ETF Research Center

ARK Innovation ETF is an actively-managed exhange-traded fund incorporated in the USA.The Fund will invest in equity securities of companies that are relevant to the theme of disruptive innovation. Relevant themes are those that rely on or benefit from the development of new products or services in scientific research relating to Genomics Revolution, Web x.0, and Industrial Innovation

FUND BASICS
Category	Global Equities
Fund Sponsor	ARK Investment Management LLC
Website	www.ark-funds.com
Inception date	Oct 31, 2014
Assets (mns)	$1,793
Currency	USD
Expense ratio	75 bp
Distributions	Annually

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	Bank of New York Mellon
Weighting	Proprietary
Index replication	N/A
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	39
Wgt avg mkt cap (mns)	$23,242
Large cap (>$10bn)	45.8%
Mid cap ($2-10bn)	16.6%
Small cap (<$2bn)	37.6%
Developed mkts	97.6%
Emerging mkts	2.4%

TOP TEN HOLDINGS
Total	56.7 %
TESLA MOTORS INC	9.7 %
SQUARE, INC. CLASS A	7.2 %
ILLUMINA INC	7.0 %
CRISPR THERAPEUTICS AG	6.2 %
STRATASYS LTD.	5.6 %
INVITAE CORP.	5.2 %
INTELLIA THERAPEUTICS, INC.	4.6 %
EDITAS MEDICINE, INC.	4.1 %
2U INC	3.9 %
NANOSTRING TECHNOLOGIES INC	3.2 %

TOP COUNTRY EXPOSURE
	UNITED STATES	86.7 %
	SWITZERLAND	6.2 %
	BELGIUM	1.7 %
	ISRAEL	1.6 %
	ARGENTINA	1.5 %
	IRELAND	1.2 %
	CHINA	0.9 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
35.6%	17.0%	21.2%	--	21.1%

Market Correlations
versus...	Beta	R-squared
S&P500	1.75	61%
MSCI EAFE	1.50	37%
MSCI Emg. Mkts.	1.20	38%

Technical Indicators
Recent close	$49.46
30d moving avg.	$46.89
Annualized volatility	27.1%
Short interest (ETF)	0.2%
Short interest (Underlying)	10.8%
Relative strength (RSI)	77

Liquidity measures
Avg. volume (thou.)	198
Turnover	0.6%
Bid/Ask (% of price)	0.09%
ADV underlying (mns)	$13,381

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the ARK Innovation ETF based on the alternatives' overlap in portfolio holdings with ARKK. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

ARKK

Expense:

75 bp

ALTAR Score™:

-4.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH ARKK
Ticker	Fund Name	Overlap¹ vs ARKK (%)	Expense ratio (bp)	Savings vs ARKK (bp)	ALTAR Score™ (%)	ALTAR vs ARKK (%)
ARKW	ARK Web x.O	49.7	75	0	-0.8	+3.6
ARKG	ARK Genomic Revolution Multi-Sector	38.0	75	0	-3.6	+0.8
ARKQ	ARK Industrial Innovation	34.6	75	0	0.9	+5.3
ARKF	ARK Fintech Innovation	23.7	75	0	1.8	+6.1
GIGE	SoFi Gig Economy	16.9	59	16	0.4	+4.7
GNOM	Global X Genomics & Biotechnology	14.6	68	7	-5.2	-0.8
PLAT	WisdomTree Modern Tech Platforms	12.4	45	30	2.8	+7.1
PRNT	3D Printing	11.2	66	9	-0.4	+3.9
BOSS	Global X Founder-Run Companies	10.7	45	30	3.6	+8.0
XNTK	SPDR NYSE Technology	10.6	35	40	5.6	+10.0
XITK	SPDR FactSet Innovative Technology	10.1	45	30	2.4	+6.7
OGIG	O'Shares Global Internet Giants	10.0	48	27	1.5	+5.8
IRBO	iShares Robotics and Artificial Intelligence	9.8	47	28	1.9	+6.3
GEX	VanEck Vectors Global Alternative Energy	9.7	63	12	4.0	+8.3
QCLN	First Trust NASDAQ Clean Edge Green Energy	9.7	60	15	1.4	+5.7
SLT	Salt TruBeta High Exposure	9.3	29	46	6.3	+10.6
HTEC	Robo Global Healthcare Technology and Innovation	9.3	68	7	-0.1	+4.3
AIQ	Global X Future Analytics Tech	8.9	68	7	4.5	+8.9
GMAN	Goldman Sachs Motif Manufacturing Revolution	8.7	50	25	4.8	+9.1
SPHB	Invesco S&P 500 High Beta	8.3	25	50	7.0	+11.4

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	ARK Innovation
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	-21.2	%
Divided by: Fwd. P/BV	5.9	x
Less: Expense ratio	75	bp
Equals: ALTAR Score	-4.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.53	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.