dollar value of a single share of an ARK ETF, calculated using the value of the underlying assets of the ARK ETF minus its liabilities, divided by the number of shares outstanding. The NAV is typically calculated at 4:00 pm Eastern time on each business day the New York Stock Exchange is open for trading. Market returns are based on the trade price at which shares are bought and sold on the NYSE Arca, Inc. using the last share trade. Market performance does not represent the returns you would receive if you traded shares at other times.
The returns for the Fund do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or upon sale of Fund shares.
Fund Statistics
The following table outlines key Fund statistics that you should pay attention to:
- Fund net assets$828,213,651
- Total number of portfolio holdings33
- Total advisory fees paid$7,305,551
-
Period portfolio turnover rate
37%
Graphical Representation of Holdings
The table below shows the investment makeup of the Fund. The allocations may not be representative of the Fund's future investments.
|
Sector Diversification
|
% of Total Investments
|
|
Financials
|
49.2%
|
|
Information Technology
|
20.7%
|
|
Communication Services
|
18.3%
|
|
Consumer Discretionary
|
10.9%
|
|
Real Estate
|
0.9%
|
|
Total
|
100.0%
|
Distributor: Foreside Fund Services, LLC
Availability of Additional Information
If you wish to find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting information, please see the website address https://www.arkfunds.com/download-fund-materials/or contact number (727) 810-8160 included at the beginning of this shareholder report.
ARK Space Exploration & Innovation ETF
ARKX | Cboe BZX Exchange, Inc.
ANNUAL SHAREHOLDER REPORT | JULY 31, 2024
This annual shareholder report contains important information about ARK Space Exploration & Innovation ETF (the "Fund") for the period of August 1, 2023 to July 31, 2024. You can find additional information about the Fund at https://www.arkfunds.com/download-fund-materials/. You can also request this information by contacting us at (727) 810-8160.
What were the Fund's cost for the period?
(based on a hypothetical $10,000 investment)
|
Fund
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
ARK Space Exploration & Innovation ETF
|
$72
|
0.72%
|
Management's Discussion of Fund Performance
SUMMARY OF RESULTS
The Fund underperformed both the S&P 500 Index and the MSCI World Index for the 12-month period ending July 31, 2024. As 2024 began, markets anticipated lower interest rates that would favor long-duration assets. However, the Federal Reserve shifted its stance to "higher for longer." As a result, equity markets became increasingly concentrated, with investors gravitating towards the cash-rich "Magnificent Six" stocks-Apple, Microsoft, Amazon, Alphabet, Meta Platforms, and NVIDIA-where the fund holds minimal exposure.
In our view, having already paid dues with tight money and higher interest rates in this cycle, the next few years could prove fertile for a broad swath of the equity market beyond the "Magnificent Six." Our research indicates that many names underrepresented in the broad-based benchmarks will likely drive value creation over our investment horizon.
Top contributors to relative performance
• The top contributor to performance during the period was AeroVironment, Inc. (AVAV or AeroVironment). Shares of AVAV traded up as part of a broad market rally for defense companies. The U.S. Department of Defense's Replicator Initiative selected AeroVironment's Switchblade 600 loitering munitions system (LMS).
• Additional contributors to performance included Kratos Defense & Security Solutions, Inc., Garmin Ltd, Amazon.com, Inc., and L3Harris Technologies, Inc.
Biggest detractors from relative performance
• The biggest detractor from performance during the period was Iridium Communications Inc. (IRDM). Shares of IRDM traded down as the company has seen increased competition from Starlink in its Maritime segment.
• Additional detractors from performance included Markforged Holdings Corporation, Archer Aviation, Inc., Velo3D, Inc., and Unity Software Inc.
Fund Performance
Growth of an Assumed $10,000 Investment
|
ARK Space Exploration & Innovation ETF - NAV
|
MSCI World Index (Net)
|
S&P 500 Index
|
|
|
3/30/21
|
$10,000
|
$10,000
|
$10,000
|
|
7/31/21
|
$10,177
|
$10,994
|
$11,154
|
|
7/31/22
|
$7,466
|
$9,986
|
$10,636
|
|
7/31/23
|
$7,785
|
$11,333
|
$12,021
|
|
7/31/24
|
$7,643
|
$13,411
|
$14,683
|
|
AVERAGE ANNUAL TOTAL RETURNS
|
1 Year
|
Since Inception 3/30/2021
|
|
ARK Space Exploration & Innovation ETF - NAV
|
-1.82%
|
-7.74%
|
|
ARK Space Exploration & Innovation ETF - Market
|
-2.18%
|
-7.80%
|
|
MSCI World Index (Net)
|
18.34%
|
9.19%
|
|
S&P 500 Index
|
22.15%
|
12.20%
|
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.arkfunds.com.Additional information about fees and expense levels can be found in the ARK ETFs' current prospectuses. Net asset value ("NAV") returns are based on the dollar value of a single share of an ARK ETF, calculated using the value of the underlying assets of the ARK ETF minus its liabilities, divided by the number of shares outstanding. The NAV is typically calculated at 4:00 pm Eastern time on each business day the New York Stock Exchange is open for trading. Market returns are based on the trade price at which shares are bought and sold on the Cboe BZX Exchange, Inc. using the last share trade. Market performance does not represent the returns you would receive if you traded shares at other times.
The returns for the Fund do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or upon sale of Fund shares.
Fund Statistics
The following table outlines key Fund statistics that you should pay attention to:
- Fund net assets$226,236,023
- Total number of portfolio holdings35
- Total advisory fees paid$1,892,246
-
Period portfolio turnover rate
18%
Graphical Representation of Holdings
The table below shows the investment makeup of the Fund. The allocations may not be representative of the Fund's future investments.
|
Sector Diversification
|
% of Total Investments
|
|
Industrials
|
55.0%
|
|
Information Technology
|
24.4%
|
|
Communication Services
|
11.0%
|
|
Consumer Discretionary
|
6.5%
|
|
Equity Fund
|
2.8%
|
|
Financials (Money Market Fund)
|
0.3%
|
|
Total
|
100.0%
|
Distributor: Foreside Fund Services, LLC
Availability of Additional Information
If you wish to find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting information, please see the website address https://www.arkfunds.com/download-fund-materials/or contact number (727) 810-8160 included at the beginning of this shareholder report.
The 3D Printing ETF
PRNT | Cboe BZX Exchange, Inc.
ANNUAL SHAREHOLDER REPORT | JULY 31, 2024
This annual shareholder report contains important information about The 3D Printing ETF (the "Fund") for the period of August 1, 2023 to July 31, 2024. You can find additional information about the Fund at https://www.arkfunds.com/download-fund-materials/. You can also request this information by contacting us at (727) 810-8160.
What were the Fund's cost for the period?
(based on a hypothetical $10,000 investment)
|
Fund
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
ARK The 3D Printing ETF
|
$61
|
0.66%
|
Management's Discussion of Fund Performance
SUMMARY OF RESULTS
The Fund underperformed both the S&P 500 Index and the MSCI World Index for the 12-month period ending July 31, 2024. As 2024 began, markets anticipated lower interest rates that would favor long-duration assets. However, the Federal Reserve shifted its stance to "higher for longer." As a result, equity markets became increasingly concentrated, with investors gravitating towards the cash-rich "Magnificent Six" stocks-Apple, Microsoft, Amazon, Alphabet, Meta Platforms, and NVIDIA-where the fund holds minimal exposure.
In our view, having already paid dues with tight money and higher interest rates in this cycle, the next few years could prove fertile for a broad swath of the equity market beyond the "Magnificent Six." Our research indicates that many names underrepresented in the broad-based benchmarks will likely drive value creation over our investment horizon.
Top contributors to relative performance
• The top contributor to performance during the period was General Electric Company (General Electric). After facing supply chain issues in 2022, General Electric saw improvements in 2023. Additionally, the spinoff of GE Vernova was well received by the market.
• Additional contributors to performance included Moog Inc., BICO Group AB, HP Inc., and Altair Engineering Inc.
Biggest detractors from relative performance
• The biggest detractor from performance during the period was Markforged Holding Corporation (MKFG or Markforged). Shares of MKFG declined after a federal jury determined that the company must pay $17.34 million to Continuous Composites for patent infringement. Markforged is looking to overturn the verdict.
• Additional detractors from performance included Velo3D, Inc., Desktop Metal, Inc., 3D Systems Corporation, and Stratasys Ltd.
Fund Performance
Growth of an Assumed $10,000 Investment
|
The 3D Printing ETF - NAV
|
The Total 3-D Printing Index
|
MSCI World Index (Net)
|
S&P 500 Index
|
|
|
7/18/16
|
$10,000
|
$10,000
|
$10,000
|
$10,000
|
|
7/31/16
|
$10,015
|
$10,022
|
$10,107
|
$10,034
|
|
7/31/17
|
$12,760
|
$12,976
|
$11,736
|
$11,644
|
|
7/31/18
|
$12,371
|
$12,653
|
$13,131
|
$13,535
|
|
7/31/19
|
$11,351
|
$11,717
|
$13,606
|
$14,616
|
|
7/31/20
|
$11,482
|
$11,963
|
$14,590
|
$16,364
|
|
7/31/21
|
$19,607
|
$20,433
|
$19,707
|
$22,328
|
|
7/31/22
|
$11,934
|
$12,554
|
$17,901
|
$21,292
|
|
7/31/23
|
$12,603
|
$13,154
|
$20,315
|
$24,063
|
|
7/31/24
|
$10,647
|
$11,189
|
$24,040
|
$29,392
|
|
AVERAGE ANNUAL TOTAL RETURNS
|
1 Year
|
5 years
|
Since Inception 7/18/2016
|
|
The 3D Printing ETF - NAV
|
-15.53%
|
-1.27%
|
0.78%
|
|
The 3D Printing ETF - Market
|
-15.60%
|
-1.50%
|
0.76%
|
|
The Total 3-D Printing Index
|
-14.94%
|
-0.92%
|
1.41%
|
|
MSCI World Index (Net)
|
18.34%
|
12.06%
|
11.53%
|
|
S&P 500 Index
|
22.15%
|
15.00%
|
14.36%
|
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.arkfunds.com.Additional information about fees and expense levels can be found in the ARK ETFs' current prospectuses. Net asset value ("NAV") returns are based on the dollar value of a single share of an ARK ETF, calculated using the value of the underlying assets of the ARK ETF minus its liabilities, divided by the number of shares outstanding. The NAV is typically calculated at 4:00 pm Eastern time on each business day the New York Stock Exchange is open for trading. Market returns are based on the trade price at which shares are bought and sold on the Cboe BZX Exchange, Inc. using the last share trade. Market performance does not represent the returns you would receive if you traded shares at other times.
The returns for the Fund do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or upon sale of Fund shares.
Fund Statistics
The following table outlines key Fund statistics that you should pay attention to:
- Fund net assets$105,353,682
- Total number of portfolio holdings53
- Total advisory fees paid$882,346
-
Period portfolio turnover rate
39%
Graphical Representation of Holdings
The table below shows the investment makeup of the Fund. The allocations may not be representative of the Fund's future investments.
|
Sector Diversification
|
% of Total Investments
|
|
Information Technology
|
41.6%
|
|
Industrials
|
36.9%
|
|
Health Care
|
13.2%
|
|
Consumer Discretionary
|
5.9%
|
|
Materials
|
2.4%
|
|
Consumer Staples
|
0.1%
|
|
Total
|
100.0%
|
Distributor: Foreside Fund Services, LLC
Availability of Additional Information
If you wish to find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting information, please see the website address https://www.arkfunds.com/download-fund-materials/or contact number (727) 810-8160 included at the beginning of this shareholder report.
ARK Israel Innovative Technology ETF
IZRL | Cboe BZX Exchange, Inc.
ANNUAL SHAREHOLDER REPORT | JULY 31, 2024
This annual shareholder report contains important information about ARK Israel Innovative Technology ETF (the "Fund") for the period of August 1, 2023 to July 31, 2024. You can find additional information about the Fund at https://www.arkfunds.com/download-fund-materials/. You can also request this information by contacting us at (727) 810-8160.
What were the Fund's cost for the period?
(based on a hypothetical $10,000 investment)
|
Fund
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
ARK Israel Innovative Technology ETF
|
$49
|
0.49%
|
Management's Discussion of Fund Performance
SUMMARY OF RESULTS
The Fund underperformed both the S&P 500 Index and the MSCI World Index for the 12-month period ending July 31, 2024. As 2024 began, markets anticipated lower interest rates that would favor long-duration assets. However, the Federal Reserve shifted its stance to "higher for longer." As a result, equity markets became increasingly concentrated, with investors gravitating towards the cash-rich "Magnificent Six" stocks-Apple, Microsoft, Amazon, Alphabet, Meta Platforms, and NVIDIA-where the fund holds minimal exposure.
In our view, having already paid dues with tight money and higher interest rates in this cycle, the next few years could prove fertile for a broad swath of the equity market beyond the "Magnificent Six." Our research indicates that many names underrepresented in the broad-based benchmarks will likely drive value creation over our investment horizon.
Top contributors to relative performance
• The top contributor to performance during the period was Camtek Ltd (CAMT or Camtek). Shares of CAMT appreciated after announcing its acquisition of FormFactor's FRT Metrology unit. Camtek is a developer and manufacturer of high-end inspection and metrology equipment for the semiconductor industry.
• Additional contributors to performance included Teva Pharmaceuticals Industries Limited, WalkMe Ltd., Cellebrite DI Ltd., and WIX.com Ltd.
Biggest detractors from relative performance
• The biggest detractor from performance during the period was Gamida Cell Ltd (Gamida Cell). Gamida Cell underwent a major restructuring, which involved delisting from the NASDAQ and moving to the OTC market, which often reduced investor confidence.
• Additional detractors from performance included Perion Network Ltd., UroGen Pharma Ltd., Inmode Ltd., and Stratasys Ltd.
Fund Performance
Growth of an Assumed $10,000 Investment
|
ARK Israel Innovative Technology ETF - NAV
|
ARK Israeli Innovation Index
|
MSCI World Index (Net)
|
S&P 500 Index
|
|
|
12/4/17
|
$10,000
|
$10,000
|
$10,000
|
$10,000
|
|
7/31/18
|
$10,427
|
$10,420
|
$10,534
|
$10,798
|
|
7/31/19
|
$10,591
|
$10,600
|
$10,915
|
$11,660
|
|
7/31/20
|
$13,165
|
$13,515
|
$11,705
|
$13,054
|
|
7/31/21
|
$15,937
|
$16,663
|
$15,810
|
$17,812
|
|
7/31/22
|
$10,233
|
$10,805
|
$14,361
|
$16,986
|
|
7/31/23
|
$10,614
|
$11,227
|
$16,297
|
$19,196
|
|
7/31/24
|
$10,591
|
$11,264
|
$19,285
|
$23,448
|
|
AVERAGE ANNUAL TOTAL RETURNS
|
1 Year
|
5 years
|
Since Inception 12/4/2017
|
|
ARK Israel Innovative Technology ETF - NAV
|
-0.22%
|
0.00
|
0.87%
|
|
ARK Israel Innovative Technology ETF - Market
|
-0.45%
|
-0.16%
|
0.82%
|
|
ARK Israeli Innovation Index
|
0.33%
|
1.22%
|
1.80%
|
|
MSCI World Index (Net)
|
18.34%
|
12.06%
|
10.37%
|
|
S&P 500 Index
|
22.15%
|
15.00%
|
13.66%
|
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.arkfunds.com.Additional information about fees and expense levels can be found in the ARK ETFs' current prospectuses. Net asset value ("NAV") returns are based on the dollar value of a single share of an ARK ETF, calculated using the value of the underlying assets of the ARK ETF minus its liabilities, divided by the number of shares outstanding. The NAV is typically calculated at 4:00 pm Eastern time on each business day the New York Stock Exchange is open for trading. Market returns are based on the trade price at which shares are bought and sold on the Cboe BZX Exchange, Inc. using the last share trade. Market performance does not represent the returns you would receive if you traded shares at other times.
The returns for the Fund do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or upon sale of Fund shares.
Fund Statistics
The following table outlines key Fund statistics that you should pay attention to:
- Fund net assets$99,212,894
- Total number of portfolio holdings50
- Total advisory fees paid$472,715
-
Period portfolio turnover rate
43%
Graphical Representation of Holdings
The table below shows the investment makeup of the Fund. The allocations may not be representative of the Fund's future investments.
|
Sector Diversification
|
% of Total Investments
|
|
Information Technology
|
57.6%
|
|
Health Care
|
12.6%
|
|
Industrials
|
12.2%
|
|
Communication Services
|
12.0%
|
|
Consumer Discretionary
|
5.5%
|
|
Financials (Money Market Fund)
|
0.1%
|
|
Total
|
100.0%
|
Distributor: Foreside Fund Services, LLC
Availability of Additional Information
If you wish to find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting information, please see the website address https://www.arkfunds.com/download-fund-materials/or contact number (727) 810-8160 included at the beginning of this shareholder report.
| (b) | Not applicable. |
Item 2. Code of Ethics.
| (a) | As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party ("Code of Ethics"). |
| (c) | There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description enumerated in Item 2(b) of Form N-CSR. |
| (d) | During the period covered by this report, the registrant did not grant any waivers, including an implicit waiver, from a provision of the Code of Ethics that relates to one or more of the items set forth in Item 2(b) of Form N-CSR. |
| (e) | Not applicable. |
| (f) | The Code of Ethics is attached hereto as Exhibit 19(a)(1). |
Item 3. Audit Committee Financial Expert.
The registrant's board of trustees has determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its audit committee. Scott R. Chichester is qualified to serve as an "audit committee financial expert" and is "independent" (as each term is defined in Item 3 of Form N-CSR).
Item 4. Principal Accountant Fees and Services.
Audit Fees
| (a) | The aggregate fees billed for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for the fiscal years are $176,000 for July 31, 2023 and $182,160 for July 31, 2024. |
Audit-Related Fees
| (b) | The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item are $0 for July 31, 2023 and $0 for July 31, 2024. |
Tax Fees
| (c) | The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $105,500 for July 31, 2023 and $93,345 for July 31, 2024. |
The services comprising the fees disclosed under this category are:
| 1. | Review and sign as paid preparer the federal, excise and state tax returns for each fund |
| 2. | Assist management with identification of PFICs through subscription to our proprietary EYPFIC Analyzer |
| 3. | Assist with reclaiming dividend withholding tax and IRS closing agreements in foreign jurisdictions, as requested |
| 4. | Provide international compliance and planning services in other countries, as requested |
| 5. | Provide assistance with reclaiming dividend withholding tax at source in certain foreign countries |
All Other Fees
| (d) | The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for July 31, 2023 and $0 for July 31, 2024. |
| (e)(1) | The registrant's audit committee ("Audit Committee") has adopted an Audit and Non-Audit Services Pre-Approval Policy ("Pre-Approval Policy") that applies to any and all engagements of the independent auditor to the registrant for audit, non-audit, tax or other services. Pursuant to the Pre-Approval Policy, the Audit Committee is required to pre-approve the audit services and permissible non-audit services proposed to be performed by the independent auditor for the registrant to assure that the independence of the auditor is not in any way compromised or impaired. In assessing whether a particular audit or non-audit service should be approved, the Audit Committee will take into account the ratio between the total amounts paid for audit, audit-related, tax and other services, based on historical patterns, with a view toward assuring that the level of fees paid for non-audit services as they relate to the fees paid for audit services does not compromise or impair the independence of the auditor. The Audit Committee may either grant general pre-approval of proposed services of the independent auditor through adoption of a list of authorized services together with a budget of expected costs for those services ("general pre-approval"), or specific pre-approval of services provided on a case-by-case basis ("specific pre-approval"). Unless particular services have received general pre-approval, those services will require specific pre-approval by the Audit Committee before any such services can be provided by the independent auditor. The annual audit services engagement terms and fees for the independent auditor for the registrant require specific pre-approval of the Audit Committee. The Audit Committee may grant general pre-approval for (i) other audit services, which are those services that only the independent auditor reasonably can provide, (ii) audit related services, (iii) those tax services that have historically been provided by the independent auditor, and (iv) those permissible non-audit services classified as "all other" services that the Audit Committee believes are routine and recurring services. The Audit Committee from time to time may delegate either general or specific pre-approval authority to one or more of its members. Any member to whom such authority is delegated must report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next scheduled meeting. The Audit Committee has not delegated either general or specific pre-approval authority to one or more of its members. |
| (e)(2) | The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows: |
(b) N/A
(c) N/A
(d) N/A
| (f) | The percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was less than fifty percent. |
| (g) | The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for the registrant's fiscal year ended July 31, 2023 were $287,500 and for July 31, 2024 were $93,345. |
| (h) | The registrant's audit committee of the board of trustees has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. |
| (i) | Not applicable. |
| (j) | Not applicable. |
Item 5. Audit Committee of Listed Registrants.
The Registrant's Board has an Audit Committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)) consisting of three Independent Trustees. Messrs. Chichester and Zack and Ms. DeRemer currently serve as members of the Audit Committee. Mr. Chichester is the Chairman of the Audit Committee.
Item 6. Investments.
| (a) | The Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included in the financial statements filed under Item 7(a) of this form. |
| (b) | Not applicable. |
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
| (a) | The annual Financial Statements are attached herewith. |
Table of Contents
|
Table of Contents |
||
|
Schedule of Investments |
1 |
|
|
ARK Genomic Revolution ETF |
1 |
|
|
ARK Autonomous Technology & Robotics ETF |
4 |
|
|
ARK Innovation ETF |
6 |
|
|
ARK Next Generation Internet ETF (consolidated) |
9 |
|
|
ARK Fintech Innovation ETF (consolidated) |
11 |
|
|
ARK Space Exploration & Innovation ETF |
13 |
|
|
The 3D Printing ETF |
15 |
|
|
ARK Israel Innovative Technology ETF |
17 |
|
|
Statements of Assets and Liabilities |
19 |
|
|
Statements of Operations |
21 |
|
|
Statements of Changes in Net Assets |
23 |
|
|
Financial Highlights |
27 |
|
|
Notes to Financial Statements |
35 |
|
|
Report of Independent Registered Public Accounting Firm |
41 |
|
|
Supplemental Information |
42 |
|
|
Risks Involved with Investing in the Funds |
43 |
Table of Contents
|
Schedule of Investments ARK Genomic Revolution ETF |
||
|
July 31, 2024 |
|
Investments |
Shares |
Value |
|
COMMON STOCKS - 99.4% |
||
|
Biotechnology - 69.5% |
||
|
Absci Corp.*† |
5,679,631 |
$ 24,990,376 |
|
Amgen, Inc. |
79,371 |
26,388,476 |
|
Arcturus Therapeutics Holdings, Inc.*† |
1,942,418 |
45,569,126 |
|
Beam Therapeutics, Inc.* |
2,056,655 |
65,072,564 |
|
CareDx, Inc.*† |
4,869,711 |
97,345,523 |
|
Compass Pathways PLC (United Kingdom)*(a) |
2,078,081 |
15,855,758 |
|
CRISPR Therapeutics AG (Switzerland)* |
1,768,800 |
101,334,552 |
|
Exact Sciences Corp.* |
339,465 |
15,506,761 |
|
Incyte Corp.* |
219,120 |
14,258,138 |
|
Intellia Therapeutics, Inc.* |
2,657,467 |
69,652,210 |
|
Ionis Pharmaceuticals, Inc.* |
1,345,630 |
66,554,860 |
|
Moderna, Inc.* |
348,776 |
41,581,075 |
|
Natera, Inc.* |
164,176 |
16,809,981 |
|
Nurix Therapeutics, Inc.* |
2,296,396 |
50,245,145 |
|
Prime Medicine, Inc.* |
2,924,916 |
16,408,779 |
|
Recursion Pharmaceuticals, Inc., Class A* |
9,669,002 |
79,285,816 |
|
Regeneron Pharmaceuticals, Inc.* |
15,676 |
16,917,383 |
|
Repare Therapeutics, Inc. (Canada)*† |
2,600,352 |
9,725,317 |
|
Senti Biosciences, Inc.* |
179,697 |
415,100 |
|
Twist Bioscience Corp.* |
2,558,940 |
142,814,441 |
|
Veracyte, Inc.* |
1,967,384 |
47,217,216 |
|
Vertex Pharmaceuticals, Inc.* |
74,580 |
36,970,798 |
|
Verve Therapeutics, Inc.* |
2,408,607 |
16,860,249 |
|
Total Biotechnology |
1,017,779,644 |
|
|
Chemicals - 0.6% |
||
|
Ginkgo Bioworks Holdings, Inc.* |
20,759,562 |
7,888,633 |
|
Electronic Equipment, Instruments & Components - 1.5% |
||
|
908 Devices, Inc.*† |
3,982,005 |
22,657,608 |
|
Health Care Equipment & Supplies - 2.0% |
||
|
Butterfly Network, Inc.*† |
10,860,880 |
11,946,968 |
|
Cerus Corp.* |
7,911,093 |
17,879,070 |
|
Total Health Care Equipment & Supplies |
29,826,038 |
|
|
Health Care Providers & Services - 3.6% |
||
|
Accolade, Inc.*† |
5,578,419 |
22,871,518 |
|
Guardant Health, Inc.* |
833,052 |
29,265,117 |
|
Total Health Care Providers & Services |
52,136,635 |
|
|
Health Care Technology - 6.7% |
||
|
Schrodinger, Inc.* |
2,421,376 |
53,948,257 |
|
Teladoc Health, Inc.* |
1,320,878 |
12,455,880 |
|
Veeva Systems, Inc., Class A* |
165,968 |
31,854,238 |
|
Total Health Care Technology |
98,258,375 |
|
Investments |
Shares |
Value |
|
Life Sciences Tools & Services - 15.5% |
||
|
10X Genomics, Inc., Class A* |
2,594,447 |
$ 53,627,219 |
|
Adaptive Biotechnologies Corp.*† |
12,019,703 |
54,689,649 |
|
Pacific Biosciences of California, Inc.* |
12,705,610 |
26,173,557 |
|
Personalis, Inc.*† |
6,387,869 |
22,038,148 |
|
Quantum-Si, Inc.*† |
12,277,932 |
13,382,946 |
|
Standard BioTools, Inc.* |
12,538,315 |
28,085,826 |
|
Tempus AI, Inc.* |
646,486 |
27,979,914 |
|
Total Life Sciences Tools & Services |
225,977,259 |
|
|
Software - 0.0%(b) |
||
|
UiPath, Inc., Class A* |
105 |
1,278 |
|
Total Common Stocks |
1,454,525,470 |
|
|
MONEY MARKET FUND - 0.2% |
||
|
Goldman Sachs Financial Square Treasury Obligations Fund, 5.17%(c) |
3,231,060 |
3,231,060 |
|
Total Investments - 99.6% |
1,457,756,530 |
|
|
Other Assets in Excess of Liabilities - 0.4% |
5,645,424 |
|
|
Net Assets - 100.0% |
$1,463,401,954 |
† Affiliated security
* Non-incomeproducing security
(a) American Depositary Receipt
(b) Less than 0.05%
(c) Rate shown represents annualized 7-dayyield as of July 31, 2024.
See accompanying Notes to Financial Statements.
1
Table of Contents
|
Schedule of Investments (continued) |
||
|
July 31, 2024 |
Affiliated Issuer Transactions
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities, or a company that is under common ownership or control. Fiscal year-to-datetransactions with companies which are or were affiliates are as follows:
|
Value ($) at |
Purchases |
Sales |
Net realized |
Net Change |
Net Change |
Affiliated |
Number of |
Value ($) at |
|
|
Common Stocks - 22.2% |
|||||||||
|
Biotechnology - 12.1% |
|||||||||
|
Absci Corp. |
- |
29,848,908 |
(7,061,253) |
976,630 |
1,226,091 |
- |
- |
5,679,631 |
24,990,376 |
|
Arcturus Therapeutics Holdings, Inc. |
68,837,324 |
44,671,299 |
(46,071,691) |
(2,300,444) |
(19,567,362) |
- |
- |
1,942,418 |
45,569,126 |
|
CareDx, Inc. |
75,455,294 |
42,442,681 |
(69,918,596) |
(51,457,053) |
100,823,197 |
- |
- |
4,869,711 |
97,345,523 |
|
Compass Pathways PLC^(b) |
23,469,503 |
12,017,536 |
(16,118,031) |
(29,929) |
5,144,920 |
(8,628,241) |
- |
- |
- |
|
Nurix Therapeutics, Inc.^(c) |
- |
25,964,277 |
(30,348,218) |
4,269,013 |
- |
27,697,690 |
- |
- |
- |
|
Repare Therapeutics, Inc. |
24,961,228 |
12,315,911 |
(12,712,864) |
(1,371,675) |
(13,467,283) |
- |
- |
2,600,352 |
9,725,317 |
|
Twist Bioscience Corp.^(b) |
72,213,227 |
72,384,679 |
(88,465,247) |
(12,803,896) |
235,173,507 |
(135,687,829) |
- |
- |
- |
|
Electronic Equipment, Instruments & Components - 1.5% |
|||||||||
|
908 Devices, Inc. |
28,538,589 |
22,243,865 |
(22,136,416) |
(1,419,252) |
(4,569,178) |
- |
- |
3,982,005 |
22,657,608 |
|
Health Care Equipment & Supplies - 0.8% |
|||||||||
|
Butterfly Network, Inc. |
33,824,279 |
8,099,322 |
(10,971,309) |
(2,699,470) |
(16,305,854) |
- |
- |
10,860,880 |
11,946,968 |
|
Health Care Providers & Services - 1.6% |
|||||||||
|
Accolade, Inc. |
89,210,554 |
42,948,175 |
(47,974,797) |
(773,857) |
(60,538,557) |
- |
- |
5,578,419 |
22,871,518 |
|
Health Care Technology - 0.0% |
|||||||||
|
Schrodinger, Inc.^(b) |
183,463,620 |
48,398,789 |
(81,097,092) |
(26,179,724) |
6,883,077 |
(77,520,413) |
- |
- |
- |
|
Life Sciences Tools & Services - 6.2% |
|||||||||
|
Adaptive Biotechnologies Corp. |
93,226,864 |
43,862,223 |
(38,773,540) |
(3,794,790) |
(39,831,108) |
- |
- |
12,019,703 |
54,689,649 |
|
Codexis, Inc.^^ |
12,541,558 |
120,195 |
(6,342,749) |
(62,218,482) |
55,899,478 |
- |
- |
- |
- |
|
Personalis, Inc. |
13,973,286 |
8,254,904 |
(7,771,352) |
184,322 |
7,396,988 |
- |
- |
6,387,869 |
22,038,148 |
|
Quantum-Si, Inc. |
57,609,356 |
14,679,150 |
(18,919,863) |
(1,081,399) |
(38,904,298) |
- |
- |
12,277,932 |
13,382,946 |
|
SomaLogic, Inc.^^ |
32,105,075 |
9,611,802 |
(123,265,544) |
(63,466) |
81,612,133 |
- |
- |
- |
- |
|
Standard BioTools, Inc.^(c) |
- |
128,309,992 |
(19,254,865) |
(320,950) |
- |
(80,648,351) |
- |
- |
- |
|
Total |
$809,429,757 |
$566,173,708 |
$(647,203,427) |
$(161,084,422) |
$300,975,751 |
$(274,787,144) |
$ - |
66,198,920 |
$325,217,179 |
^ As of July 31, 2024, the company is no longer considered to be an affiliated security.
^^ As of July 31, 2024, the Fund was not invested in this company.
(a) The fair value and number of shares of securities are only displayed at the beginning and end of each reporting period when such securities were considered an affiliate as of each date. Refer to the Schedule of Investments for view the fair value and number of shares as of July 31, 2024.
(b) The unrealized appreciation (depreciation) as of the last reporting period was reflected out of net change in unrealized appreciation (depreciation) on investments in affiliated securities and the unrealized appreciation (depreciation) through this fiscal year end was reflected in net change in unrealized appreciation (depreciation) on investments in non-affiliatedsecurities in the Statement of Operations.
(c) The company was considered to be an affiliated security for a limited period during the year. As such, the realized gain (loss) during the year is reflected in net realized gain (loss) on investments in affiliated securities and the net change in unrealized appreciation (depreciation) is reflected in net change in unrealized appreciation (depreciation) on investments in non-affiliatedsecurities in the Statement of Operations.
See accompanying Notes to Financial Statements.
2
Table of Contents
|
Schedule of Investments (continued) ARK Genomic Revolution ETF |
||
|
July 31, 2024 |
Fair Value Measurement
The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (i) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (ii) the Fund's own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:
• Level 1 - Quoted prices in active markets for identical assets.• Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).• Level 3 - Significant unobservable inputs (including each Fund's own assumptions in determining the fair value of investments).The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the valuations as of July 31, 2024, based upon the three levels defined above:
|
ARK Genomic Revolution ETF |
Level 1 |
Level 2 |
Level 3 |
Total |
|
Assets |
||||
|
Common Stocks‡ |
$1,454,525,470 |
$ - |
$ - |
$1,454,525,470 |
|
Money Market Fund |
3,231,060 |
- |
- |
3,231,060 |
|
Total |
$1,457,756,530 |
$ - |
$ - |
$1,457,756,530 |
‡ Please refer to the Schedule of Investments to view securities segregated by industry type.
See accompanying Notes to Financial Statements.
3
Table of Contents
|
Schedule of Investments |
||
|
July 31, 2024 |
|
Investments |
Shares |
Value |
|||
|
COMMON STOCKS - 99.8% |
|||||
|
Aerospace & Defense - 23.1% |
|||||
|
AeroVironment, Inc.* |
204,721 |
$ |
36,550,887 |
||
|
Archer Aviation, Inc., Class A* |
6,145,724 |
25,627,669 |
|||
|
Elbit Systems Ltd. (Israel) |
59,513 |
10,711,150 |
|||
|
Kratos Defense & Security Solutions, Inc.* |
3,391,271 |
76,439,248 |
|||
|
Lockheed Martin Corp. |
18,390 |
9,965,909 |
|||
|
Rocket Lab USA, Inc.* |
4,536,563 |
23,771,590 |
|||
|
Total Aerospace & Defense |
183,066,453 |
||||
|
Automobile Components - 1.0% |
|||||
|
Magna International, Inc. (Canada) |
182,721 |
8,107,331 |
|||
|
Automobiles - 15.4% |
|||||
|
BYD Co. Ltd. (China)(a) |
184,266 |
10,969,355 |
|||
|
Tesla, Inc.* |
478,624 |
111,074,272 |
|||
|
Total Automobiles |
122,043,627 |
||||
|
Diversified Telecommunication - 6.3% |
|||||
|
Iridium Communications, Inc. |
1,733,655 |
49,755,898 |
|||
|
Electric Utilities - 1.1% |
|||||
|
Oklo, Inc.* |
933,814 |
8,497,707 |
|||
|
Electronic Equipment Instruments & Components - 0.3% |
|||||
|
Vuzix Corp.* |
1,871,860 |
2,283,669 |
|||
|
Electronic Equipment, Instruments & Components - 6.3% |
|||||
|
Teledyne Technologies, Inc.* |
25,309 |
10,676,855 |
|||
|
Trimble, Inc.* |
720,896 |
39,317,668 |
|||
|
Total Electronic Equipment, Instruments & Components |
49,994,523 |
||||
|
Health Care Equipment & Supplies - 1.6% |
|||||
|
Intuitive Surgical, Inc.* |
28,435 |
12,642,485 |
|||
|
Interactive Media & Services - 2.1% |
|||||
|
Alphabet, Inc., Class C |
94,202 |
16,311,076 |
|||
|
Machinery - 9.0% |
|||||
|
3D Systems Corp.* |
1,511,056 |
5,515,354 |
|||
|
Caterpillar, Inc. |
23,628 |
8,180,014 |
|||
|
Deere & Co. |
68,854 |
25,612,311 |
|||
|
Komatsu Ltd. (Japan)(a) |
1,003,897 |
28,580,948 |
|||
|
Markforged Holding Corp.* |
9,482,971 |
3,517,234 |
|||
|
Velo3D, Inc.* |
3,787 |
9,884 |
|||
|
Total Machinery |
71,415,745 |
||||
|
Oil, Gas & Consumable Fuels - 1.3% |
|||||
|
Cameco Corp. (Canada) |
224,481 |
10,211,641 |
|||
|
Passenger Airlines - 3.7% |
|||||
|
Blade Air Mobility, Inc.*† |
5,313,546 |
17,534,702 |
|||
|
Joby Aviation, Inc.* |
2,004,706 |
11,988,142 |
|||
|
Total Passenger Airlines |
29,522,844 |
|
Investments |
Shares |
Value |
||||
|
Semiconductors & Semiconductor Equipment - 18.2% |
||||||
|
Advanced Micro Devices, Inc.* |
98,894 |
$ |
14,288,205 |
|||
|
NVIDIA Corp. |
139,003 |
16,266,131 |
||||
|
QUALCOMM, Inc. |
70,616 |
12,777,965 |
||||
|
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)(a) |
142,592 |
23,641,754 |
||||
|
Teradyne, Inc. |
589,995 |
77,383,744 |
||||
|
Total Semiconductors & Semiconductor Equipment |
144,357,799 |
|||||
|
Software - 10.4% |
||||||
|
ANSYS, Inc.* |
28,684 |
8,996,163 |
||||
|
Materialise NV (Belgium)*(a) |
749,887 |
4,874,266 |
||||
|
Palantir Technologies, Inc., Class A* |
611,594 |
16,445,763 |
||||
|
Synopsys, Inc.* |
22,456 |
12,537,634 |
||||
|
UiPath, Inc., Class A* |
2,555,891 |
31,105,193 |
||||
|
Unity Software, Inc.* |
499,818 |
8,177,022 |
||||
|
Total Software |
82,136,041 |
|||||
|
Total Common Stocks |
||||||
|
(Cost $1,133,079,926) |
790,346,839 |
|||||
|
MONEY MARKET FUND - 0.2% |
||||||
|
Goldman Sachs Financial Square Treasury Obligations Fund, 5.17%(b) |
||||||
|
(Cost $1,563,884) |
1,563,884 |
1,563,884 |
||||
|
Total Investments - 100.0% |
||||||
|
(Cost $1,134,643,810) |
791,910,723 |
|||||
|
Liabilities in Excess of Other Assets - (0.0)%(c) |
(90,894 |
) |
||||
|
Net Assets - 100.0% |
$ |
791,819,829 |
† Affiliated security
* Non-incomeproducing security
(a) American Depositary Receipt
(b) Rate shown represents annualized 7-dayyield as of July 31, 2024.
(c) Less than 0.05%
See accompanying Notes to Financial Statements.
4
Table of Contents
|
Schedule of Investments(continued) |
||
|
July 31, 2024 |
Affiliated Issuer Transactions
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities, or a company that is under common ownership or control. Fiscal year-to-datetransactions with companies which are or were affiliates are as follows:
|
Value ($) at |
Purchases |
Sales |
Net realized |
Net Change |
Net Change |
Affiliated |
Number of |
Value ($) at |
|
|
Common Stocks - 2.2% |
|||||||||
|
Machinery - 0.0% |
|||||||||
|
Markforged Holding Corp.^(b) |
24,905,366 |
1,366,336 |
(2,841,457) |
(3,063,920) |
68,304,402 |
(85,153,493) |
- |
- |
- |
|
Passenger Airlines - 2.2% |
|||||||||
|
Blade Air Mobility, Inc. |
22,198,478 |
5,847,808 |
(5,577,406) |
(3,689,807) |
(1,244,371) |
- |
- |
5,313,546 |
17,534,702 |
|
Total |
$47,103,844 |
$7,214,144 |
$(8,418,863) |
$(6,753,727) |
$67,060,031 |
$(85,153,493) |
$ - |
5,313,546 |
$17,534,702 |
^ As of July 31, 2024, the company is no longer considered to be an affiliated security.
(a) The fair value and number of shares of securities are only displayed at the beginning and end of each reporting period when such securities were considered an affiliate as of each date. Refer to the Schedule of Investments for view the fair value and number of shares as of July 31, 2024.
(b) The unrealized appreciation (depreciation) as of the last reporting period was reflected out of net change in unrealized appreciation (depreciation) on investments in affiliated securities and the unrealized appreciation (depreciation) through this fiscal year end was reflected in net change in unrealized appreciation (depreciation) on investments in non-affiliatedsecurities in the Statement of Operations.
Fair Value Measurement
The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (i) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (ii) the Fund's own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:
• Level 1 - Quoted prices in active markets for identical assets.• Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).• Level 3 -Significant unobservable inputs (including each Fund's own assumptions in determining the fair value of investments).The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the valuations as of July 31, 2024, based upon the three levels defined above:
|
ARK Autonomous |
|
|
|
|
||||
|
Assets |
||||||||
|
Common Stocks‡ |
$790,346,839 |
$ - |
$ - |
$790,346,839 |
||||
|
Money Market Fund |
1,563,884 |
- |
- |
1,563,884 |
||||
|
Total |
$791,910,723 |
$ - |
$ - |
$791,910,723 |
‡ Please refer to the Schedule of Investments to view securities segregated by industry type.
See accompanying Notes to Financial Statements.
5
Table of Contents
|
Schedule of Investments |
||
|
July 31, 2024 |
|
Investments |
Shares |
Value |
|||
|
COMMON STOCKS - 99.9% |
|||||
|
Aerospace & Defense - 1.1% |
|||||
|
Archer Aviation, Inc., Class A*† |
15,589,480 |
$ |
65,008,132 |
||
|
Automobiles - 14.4% |
|||||
|
Tesla, Inc.* |
3,694,104 |
857,290,715 |
|||
|
Biotechnology - 19.8% |
|||||
|
Beam Therapeutics, Inc.*† |
4,929,329 |
155,963,970 |
|||
|
CRISPR Therapeutics AG (Switzerland)*† |
5,279,750 |
302,476,878 |
|||
|
Intellia Therapeutics, Inc.*† |
8,332,178 |
218,386,385 |
|||
|
Moderna, Inc.* |
594,635 |
70,892,385 |
|||
|
Natera, Inc.* |
239,612 |
24,533,872 |
|||
|
Prime Medicine, Inc.* |
2,658,887 |
14,916,356 |
|||
|
Recursion Pharmaceuticals, Inc., Class A*† |
17,131,182 |
140,475,692 |
|||
|
Twist Bioscience Corp.*† |
2,964,093 |
165,426,030 |
|||
|
Veracyte, Inc.*† |
3,844,252 |
92,262,048 |
|||
|
Total Biotechnology |
1,185,333,616 |
||||
|
Capital Markets - 12.8% |
|||||
|
Coinbase Global, Inc., Class A* |
2,278,723 |
511,254,292 |
|||
|
Robinhood Markets, Inc., Class A* |
12,265,458 |
252,300,471 |
|||
|
Total Capital Markets |
763,554,763 |
||||
|
Consumer Finance - 1.1% |
|||||
|
SoFi Technologies, Inc.* |
8,404,174 |
63,367,472 |
|||
|
Entertainment - 14.8% |
|||||
|
ROBLOX Corp., Class A* |
8,906,945 |
369,816,356 |
|||
|
Roku, Inc.*† |
8,803,270 |
512,438,347 |
|||
|
Total Entertainment |
882,254,703 |
||||
|
Financial Services - 5.3% |
|||||
|
Block, Inc.* |
5,078,595 |
314,263,459 |
|||
|
Health Care Equipment & Supplies - 0.4% |
|||||
|
Cerus Corp.*† |
10,174,147 |
22,993,572 |
|||
|
Health Care Technology - 0.5% |
|||||
|
Teladoc Health, Inc.* |
2,958,531 |
27,898,947 |
|||
|
Hotels, Restaurants & Leisure - 2.1% |
|||||
|
DraftKings, Inc., Class A* |
3,382,069 |
124,967,450 |
|||
|
Interactive Media & Services - 3.5% |
|||||
|
Meta Platforms, Inc., Class A |
251,737 |
119,532,280 |
|||
|
Pinterest, Inc., Class A* |
2,785,120 |
88,984,584 |
|||
|
Total Interactive Media & Services |
208,516,864 |
||||
|
IT Services - 2.9% |
|||||
|
Shopify, Inc., Class A (Canada)* |
2,874,522 |
175,920,746 |
|||
|
Life Sciences Tools & Services - 3.3% |
|||||
|
10X Genomics, Inc., Class A*† |
7,893,535 |
163,159,368 |
|||
|
Pacific Biosciences of California, Inc.*† |
18,663,430 |
38,446,666 |
|||
|
Total Life Sciences Tools & Services |
201,606,034 |
|
Investments |
Shares |
Value |
||||
|
Media - 1.9% |
||||||
|
Trade Desk, Inc. (The), Class A* |
1,297,032 |
$ |
116,577,236 |
|||
|
Semiconductors & Semiconductor Equipment - 2.6% |
||||||
|
Advanced Micro Devices, Inc.* |
309,189 |
44,671,627 |
||||
|
Teradyne, Inc. |
833,711 |
109,349,535 |
||||
|
Total Semiconductors & Semiconductor Equipment |
154,021,162 |
|||||
|
Software - 13.4% |
||||||
|
PagerDuty, Inc.*† |
7,999,365 |
167,426,710 |
||||
|
Palantir Technologies, Inc., Class A* |
8,515,494 |
228,981,634 |
||||
|
UiPath, Inc., Class A* |
17,178,011 |
209,056,394 |
||||
|
Unity Software, Inc.* |
7,520,961 |
123,042,922 |
||||
|
Zoom Video Communications, Inc., Class A* |
1,190,840 |
71,926,736 |
||||
|
Total Software |
800,434,396 |
|||||
|
Total Common Stocks |
5,964,009,267 |
|||||
|
MONEY MARKET FUND - 0.3% |
||||||
|
Goldman Sachs Financial Square Treasury Obligations Fund, 5.17%(a) |
16,175,095 |
16,175,095 |
||||
|
Total Investments - 100.2% |
5,980,184,362 |
|||||
|
Liabilities in Excess of Other Assets - (0.2)% |
(14,486,334 |
) |
||||
|
Net Assets - 100.0% |
$ |
5,965,698,028 |
† Affiliated security
* Non-incomeproducing security
(a) Rate shown represents annualized 7-dayyield as of July 31, 2024.
See accompanying Notes to Financial Statements.
6
Table of Contents
|
Schedule of Investments (continued) |
||
|
July 31, 2024 |
Affiliated Issuer Transactions
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities, or a company that is under common ownership or control. Fiscal year-to-datetransactions with companies which are or were affiliates are as follows:
|
Value ($) at |
Purchases |
Sales |
Net realized |
Net Change |
Net Change |
Affiliated |
Number of |
Value ($) at |
|
|
Common Stocks - 34.3% |
|||||||||
|
Aerospace & Defense - 1.1% |
|||||||||
|
Archer Aviation, Inc. |
- |
182,909,297 |
(92,775,720) |
1,779,317 |
(26,904,762) |
- |
- |
15,589,480 |
65,008,132 |
|
Biotechnology - 18.0% |
|||||||||
|
Beam Therapeutics, Inc. |
187,666,293 |
188,559,787 |
(225,785,377) |
(47,282,399) |
52,805,666 |
- |
- |
4,929,329 |
155,963,970 |
|
CRISPR Therapeutics AG |
302,287,216 |
455,014,681 |
(466,230,740) |
17,546,823 |
(6,141,102) |
- |
- |
5,279,750 |
302,476,878 |
|
Intellia Therapeutics, Inc. |
286,103,983 |
340,713,041 |
(301,986,289) |
4,303,183 |
(110,747,533) |
- |
- |
8,332,178 |
218,386,385 |
|
Recursion Pharmaceuticals, Inc. |
- |
254,327,016 |
(121,172,422) |
32,050,132 |
(24,729,034) |
- |
- |
17,131,182 |
140,475,692 |
|
Twist Bioscience Corp. |
90,859,200 |
146,395,163 |
(184,221,612) |
(50,020,321) |
162,413,600 |
- |
- |
2,964,093 |
165,426,030 |
|
Veracyte, Inc. |
124,735,243 |
122,133,004 |
(138,750,764) |
(6,769,737) |
(9,085,698) |
- |
- |
3,844,252 |
92,262,048 |
|
Chemicals - 0.0% |
|||||||||
|
Ginkgo Bioworks Holdings, Inc.^^ |
288,528,574 |
219,257,930 |
(246,937,394) |
(510,302,192) |
249,453,082 |
- |
- |
- |
- |
|
Diversified Consumer Services - 0.0% |
|||||||||
|
2U, Inc.^^ |
28,757,020 |
10,992,418 |
(11,377,869) |
(195,394,615) |
167,023,046 |
- |
- |
- |
- |
|
Entertainment - 8.6% |
|||||||||
|
Roku, Inc. |
875,800,633 |
938,223,649 |
(1,004,169,327) |
(467,305,265) |
169,888,657 |
- |
- |
8,803,270 |
512,438,347 |
|
Health Care Equipment & Supplies - 0.4% |
|||||||||
|
Cerus Corp. |
41,127,633 |
25,490,902 |
(31,951,392) |
(3,861,994) |
(7,811,577) |
- |
- |
10,174,147 |
22,993,572 |
|
Health Care Providers & Services - 0.0% |
|||||||||
|
Invitae Corp.^^ |
27,488,455 |
8,913,454 |
(9,947,740) |
(453,368,151) |
426,913,982 |
- |
- |
- |
- |
|
Health Care Technology - 0.0% |
|||||||||
|
Teladoc Health, Inc.^(b) |
365,234,882 |
230,198,572 |
(347,153,206) |
(1,549,437,701) |
1,708,076,341 |
(379,019,941) |
- |
- |
- |
|
Life Sciences Tools & Services - 3.4% |
|||||||||
|
10X Genomics, Inc. |
- |
345,105,340 |
(177,571,693) |
7,683,114 |
(261,175,462) |
113,266,619 |
- |
7,893,535 |
163,159,368 |
|
Pacific Biosciences of California, Inc. |
189,323,804 |
189,574,371 |
(148,968,186) |
2,377,149 |
(193,860,472) |
- |
- |
18,663,430 |
38,446,666 |
|
Software - 2.8% |
|||||||||
|
PagerDuty, Inc. |
213,407,888 |
254,678,394 |
(267,624,498) |
(10,033,588) |
(23,001,486) |
- |
- |
7,999,365 |
167,426,710 |
|
UiPath, Inc.^(b) |
522,311,927 |
523,814,393 |
(768,600,836) |
(270,946,826) |
652,577,675 |
(450,099,939) |
- |
- |
- |
|
Total |
$3,543,632,751 |
$4,436,301,412 |
$(4,545,225,065) |
$(3,498,983,071) |
$2,925,694,923 |
$(715,853,261) |
$ - |
111,604,011 |
$2,044,463,798 |
^ As of July 31, 2024, the company is no longer considered to be an affiliated security.
^^ As of July 31, 2024, the Fund was not invested in this company.
(a) The fair value and number of shares of securities are only displayed at the beginning and end of each reporting period when such securities were considered an affiliate as of each date. Refer to the Schedule of Investments for the fair value and number of shares as of July 31, 2024.
(b) The unrealized appreciation (depreciation) as of the last reporting period was reflected out of net change in unrealized appreciation (depreciation) on investments in affiliated securities and the unrealized appreciation (depreciation) through this fiscal year end was reflected in net change in unrealized appreciation (depreciation) on investments in non-affiliatedsecurities in the Statement of Operations.
See accompanying Notes to Financial Statements.
7
Table of Contents
|
Schedule of Investments (continued) ARK Innovation ETF |
||
|
July 31, 2024 |
Fair Value Measurement
The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (i) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (ii) the Fund's own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:
• Level 1- Quoted prices in active markets for identical assets.• Level 2- Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).• Level 3- Significant unobservable inputs (including each Fund's own assumptions in determining the fair value of investments).The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the valuations as of July 31, 2024, based upon the three levels defined above:
|
ARK Innovation |
Level 1 |
Level 2 |
Level 3 |
Total |
|
Assets |
||||
|
Common Stocks‡ |
$5,964,009,267 |
$ - |
$ - |
$5,964,009,267 |
|
Money Market Fund |
16,175,095 |
- |
- |
16,175,095 |
|
Total |
$5,980,184,362 |
$ - |
$ - |
$5,980,184,362 |
‡ Please refer to the Schedule of Investments to view securities segregated by industry type.
See accompanying Notes to Financial Statements.
8
Table of Contents
|
Schedule of Investments |
||
|
July 31, 2024 |
|
Investments |
Shares |
Value |
|||
|
COMMON STOCKS - 88.5% |
|||||
|
Automobiles - 10.0% |
|||||
|
Tesla, Inc.* |
598,469 |
$ |
138,886,701 |
||
|
Banks - 0.8% |
|||||
|
NU Holdings Ltd., Class A (Brazil)* |
925,191 |
11,222,567 |
|||
|
Biotechnology - 0.4% |
|||||
|
Veracyte, Inc.* |
226,206 |
5,428,944 |
|||
|
Broadline Retail - 1.8% |
|||||
|
Amazon.com, Inc.* |
49,602 |
9,274,582 |
|||
|
MercadoLibre, Inc. (Brazil)* |
9,823 |
16,393,605 |
|||
|
Total Broadline Retail |
25,668,187 |
||||
|
Capital Markets - 11.6% |
|||||
|
Coinbase Global, Inc., Class A* |
456,531 |
102,427,295 |
|||
|
Robinhood Markets, Inc., Class A* |
2,892,717 |
59,503,189 |
|||
|
Total Capital Markets |
161,930,484 |
||||
|
Electronic Equipment Instruments & Components - 0.2% |
|||||
|
Vuzix Corp.* |
2,574,838 |
3,141,302 |
|||
|
Entertainment - 17.0% |
|||||
|
ROBLOX Corp., Class A* |
2,158,303 |
89,612,741 |
|||
|
Roku, Inc.* |
2,003,137 |
116,602,605 |
|||
|
Spotify Technology SA* |
89,430 |
30,758,554 |
|||
|
Total Entertainment |
236,973,900 |
||||
|
Financial Services - 8.4% |
|||||
|
Adyen NV (Netherlands)*(a) |
1,097,850 |
13,393,770 |
|||
|
Block, Inc.* |
1,428,269 |
88,381,286 |
|||
|
Toast, Inc., Class A* |
602,248 |
15,754,807 |
|||
|
Total Financial Services |
117,529,863 |
||||
|
Hotels, Restaurants & Leisure - 5.3% |
|||||
|
DraftKings, Inc., Class A* |
887,269 |
32,784,589 |
|||
|
Genius Sports Ltd. (United Kingdom)* |
5,986,331 |
40,886,641 |
|||
|
Total Hotels, Restaurants & Leisure |
73,671,230 |
||||
|
Interactive Media & Services - 6.6% |
|||||
|
Meta Platforms, Inc., Class A |
95,375 |
45,286,912 |
|||
|
Nextdoor Holdings, Inc.* |
8,235,436 |
23,388,638 |
|||
|
Pinterest, Inc., Class A* |
596,839 |
19,069,006 |
|||
|
Reddit, Inc., Class A* |
66,973 |
4,075,307 |
|||
|
Total Interactive Media & Services |
91,819,863 |
||||
|
IT Services - 4.3% |
|||||
|
Cloudflare, Inc., Class A* |
377,068 |
29,222,770 |
|||
|
Shopify, Inc., Class A (Canada)* |
511,946 |
31,331,095 |
|||
|
Total IT Services |
60,553,865 |
||||
|
Media - 2.0% |
|||||
|
Trade Desk, Inc. (The), Class A* |
310,606 |
27,917,267 |
|
Investments |
Shares |
Value |
||||
|
Semiconductors & Semiconductor Equipment - 4.6% |
||||||
|
Advanced Micro Devices, Inc.* |
147,425 |
$ |
21,299,964 |
|||
|
NVIDIA Corp. |
156,414 |
18,303,566 |
||||
|
QUALCOMM, Inc. |
46,379 |
8,392,280 |
||||
|
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)(a) |
99,413 |
16,482,676 |
||||
|
Total Semiconductors & Semiconductor Equipment |
64,478,486 |
|||||
|
Software - 14.6% |
||||||
|
Crowdstrike Holdings, Inc., Class A* |
110,169 |
25,554,801 |
||||
|
Datadog, Inc., Class A* |
83,438 |
9,715,521 |
||||
|
Gitlab, Inc., Class A* |
136,252 |
6,980,190 |
||||
|
Microsoft Corp. |
32,523 |
13,605,997 |
||||
|
PagerDuty, Inc.* |
1,368,621 |
28,645,237 |
||||
|
Palantir Technologies, Inc., Class A* |
1,599,592 |
43,013,029 |
||||
|
Rubrik, Inc., Class A* |
188,469 |
7,011,047 |
||||
|
UiPath, Inc., Class A* |
2,717,209 |
33,068,434 |
||||
|
Unity Software, Inc.* |
1,950,798 |
31,915,055 |
||||
|
Zoom Video Communications, Inc., Class A* |
56,476 |
3,411,150 |
||||
|
Total Software |
202,920,461 |
|||||
|
Technology Hardware, Storage & Peripherals - 0.9% |
||||||
|
Pure Storage, Inc., Class A* |
208,907 |
12,519,797 |
||||
|
Total Common Stocks |
1,234,662,917 |
|||||
|
EXCHANGE-TRADED FUNDS - 11.5% |
||||||
|
Financials - 11.5% |
||||||
|
ARK 21Shares Active Ethereum Futures Strategy ETF† |
19,546 |
744,116 |
||||
|
ARK 21Shares Bitcoin ETF† |
2,362,435 |
153,959,889 |
||||
|
Proshares Ether Strategy ETF |
73,003 |
4,898,501 |
||||
|
Total Financials |
159,602,506 |
|||||
|
Total Exchange-Traded Funds |
159,602,506 |
|||||
|
MONEY MARKET FUND - 0.0%(b) |
||||||
|
Goldman Sachs Financial Square Treasury Obligations Fund, 5.17%(c) |
361,098 |
361,098 |
||||
|
Total Investments - 100.0% |
1,394,626,521 |
|||||
|
Liabilities in Excess of Other Assets - (0.0)%(b) |
(244,349 |
) |
||||
|
Net Assets - 100.0% |
$ |
1,394,382,172 |
† Affiliated security
* Non-incomeproducing security
(a) American Depositary Receipt
(b) Less than 0.05%
(c) Rate shown represents annualized 7-dayyield as of July 31, 2024.
See accompanying Notes to Financial Statements.
9
Table of Contents
|
Schedule of Investments (continued) |
||
|
July 31, 2024 |
Affiliated Issuer Transactions
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities, or a company that is under common ownership or control. Fiscal year-to-datetransactions with companies which are or were affiliates are as follows:
|
Value ($) at |
Purchases |
Sales |
Net realized |
Net Change |
Net Change |
Affiliated |
Number of |
Value ($) at |
|
|
Exchange-Traded Funds - 11.1% |
|||||||||
|
Financials - 11.1% |
|||||||||
|
ARK 21Shares Active Bitcoin Futures Strategy ETF |
- |
893,776 |
(1,278,551) |
384,775 |
- |
- |
9,188 |
- |
- |
|
ARK 21Shares Active Ethereum Futures Strategy ETF |
- |
826,124 |
(120,429) |
9,831 |
28,590 |
- |
6,663 |
19,546 |
744,116 |
|
ARK 21Shares Bitcoin ETF |
- |
101,659,845 |
(7,832,637) |
2,703,217 |
57,429,464 |
- |
- |
2,362,435 |
153,959,889 |
|
Common Stocks - 0.0% |
|||||||||
|
Proshares Ether Strategy ETF^(c) |
- |
5,707,453 |
(805,070) |
45,292 |
- |
(49,174) |
310,200 |
- |
- |
|
Vuzix Corp.^(b) |
19,329,832 |
923,289 |
(3,344,355) |
(14,285,505) |
44,042,147 |
(43,524,106) |
- |
- |
- |
|
Nextdoor Holdings, Inc.^(c) |
- |
8,009,382 |
(7,567,552) |
1,383,816 |
- |
(983,338) |
- |
- |
- |
|
Total |
$19,329,832 |
$118,019,869 |
$(20,948,594) |
$ (9,758,574) |
$101,500,201 |
$(44,556,618) |
$326,051 |
2,381,981 |
$154,704,005 |
^ As of July 31, 2024, the company is no longer considered to be an affiliated security.
(a) The fair value and number of shares of securities are only displayed at the beginning and end of each reporting period when such securities were considered an affiliate as of each date. Refer to the Schedule of Investments for the fair value and number of shares as of July 31, 2024.
(b) The unrealized appreciation (depreciation) as of the last reporting period was reflected out of net change in unrealized appreciation (depreciation) on investments in affiliated securities and the unrealized appreciation (depreciation) through this fiscal year end was reflected in net change in unrealized appreciation (depreciation) on investments in non-affiliatedsecurities in the Statement of Operations.
(c) The company was considered to be an affiliated security for a limited period during the year. As such, the net realized gain (loss) during the year is reflected in net realized gain (loss) on investments in affiliated securities and the net change in unrealized appreciation (depreciation) is reflected in net change in unrealized appreciation (depreciation) on investments in non-affiliatedsecurities in the Statement of Operations.
Fair Value Measurement
The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (i) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (ii) the Fund's own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:
• Level 1 - Quoted prices in active markets for identical assets.• Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).• Level 3- Significant unobservable inputs (including each Fund's own assumptions in determining the fair value of investments).The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the valuations as of July 31, 2024, based upon the three levels defined above:
|
ARK Next |
Level 1 |
Level 2 |
Level 3 |
Total |
|
Assets |
||||
|
Common Stocks‡ |
$1,234,662,917 |
$ - |
$ - |
$1,234,662,917 |
|
Exchange-Traded Funds |
159,602,506 |
- |
- |
159,602,506 |
|
Money Market Fund |
361,098 |
- |
- |
361,098 |
|
Total |
$1,394,626,521 |
$ - |
$ - |
$1,394,626,521 |
‡ Please refer to the Schedule of Investments to view securities segregated by industry type.
See accompanying Notes to Financial Statements.
10
Table of Contents
|
Schedule of Investments |
||
|
July 31, 2024 |
|
Investments |
Shares |
Value |
|||
|
COMMON STOCKS - 95.1% |
|||||
|
Banks - 1.9% |
|||||
|
NU Holdings Ltd., Class A (Brazil)* |
1,307,777 |
$ |
15,863,335 |
||
|
Broadline Retail - 5.2% |
|||||
|
Global-e Online Ltd. (Israel)* |
479,972 |
16,472,639 |
|||
|
MercadoLibre, Inc. (Brazil)* |
15,892 |
26,522,159 |
|||
|
Total Broadline Retail |
42,994,798 |
||||
|
Capital Markets - 16.5% |
|||||
|
Coinbase Global, Inc., Class A* |
401,740 |
90,134,386 |
|||
|
Intercontinental Exchange, Inc. |
70,519 |
10,687,860 |
|||
|
Robinhood Markets, Inc., Class A* |
1,756,271 |
36,126,495 |
|||
|
Total Capital Markets |
136,948,741 |
||||
|
Consumer Finance - 6.0% |
|||||
|
Kaspi.KZ JSC (Kazakhstan)(a) |
130,656 |
17,002,265 |
|||
|
SoFi Technologies, Inc.* |
4,375,226 |
32,989,204 |
|||
|
Total Consumer Finance |
49,991,469 |
||||
|
Entertainment - 10.1% |
|||||
|
ROBLOX Corp., Class A* |
704,470 |
29,249,594 |
|||
|
Roku, Inc.* |
471,300 |
27,434,373 |
|||
|
Sea Ltd. (Singapore)*(a) |
194,868 |
12,802,828 |
|||
|
Spotify Technology SA* |
40,695 |
13,996,638 |
|||
|
Total Entertainment |
83,483,433 |
||||
|
Financial Services - 17.4% |
|||||
|
Adyen NV (Netherlands)*(b) |
26,845 |
32,847,356 |
|||
|
AvidXchange Holdings, Inc.* |
933,398 |
8,344,578 |
|||
|
Block, Inc.* |
900,044 |
55,694,723 |
|||
|
PayPal Holdings, Inc.* |
134,269 |
8,832,215 |
|||
|
Toast, Inc., Class A* |
1,455,761 |
38,082,708 |
|||
|
Total Financial Services |
143,801,580 |
||||
|
Hotels, Restaurants & Leisure - 5.7% |
|||||
|
DraftKings, Inc., Class A* |
1,289,254 |
47,637,935 |
|||
|
Insurance - 2.5% |
|||||
|
Discovery Ltd. (South Africa) |
2,677,128 |
20,990,741 |
|||
|
Interactive Media & Services - 8.1% |
|||||
|
LY Corp. (Japan) |
5,770,230 |
14,367,316 |
|||
|
Meta Platforms, Inc., Class A |
40,709 |
19,329,855 |
|||
|
Pinterest, Inc., Class A* |
875,434 |
27,970,116 |
|||
|
Reddit, Inc., Class A* |
85,009 |
5,172,798 |
|||
|
Total Interactive Media & Services |
66,840,085 |
||||
|
IT Services - 7.9% |
|||||
|
Shopify, Inc., Class A (Canada)* |
1,068,451 |
65,389,201 |
|||
|
Media - 0.1% |
|||||
|
Ibotta, Inc., Class A* |
12,281 |
825,774 |
|||
|
Real Estate Management & Development - 0.9% |
|||||
|
Zillow Group, Inc., Class C* |
158,197 |
7,704,194 |
|
Investments |
Shares |
Value |
|||
|
Semiconductors & Semiconductor Equipment - 1.5% |
|||||
|
NVIDIA Corp. |
103,140 |
$ |
12,069,443 |
||
|
Software - 11.3% |
|||||
|
BILL Holdings Inc* |
188,178 |
9,401,372 |
|||
|
Crowdstrike Holdings, Inc., Class A* |
43,032 |
9,981,703 |
|||
|
Intuit, Inc. |
36,383 |
23,552,535 |
|||
|
Palantir Technologies, Inc., Class A* |
867,678 |
23,331,861 |
|||
|
UiPath, Inc., Class A* |
2,223,233 |
27,056,746 |
|||
|
Total Software |
93,324,217 |
||||
|
Total Common Stocks |
|||||
|
(Cost $992,736,700) |
787,864,946 |
||||
|
EXCHANGE-TRADED FUND - 5.0% |
|||||
|
Financial Services - 5.0% |
|||||
|
ARK 21Shares Bitcoin ETF† |
|||||
|
(Cost $40,089,552) |
629,903 |
41,050,779 |
|||
|
Total Investments - 100.1% |
|||||
|
(Cost $1,032,826,252) |
828,915,725 |
||||
|
Liabilities in Excess of Other Assets - (0.1)% |
(702,074) |
||||
|
Net Assets - 100.0% |
$ |
828,213,651 |
* Non-incomeproducing security
(a) American Depositary Receipt
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
See accompanying Notes to Financial Statements.
11
Table of Contents
|
Schedule of Investments(continued) |
||
|
July 31, 2024 |
Affiliated Issuer Transactions
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities, or a company that is under common ownership or control. Fiscal year-to-datetransactions with companies which are or were affiliates are as follows:
|
Value ($) at 7/31/2023 |
|
|
|
Net Change in |
Net Change in |
|
|
|
|
Exchange-Traded Fund - 5.0% |
||||||||
|
Financial Services - 5.0% |
||||||||
|
ARK 21Shares Bitcoin ETF |
||||||||
|
- |
40,089,552 |
- |
- |
961,227 |
- |
- |
629,903 |
41,050,779 |
|
$ - |
$40,089,552 |
$ - |
$ - |
$961,227 |
$ - |
$ - |
629,903 |
$41,050,779 |
Fair Value Measurement
The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (i) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (ii) the Fund's own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:
• Level 1 - Quoted prices in active markets for identical assets.• Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).• Level 3 - Significant unobservable inputs (including each Fund's own assumptions in determining the fair value of investments).The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the valuations as of July 31, 2024, based upon the three levels defined above:
|
ARK Fintech |
Level 1 |
Level 2 |
Level 3 |
Total |
|
Assets |
||||
|
Common Stocks‡ |
$787,864,946 |
$ - |
$ - |
$787,864,946 |
|
Exchange-Traded Fund |
41,050,779 |
- |
- |
41,050,779 |
|
Total |
$828,915,725 |
$ - |
$ - |
$828,915,725 |
‡ Please refer to the Schedule of Investments to view securities segregated by industry type.
See accompanying Notes to Financial Statements.
12
Table of Contents
|
Schedule of Investments ARK Space Exploration & Innovation ETF |
||
|
July 31, 2024 |
|
Investments |
Shares |
Value |
|||
|
COMMON STOCKS - 96.9% |
|||||
|
Aerospace & Defense - 38.9% |
|||||
|
AeroVironment, Inc.* |
94,813 |
$ |
16,927,913 |
||
|
Airbus SE (France) |
18,762 |
2,841,915 |
|||
|
Archer Aviation, Inc., Class A* |
2,031,263 |
8,470,367 |
|||
|
Elbit Systems Ltd. (Israel) |
17,537 |
3,156,309 |
|||
|
HEICO Corp. |
15,405 |
3,717,843 |
|||
|
Kratos Defense & Security Solutions, Inc.* |
960,911 |
21,658,934 |
|||
|
L3Harris Technologies, Inc. |
55,261 |
12,538,168 |
|||
|
Lockheed Martin Corp. |
6,725 |
3,644,412 |
|||
|
Mynaric AG (Germany)*(a) |
468,289 |
2,013,643 |
|||
|
Rocket Lab USA, Inc.* |
1,515,268 |
7,940,004 |
|||
|
Thales SA (France) |
31,988 |
5,087,269 |
|||
|
Total Aerospace & Defense |
87,996,777 |
||||
|
Air Freight & Logistics - 1.2% |
|||||
|
JD Logistics, Inc. (China)*(b) |
2,721,054 |
2,803,648 |
|||
|
Broadline Retail - 3.7% |
|||||
|
Amazon.com, Inc.* |
44,906 |
8,396,524 |
|||
|
Diversified Telecommunication - 8.9% |
|||||
|
Iridium Communications, Inc. |
704,805 |
20,227,904 |
|||
|
Electronic Equipment, Instruments & Components - 7.8% |
|||||
|
Teledyne Technologies, Inc.* |
7,597 |
3,204,871 |
|||
|
Trimble, Inc.* |
264,973 |
14,451,627 |
|||
|
Total Electronic Equipment, Instruments |
17,656,498 |
||||
|
Household Durables - 2.8% |
|||||
|
Garmin Ltd. |
36,485 |
6,248,056 |
|||
|
Industrial Conglomerates - 1.5% |
|||||
|
Honeywell International, Inc. |
16,480 |
3,374,280 |
|||
|
Interactive Media & Services - 2.1% |
|||||
|
Alphabet, Inc., Class C |
28,105 |
4,866,381 |
|||
|
Machinery - 8.1% |
|||||
|
3D Systems Corp.* |
286,679 |
1,046,378 |
|||
|
Deere & Co. |
15,881 |
5,907,414 |
|||
|
Komatsu Ltd. (Japan) |
356,388 |
10,365,359 |
|||
|
Markforged Holding Corp.* |
2,758,735 |
1,023,215 |
|||
|
Velo3D, Inc.* |
985 |
2,571 |
|||
|
Total Machinery |
18,344,937 |
||||
|
Passenger Airlines - 5.3% |
|||||
|
Blade Air Mobility, Inc.* |
1,920,077 |
6,336,254 |
|||
|
Joby Aviation, Inc.* |
949,764 |
5,679,589 |
|||
|
Total Passenger Airlines |
12,015,843 |
|
Investments |
Shares |
Value |
||||
|
Semiconductors & Semiconductor Equipment - 6.9% |
||||||
|
Teradyne, Inc. |
118,399 |
$ |
15,529,213 |
|||
|
Software - 9.7% |
||||||
|
ANSYS, Inc.* |
7,815 |
2,451,018 |
||||
|
Dassault Systemes SE (France) |
156,340 |
5,928,738 |
||||
|
Palantir Technologies, Inc., Class A* |
178,569 |
4,801,720 |
||||
|
Synopsys, Inc.* |
5,815 |
3,246,631 |
||||
|
UiPath, Inc., Class A* |
305,998 |
3,723,996 |
||||
|
Unity Software, Inc.* |
104,736 |
1,713,481 |
||||
|
Total Software |
21,865,584 |
|||||
|
Total Common Stocks |
||||||
|
(Cost $279,628,475) |
219,325,645 |
|||||
|
EXCHANGE - TRADED FUND - 2.8% |
||||||
|
Equity Fund - 2.8% |
||||||
|
The 3D Printing ETF*† |
||||||
|
(Cost $11,958,853) |
306,727 |
6,297,105 |
||||
|
MONEY MARKET FUND - 0.3% |
||||||
|
Goldman Sachs Financial Square Treasury Obligations Fund, 5.17%(c) |
||||||
|
(Cost $708,934) |
708,934 |
708,934 |
||||
|
Total Investments - 100.0% |
||||||
|
(Cost $292,296,262) |
226,331,684 |
|||||
|
Liabilities in Excess of Other Assets - (0.0)%(d) |
(95,661 |
) |
||||
|
Net Assets - 100.0% |
$ |
226,236,023 |
† Affiliated security
* Non-incomeproducing security
(a) American Depositary Receipt
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(c) Rate shown represents annualized 7-dayyield as of July 31, 2024.
(d) Less than 0.05%
See accompanying Notes to Financial Statements.
13
Table of Contents
|
Schedule of Investments (continued) |
||
|
July 31, 2024 |
Affiliated Issuer Transactions
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities, or a company that is under common ownership or control. Fiscal year-to-datetransactions with companies which are or were affiliates are as follows:
|
Value ($) at 7/31/2023 |
|
|
|
Net Change in |
Net Change in |
|
|
|
|
Exchange-Traded Fund - 2.8% |
||||||||
|
Equity Fund - 2.8% |
||||||||
|
The 3D Printing ETF |
||||||||
|
16,332,566 |
- |
(7,834,216) |
(6,537,570) |
4,336,325 |
- |
- |
306,727 |
6,297,105 |
|
$16,332,566 |
$ - |
$(7,834,216) |
$(6,537,570) |
$4,336,325 |
$ - |
$ - |
306,727 |
$6,297,105 |
Fair Value Measurement
The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (i) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (ii) the Fund's own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:
• Level 1 - Quoted prices in active markets for identical assets.• Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).• Level 3 - Significant unobservable inputs (including each Fund's own assumptions in determining the fair value of investments).The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the valuations as of July 31, 2024, based upon the three levels defined above:
|
ARK Space |
|
|
|
|
||||
|
Assets |
||||||||
|
Common Stocks‡ |
$219,325,645 |
$ - |
$ - |
$219,325,645 |
||||
|
Exchange-Traded Fund |
6,297,105 |
- |
- |
6,297,105 |
||||
|
Money Market Fund |
708,934 |
- |
- |
708,934 |
||||
|
Total |
$226,331,684 |
$ - |
$ - |
$226,331,684 |
‡ Please refer to the Schedule of Investments to view securities segregated by industry type.
See accompanying Notes to Financial Statements.
14
Table of Contents
|
Schedule of Investments |
||
|
July 31, 2024 |
|
Investments |
Shares |
Value |
|
COMMON STOCKS - 100.0% |
||
|
Aerospace & Defense - 6.1% |
||
|
General Electric Co. |
9,590 |
$ 1,632,218 |
|
Hexcel Corp. |
1,688 |
111,762 |
|
L3Harris Technologies, Inc. |
6,443 |
1,461,852 |
|
Melrose Industries PLC (United Kingdom) |
213,058 |
1,612,698 |
|
Moog, Inc., Class A |
8,095 |
1,587,430 |
|
Total Aerospace & Defense |
6,405,960 |
|
|
Air Freight & Logistics - 1.3% |
||
|
United Parcel Service, Inc., Class B |
10,520 |
1,371,492 |
|
Automobile Components - 1.5% |
||
|
Cie Generale des Etablissements Michelin SCA (France) |
40,212 |
1,592,813 |
|
Chemicals - 0.7% |
||
|
5N Plus, Inc. (Canada)* |
25,796 |
112,851 |
|
Arkema SA (France) |
1,118 |
101,152 |
|
Avient Corp. |
2,325 |
105,183 |
|
DuPont de Nemours, Inc. |
1,316 |
110,149 |
|
Eastman Chemical Co. |
1,063 |
109,840 |
|
Evonik Industries AG (Germany) |
5,018 |
101,908 |
|
Toray Industries, Inc. (Japan) |
20,679 |
108,403 |
|
Total Chemicals |
749,486 |
|
|
Electrical Equipment - 1.8% |
||
|
AMETEK, Inc. |
10,223 |
1,773,486 |
|
SGL Carbon SE (Germany)* |
15,428 |
103,855 |
|
Total Electrical Equipment |
1,877,341 |
|
|
Electronic Equipment, Instruments & Components - 9.6% |
||
|
FARO Technologies, Inc.* |
229,558 |
3,925,442 |
|
Hexagon AB, Class B (Sweden) |
160,659 |
1,635,214 |
|
Jabil, Inc. |
937 |
105,572 |
|
Renishaw PLC (United Kingdom) |
91,150 |
4,446,884 |
|
Total Electronic Equipment, Instruments & Components |
10,113,112 |
|
|
Health Care Equipment & Supplies - 9.5% |
||
|
Align Technology, Inc.* |
6,882 |
1,595,798 |
|
DENTSPLY SIRONA, Inc. |
149,761 |
4,064,514 |
|
Straumann Holding AG (Switzerland) |
33,466 |
4,325,511 |
|
Total Health Care Equipment & Supplies |
9,985,823 |
|
|
Household Durables - 4.3% |
||
|
Nikon Corp. (Japan) |
395,931 |
4,586,885 |
|
Industrial Conglomerates - 3.8% |
||
|
3M Co. |
1,017 |
129,718 |
|
Siemens AG (Germany) |
21,052 |
3,859,989 |
|
Total Industrial Conglomerates |
3,989,707 |
|
|
Life Sciences Tools & Services - 3.8% |
||
|
BICO Group AB (Sweden)* |
1,007,112 |
3,962,920 |
|
Investments |
Shares |
Value |
|
Machinery - 19.7% |
||
|
3D Systems Corp.* |
1,169,067 |
$ 4,267,095 |
|
Desktop Metal, Inc., Class A* |
633,194 |
2,982,344 |
|
Kennametal, Inc. |
4,269 |
111,592 |
|
Lincoln Electric Holdings, Inc. |
7,359 |
1,511,612 |
|
Markforged Holding Corp.* |
4,593,719 |
1,703,810 |
|
OC Oerlikon Corp. AG (Switzerland) |
274,734 |
1,548,088 |
|
Proto Labs, Inc.* |
133,586 |
4,651,464 |
|
Sandvik AB (Sweden) |
5,318 |
108,851 |
|
Stratasys Ltd.* |
455,177 |
3,896,315 |
|
Total Machinery |
20,781,171 |
|
|
Metals & Mining - 1.6% |
||
|
ATI Inc.* |
1,791 |
121,269 |
|
Carpenter Technology Corp. |
896 |
130,700 |
|
Kaiser Aluminum Corp. |
16,218 |
1,276,194 |
|
Materion Corp. |
816 |
98,271 |
|
voestalpine AG (Austria) |
3,962 |
101,451 |
|
Total Metals & Mining |
1,727,885 |
|
|
Software - 23.6% |
||
|
Altair Engineering, Inc., Class A* |
43,782 |
3,868,578 |
|
ANSYS, Inc.* |
12,530 |
3,929,784 |
|
Autodesk, Inc.* |
16,189 |
4,007,101 |
|
Dassault Systemes SE (France) |
105,067 |
3,984,359 |
|
Materialise NV (Belgium)*(a) |
790,540 |
5,138,510 |
|
PTC, Inc.* |
22,264 |
3,959,652 |
|
Total Software |
24,887,984 |
|
|
Technology Hardware, Storage & Peripherals - 8.4% |
||
|
Eastman Kodak Co.* |
18,817 |
109,326 |
|
HP, Inc. |
117,409 |
4,237,291 |
|
Nano Dimension Ltd. (Israel)*(a) |
1,799,249 |
4,372,175 |
|
Xerox Holdings Corp. |
7,971 |
85,808 |
|
Total Technology Hardware, Storage & Peripherals |
8,804,600 |
|
|
Trading Companies & Distributors - 4.3% |
||
|
Xometry, Inc., Class A* |
307,004 |
4,491,469 |
|
Total Common Stocks |
||
|
(Cost $153,949,938) |
105,328,648 |
|
|
PREFERRED STOCK - 0.1% |
||
|
Household Products - 0.1% |
||
|
Henkel AG & Co. KGaA (Germany) |
1,164 |
99,645 |
|
Total Investments - 100.1% |
||
|
(Cost $154,073,397) |
105,428,293 |
|
|
Liabilities in Excess of Other Assets - (0.1)% |
(74,611) |
|
|
Net Assets - 100.0% |
$105,353,682 |
* Non-incomeproducing security
(a) American Depositary Receipt
See accompanying Notes to Financial Statements.
15
Table of Contents
|
Schedule of Investments (continued) |
||
|
July 31, 2024 |
Fair Value Measurement
The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (i) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (ii) the Fund's own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:
• Level 1 - Quoted prices in active markets for identical assets.• Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).• Level 3 - Significant unobservable inputs (including each Fund's own assumptions in determining the fair value of investments).The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the valuations as of July 31, 2024, based upon the three levels defined above:
|
The 3D Printing ETF |
|
|
|
|
|
Assets |
||||
|
Common Stocks‡ |
$105,328,648 |
$ - |
$ - |
$105,328,648 |
|
Preferred Stock‡ |
99,645 |
- |
- |
99,645 |
|
Total |
$105,428,293 |
$ - |
$ - |
$105,428,293 |
‡ Please refer to the Schedule of Investments to view securities segregated by industry type.
See accompanying Notes to Financial Statements.
16
Table of Contents
|
Schedule of Investments |
||
|
July 31, 2024 |
|
Investments |
Shares |
Value |
|
COMMON STOCKS - 97.7% |
||
|
Aerospace & Defense - 3.8% |
||
|
Bet Shemesh Engines Holdings 1997 Ltd. (Israel) |
32,712 |
$1,846,562 |
|
Elbit Systems Ltd. (Israel) |
10,899 |
1,948,062 |
|
Total Aerospace & Defense |
3,794,624 |
|
|
Automobile Components - 1.6% |
||
|
Mobileye Global, Inc., Class A (Israel)* |
74,878 |
1,572,438 |
|
Biotechnology - 3.9% |
||
|
Compugen Ltd. (Israel)* |
1,092,183 |
1,894,073 |
|
UroGen Pharma Ltd.* |
121,634 |
2,000,879 |
|
Total Biotechnology |
3,894,952 |
|
|
Communications Equipment - 6.3% |
||
|
AudioCodes Ltd. (Israel) |
188,538 |
2,130,479 |
|
Gilat Satellite Networks Ltd. (Israel)* |
434,963 |
1,979,082 |
|
Ituran Location and Control Ltd. (Israel) |
79,690 |
2,109,394 |
|
Total Communications Equipment |
6,218,955 |
|
|
Diversified Telecommunication - 1.9% |
||
|
Bezeq The Israeli Telecommunication Corp. Ltd. (Israel) |
1,651,341 |
1,869,575 |
|
Electronic Equipment, Instruments & Components - 3.8% |
||
|
Nayax Ltd. (Israel)* |
86,869 |
1,907,009 |
|
Telsys Ltd. (Israel) |
38,459 |
1,911,556 |
|
Total Electronic Equipment, Instruments & Components |
3,818,565 |
|
|
Entertainment - 2.0% |
||
|
Playtika Holding Corp. |
254,671 |
1,943,140 |
|
Health Care Equipment & Services - 2.2% |
||
|
Nano-X Imaging Ltd. (Israel)* |
252,633 |
2,177,696 |
|
Health Care Equipment & Supplies - 2.0% |
||
|
Inmode Ltd.* |
112,192 |
2,032,919 |
|
Hotels, Restaurants & Leisure - 3.8% |
||
|
Fattal Holdings 1998 Ltd. (Israel)* |
17,249 |
1,826,010 |
|
Isrotel Ltd. (Israel) |
88,511 |
1,903,488 |
|
Total Hotels, Restaurants & Leisure |
3,729,498 |
|
|
Interactive Media & Services - 2.1% |
||
|
Taboola.com Ltd. (Israel)* |
594,590 |
2,063,227 |
|
IT Services - 5.8% |
||
|
Matrix IT Ltd. (Israel) |
100,547 |
1,962,853 |
|
One Software Technologies Ltd. (Israel) |
149,486 |
1,870,354 |
|
Wix.com Ltd. (Israel)* |
12,519 |
1,952,025 |
|
Total IT Services |
5,785,232 |
|
|
Machinery - 1.9% |
||
|
Stratasys Ltd.* |
223,334 |
1,911,739 |
|
Media - 2.1% |
||
|
Perion Network Ltd. (Israel)* |
238,544 |
2,092,031 |
|
Investments |
Shares |
Value |
|
Pharmaceuticals - 4.1% |
||
|
MediWound Ltd. (Israel)* |
99,994 |
$ 1,922,885 |
|
Teva Pharmaceutical Industries Ltd. (Israel)*(a) |
123,865 |
2,158,967 |
|
Total Pharmaceuticals |
4,081,852 |
|
|
Professional Services - 6.2% |
||
|
Danel Adir Yeoshua Ltd. (Israel) |
23,498 |
1,926,881 |
|
Fiverr International Ltd.* |
86,822 |
2,266,922 |
|
Hilan Ltd. (Israel) |
36,255 |
1,949,699 |
|
Total Professional Services |
6,143,502 |
|
|
Semiconductors & Semiconductor Equipment - 9.3% |
||
|
Camtek Ltd. (Israel) |
18,170 |
1,907,850 |
|
Nova Ltd. (Israel)* |
9,791 |
2,021,548 |
|
Qualitau Ltd. (Israel) |
50,954 |
1,900,464 |
|
Tower Semiconductor Ltd. (Israel)* |
50,181 |
2,047,385 |
|
Valens Semiconductor Ltd. (Israel)* |
619,309 |
1,381,059 |
|
Total Semiconductors & Semiconductor Equipment |
9,258,306 |
|
|
Software - 31.1% |
||
|
Alarum Technologies Ltd. (Israel)*(a) |
73,749 |
1,841,513 |
|
Cellebrite DI Ltd. (Israel)* |
160,625 |
2,200,562 |
|
Check Point Software Technologies Ltd. (Israel)* |
11,799 |
2,164,527 |
|
Cognyte Software Ltd. (Israel)* |
270,315 |
2,062,503 |
|
CyberArk Software Ltd.* |
7,818 |
2,004,379 |
|
JFrog Ltd. (Israel)* |
54,263 |
2,092,381 |
|
Magic Software Enterprises Ltd. (Israel) |
182,389 |
1,933,215 |
|
Monday.com Ltd.* |
8,921 |
2,050,135 |
|
Nice Ltd. (Israel)*(a) |
11,308 |
2,046,748 |
|
Pagaya Technologies Ltd., Class A* |
139,850 |
2,080,968 |
|
Radware Ltd. (Israel)* |
113,495 |
2,571,797 |
|
Riskified Ltd., Class A* |
323,018 |
2,028,553 |
|
Sapiens International Corp. NV (Israel) |
52,381 |
2,037,621 |
|
SimilarWeb Ltd. (Israel)* |
276,097 |
1,692,475 |
|
WalkMe Ltd. (Israel)* |
145,813 |
2,023,884 |
|
Total Software |
30,831,261 |
|
|
Wireless Telecommunication Services - 3.8% |
||
|
Cellcom Israel Ltd. (Israel)* |
510,363 |
1,923,784 |
|
Partner Communications Co. Ltd. (Israel)* |
437,411 |
1,804,997 |
|
Total Wireless Telecommunication Services |
3,728,781 |
|
|
Total Common Stocks |
||
|
(Cost $95,487,837) |
96,948,293 |
See accompanying Notes to Financial Statements.
17
Table of Contents
|
Schedule of Investments(concluded) |
||
|
July 31, 2024 |
|
Investments |
Shares |
Value |
|
MONEY MARKET FUND - 0.1% |
||
|
Goldman Sachs Financial Square Treasury Obligations Fund, 5.17%(b) |
||
|
(Cost $93,119) |
93,119 |
$ 93,119 |
|
Total Investments - 97.8% |
||
|
(Cost $95,580,956) |
97,041,412 |
|
|
Other Assets in Excess of Liabilities - 2.2% |
2,171,482 |
|
|
Net Assets- 100.0% |
$99,212,894 |
* Non-incomeproducing security
(a) American Depositary Receipt
(b) Rate shown represents annualized 7-dayyield as of July 31, 2024.
|
Country |
Value |
% of Net |
|
Israel |
$ 78,628,658 |
79.2% |
|
United States |
18,412,754 |
18.6 |
|
Total Investments |
97,041,412 |
97.8 |
|
Other Assets in Excess of Liabilities |
2,171,482 |
2.2 |
|
Net Assets |
$99,212,894 |
100.0% |
Fair Value Measurement
The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (i) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (ii) the Fund's own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:
• Level 1 - Quoted prices in active markets for identical assets.• Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).• Level 3 -Significant unobservable inputs (including each Fund's own assumptions in determining the fair value of investments).The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the valuations as of July 31, 2024, based upon the three levels defined above:
|
ARK Israel |
|
|
|
|
||||
|
Assets |
||||||||
|
Common Stocks‡ |
$96,948,293 |
$ - |
$ - |
$96,948,293 |
||||
|
Money Market Fund |
93,119 |
- |
- |
93,119 |
||||
|
Total |
$97,041,412 |
$ - |
$ - |
$97,041,412 |
‡ Please refer to the Schedule of Investments to view securities segregated by industry type.
See accompanying Notes to Financial Statements.
18
Table of Contents
|
Statements of Assets and Liabilities |
||
|
July 31, 2024 |
|
ARK Genomic |
ARK |
ARK |
ARK Next |
||||||
|
ASSETS: |
|||||||||
|
Investments in non-affiliated securities at fair value (Note 2) |
$ 1,132,539,351 |
$ 774,376,021 |
$ 3,935,720,564 |
$ 1,239,922,516 |
|||||
|
Investments in affiliated securities at fair value (Note 2) |
325,217,179 |
17,534,702 |
2,044,463,798 |
154,704,005 |
|||||
|
Receivables: |
|||||||||
|
Dividends and interest |
8,673 |
354,037 |
66,967 |
2,372 |
|||||
|
Capital shares sold |
12,127,640 |
- |
27,302,966 |
- |
|||||
|
Investment securities sold |
5,966,999 |
2,822,689 |
54,803,185 |
5,617,051 |
|||||
|
Tax reclaims |
5,173,433 |
81,642 |
1,778,642 |
- |
|||||
|
Total Assets |
1,481,033,275 |
795,169,091 |
6,064,136,122 |
1,400,245,944 |
|||||
|
LIABILITIES: |
|||||||||
|
Payables: |
|||||||||
|
Capital shares purchased |
- |
2,827,928 |
11,376,236 |
- |
|||||
|
Investment securities purchased |
16,771,795 |
- |
83,081,392 |
4,935,397 |
|||||
|
Management fees (Note 3) |
859,526 |
521,334 |
3,980,466 |
928,375 |
|||||
|
Total Liabilities |
17,631,321 |
3,349,262 |
98,438,094 |
5,863,772 |
|||||
|
NET ASSETS |
$ 1,463,401,954 |
$ 791,819,829 |
$ 5,965,698,028 |
$ 1,394,382,172 |
|||||
|
NET ASSETS CONSIST OF: |
|||||||||
|
Paid-in capital |
$ 6,486,028,603 |
$1,583,412,158 |
$ 17,398,873,524 |
$ 3,602,325,784 |
|||||
|
Total accumulated loss |
(5,022,626,649) |
(791,592,329) |
(11,433,175,496) |
(2,207,943,612 |
) |
||||
|
NET ASSETS |
$ 1,463,401,954 |
$ 791,819,829 |
$ 5,965,698,028 |
$ 1,394,382,172 |
|||||
|
Shares outstanding no par value (unlimited shares authorized) |
54,300,000 |
14,000,000 |
131,100,000 |
17,800,000 |
|||||
|
Net asset value, per share |
$ 26.95 |
$ 56.56 |
$ 45.50 |
$ 78.34 |
|||||
|
Investments in non-affiliated securities at cost |
$ 2,523,773,718 |
$1,072,008,195 |
$ 5,905,226,801 |
$ 1,651,053,875 |
|||||
|
Investments in affiliated securities at cost |
$ 1,554,384,100 |
$ 62,635,615 |
$ 4,728,984,519 |
$ 97,245,951 |
See accompanying Notes to Financial Statements.
19
Table of Contents
|
Statements of Assets and Liabilities (concluded) |
||
|
July 31, 2024 |
|
ARK Fintech |
ARK Space |
The 3D |
ARK Israel |
||||||
|
ASSETS: |
|||||||||
|
Investments in non-affiliated securities at fair value (Note 2) |
$ 787,864,946 |
$ 220,034,579 |
$ 105,428,293 |
$ 97,041,412 |
|||||
|
Investments in affiliated securities at fair value (Note 2) |
41,050,779 |
6,297,105 |
- |
- |
|||||
|
Receivables: |
|||||||||
|
Dividends and interest |
1,182 |
27,617 |
13,634 |
4,425 |
|||||
|
Capital shares sold |
- |
111 |
- |
- |
|||||
|
Investment securities sold |
8,967,123 |
3,049,115 |
14,105 |
2,209,082 |
|||||
|
Tax reclaims |
37,536 |
33,556 |
281,860 |
- |
|||||
|
Total Assets |
837,921,566 |
229,442,083 |
105,737,892 |
99,254,919 |
|||||
|
LIABILITIES: |
|||||||||
|
Due to custodian |
164,098 |
- |
317,356 |
- |
|||||
|
Due to custodian for foreign currency |
6,150 |
4,238 |
9,922 |
874 |
|||||
|
Payables: |
|||||||||
|
Capital shares purchased |
6,810,971 |
3,057,242 |
- |
- |
|||||
|
Investment securities purchased |
2,162,385 |
34 |
- |
- |
|||||
|
Management fees (Note 3) |
564,311 |
144,546 |
56,045 |
40,288 |
|||||
|
Other accrued expenses |
- |
- |
887 |
863 |
|||||
|
Total Liabilities |
9,707,915 |
3,206,060 |
384,210 |
42,025 |
|||||
|
NET ASSETS |
$ 828,213,651 |
$ 226,236,023 |
$ 105,353,682 |
$ 99,212,894 |
|||||
|
NET ASSETS CONSIST OF: |
|||||||||
|
Paid-in capital |
$ 2,515,635,424 |
$ 370,935,954 |
$ 366,565,368 |
$ 229,017,001 |
|||||
|
Total accumulated loss |
(1,687,421,773) |
(144,699,931) |
(261,211,686) |
(129,804,107 |
) |
||||
|
NET ASSETS |
$ 828,213,651 |
$ 226,236,023 |
$ 105,353,682 |
$ 99,212,894 |
|||||
|
Shares outstanding no par value (unlimited shares authorized) |
30,400,000 |
14,800,000 |
5,100,000 |
4,950,000 |
|||||
|
Net asset value, per share |
$ 27.24 |
$ 15.29 |
$ 20.66 |
$ 20.04 |
|||||
|
Investments in non-affiliated securities at cost |
$ 992,736,700 |
$ 280,337,409 |
$ 154,073,397 |
$ 95,580,956 |
|||||
|
Investments in affiliated securities at cost |
$ 40,089,552 |
$ 11,958,853 |
$ - |
$ - |
See accompanying Notes to Financial Statements.
20
Table of Contents
|
Statements of Operations |
||
|
For the Year Ended July 31, 2024 |
|
ARK |
ARK |
ARK |
ARK Next |
|||||
|
INVESTMENT INCOME: |
||||||||
|
Unaffiliated dividend income |
$ 610,341 |
$ 5,077,169 |
$ 1,080,095 |
$ 1,110,849 |
||||
|
Affiliated dividend income |
- |
- |
- |
326,051 |
||||
|
Foreign withholding tax |
- |
(389,251) |
- |
(27,462 |
) |
|||
|
Total Income |
610,341 |
4,687,918 |
1,080,095 |
1,409,438 |
||||
|
EXPENSES: |
||||||||
|
Management fees (Note 3) |
12,638,417 |
6,997,809 |
54,966,688 |
11,264,165 |
||||
|
Overdraft expense |
738 |
- |
4,011 |
1,593 |
||||
|
Total Expenses |
12,639,155 |
6,997,809 |
54,970,699 |
11,265,758 |
||||
|
Net Investment Loss |
(12,028,814) |
(2,309,891) |
(53,890,604) |
(9,856,320 |
) |
|||
|
NET REALIZED AND UNREALIZED GAIN (LOSS)ON INVESTMENTS AND FOREIGN CURRENCY TRANSLATION: |
||||||||
|
Net realized gain (loss) on: |
||||||||
|
Investments in non-affiliated securities |
(1,370,905,755) |
(169,276,422) |
(2,538,065,856) |
(1,111,752,691 |
) |
|||
|
Investments in affiliated securities |
(157,094,266) |
- |
(3,582,928,833) |
(882,933 |
) |
|||
|
In-kind redemptions - non-affiliated securities |
50,046,548 |
36,555,686 |
932,701,745 |
129,679,166 |
||||
|
In-kind redemptions - affiliated securities |
(3,990,156) |
(6,753,727) |
83,945,762 |
(8,875,641 |
) |
|||
|
Net realized loss |
(1,481,943,629) |
(139,474,463) |
(5,104,347,182) |
(991,832,099 |
) |
|||
|
Change in unrealized appreciation (depreciation) on: |
||||||||
|
Investments in non-affiliated securities |
488,201,005 |
14,079,240 |
1,369,367,434 |
1,118,556,876 |
||||
|
Investments in affiliated securities |
300,975,751 |
67,060,031 |
2,925,694,923 |
101,500,201 |
||||
|
Change in unrealized appreciation |
789,176,756 |
81,139,271 |
4,295,062,357 |
1,220,057,077 |
||||
|
Net realized and unrealized gain (loss) on investments and foreign currency translation |
(692,766,873) |
(58,335,192) |
(809,284,825) |
228,224,978 |
||||
|
Net Increase (Decrease) in Net Assets Resulting From Operations |
$ (704,795,687) |
$ (60,645,083) |
$ (863,175,429) |
$ 218,368,658 |
See accompanying Notes to Financial Statements.
21
Table of Contents
|
Statements of Operations (concluded) |
||
|
For the Year Ended July 31, 2024 |
|
ARK Fintech |
ARK Space |
The 3D |
ARK Israel |
||||||
|
INVESTMENT INCOME: |
|||||||||
|
Unaffiliated dividend income |
$ 2,293,382 |
$ 1,827,398 |
$ 1,412,818 |
$ 780,988 |
|||||
|
Foreign withholding tax |
(80,893) |
(89,226) |
(97,877) |
(165,979 |
) |
||||
|
Total Income |
2,212,489 |
1,738,172 |
1,314,941 |
615,009 |
|||||
|
EXPENSES: |
|||||||||
|
Management fees |
7,305,551 |
1,892,246 |
882,346 |
472,715 |
|||||
|
Overdraft expense |
3,761 |
791 |
1,440 |
388 |
|||||
|
Other expenses |
- |
- |
13,540 |
9,848 |
|||||
|
Total Expenses |
7,309,312 |
1,893,037 |
897,326 |
482,951 |
|||||
|
Less expense waivers and reimbursements |
- |
(70,781)(1) |
- |
- |
|||||
|
Net Expenses |
7,309,312 |
1,822,256 |
897,326 |
482,951 |
|||||
|
Net Investment Income (Loss) |
(5,096,823) |
(84,084) |
417,615 |
132,058 |
|||||
|
NET REALIZED AND UNREALIZED GAIN |
|||||||||
|
Net realized gain (loss) on: |
|||||||||
|
Investments in non-affiliated securities |
(446,273,091) |
(40,148,879) |
(35,262,860) |
(12,661,836 |
) |
||||
|
Investments in affiliated securities |
- |
(4,312,783) |
- |
- |
|||||
|
Foreign currency transactions |
52,893 |
(24,520) |
(15,878) |
(30,327 |
) |
||||
|
In-kind redemptions - non-affiliated securities |
93,108,918 |
2,895,240 |
4,561,809 |
5,666,501 |
|||||
|
In-kind redemptions - affiliated securities |
- |
(2,224,787) |
- |
- |
|||||
|
Net realized loss |
(353,111,280) |
(43,815,729) |
(30,716,929) |
(7,025,662 |
) |
||||
|
Change in unrealized appreciation (depreciation) on: |
|||||||||
|
Investments in non-affiliated securities |
470,059,894 |
31,322,194 |
3,450,140 |
6,448,434 |
|||||
|
Investments in affiliated securities |
961,227 |
4,336,325 |
- |
- |
|||||
|
Foreign currency translation |
(601) |
10,593 |
46 |
16 |
|||||
|
Change in unrealized appreciation |
471,020,520 |
35,669,112 |
3,450,186 |
6,448,450 |
|||||
|
Net realized and unrealized gain (loss) on investments and foreign currency translation |
117,909,240 |
(8,146,617) |
(27,266,743) |
(577,212 |
) |
||||
|
Net Increase (Decrease) in Net Assets Resulting From Operations |
$112,812,417 |
$ (8,230,701) |
$(26,849,128) |
$ (445,154 |
) |
(1) The Adviser has agreed to reduce the acquired fund fees and expenses from their management fees for ARK Space Exploration & Innovation ETF as a result of investing in The 3D Printing ETF. Refer to Note 3.
See accompanying Notes to Financial Statements.
22
Table of Contents
|
Statements of Changes in Net Assets |
||
|
ARK Genomic |
ARK Autonomous |
||||||||
|
Year Ended |
Year Ended |
Year Ended |
Year Ended |
||||||
|
OPERATIONS: |
|||||||||
|
Net investment loss |
$ (12,028,814) |
$ (15,689,972) |
$ (2,309,891) |
$ (3,125,835 |
) |
||||
|
Net realized loss on investments and foreign currency transactions |
(1,481,943,629) |
(853,818,426) |
(139,474,463) |
(277,949,443 |
) |
||||
|
Net change in unrealized appreciation on investments and foreign currency translations |
789,176,756 |
884,732,526 |
81,139,271 |
309,108,305 |
|||||
|
Net increase (decrease) in net assets resulting from operations |
(704,795,687) |
15,224,128 |
(60,645,083) |
28,033,027 |
|||||
|
DISTRIBUTIONS TO SHAREHOLDERS |
|||||||||
|
Distributions from distributable earnings |
- |
- |
- |
- |
|||||
|
SHAREHOLDER TRANSACTIONS: |
|||||||||
|
Proceeds from shares sold |
1,072,099,765 |
1,362,712,302 |
10,865,479 |
69,227,641 |
|||||
|
Cost of shares redeemed |
(1,400,563,723) |
(1,661,300,555) |
(329,058,291) |
(138,541,694 |
) |
||||
|
Net decrease in net assets resulting from shareholder transactions |
(328,463,958) |
(298,588,253) |
(318,192,812) |
(69,314,053 |
) |
||||
|
Decrease in net assets |
(1,033,259,645) |
(283,364,125) |
(378,837,895) |
(41,281,026 |
) |
||||
|
NET ASSETS: |
|||||||||
|
Beginning of year |
2,496,661,599 |
2,780,025,724 |
1,170,657,724 |
1,211,938,750 |
|||||
|
End of year |
$ 1,463,401,954 |
$ 2,496,661,599 |
$ 791,819,829 |
$1,170,657,724 |
|||||
|
CHANGES IN SHARES OUTSTANDING: |
|||||||||
|
Shares outstanding, beginning of year |
65,800,000 |
75,805,000 |
19,900,000 |
21,600,000 |
|||||
|
Shares sold |
38,250,000 |
41,200,000 |
200,000 |
1,300,000 |
|||||
|
Shares redeemed |
(49,750,000) |
(51,205,000) |
(6,100,000) |
(3,000,000 |
) |
||||
|
Shares outstanding, end of year |
54,300,000 |
65,800,000 |
14,000,000 |
19,900,000 |
See accompanying Notes to Financial Statements.
23
Table of Contents
|
Statements of Changes in Net Assets (continued) |
||
|
ARK Innovation ETF |
ARK Next Generation Internet ETF |
||||||||
|
Year Ended |
Year Ended |
(consolidated) |
Year Ended |
||||||
|
OPERATIONS: |
|||||||||
|
Net investment loss |
$ (53,890,604) |
$ (56,870,224) |
$ (9,856,320) |
$ (9,318,781 |
) |
||||
|
Net realized loss on investments and |
(5,104,347,182) |
(2,067,804,437) |
(991,832,099) |
(468,661,159 |
) |
||||
|
Net change in unrealized appreciation on investments and foreign currency translations |
4,295,062,357 |
3,013,683,487 |
1,220,057,077 |
758,506,498 |
|||||
|
Net increase (decrease) in net assets resulting from operations |
(863,175,429) |
889,008,826 |
218,368,658 |
280,526,558 |
|||||
|
DISTRIBUTIONS TO SHAREHOLDERS |
|||||||||
|
Distributions from distributable earnings |
- |
- |
- |
- |
|||||
|
SHAREHOLDER TRANSACTIONS: |
|||||||||
|
Proceeds from shares sold |
7,856,112,757 |
9,791,568,164 |
216,700,868 |
376,471,902 |
|||||
|
Cost of shares redeemed |
(10,322,592,100) |
(10,722,043,209) |
(691,198,315) |
(462,986,678 |
) |
||||
|
Net decrease in net assets resulting from shareholder transactions |
(2,466,479,343) |
(930,475,045) |
(474,497,447) |
(86,514,776 |
) |
||||
|
Increase (decrease) in net assets |
(3,329,654,772) |
(41,466,219) |
(256,128,789) |
194,011,782 |
|||||
|
NET ASSETS: |
|||||||||
|
Beginning of year |
9,295,352,800 |
9,336,819,019 |
1,650,510,961 |
1,456,499,179 |
|||||
|
End of year |
$ 5,965,698,028 |
$ 9,295,352,800 |
$1,394,382,172 |
$1,650,510,961 |
|||||
|
CHANGES IN SHARES OUTSTANDING: |
|||||||||
|
Shares outstanding, beginning of year |
184,350,000 |
206,850,000 |
24,550,000 |
26,700,000 |
|||||
|
Shares sold |
174,900,000 |
245,750,000 |
2,950,000 |
7,600,000 |
|||||
|
Shares redeemed |
(228,150,000) |
(268,250,000) |
(9,700,000) |
(9,750,000 |
) |
||||
|
Shares outstanding, end of year |
131,100,000 |
184,350,000 |
17,800,000 |
24,550,000 |
See accompanying Notes to Financial Statements.
Table of Contents
24
|
Statements of Changes in Net Assets (continued) |
||
|
ARK Fintech Innovation ETF |
ARK Space Exploration & |
||||||||
|
(consolidated) |
Year Ended |
Year Ended |
Year Ended |
||||||
|
OPERATIONS: |
|||||||||
|
Net investment loss |
$ (5,096,823) |
$ (4,720,822) |
$ (84,084) |
$ (287,594 |
) |
||||
|
Net realized loss on investments and foreign currency transactions |
(353,111,280) |
(397,541,775) |
(43,815,729) |
(8,877,064 |
) |
||||
|
Net change in unrealized appreciation on investments and foreign currency translations |
471,020,520 |
663,871,900 |
35,669,112 |
18,584,402 |
|||||
|
Net increase (decrease) in net assets resulting from operations |
112,812,417 |
261,609,303 |
(8,230,701) |
9,419,744 |
|||||
|
DISTRIBUTIONS TO SHAREHOLDERS |
|||||||||
|
Distributions from distributable earnings |
- |
- |
- |
- |
|||||
|
SHAREHOLDER TRANSACTIONS: |
|||||||||
|
Proceeds from shares sold |
35,042,227 |
152,224,444 |
6,395 |
5,571,035 |
|||||
|
Cost of shares redeemed |
(407,930,411) |
(261,975,876) |
(64,478,167) |
(35,588,100 |
) |
||||
|
Net decrease in net assets resulting from shareholder transactions |
(372,888,184) |
(109,751,432) |
(64,471,772) |
(30,017,065 |
) |
||||
|
Increase (decrease) in net assets |
(260,075,767) |
151,857,871 |
(72,702,473) |
(20,597,321 |
) |
||||
|
NET ASSETS: |
|||||||||
|
Beginning of year |
1,088,289,418 |
936,431,547 |
298,938,496 |
319,535,817 |
|||||
|
End of year |
$ 828,213,651 |
$1,088,289,418 |
$226,236,023 |
$298,938,496 |
|||||
|
CHANGES IN SHARES OUTSTANDING: |
|||||||||
|
Shares outstanding, beginning of year |
45,050,000 |
52,300,001 |
19,200,000 |
21,400,001 |
|||||
|
Shares sold |
1,300,000 |
8,050,000 |
- |
450,000 |
|||||
|
Shares redeemed |
(15,950,000) |
(15,300,001) |
(4,400,000) |
(2,650,001 |
) |
||||
|
Shares outstanding, end of year |
30,400,000 |
45,050,000 |
14,800,000 |
19,200,000 |
See accompanying Notes to Financial Statements.
25
Table of Contents
|
Statements of Changes in Net Assets (concluded) |
||
|
The 3D Printing ETF |
ARK Israel |
||||||||
|
Year Ended |
Year Ended |
Year Ended |
Year Ended |
||||||
|
OPERATIONS: |
|||||||||
|
Net investment income (loss) |
$ 417,615 |
$ (10,814) |
$ 132,058 |
$ (16,504 |
) |
||||
|
Net realized loss on investments and foreign currency transactions |
(30,716,929) |
(61,642,381) |
(7,025,662) |
(34,260,183 |
) |
||||
|
Net change in unrealized appreciation on investments and foreign currency translations |
3,450,186 |
69,897,846 |
6,448,450 |
37,194,723 |
|||||
|
Net increase (decrease) in net assets resulting from operations |
(26,849,128) |
8,244,651 |
(445,154) |
2,918,036 |
|||||
|
DISTRIBUTIONS TO SHAREHOLDERS |
|||||||||
|
Distributions from distributable earnings |
- |
- |
- |
- |
|||||
|
SHAREHOLDER TRANSACTIONS: |
|||||||||
|
Proceeds from shares sold |
- |
3,488,712 |
29,874,741 |
8,621,228 |
|||||
|
Cost of shares redeemed |
(53,652,141) |
(35,428,704) |
(30,150,723) |
(29,739,323 |
) |
||||
|
Net decrease in net assets resulting from shareholder transactions |
(53,652,141) |
(31,939,992) |
(275,982) |
(21,118,095 |
) |
||||
|
Decrease in net assets |
(80,501,269) |
(23,695,341) |
(721,136) |
(18,200,059 |
) |
||||
|
NET ASSETS: |
|||||||||
|
Beginning of year |
185,854,951 |
209,550,292 |
99,934,030 |
118,134,089 |
|||||
|
End of year |
$105,353,682 |
$185,854,951 |
$ 99,212,894 |
$ 99,934,030 |
|||||
|
CHANGES IN SHARES OUTSTANDING: |
|||||||||
|
Shares outstanding, beginning of year |
7,600,000 |
9,050,001 |
4,975,000 |
6,100,001 |
|||||
|
Shares sold |
- |
150,000 |
1,600,000 |
450,000 |
|||||
|
Shares redeemed |
(2,500,000) |
(1,600,001) |
(1,625,000) |
(1,575,001 |
) |
||||
|
Shares outstanding, end of year |
5,100,000 |
7,600,000 |
4,950,000 |
4,975,000 |
See accompanying Notes to Financial Statements.
26
Table of Contents
|
Financial Highlights ARK Genomic Revolution ETF For a share outstanding throughout each year presented. |
|
Year Ended |
Year Ended |
Year Ended |
Year Ended |
Year Ended |
|
|
Per Share Data: |
|||||
|
Net asset value, beginning of year |
$ 37.94 |
$ 36.67 |
$ 84.40 |
$ 53.70 |
$ 34.50 |
|
Net investment loss(1) |
(0.20) |
(0.23) |
(0.35) |
(0.24) |
(0.28) |
|
Net realized and unrealized gain (loss) on investments |
(10.79) |
1.50 |
(47.00) |
31.73 |
20.53 |
|
Total gain (loss) from investment operations |
(10.99) |
1.27 |
(47.35) |
31.49 |
20.25 |
|
Distributions to shareholders: |
|||||
|
Net realized gains |
- |
- |
(0.38) |
(0.79) |
(1.05) |
|
Total distributions |
- |
- |
(0.38) |
(0.79) |
(1.05) |
|
Net asset value, end of year |
$ 26.95 |
$ 37.94 |
$ 36.67 |
$ 84.40 |
$ 53.70 |
|
Market value, end of year |
$ 26.95 |
$ 38.00 |
$ 36.61 |
$ 84.35 |
$ 53.70 |
|
Total Return at Net Asset Value(2) |
(28.97)% |
3.46% |
(56.27)% |
58.48% |
60.41% |
|
Total Return at Market Value(2) |
(29.08)% |
3.80% |
(56.32)% |
58.39% |
60.05% |
|
Ratios/Supplemental Data: |
|||||
|
Net assets, end of year (000's omitted) |
$1,463,402 |
$2,496,662 |
$2,780,026 |
$8,588,014 |
$1,589,856 |
|
Ratio to average net assets of: |
|||||
|
Expenses |
0.75% |
0.75% |
0.75% |
0.75% |
0.75% |
|
Net investment loss |
(0.71)% |
(0.70)% |
(0.62)% |
(0.28)% |
(0.73)% |
|
Portfolio turnover rate(3) |
26% |
28% |
51% |
45% |
50% |
(1) Based on average daily shares outstanding.
(2) Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the year, reinvestment of all dividends and distributions at net asset value during the year and redemption on the last day of the year at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the year, reinvestment of all dividends, and distributions at market value during the year, and sale at the market value on the last day of the year. Market returns are based on the trade price at which shares are bought and sold on the Cboe BZX Exchange, Inc. using the last share trade.
(3) Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kindcreations or redemptions of the Fund's capital shares.
See accompanying Notes to Financial Statements.
27
Table of Contents
|
Financial Highlights (continued) ARK Autonomous Technology & Robotics ETF For a share outstanding throughout each year presented. |
|
Year Ended |
Year Ended |
Year Ended |
Year Ended |
Year Ended |
|
|
Per Share Data: |
|||||
|
Net asset value, beginning of year |
$ 58.83 |
$ 56.11 |
$ 81.12 |
$ 52.69 |
$ 33.05 |
|
Net investment loss(1) |
(0.13) |
(0.16) |
(0.30) |
(0.33) |
(0.13) |
|
Net realized and unrealized gain (loss) on investments |
(2.14) |
2.88 |
(24.10) |
29.42 |
19.77 |
|
Total gain (loss) from investment operations |
(2.27) |
2.72 |
(24.40) |
29.09 |
19.64 |
|
Distributions to shareholders: |
|||||
|
Net realized gains |
- |
- |
(0.61) |
(0.66) |
- |
|
Total distributions |
- |
- |
(0.61) |
(0.66) |
- |
|
Net asset value, end of year |
$ 56.56 |
$ 58.83 |
$ 56.11 |
$ 81.12 |
$ 52.69 |
|
Market value, end of year |
$ 56.53 |
$ 58.86 |
$ 56.07 |
$ 81.18 |
$ 52.78 |
|
Total Return at Net Asset Value(2) |
(3.86)% |
4.85% |
(30.27)% |
55.31% |
59.43% |
|
Total Return at Market Value(2) |
(3.96)% |
4.98% |
(30.38)% |
55.17% |
59.65% |
|
Ratios/Supplemental Data: |
|||||
|
Net assets, end of year (000's omitted) |
$791,820 |
$1,170,658 |
$1,211,939 |
$2,806,640 |
$447,887 |
|
Ratio to average net assets of: |
|||||
|
Expenses |
0.75% |
0.75% |
0.75% |
0.75% |
0.75% |
|
Net investment loss |
(0.25)% |
(0.32)% |
(0.42)% |
(0.41)% |
(0.34)% |
|
Portfolio turnover rate(3) |
20% |
21% |
54% |
86% |
71% |
(1) Based on average daily shares outstanding.
(2) Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the year, reinvestment of all dividends and distributions at net asset value during the year and redemption on the last day of the year at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the year, reinvestment of all dividends, and distributions at market value during the year, and sale at the market value on the last day of the year. Market returns are based on the trade price at which shares are bought and sold on the Cboe BZX Exchange, Inc. using the last share trade.
(3) Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kindcreations or redemptions of the Fund's capital shares.
See accompanying Notes to Financial Statements.
28
Table of Contents
|
Financial Highlights (continued) ARK Innovation ETF For a share outstanding throughout each year presented. |
|
Year Ended |
Year Ended |
Year Ended |
Year Ended |
Year Ended |
|
|
Per Share Data: |
|||||
|
Net asset value, beginning of year |
$ 50.42 |
$ 45.14 |
$ 119.91 |
$ 80.37 |
$ 48.36 |
|
Net investment loss(1) |
(0.33) |
(0.30) |
(0.60) |
(0.75) |
(0.38) |
|
Net realized and unrealized gain (loss) on investments |
(4.59) |
5.58 |
(73.39) |
42.33 |
32.58 |
|
Total gain (loss) from investment operations |
(4.92) |
5.28 |
(73.99) |
41.58 |
32.20 |
|
Distributions to shareholders: |
|||||
|
Net realized gains |
- |
- |
(0.78) |
(2.04) |
(0.19) |
|
Total distributions |
- |
- |
(0.78) |
(2.04) |
(0.19) |
|
Net asset value, end of year |
$ 45.50 |
$ 50.42 |
$ 45.14 |
$ 119.91 |
$ 80.37 |
|
Market value, end of year |
$ 45.53 |
$ 50.45 |
$ 45.13 |
$ 120.00 |
$ 80.37 |
|
Total Return at Net Asset Value(2) |
(9.75)% |
11.71% |
(62.04)% |
51.65% |
66.82% |
|
Total Return at Market Value(2) |
(9.75)% |
11.79% |
(62.08)% |
51.76% |
66.47% |
|
Ratios/Supplemental Data: |
|||||
|
Net assets, end of year (000's omitted) |
$5,965,698 |
$9,295,353 |
$9,336,819 |
$22,495,429 |
$6,132,599 |
|
Ratio to average net assets of: |
|||||
|
Expenses |
0.75% |
0.75% |
0.75% |
0.75% |
0.75% |
|
Net investment loss |
(0.74)% |
(0.74)% |
(0.75)% |
(0.63)% |
(0.70)% |
|
Portfolio turnover rate(3) |
39% |
26% |
55% |
71% |
80% |
(1) Based on average daily shares outstanding.
(2) Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the year, reinvestment of all dividends and distributions at net asset value during the year and redemption on the last day of the year at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the year, reinvestment of all dividends, and distributions at market value during the year, and sale at the market value on the last day of the year. Market returns are based on the trade price at which shares are bought and sold on the NYSE Arca, Inc. using the last share trade.
(3) Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kindcreations or redemptions of the Fund's capital shares.
See accompanying Notes to Financial Statements.
29
Table of Contents
|
Financial Highlights (continued) ARK Next Generation Internet ETF(consolidated) For a share outstanding throughout each year presented. |
|
Year Ended |
Year Ended |
Year Ended |
Year Ended |
Year Ended |
|
|
Per Share Data: |
|||||
|
Net asset value, beginning of year |
$ 67.23 |
$ 54.55 |
$ 147.37 |
$ 99.48 |
$ 52.32 |
|
Net investment loss(1) |
(0.46) |
(0.37) |
(0.81) |
(0.98) |
(0.45) |
|
Net realized and unrealized gain (loss) on investments |
11.57 |
13.05 |
(88.70) |
50.76 |
47.61 |
|
Total gain (loss) from investment operations |
11.11 |
12.68 |
(89.51) |
49.78 |
47.16 |
|
Distributions to shareholders: |
|||||
|
Net realized gains |
- |
- |
(3.31) |
(1.89) |
- |
|
Total distributions |
- |
- |
(3.31) |
(1.89) |
- |
|
Net asset value, end of year |
$ 78.34 |
$ 67.23 |
$ 54.55 |
$ 147.37 |
$ 99.48 |
|
Market value, end of year |
$ 77.79 |
$ 67.31 |
$ 54.48 |
$ 147.55 |
$ 99.49 |
|
Total Return at Net Asset Value(2) |
16.52% |
23.25% |
(61.95)% |
50.06% |
90.13% |
|
Total Return at Market Value(2) |
15.57% |
23.55% |
(62.04)% |
50.24% |
89.58% |
|
Ratios/Supplemental Data: |
|||||
|
Net assets, end of year (000's omitted) |
$1,394,382 |
$1,650,511 |
$1,456,499 |
$5,813,640 |
$1,920,045 |
|
Ratio to average net assets of: |
|||||
|
Expenses |
0.75% |
0.75% |
0.75% |
0.75% |
0.75% |
|
Net investment loss |
(0.66)% |
(0.74)% |
(0.75)% |
(0.69)% |
(0.68)% |
|
Portfolio turnover rate(3) |
54% |
33% |
76% |
120% |
93% |
(1) Based on average daily shares outstanding.
(2) Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the year, reinvestment of all dividends and distributions at net asset value during the year and redemption on the last day of the year at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the year, reinvestment of all dividends, and distributions at market value during the year, and sale at the market value on the last day of the year. Market returns are based on the trade price at which shares are bought and sold on the NYSE Arca, Inc. using the last share trade.
(3) Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kindcreations or redemptions of the Fund's capital shares.
See accompanying Notes to Financial Statements.
30
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|
Financial Highlights (continued) ARK Fintech Innovation ETF(consolidated) For a share outstanding throughout each year presented. |
|
Year Ended |
Year Ended |
Year Ended |
Year Ended |
Year Ended |
|
|
Per Share Data: |
|||||
|
Net asset value, beginning of year |
$ 24.16 |
$ 17.91 |
$ 50.67 |
$ 36.18 |
$ 22.84 |
|
Net investment loss(1) |
(0.13) |
(0.10) |
(0.24) |
(0.30) |
(0.10) |
|
Net realized and unrealized gain (loss) on investments |
3.21 |
6.35 |
(32.52) |
14.97 |
13.74 |
|
Total gain (loss) from investment operations |
3.08 |
6.25 |
(32.76) |
14.67 |
13.64 |
|
Distributions to shareholders: |
|||||
|
Net realized gains |
- |
- |
- |
(0.18) |
(0.30) |
|
Total distributions |
- |
- |
- |
(0.18) |
(0.30) |
|
Net asset value, end of year |
$ 27.24 |
$ 24.16 |
$ 17.91 |
$ 50.67 |
$ 36.18 |
|
Market value, end of year |
$ 27.22 |
$ 24.20 |
$ 17.88 |
$ 50.68 |
$ 36.26 |
|
Total Return at Net Asset Value(2) |
12.78% |
34.92% |
(64.66)% |
40.58% |
60.36% |
|
Total Return at Market Value(2) |
12.48% |
35.35% |
(64.72)% |
40.29% |
60.59% |
|
Ratios/Supplemental Data: |
|||||
|
Net assets, end of year (000's omitted) |
$828,214 |
$1,088,289 |
$936,432 |
$3,610,269 |
$347,337 |
|
Ratio to average net assets of: |
|||||
|
Expenses |
0.75% |
0.75% |
0.75% |
0.75% |
0.75% |
|
Net investment loss |
(0.52)% |
(0.56)% |
(0.65)% |
(0.60)% |
(0.40)% |
|
Portfolio turnover rate(3) |
37% |
26% |
75% |
78% |
55% |
(1) Based on average daily shares outstanding.
(2) Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the year, reinvestment of all dividends and distributions at net asset value during the year and redemption on the last day of the year at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the year, reinvestment of all dividends, and distributions at market value during the year, and sale at the market value on the last day of the year. Market returns are based on the trade price at which shares are bought and sold on the NYSE Arca, Inc. using the last share trade.
(3) Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kindcreations or redemptions of the Fund's capital shares.
See accompanying Notes to Financial Statements.
31
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|
Financial Highlights (continued) ARK Space Exploration & Innovation ETF For a share outstanding throughout each period presented. |
|
Year Ended |
Year Ended |
Year Ended |
For the Period |
|
|
Per Share Data: |
||||
|
Net asset value, beginning of period |
$ 15.57 |
$ 14.93 |
$ 20.35 |
$ 20.00 |
|
Net investment loss(2) |
(0.00)(3) |
(0.01) |
(0.03) |
(0.02) |
|
Net realized and unrealized gain (loss) on investments |
(0.28) |
0.65 |
(5.39) |
0.37 |
|
Total gain (loss) from investment operations |
(0.28) |
0.64 |
(5.42) |
0.35 |
|
Total distributions |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 15.29 |
$ 15.57 |
$ 14.93 |
$ 20.35 |
|
Market value, end of period |
$ 15.25 |
$ 15.59 |
$ 14.93 |
$ 20.34 |
|
Total Return at Net Asset Value(4) |
(1.82)% |
4.27% |
(26.64)% |
1.77% |
|
Total Return at Market Value(4) |
(2.18)% |
4.42% |
(26.60)% |
1.70% |
|
Ratios/Supplemental Data: |
||||
|
Net assets, end of period (000's omitted) |
$226,236 |
$298,938 |
$319,536 |
$607,553 |
|
Ratio to average net assets of: |
||||
|
Expenses, prior to expense waivers and reimbursements |
0.75% |
0.75% |
0.75% |
0.75%(5) |
|
Expenses, net of expense waivers and reimbursements |
0.72% |
0.71% |
0.70% |
0.71%(5) |
|
Net investment loss |
(0.03)% |
(0.10)% |
(0.18)% |
(0.26)%(5) |
|
Portfolio turnover rate(6) |
18% |
8% |
41% |
46% |
(1) Commencement of operations.
(2) Based on average daily shares outstanding.
(3) Amount represents less than $0.005.
(4) Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends, and distributions at market value during the period, and sale at the market value on the last day of the period. Market returns are based on the trade price at which shares are bought and sold on the Cboe BZX Exchange, Inc. using the last share trade. Total return calculated for a period of less than one year is not annualized.
(5) Annualized.
(6) Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kindcreations or redemptions of the Fund's capital shares.
See accompanying Notes to Financial Statements.
32
Table of Contents
|
Financial Highlights (continued) The 3D Printing ETF For a share outstanding throughout each year presented. |
|
Year Ended |
Year Ended |
Year Ended |
Year Ended |
Year Ended |
|
|
Per Share Data: |
|||||
|
Net asset value, beginning of year |
$ 24.45 |
$ 23.15 |
$ 38.04 |
$ 22.28 |
$ 22.04 |
|
Net investment income (loss)(1) |
0.07 |
(0.00)(2) |
(0.05) |
0.00(2) |
(0.00)(2) |
|
Net realized and unrealized gain (loss) on investments |
(3.86) |
1.30 |
(14.84) |
15.76 |
0.25 |
|
Total gain (loss) from investment operations |
(3.79) |
1.30 |
(14.89) |
15.76 |
0.25 |
|
Distributions to shareholders: |
|||||
|
Net investment income |
- |
- |
(0.00)(2) |
- |
(0.01) |
|
Total distributions |
- |
- |
(0.00) |
- |
(0.01) |
|
Net asset value, end of year |
$ 20.66 |
$ 24.45 |
$ 23.15 |
$ 38.04 |
$ 22.28 |
|
Market value, end of year |
$ 20.62 |
$ 24.43 |
$ 23.16 |
$ 38.00 |
$ 22.16 |
|
Total Return at Net Asset Value(3) |
(15.53)% |
5.61% |
(39.14)% |
70.76% |
1.15% |
|
Total Return at Market Value(3) |
(15.60)% |
5.48% |
(39.05)% |
71.48% |
(0.34)% |
|
Ratios/Supplemental Data: |
|||||
|
Net assets, end of year (000's omitted) |
$105,354 |
$185,855 |
$209,550 |
$515,504 |
$41,217 |
|
Ratio to average net assets of: |
|||||
|
Expenses |
0.66% |
0.66% |
0.66% |
0.66% |
0.66% |
|
Net investment income (loss) |
0.31% |
(0.01)% |
(0.15)% |
0.00%(4) |
0.00%(4) |
|
Portfolio turnover rate(5) |
39% |
45% |
37% |
59% |
37% |
(1) Based on average daily shares outstanding.
(2) Amount represents less than $0.005.
(3) Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the year, reinvestment of all dividends and distributions at net asset value during the year and redemption on the last day of the year at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the year, reinvestment of all dividends, and distributions at market value during the year, and sale at the market value on the last day of the year. Market returns are based on the trade price at which shares are bought and sold on the Cboe BZX Exchange, Inc. using the last share trade.
(4) Amount represents less than 0.00%.
(5) Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kindcreations or redemptions of the Fund's capital shares.
See accompanying Notes to Financial Statements.
33
Table of Contents
|
Financial Highlights (concluded) ARK Israel Innovative Technology ETF For a share outstanding throughout each year presented. |
|
Year Ended |
Year Ended |
Year Ended |
Year Ended |
Year Ended |
|
|
Per Share Data: |
|||||
|
Net asset value, beginning of year |
$ 20.09 |
$ 19.37 |
$ 30.26 |
$ 25.00 |
$ 20.54 |
|
Net investment income (loss)(1) |
0.03 |
(0.00)(2) |
(0.04) |
0.05 |
(0.03) |
|
Net realized and unrealized gain (loss) on investments |
(0.08) |
0.72 |
(10.75) |
5.21 |
4.97 |
|
Total gain (loss) from investment operations |
(0.05) |
0.72 |
(10.79) |
5.26 |
4.94 |
|
Distributions to shareholders: |
|||||
|
Net investment income |
- |
- |
(0.10) |
- |
(0.48) |
|
Total distributions |
- |
- |
(0.10) |
- |
(0.48) |
|
Net asset value, end of year |
$ 20.04 |
$ 20.09 |
$ 19.37 |
$ 30.26 |
$ 25.00 |
|
Market value, end of year |
$ 19.98 |
$ 20.07 |
$ 19.36 |
$ 30.15 |
$ 24.74 |
|
Total Return at Net Asset Value(3) |
(0.22)% |
3.72% |
(35.79)% |
21.06% |
24.31% |
|
Total Return at Market Value(3) |
(0.45)% |
3.67% |
(35.57)% |
21.87% |
22.41% |
|
Ratios/Supplemental Data: |
|||||
|
Net assets, end of year (000's omitted) |
$99,213 |
$99,934 |
$118,134 |
$283,716 |
$48,123 |
|
Ratio to average net assets of: |
|||||
|
Expenses |
0.49% |
0.49% |
0.49% |
0.49% |
0.49% |
|
Net investment income (loss) |
0.13% |
(0.02)% |
(0.15)% |
0.15% |
(0.14)% |
|
Portfolio turnover rate(4) |
43% |
51% |
58% |
88% |
86% |
(1) Based on average daily shares outstanding.
(2) Amount represents less than $0.005.
(3) Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the year, reinvestment of all dividends and distributions at net asset value during the year and redemption on the last day of the year at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the year, reinvestment of all dividends, and distributions at market value during the year, and sale at the market value on the last day of the year. Market returns are based on the trade price at which shares are bought and sold on the Cboe BZX Exchange, Inc. using the last share trade.
(4) Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kindcreations or redemptions of the Fund's capital shares.
See accompanying Notes to Financial Statements.
34
Table of Contents
|
Notes to Financial Statements July 31, 2024 |
1. Organization
ARK ETF Trust ("Trust") is an open-endmanagement investment company registered under the Investment Company Act of 1940, as amended ("1940 Act") and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). The Trust was organized as a Delaware statutory trust on June 7, 2013. The Trust consists of eight (8) investment portfolios: ARK Genomic Revolution ETF, ARK Autonomous Technology & Robotics ETF, ARK Innovation ETF, ARK Next Generation Internet ETF, ARK Fintech Innovation ETF, ARK Space Exploration & Innovation ETF, The 3D Printing ETF, and ARK Israel Innovative Technology ETF (each, a "Fund" and collectively, "Funds"). Each Fund is classified as a non-diversifiedmanagement investment company under the 1940 Act.
The investment objective of the ARK Genomic Revolution ETF, ARK Autonomous Technology & Robotics ETF, ARK Innovation ETF, ARK Next Generation Internet ETF, ARK Fintech Innovation ETF, and ARK Space Exploration & Innovation ETF is long-termgrowth of capital. The 3D Printing ETF seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Total 3D-PrintingIndex. The ARK Israel Innovative Technology ETF seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the ARK Israel Innovation Index. There can be no assurance that the Funds will achieve their respective investment objectives.
The Trust's fiscal and tax reporting year ends July 31.
2. Significant Accounting Policies
These financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), which require management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements, and the reported amount of increase and decrease in net assets from operations during the fiscal period. Actual amounts could differ from these estimates. The Trust is an investment company and follows the investment company accounting standards and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standard Codification ("ASC") Topic 946, "Financial Services - Investment Companies". Rules and interpretive releases of the Securities and Exchange Commission ("SEC") under authority of federal laws are also sources of authoritative guidance for SEC registrants. The following summarizes the significant accounting policies of the Funds:
Investment Valuation
The values of each Fund's securities that are traded on a securities market are based on such securities' closing prices on the principal market on which the securities are traded. Such valuations would typically be categorized as Level 1 in the fair value hierarchy. If a security's market price is not readily available or does not otherwise accurately reflect the market value of such security, the security will be fair valued by the Adviser, which was selected by the Board of Trustees of the Trust ("Board of Trustees") as valuation designee, to provide such fair values in accordance with the Adviser's valuation policies and procedures that were reviewed by, and subject to the oversight of, the Board of Trustees. Each Fund may use fair value pricing in a variety of circumstances, including but not limited to, situations when the value of a Fund's security has been materially affected by events occurring after the close of the market on which such security is principally traded (such as a corporate action or other news that may materially affect the price of such security) or trading in such security has been suspended or halted. Such valuations would typically be categorized as Level 2 or Level 3 in the fair value hierarchy. Fair value pricing involves subjective judgments and it is possible that a fair value determination for a security could be materially different than the value that could be realized upon the sale of such security. Investments in money market funds are valued at their NAV as of the close of each business day. Exchange-tradedfunds are valued at their last sale or official closing price on the principal market.
Investment Transactions
Investment transactions are accounted for on the trade date. Realized gains and losses on sales of investment securities are calculated using the identified cost method. Dividend income is recognized on the ex-dividenddate, except for certain foreign dividends that may be recorded as soon as such information becomes available. Interest income and expenses are recognized on an accrual basis.
Dividend Distributions
Distributions to shareholders are recorded on the ex-dividenddate and are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Each Fund distributes all or substantially all of its net investment income to shareholders in the form of dividends. Net realized capital gains are distributed to shareholders as capital gain distributions. Net investment income, if any, and net capital gains, if any, are typically distributed to shareholders at least annually. Dividends may be declared and paid more frequently to improve index tracking or to comply with the distribution requirements of the Internal Revenue Code.
35
Table of Contents
|
Notes to Financial Statements(continued) July 31, 2024 |
Currency Translation
Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions.
The effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments in each Fund's statement of operations. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.
Wholly-owned Subsidiary
ARK Next Generation Internet ETF and ARK Fintech Innovation ETF gain exposure to cryptocurrency through investments in wholly-ownedsubsidiaries ARK Next Generation Internet (Cayman) Fund and ARK Fintech Innovation (Cayman) Fund, respectively (the "Subsidiaries"). The Subsidiaries are organized under the laws of the Cayman Islands. The Subsidiaries are advised by the Adviser, and have the same investment objective as their respective parent Fund. All intercompany transactions and balances have been eliminated in consolidation.
3. Management and Other Agreements
Management
The ARK Genomic Revolution ETF, ARK Autonomous Technology & Robotics ETF, ARK Innovation ETF, ARK Next Generation Internet ETF, ARK Fintech Innovation ETF, and ARK Space Exploration & Innovation ETF, each pay the Adviser a fee calculated daily and payable monthly at an annual rate (stated as a percentage of the average daily net assets of the Fund) of 0.75% ("Management Fee") in return for providing investment management and supervisory services under a comprehensive unitary structure. The 3D Printing ETF pays the Adviser a Management Fee of 0.65% in return for providing investment management and supervisory services under a comprehensive unitary structure. The ARK Israel Innovative Technology ETF pays the Adviser a Management Fee of 0.48% in return for providing investment management and supervisory services under a comprehensive unitary structure. Subject to the oversight of the Board, the Adviser provides investment management services to each Fund and provides, or causes to be furnished, all supervisory and other services reasonably necessary for the operation of each Fund and also bears the costs of trustee fees and various third-partyservices required by the Funds, including administration, certain custody, audit, legal, transfer agency, and printing costs. In addition to the Management Fee, each Fund bears other fees and expenses, such as taxes and governmental fees, brokerage fees, commissions and other transaction expenses, certain foreign custodial fees and expenses, costs of borrowing money, including interest expenses, and extraordinary expenses (such as litigation and indemnification expenses).
The Adviser has agreed to reduce their Management Fee for the ARK Space Exploration & Innovation ETF as a result of investing in The 3D Printing ETF. As such, the Management Fees in the Statement of Operations have been reduced by $70,781. The Adviser has also agreed to waive or credit a portion of the Management Fee in an amount equal to any net profit received by the Adviser for the ARK Next Generation Internet ETF and ARK Fintech Innovation ETF as a result of investing in ARK 21Shares Bitcoin ETF. The Adviser has not received any net profit for the fiscal year ending July 31, 2024.
Administrator, Custodian, Transfer Agent and Accounting Agent
The Bank of New York Mellon is the administrator for the Funds, the custodian of the Funds' assets and also provides transfer agency, fund accounting and various administrative services to the Funds (in each capacity, "Administrator," "Custodian," "Transfer Agent" or "Accounting Agent"). The Bank of New York Mellon is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
Distribution
Foreside Fund Services, LLC serves as the Funds' distributor ("Distributor"). The Trust has adopted a distribution and service plan ("Rule 12b-1Plan") pursuant to Rule 12b-1under the 1940 Act. Under the Rule 12b-1Plan, each Fund is authorized to pay distribution fees in connection with the sale and distribution of its shares and pay service fees in connection with the provision of ongoing services to shareholders. To date, the Rule 12b-1Plan has not been implemented for the Funds and there is no current intention to implement the Rule 12b-1Plan.
Board of Trustees
Each Independent Trustee receives an annual retainer fee of $230,000 for services provided as a Trustee of the Trust, plus out-of-pocketexpenses related to attendance at Board and Committee Meetings. The Chairs of the Board and of the Audit Committee each also receive an additional annual retainer fee of $60,000 and $20,000, respectively, for their service as such. Annual Trustee fees may be reviewed periodically and changed by the Trust's Board.
36
Table of Contents
|
Notes to Financial Statements(continued) July 31, 2024 |
4. Creation and Redemption Transactions
As of July 31, 2024, there were an unlimited number of shares of beneficial interest without par value authorized by the Trust. Individual shares of a Fund may only be purchased and sold at market prices on a national securities exchange through a broker-dealer. Such transactions may be subject to customary commission rates imposed by the broker-dealer, and market prices for a Fund's shares may be at, above or below its net asset value ("NAV") depending on the premium or discount at which the Fund's shares trade.
Each Fund issues and redeems shares at its NAV only in a large specified number of shares each called a "Creation Unit," or multiples thereof, and only with "authorized participants" who have entered into contractual arrangements with the Distributor. A Creation Unit consists of 50,000 shares (25,000 shares with respect to the ARK Israel Innovative Technology ETF). Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets. The consideration for a purchase of Creation Units generally consists of the in-kinddeposit of specified securities and an amount of cash or, as permitted or required by a Fund, of cash. A fixed transaction fee is imposed on each creation and redemption transaction. In addition, a variable charge for certain creation and redemption transactions may be imposed.
5. Investment Transactions
The cost of purchases and the proceeds from sales of investment securities (excluding in-kindsubscriptions and redemptions and short-terminvestments) for the year ended July 31, 2024 were as follows:
|
Fund |
Purchases |
Sales |
|
ARK Genomic Revolution ETF |
$ 440,057,742 |
$ 448,773,016 |
|
ARK Autonomous Technology & Robotics ETF |
184,710,598 |
189,163,255 |
|
ARK Innovation ETF |
2,860,715,444 |
2,904,948,864 |
|
ARK Next Generation Internet ETF (consolidated) |
811,379,749 |
853,305,466 |
|
ARK Fintech Innovation ETF (consolidated) |
362,831,051 |
371,627,336 |
|
ARK Space Exploration & Innovation ETF |
45,782,529 |
46,764,455 |
|
The 3D Printing ETF |
56,176,488 |
53,041,758 |
|
ARK Israel Innovative Technology ETF |
41,582,722 |
43,913,504 |
For the year ended Jul 31, 2024, the cost of in-kindsubscriptions and the proceeds from in-kindredemptions were as follows:
|
In-Kind |
||
|
Fund |
Subscriptions |
Redemptions |
|
ARK Genomic Revolution ETF |
$1,065,980,638 |
$ 1,394,742,932 |
|
ARK Autonomous Technology & Robotics ETF |
10,854,887 |
328,261,750 |
|
ARK Innovation ETF |
7,833,021,966 |
10,307,731,550 |
|
ARK Next Generation Internet ETF (consolidated) |
206,523,934 |
648,735,190 |
|
ARK Fintech Innovation ETF (consolidated) |
34,734,016 |
399,254,080 |
|
ARK Space Exploration & Innovation ETF |
- |
63,662,382 |
|
The 3D Printing ETF |
- |
53,515,995 |
|
ARK Israel Innovative Technology ETF |
29,806,931 |
30,078,660 |
6. Federal Income Tax
Each Fund intends to continue to qualify as a "regulated investment company" under Subchapter M of the Internal Revenue Code of 1986, as amended. If so qualified, a Fund will not be subject to federal income tax to the extent it distributes substantially all of its net investment income and net capital gains to its shareholders. U.S. GAAP provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements, and requires the evaluation of tax positions taken or expected to be taken in the course of preparing a Fund's tax returns to determine whether the tax positions are "more-likely-than-not" to be sustained by the applicable tax authority. Tax positions not deemed to meet the more-than-likely-than-notthreshold would be recorded as a tax benefit or expense in the current year. Interest and penalties related to income taxes would be recorded as income tax expense. The Funds record a foreign tax reclaim receivable on the ex-dividenddate if the tax reclaim is "more likely than not" to be sustained assuming examination by tax authorities. This determination is based on, among other things, a jurisdiction's legal obligation to pay reclaims as well as payment history and market convention. The management of the Funds is required to analyze all open tax years (2021 − 2024), as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of July 31, 2024, the Funds did not have a liability for any unrecognized tax benefits. The Funds have no examinations in progress and are not aware of any tax positions for which it is reasonably possible that the amounts of unrecognized tax benefits will significantly change in the next twelve months.
37
Table of Contents
|
Notes to Financial Statements(continued) July 31, 2024 |
At July 31, 2024, the approximate cost of investments and net unrealized appreciation (depreciation) for federal income tax purposes was as follows:
|
Fund |
Cost |
Gross |
Gross |
Net Unrealized |
|
|
ARK Genomic Revolution ETF |
$ 4,207,908,617 |
$ 44,578,101 |
$ (2,794,730,188) |
$ (2,750,152,087 |
) |
|
ARK Autonomous Technology & Robotics ETF |
1,136,757,813 |
110,914,114 |
(455,761,204) |
(344,847,090 |
) |
|
ARK Innovation ETF |
11,352,925,673 |
223,410,262 |
(5,596,151,573) |
(5,372,741,311 |
) |
|
ARK Next Generation Internet ETF (consolidated) |
1,910,281,563 |
95,131,203 |
(610,786,245) |
(515,655,042 |
) |
|
ARK Fintech Innovation ETF (consolidated) |
1,062,622,794 |
97,743,965 |
(331,451,034) |
(233,707,069 |
) |
|
ARK Space Exploration & Innovation ETF |
297,843,045 |
20,098,335 |
(91,609,696) |
(71,511,361 |
) |
|
The 3D Printing ETF |
158,581,727 |
3,142,852 |
(56,296,286) |
(53,153,434 |
) |
|
ARK Israel Innovative Technology ETF |
101,815,463 |
8,054,411 |
(12,828,462) |
(4,774,051 |
) |
The differences between book-basisand tax-basiscomponents of net assets are primarily attributable to tax deferral of losses on wash sales, non-REITincome and basis adjustments, in-kindcreation and redemption transactions, net operating losses, foreign currency gains and losses, passive foreign investment companies, grantor trust adjustments, and late year ordinary loss deferrals. Certain capital accounts in the financial statements have been adjusted for permanent book-taxdifferences. These adjustments have no impact on net asset values.
At July 31, 2024, the components of distributable earnings (loss) on a tax basis were as follows:
|
Fund |
Undistributed |
Undistributed |
Accumulated |
Net Unrealized |
Total Earnings |
|
|
ARK Genomic Revolution ETF |
$ (6,970,425) |
$ - |
$ (2,265,504,137) |
$ (2,750,152,087) |
$ (5,022,626,649 |
) |
|
ARK Autonomous Technology & Robotics ETF |
(2,010,236) |
- |
(444,735,003) |
(344,847,090) |
(791,592,329 |
) |
|
ARK Innovation ETF |
(30,361,878) |
- |
(6,030,072,307) |
(5,372,741,311) |
(11,433,175,496 |
) |
|
ARK Next Generation Internet ETF (consolidated) |
(2,868,614) |
- |
(1,689,419,956) |
(515,655,042) |
(2,207,943,612 |
) |
|
ARK Fintech Innovation ETF (consolidated) |
(3,171,792) |
- |
(1,450,541,523) |
(233,708,458) |
(1,687,421,773 |
) |
|
ARK Space Exploration & Innovation ETF |
(298,367) |
- |
(72,890,694) |
(71,510,870) |
(144,699,931 |
) |
|
The 3D Printing ETF |
466,325 |
- |
(208,530,216) |
(53,147,795) |
(261,211,686 |
) |
|
ARK Israel Innovative Technology ETF |
436,566 |
- |
(125,466,636) |
(4,774,037) |
(129,804,107 |
) |
At July 31, 2024, the effect of permanent book/tax reclassifications resulted in increase/(decrease) to the components of net assets as follows:
|
Fund |
Total |
Paid-in Capital |
|
|
ARK Genomic Revolution ETF |
$ 261,205,894 |
$ (261,205,894 |
) |
|
ARK Autonomous Technology & Robotics ETF |
(19,544,731) |
19,544,731 |
|
|
ARK Innovation ETF |
1,943,286,144 |
(1,943,286,144 |
) |
|
ARK Next Generation Internet ETF (consolidated) |
2,725,828 |
(2,725,828 |
) |
|
ARK Fintech Innovation ETF (consolidated) |
(38,192,386) |
38,192,386 |
|
|
ARK Space Exploration & Innovation ETF |
148,037 |
(148,037 |
) |
|
The 3D Printing ETF |
(4,368,660) |
4,368,660 |
|
|
ARK Israel Innovative Technology ETF |
(4,121,515) |
4,121,515 |
38
Table of Contents
|
Notes to Financial Statements(continued) July 31, 2024 |
Under current tax regulations, capital losses on securities transactions realized after October 31 ("Post-OctoberLosses") and ordinary losses incurred after December 31 ("Late Year Ordinary Losses") may be deferred and treated as occurring on the first business day of the following fiscal year. For the year ended July 31, 2024, the Funds incurred and elected to defer to August 1, 2024 Post-OctoberLosses and Late Year Ordinary Losses as follows:
|
Fund |
Late Year |
Capital |
|
ARK Genomic Revolution ETF |
$ (6,970,425) |
$ - |
|
ARK Autonomous Technology & Robotics ETF |
(2,010,236) |
- |
|
ARK Innovation ETF |
(30,361,878) |
- |
|
ARK Next Generation Internet ETF (consolidated) |
(2,868,614) |
- |
|
ARK Fintech Innovation ETF (consolidated) |
(3,171,792) |
- |
|
ARK Space Exploration & Innovation ETF |
(298,367) |
- |
|
The 3D Printing ETF |
- |
- |
|
ARK Israel Innovative Technology ETF |
- |
- |
At July 31, 2024, for Federal income tax purposes, the Funds have capital loss carryforwards available as shown in the table below, to the extent provided by regulations, to offset future capital gains for an unlimited period. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders.
|
Short-Term |
Long-Term |
Total Amount |
|
|
ARK Genomic Revolution ETF |
$ 239,333,512 |
$ 2,026,170,625 |
$2,265,504,137 |
|
ARK Autonomous Technology & Robotics ETF |
16,709,299 |
428,025,704 |
444,735,003 |
|
ARK Innovation ETF |
1,093,502,556 |
4,936,569,751 |
6,030,072,307 |
|
ARK Next Generation Internet ETF (consolidated) |
247,165,650 |
1,442,254,306 |
1,689,419,956 |
|
ARK Fintech Innovation ETF (consolidated) |
572,313,491 |
878,228,032 |
1,450,541,523 |
|
ARK Space Exploration & Innovation ETF |
17,899,564 |
54,991,130 |
72,890,694 |
|
The 3D Printing ETF |
95,119,190 |
113,411,026 |
208,530,216 |
|
ARK Israel Innovative Technology ETF |
63,102,350 |
62,364,286 |
125,466,636 |
7. Indemnification Obligations
The Funds have a variety of indemnification obligations under contracts with their service providers. The Funds' maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
8. Investment Risks
The Funds' prospectuses contain additional information regarding the risks associated with an investment in a Fund.
Concentration Risk: The ARK Autonomous Technology & Robotics ETF is concentrated in securities of issuers having their principal business activities in groups of industries in the industrials and information technology sectors, although it will not concentrate in any specific industry. The ARK Fintech Innovation ETF is concentrated in securities of issuers having their principal business activities in the communication, technology and financials group of industries. The ARK Genomic Revolution ETF is concentrated in securities of issuers having their principal business activities in any industry or group of industries in the health care sector, including issuers having their principal business activities in the biotechnology industry. The ARK Next Generation Internet ETF is concentrated in securities of issuers having their principal business activities in the internet information provider and catalog and mail order house industry. The ARK Space Exploration & Innovation ETF is concentrated in securities of issuers having their principal business activities in groups of industries in the (i) industrials sector and (ii) information technology sector. The 3D Printing ETF and the ARK Israel Innovative Technology ETF may each invest 25% or more of the value of its respective net assets in securities of issuers in any one industry or group of industries if their respective indices, The Total 3-DPrinting Index and The ARK Israeli Innovation Index, concentrate in such industry or group of industries. This concentration limit does not apply to securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. The ARK Innovation ETF is not concentrated in any industry.
As of July 31, 2024, the ARK Genomic Revolution ETF had more than 25% of its assets invested in the biotechnology industry, the ARK Space Exploration & Innovation ETF had more than 25% of its assets invested in the aerospace & defense industry, and the ARK Israel Innovative Technology ETF had more than 25% of its assets invested in the software industry. To the extent a Fund's holdings are concentrated in a
39
Table of Contents
|
Notes to Financial Statements(concluded) July 31, 2024 |
particular industry or group of industries, adverse market conditions affecting those industries may have a more significant impact on the Fund than they would on a Fund investing in a broader range of securities and the value of the Fund's shares may fluctuate more than shares of a fund investing in a broader range of securities.
Market Risk: The value of the Funds' assets will fluctuate as the markets in which the Funds invest fluctuate. The value of the Funds' investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, such as inflation (or expectations for inflation), deflation (or expectations for deflation), interest rates, global demand for particular products or resources, market instability, debt crises and downgrades, embargoes, tariffs, sanctions and other trade barriers, regulatory events, other governmental trade or market control programs and related geopolitical events. In addition, the value of the Funds' investments may be negatively affected by the occurrence of global events such as war, military conflicts, acts of terrorism, social unrest, environmental disasters, natural disasters or events, recessions, supply chain disruptions, political instability, exchange trading suspensions and closures (including exchanges of the Funds' underlying securities), infectious disease outbreaks or pandemics. For example, an outbreak of an infectious disease may negatively affect economies, markets and individual companies throughout the world, including those in which the Funds invest. The effects of this, or any future, pandemic to public health and business and market conditions, including exchange trading suspensions and closures, may have a significant negative impact on the performance of a Fund's investments, increase a Fund's volatility, negatively impact a Fund's arbitrage and pricing mechanisms, exacerbate pre-existingpolitical, social and economic risks to a Fund and negatively impact broad segments of businesses and populations. A Fund's operations may be interrupted as a result, which may contribute to the negative impact on investment performance. In addition, governments, their regulatory agencies, or self-regulatoryorganizations have taken or may take actions in response to a pandemic that affect the instruments in which a Fund invests, or the issuers of such instruments, in ways that could have a significant negative impact on the Fund's investment performance. The ultimate impact of any pandemic and the extent to which the associated conditions and governmental responses impact a Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to frequent changes.
Israel Risk:Because IZRL invests in securities of Israeli Companies, IZRL may be exposed to special risks and considerations. There may be less information concerning the securities of Israeli Companies available to the public than the securities of U.S. companies. There is also potential difficulty in obtaining or enforcing a court judgment, and the unique characteristics of securities of Israeli Companies and the Israel stock market may have a negative impact on IZRL. Any major hostilities involving Israel, including hostilities with neighboring countries, or the interruption or curtailment of trade between Israel and its present trading partners, could have a negative impact on IZRL. Shares and dividends of Israeli Companies are often Israeli new shekel ("ILS") denominated. Changes in the relationship of the ILS to the U.S. dollar and other currencies could have a negative impact on IZRL. The government of Israel may change the way in which Israeli Companies are taxed, or may impose taxes on foreign investment. Such actions could have an adverse impact on the overall market for securities of Israeli Companies and on IZRL.
Cryptocurrency Investment Risk: ARKW and ARKF may have exposure to cryptocurrency, such as bitcoin and Ether, indirectly through an investment in ARK 21Shares Bitcoin ETF, ProShares Ether Strategy ETF, and ARK 21Shares Active Ethereum Futures Strategy ETF that will experience any associated volatility of the underlying cryptocurrency. Additionally, the Funds may have exposure to cryptocurrency indirectly through investments in public companies that are active in the cryptocurrency markets. The Funds' exposure to cryptocurrencies may change over time and, accordingly, such exposure may not always be present in the Funds' portfolios. Cryptocurrencies such as bitcoin are not "fiat" currencies of any central bank or government and currently are not subject to the authority of any central bank or government authority and are therefore not backed by any government, and regulatory and tax treatment of cryptocurrencies continues to develop.
9. New Accounting Pronouncement
In June 2022, the FASB issued Accounting Standards Update ("ASU") No. 2022-03, FairValue Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this update clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also introduced new disclosure requirements related to such equity securities. The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within those fiscal years. Early adoption is permitted. Management is continuously evaluating the new disclosure requirements and has currently determined that it is unlikely that the ASU's adoption will have a material impact on the Funds' financial statements.
10. Subsequent Events
Subsequent events occurring after July 31, 2024 have been evaluated for potential impact to this Report through the date the Report was issued, and it has been determined that no additional events have occurred that require disclosure.
40
Table of Contents
|
Report of Independent Registered Public Accounting Firm |
To the Board of Trustees and Shareholders of ARK ETF Trust
Opinion on the Financial Statements
We have audited the accompanying consolidated statements of assets and liabilities of ARK Next Generation Internet ETF and ARK Fintech Innovation ETF (two of the funds comprising ARK ETF Trust (the "Trust")), including the consolidated schedules of investments, as of July 31, 2024, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the three years in the period then ended and the related notes (collectively referred to as the "consolidated financial statements"). We also have audited the accompanying statements of assets and liabilities of ARK Genomic Revolution ETF, ARK Autonomous Technology & Robotics ETF, ARK Innovation ETF, ARK Space Exploration & Innovation ETF, The 3D Printing ETF and ARK Israel Innovative Technology ETF (collectively, together with ARK Next Generation Internet ETF and ARK Fintech Innovation ETF, referred to as the "Funds") (the six remaining funds comprising the "Trust"), including the schedules of investments, as of July 31, 2024, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the three years in the period then ended and the related notes (collectively, together with the consolidated financial statements, referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds comprising ARK ETF Trust at July 31, 2024, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the three years in the period then ended, in conformity with U.S. generally accepted accounting principles.
The financial highlights for each of the periods indicated in the table below were audited by another independent registered public accounting firm whose report, dated September 24, 2021, expressed an unqualified opinion on those financial highlights.
|
Funds comprising ARK ETF Trust |
Financial highlights |
|
ARK Genomic Revolution ETF |
For each of the two years in the period ended July 31, 2021 |
|
ARK Space Exploration & Innovation ETF |
For the period from March 30, 2021 (commencement of operations) through July 31, 2021 |
Basis for Opinion
These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on each of the Funds' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of July 31, 2024, by correspondence with the custodian, brokers and others; when replies were not received from brokers or others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ Ernst & Young LLP
We have served as the auditor of one or more ARK Invest investment companies since 2022.
New York, New York
September 27, 2024
41
Table of Contents
|
Supplemental Information (Unaudited) |
Quarterly Portfolio Schedule. The ARK ETF Trust files with the Securities and Exchange Commission on Form N-PORTthe complete schedule of portfolio holdings for each ARK ETF for the first and third quarters of each fiscal year. The ARK ETF Trust's Forms N-PORTare available on the Securities and Exchange Commission's website at www.sec.gov. Copies of the filings are available without charge, upon request, by calling (727) 810-8160. In addition, each ARK ETF's current portfolio holdings are updated daily and are available on our website, www.ark-funds.com.
Proxy Voting Policies and Procedures. A description of ARK Investment Management LLC's proxy voting policies and procedures, which are applicable to the ARK ETFs, is available without charge, upon request, by calling (727) 810-8160collect or visiting our website at www.ark-funds.com or the Securities and Exchange Commission's website at www.sec.gov.
Proxy Voting Record. The ARK ETFs file with the Securities and Exchange Commission their proxy voting records on Form N-PXfor each 12 month period ending June 30. Form N-PXmust be filed each year by August 31. The most recent Form N-PXor voting record information is available without charge, upon request, by calling (727) 810-8160collect, visiting our website at https://www.ark-funds.com/download-fund-materials/, or visiting the Securities and Exchange Commission's website at www.sec.gov.
Premium/Discount Information. Information about the difference between daily market prices on the secondary market for shares of each ARK ETF and the ARK ETF's net asset value can be found on our website, www.ark-funds.com.
Tax Information
Form 1099-DIVand other year-endtax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors. Each Fund designates the following amounts or, if subsequently determined to be different, the maximum allowable for its year ended July 31, 2024.
|
Qualified |
Dividends |
|
|
ARK Genomic Revolution ETF |
0% |
0% |
|
ARK Autonomous Technology & Robotics ETF |
0% |
0% |
|
ARK Innovation ETF |
0% |
0% |
|
ARK Next Generation Internet ETF(consolidated) |
0% |
0% |
|
ARK Fintech Innovation ETF(consolidated) |
0% |
0% |
|
ARK Space Exploration & Innovation ETF |
0% |
0% |
|
The 3D Printing ETF |
0% |
0% |
|
ARK Israel Innovative Technology ETF |
0% |
0% |
* The above percentage is based on ordinary income dividends paid to shareholders during each Fund's fiscal year.
42
Table of Contents
|
Risks Involved with Investing in the Funds (Unaudited) |
This report should be read in conjunction with the Trust's prospectus.
The principal risks of investing in the ARKETFs include:
Disruptive Innovation Risk Companies that the Adviser believes create and capitalize on disruptive innovation and developing technologies to displace older technologies or create new markets may not in fact do so. Companies that initially develop a novel technology may not be able to capitalize on the technology. A Fund may invest in a company that does not currently derive any revenue from disruptive innovations or technologies, and there is no assurance that a company will derive any revenue from disruptive innovations or technologies in the future.
Equity Securities Risk The value of the equity securities the Funds hold may fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities the Funds hold participate or factors relating to specific companies in which the Funds invest (e.g., litigation or government regulation), among other factors. Equity securities may also be particularly sensitive to general movements in the stock market, and a decline in the broader market may affect the value of the Fund's equity investments. The Funds may invest in stock of, warrants to purchase stock of, and other interests in special purpose acquisition companies (SPACs) or similar special purposes entities. A SPAC is a publicly traded company that raises investment capital for the purpose of acquiring or merging with an existing company. Investments in SPACs and similar entities are subject to a variety of risks beyond those associated with other equity securities. Because SPACs and similar entities do not have any operating history or ongoing business other than seeking acquisitions, the value of their securities is particularly dependent on the ability of the SPAC's management to identify a merger target and complete an acquisition. Until an acquisition or merger is completed, a SPAC generally invests its assets, less a portion retained to cover expenses, in U.S. government securities, money market securities and cash and does not typically pay dividends in respect of its common stock. As a result, it is possible that an investment in a SPAC may lose value.
Foreign Securities Risk Investments in the securities of foreign issuers involve risks beyond those associated with investments in U.S. securities such as risks of currency exchange rates, differences in foreign accounting and legal standards, the availability of less reliable financial information, and government restrictions on repatriation of capital. Geopolitical risks, including those arising from trade tension and/or the imposition of trade tariffs, terrorist activity or acts of civil or international hostility, are increasing. For instance, military conflict and escalating tensions between countries could result in geopolitical instability and adversely affect the global economy or specific markets. Strategic competition between the U.S. and China and resulting tensions have also contributed to uncertainty in the geopolitical and regulatory landscapes. Similarly, other events outside of the Trust's control, including natural disasters, climate change-relatedevents, pandemics (such as the COVID-19pandemic) or health crises may arise from time to time and be accompanied by governmental actions that may increase international tension. Any such events and responses, including regulatory developments, may cause significant volatility and declines in the global markets, disproportionate impacts to certain industries or sectors, disruptions to commerce (including to economic activity, travel and supply chains), loss of life and property damage, and may adversely affect the global economy or capital markets and may cause the Trust's assets to decline.
Concentration Risk The Fund's assets may be concentrated in a particular industry or group of industries to the extent the Index concentrates in a particular industry or group of industries. If the Fund's assets are concentrated in a particular industry or group of industries, the Fund will be subject to the risk that economic, political or other conditions that have a negative effect on that industry or group of industries will negatively impact the Fund to a greater extent than if the Fund's assets were invested in a wider variety of industries.
Index Tracking Risk An Index Fund's return may not track the performance of the Index for a number of reasons. For example, an Index Fund incurs a number of operating expenses not applicable to the applicable Index and incurs costs associated with buying and selling securities, especially when rebalancing the Index Fund's securities holdings to reflect changes in the composition of the applicable Index. An Index Fund also bears the costs and risks associated with buying and selling securities while such costs and risks are not factored into the return of the applicable Index. When the Index Fund's Index is rebalanced and the Index Fund in turn rebalances its portfolio to attempt to increase the correlation between the Index Fund's portfolio and its applicable Index, any transaction costs and market exposure arising from such portfolio rebalancing will be borne directly by the Index Fund and its shareholders. Apart from scheduled rebalances, the Index provider or its agents may carry out additional ad hoc rebalances to the Index Fund's applicable Index, which may increase the costs to and the tracking error risk of the Index Fund. In addition, the Index Fund may not be able to invest in certain securities included in the applicable Index or may not be able to invest in them in the exact proportions in which they are represented in the applicable Index, due to legal restrictions or limitations imposed by the governments of certain countries, potential adverse tax consequences or other regulatory reasons. The risk that the Index Fund may not track the performance of the applicable Index may be magnified during times of heightened market volatility or other unusual market conditions. A lack of liquidity may be due to various events, including markets events, economic conditions or investor perceptions. Illiquid securities may be difficult to value and their value may be lower than market price of comparable liquid securities, which would negatively affect the Index Fund's performance. To the extent the Index Fund calculates its NAV based on "fair value" prices for certain securities and the value of the applicable Index is based on securities' closing prices (i.e., the value of the Index is not based on "fair value" prices), the Index Fund's ability to track the applicable Index may be adversely affected. For tax efficiency purposes, the Index Fund may sell certain securities
43
Table of Contents
|
Risks Involved with Investing in the Funds (Unaudited) (continued) |
to realize losses causing it to deviate from the applicable Index. Errors in the construction or calculation of the applicable Index may occur from time to time and any such errors may not be immediately identified and corrected by Solactive, which may have an adverse impact on the Index Fund and its shareholders.
Authorized Participants Concentration Risk A Fund has a limited number of financial institutions that may act as Authorized Participants ("APs") on an agency basis (i.e., on behalf of other market participants). To the extent that those APs exit the business or are unable to process creation and/or redemption orders, and no other AP is able to step forward to create and redeem in either of these cases, Shares may possibly trade at a discount to net asset value ("NAV"). The AP risk may be heightened in the case of ETFs investing internationally because international ETFs often require APs to post collateral, which only certain APs are able to do.
Health Care Sector Risk Companies in the health care sector may be adversely affected by government regulations and government health care programs, restrictions on government reimbursement for medical expenses, increases or decreases in the cost of medical products and services and product liability claims, among other factors.
Consumer Discretionary Risk The consumer discretionary sector may be affected by changes in domestic and international economies, exchange and interest rates, competition, consumers' disposable income and consumer preferences, social trends and marketing campaigns.
Cyber SecurityRiskAs the use of Internet technology has become more prevalent in the course of business, funds have become more susceptible to potential operational risks through breaches in cybersecurity. A breach in cybersecurity refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. Cybersecurity breaches may involve unauthorized access to the Fund's digital information systems through "hacking" or malicious software coding, but may also result from outside attacks such as denial-of-serviceattacks through efforts to make network services unavailable to intended users. In addition, cybersecurity breaches of the Fund's third-partyservice providers, such as its administrator, transfer agent or custodian, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cybersecurity breaches. While the Fund has established business continuity plans and risk management systems designed to reduce the risks associated with cybersecurity, there are inherent limitations in such plans and systems. Additionally, there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cybersecurity systems of issuers or third-partyservice providers.
Industrials Sector Risk Companies in the industrials sector may be adversely affected by changes in government regulation (such as through the imposition or removal of tariffs), world events, economic conditions, environmental damages, product liability claims and exchange rates.
Information Technology Sector Risk Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. The markets in which many information technology companies compete face rapidly evolving industry standards and government regulations, in the U.S. and abroad, including potential anti-trustactions, fines and penalties, and frequent new service and product announcements, introductions and enhancements, and changing customer demands.
Communications Sector Risk Communication companies are particularly vulnerable to the potential obsolescence of products and services due to technological advancement and the innovation of competitors. Companies in the communications sector may also be affected by other competitive pressures, such as pricing competition, as well as research and development costs, substantial capital requirements and government regulation.
Financial Technology Sector Risk Companies in the financial technology ("FinTech") sector that are developing financial technologies that seek to disrupt or displace established financial institutions generally face competition from much larger and more established firms. FinTech companies may not currently derive any revenue, and there is no assurance that such companies will derive any revenue from innovative technologies in the future.
Non-DiversifiedRisk As a non-diversifiedinvestment company, a Fund is subject to the risk that it will be more volatile than a diversified fund because the Fund may invest a relatively higher proportion of its assets in a relatively smaller number of issuers or may invest a larger proportion of its assets in a single issuer. As a result, the gains and losses on a single investment may have a greater impact on a Fund's NAV and may make the Fund more volatile than more diversified funds.
Market Trading Risk Each Fund faces numerous market trading risks, including disruptions to the creation and redemption processes of the Fund, losses from trading in secondary markets, the existence of extreme market volatility, the potential lack of an active trading market for the Fund's shares due to market stress, or trading halts impacting the Shares or the Fund's underlying securities, which may result in the Fund's shares trading at a significant premium or discount to NAV. Please see the ARK ETFs' current prospectuses for more detailed descriptions of the risks of investing in the ARK ETFs.
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Risks Involved with Investing in the Funds (Unaudited) (concluded) |
Subsidiary RiskARKW and ARKF gain exposure to cryptocurrency through investments in the Subsidiaries. By investing in the Subsidiaries, ARKW and ARKF are indirectly exposed to the risks associated with the Subsidiaries' investments. The investments held by the Subsidiaries are generally similar to those that are permitted to be held by ARKW and ARKF and are subject to the same risks that apply to similar investments if held directly by ARKW and ARKF. There can be no assurance that the investment objective of ARKW, ARKF or the Subsidiaries will be achieved. The Subsidiaries are not registered under the 1940 Act, and generally are not subject to all the investor protections of the 1940 Act. In addition, changes in the laws of the United States and/or the Cayman Islands could result in the inability of ARKW, ARKF and/or the Subsidiaries to operate as intended and could adversely affect ARKW and ARKF. Changes in the laws of the United States and/or the Cayman Islands could adversely affect the performance of ARKW, ARKF and/or the Subsidiaries.
Tax RiskARKW and ARKF may seek to gain exposure to cryptocurrency through investments in the Subsidiaries. Treasury regulations generally treat ARKW's and ARKF's income inclusion with respect to the Subsidiaries as qualifying income either if (A) there is a current distribution out of the earnings and profits of the Subsidiaries that are attributable to such income inclusion or (B) such inclusion is derived with respect to ARKW's and ARKF's business of investing in stock, securities, or currencies. The tax treatment of ARKW's and ARKF's investments in the Subsidiaries may be adversely affected by future legislation, court decisions, Treasury Regulations and/or guidance issued by the IRS that could affect whether income derived from such investments is "qualifying income" under Subchapter M of the Internal Revenue Code, or otherwise affect the character, timing and/or amount of ARKW's and ARKF's taxable income or any gains and distributions made by ARKW and ARKF. No assurances can be provided that the IRS would not be able to successfully assert that ARKW's and ARKF's income from investments in the Subsidiaries was not "qualifying income," in which case ARKW and ARKF would fail to qualify as regulated investment companies under Subchapter M of the Internal Revenue Code if over 10% of their respective gross income was derived from these investments. If ARKW and ARKF failed to qualify as regulated investment companies, they would be subject to federal and state income tax on all of their taxable income at regular corporate tax rates with no deduction for any distributions paid to shareholders, which would significantly adversely affect the returns to, and could cause substantial losses for, fund shareholders. The Cayman Islands does not currently impose any income, corporate or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on the Subsidiaries. If Cayman Islands law changes such that the Subsidiaries must pay Cayman Islands taxes, fund shareholders would likely suffer decreased investment returns.
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General Information (Unaudited) |
Investment Adviser
ARK Investment Management LLC
200 Central Avenue
St. Petersburg, FL 33701
Administrator, Custodian, Transfer Agent, and Accounting Agent
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
Distributor
Foreside FundServices, LLC
Three Canal Plaza, Suite 100
Portland, ME 04101
Independent Registered Public Accounting Firm
Ernst & Young LLP
One Manhattan West
New York, NY 10001
Table of Contents
This report is submitted for the general information of the shareholders of each Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus, which includes information regarding the Funds' risks, objectives, fees and expenses, experience of their management, and other information.
ARK Invest | 200 Central Avenue, St. Petersburg, FL 33701 | 727.810.8160 | info@ark-invest.com | ark-funds.com
| (b) | The Financial Highlights are included with the Financial Statements under Item 7(a). |
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
Included under Item 7.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
Under section 15(c) of the Investment Company Act of 1940 ("1940 Act"), the ARK ETF Trust's ("Trust") Board of Trustees ("Trustees" or "Board"), including a majority of Trustees who are not "interested persons" of the Trust (as that term is defined in the 1940 Act) ("Independent Trustees"), is required annually to consider whether to approve the continuation of (i) the Supervision Agreement between the Trust and ARK Investment Management, LLC ("ARK") on behalf of each series of the Trust (each, a "Fund" and, collectively, "Funds"); and (ii) the Investment Advisory Agreement between the Trust and ARK (collectively, "Management Agreements") on behalf of each Fund.
In advance of the quarterly Board meeting held via video conference on June 27, 2024 ("Meeting"), the Independent Trustees and their counsel reviewed and discussed with representatives of an independent data provider the report prepared by that provider, that compared, among other things, each Fund's performance, fees and expenses with those of comparable funds managed by other investment advisers in connection with the Independent Trustees' consideration of the continuation of the Management Agreements. The Independent Trustees also considered other information, provided to the Board during the year, as part of its evaluation process. Prior to voting on the Management Agreements, the Independent Trustees met in Executive Session with ARK's senior management and also met in private sessions with their counsel at which time no representatives of management were present.
After the presentation of relevant information by ARK's senior management and extensive discussions prior to and at the Meeting, the Trustees, including the Independent Trustees voting separately, unanimously approved the continuance of the Management Agreements on behalf of the Funds. The determination made by all of the Trustees to approve the continuation of the Management Agreements was made on the basis of each Trustee's business judgment after considering all of the information presented to them. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the contract review process. In approving the continuation of the Management Agreements for each Fund, the following factors were considered by the Trustees, and no one factor was determinative:
(a) The nature, extent and quality of the services provided by ARK to the Funds under the Management Agreements. The Trustees considered the nature, extent and quality of the services that ARK provides and will continue to provide under the Management Agreements, including: (i) the qualifications of the portfolio managers, analysts and other key personnel of ARK who provide and will continue to provide the supervisory and investment advisory services to the Trust; and (ii) the terms of the Management Agreements. The Trustees considered ARK's senior management's discussion of the various duties and responsibilities of ARK under the Management Agreements. The Trustees also considered the organizational structure of ARK, the quality of ARK's investment, administrative, operations, and legal personnel and ARK's management of the operations of the Funds.
Based on these and other factors, the Trustees concluded that the nature, extent and quality of the supervisory and investment advisory services that had been and that were expected to continue to be provided to the Funds by ARK were satisfactory and supported the decision of the Trustees to approve the continuation of the Management Agreements with respect to each Fund.
(b) The investment performance of the Funds relative to comparable funds managed by other investment advisers and relevant market indices. The Trustees considered a report prepared by an independent data provider, which compared the performance of each of the Funds to that of comparable funds as identified by such independent data provider and appropriate, recognized market indices for the one-year, three-year and five-year periods ended March 31, 2024, as applicable. The Trustees also considered ARK's senior management's discussion of the relative performance of the Funds for the period ended March 31, 2024 and year to date.
Based upon their review of the investment performance of each Fund and ARK's senior management's discussion of the investment performance of the Funds, the Trustees concluded that each Fund's overall performance was satisfactory relative to the performance of comparable funds and relevant market indices.
(c) A comparison of the management fees (under the Supervision Agreement, which includes the advisory fees under the Investment Advisory Agreement) of the Funds with those of comparable funds managed by other investment advisers and other funds and accounts managed by ARK with comparable investment strategies. The Trustees considered a report prepared by an independent data provider, which compared the management fees paid by the Funds with those paid by comparable funds as identified by such independent data provider. The Board noted that the management fee paid by each actively-managed Fund generally was in line with the applicable actively-managed peer group median and that the management fee paid by each passively-managed Fund was either below or above the applicable passively-managed peer group median. The Board also considered fee information for comparable funds and accounts managed by ARK. The Board noted that the fees paid by certain funds and accounts managed by ARK are the same as the advisory fees paid by the Funds and that in instances where comparable funds or accounts managed by ARK paid lower fees than the Funds, ARK generally provides these clients with fewer services than it provides to the Funds. The Board noted the relatively small number of ETFs in the Trust's respective peer groups given the limited number of ETFs with strategies that are comparable to those of the Funds.
Based on their review of the comparative fee data and the other factors considered, the Trustees concluded that the management fee paid by each Fund was reasonable considering the services received by the Fund.
(d) A comparison of the net expense ratios of the Funds with those of comparable funds managed by other investment advisers. The Trustees considered a report prepared by an independent data provider, which compared the net expense ratios of the Funds with the net expense ratios of comparable funds as identified by such independent data provider. The Trustees noted that the actively-managed Funds' net expense ratios were in line with the applicable actively-managed peer group median and that the passively-managed Funds' net expense ratios were either below or in line with the applicable passively-managed peer group median. The Trustees noted the relatively small number of ETFs in the Trust's respective peer groups given the limited number of ETFs with strategies that are comparable to those of the Funds.
The Trustees also took into consideration ARK's view that the unitary structure of the Funds' management fees (which includes, among other things, the advisory fees) would continue to be easy to understand by investors and would provide a level of predictability with respect to the net expense ratios of the Funds.
Based on the fee comparisons provided to the Board and other factors considered, the Trustees concluded that the net expense ratio of each Fund, which reflected both the advisory fee and management fee, was reasonable.
(e) The extent to which economies of scale may be realized as the Funds' assets increase and whether fee levels would reflect economies of scale. The Trustees considered ARK's senior management's discussion of the structure of the current management fees and advisory fees and noted that the unitary fee structure effectively acts as a cap on the fees and expenses (excluding certain specific investment-related and extraordinary fees and expenses) that are borne by the Funds. The Trustees noted that ARK still bears a portion of the ordinary fees and expenses of one of the passively-managed Funds. The Trustees also noted that, although there currently are no breakpoints in any Fund's management fees or advisory fees, if a Fund's assets increase over time, the Fund might realize other economies of scale if assets increase proportionally more than certain other expenses.
Based on these considerations, the Trustees concluded that adding breakpoints at specified levels to the Funds' management fees and advisory fees was not necessary at that time.
(f) The cost of the services provided and profits realized by ARK from the relationship with the Funds. The Trustees considered that certain fees and expenses of the Funds had been assumed and paid by ARK in accordance with the Management Agreements. The Trustees noted that for the 2023 calendar year, all of the Funds had been profitable to ARK.
Based on the information provided to the Trustees, the Trustees concluded that ARK's profitability was reasonable given the quality and scope of services provided by ARK and the overall investment performance of the Funds.
(g) Benefits derived or to be derived by ARK and its affiliates from ARK's relationship with the Funds. The Trustees noted that ARK's reputation as an asset manager has likely benefited from the performance of the Funds and had the potential to aid ARK in gathering assets for its non-fund business operations. The Trustees also considered that ARK's affiliates were likely to benefit from the popularity and positive reception of the Funds.
The Board concluded that the nature and amount of any indirect benefits received by ARK and its affiliates from ARK's relationship with the Funds are reasonable.
(h) Financial Resources of ARK. The Trustees then considered whether ARK was financially sound and had adequate resources to perform its obligations under the Management Agreements.
Based on the information provided to the Board, the Trustees concluded that ARK had sufficient financial resources necessary to continue to perform its obligations under the Management Agreements.
General Conclusion. Based on its consideration of the factors discussed above, and such other information s it deemed appropriate and relevant, the Board concluded that it would be in the best interest of each Fund and its shareholders to approve the continuation of the Management Agreements, including the fees payable under those Agreements. Accordingly, the Board, with Independent Trustees voting separately, unanimously approved the continuation of the Management Agreements with respect to each Fund for an additional one-year period.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant's board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 16. Controls and Procedures.
| (a) | As of a date within 90 days of the filing date of this Form N-CSR, the registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the the 1940 Act (17 CFR 270.30a-3(c))) are effective, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
| (b) | There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 18. Recovery of Erroneously Awarded Compensation.
| (a) | Not Applicable. |
Item 19. Exhibits.
| (a)(1) | Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto. |
| (a)(2) | Not applicable. |
| (a)(3) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
| (a)(3)(1) | Not applicable. |
| (a)(3)(2) | Not applicable. |
| (b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| (Registrant) | ARK ETF Trust | |
| By (Signature and Title)* | /s/ Catherine D. Wood | |
| Catherine D. Wood | ||
| Chief Executive Officer and Chief Investment Officer | ||
| (principal executive officer) |
Date October 8, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By (Signature and Title)* | /s/ Catherine D. Wood | |
| Catherine D. Wood | ||
| Chief Executive Officer and Chief Investment Officer | ||
| (principal executive officer) |
Date October 8, 2024
| By (Signature and Title)* | /s/ William C. Cox | |
| William C. Cox | ||
| Treasurer and Chief Financial Officer | ||
| (principal financial officer) |
Date October 8, 2024
* Print the name and title of each signing officer under his or her signature.