He helped score a top two spots in the ETF, performing best in the Morning Star last quarter. And now, Ark Invest’s Brett Winton wants to do it again with a massive exposure to Big Tech and aerospace.
Winton will help you set the strategy for the No. 1 ARK Innovation ETF (ARKK) and the runner-up ARK Space Exploration & Innovation ETF (ARKX).
“We are in the early stages of a massive technological change here,” the company’s chief futurist told CNBC’s “ETF Edge” this week. “We’re bumping along the roads, but I think the right thing to do is to lean towards innovation over the long term.”
The ARK Innovation ETF scored 48% in the last quarter. As of the end of Tuesday, it has increased by 275% since its launch in October 2014. The company’s website describes ETFs as “a actively managed fund that seeks cutting-edge advancements that have practical meaning in the real world.
He cited the June launch of Tesla, the Robotaxi program in Austin, Texas, as an example.
“People didn’t think they could do that, and the assets are on the ground and run,” Winton said. “I think it will be an invaluable network.”
According to the company’s website on Tuesday, the electric car maker is ARK Innovation ETF Top Holding, followed by Coinbase, Roku and Roblox.
Winton is particularly bullish on the artificial intelligence infrastructure.
“Amazing ai”
“I think we’re on the first pitch… we’re still warming up. We’re still singing the national anthem here. Investment in AI data centers is going to explode,” Winton said. “They plan to build a data center that currently has a maximum data center size of 10 times the size of their current data centers, which makes the advances in AI performance surprising compared to what is available today.”
The second-best ETF in the second quarter Morningstar is the ARK Space Exploration & Innovation ETF, which won 36% in the last quarter and has grown 26% since its launch in March 2021.
According to Ark Invest, the top holdings of the space-themed fund on June 30th are Kratos, Rocket Lab, Iridium Communications, Aerovironment and Archer Aviation.
“Arkx [Ark Space Exploration & Innovation ETF] …It worked really well as people are beginning to realize that they need to invest in these technologies and capabilities to compete in the world,” Winton said.
Ark Invest is also betting on Fintech stocks.
Winton said there is “no question” that developments such as cryptocurrency and digital wallets will reshape the financial environment. He also helps to build the strategy for the ARK Fintech Innovation ETF (ARKF). This has increased by 45% so far this year. Its top holdings are Shopify, Robinhood and Coinbase Global.
“We expect many traditional financial institutions to eventually bend their knees and say, ‘Hey, we need to adopt some of these technologies.’ Because it’s not enough or enough to provide the consumers with money when they want to move it from place to place in another 3-5 days,” Winton said.
