ETF Research Center

ARK Industrial Innovation ETF is an actively-managed exchange-traded fund incorporated in the USA. The Fund will invest in equity securities of companies relevant to the theme of industrial innovation. Companies are expected to focus on the development of new products and services, technological improvements, and advancements in scientific research related to multiple industries.

FUND BASICS
Category	Global Equities
Fund Sponsor	ARK Investment Management LLC
Website	www.ark-funds.com
Inception date	Sep 30, 2014
Assets (mns)	$159
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	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	37
Wgt avg mkt cap (mns)	$91,932
Large cap (>$10bn)	62.4%
Mid cap ($2-10bn)	11.7%
Small cap (<$2bn)	25.9%
Developed mkts	90.7%
Emerging mkts	9.3%

TOP TEN HOLDINGS
Total	55.9 %
TESLA MOTORS INC	11.7 %
STRATASYS LTD.	8.3 %
PROTO LABS INC	5.5 %
MATERIALISE NV SPONSORED ADR	5.2 %
NVIDIA CORP	5.0 %
TERADYNE INC	4.2 %
APTIV PLC	4.2 %
2U INC	4.0 %
AEROVIRONMENT INC	4.0 %
SPLUNK INC	3.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	74.7 %
	CHINA	8.2 %
	BELGIUM	5.2 %
	IRELAND	4.2 %
	NETHERLANDS	2.0 %
	ISRAEL	1.6 %
	JAPAN	1.1 %
	TAIWAN	1.1 %

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.
18.0%	7.6%	12.4%	--	12.7%

Market Correlations
versus...	Beta	R-squared
S&P500	1.50	72%
MSCI EAFE	1.57	66%
MSCI Emg. Mkts.	1.17	58%

Technical Indicators
Recent close	$34.67
30d moving avg.	$34.40
Annualized volatility	21.3%
Short interest (ETF)	0.2%
Short interest (Underlying)	9.8%
Relative strength (RSI)	63

Liquidity measures
Avg. volume (thou.)	12
Turnover	0.3%
Bid/Ask (% of price)	0.26%
ADV underlying (mns)	$20,981

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

ARKQ

Expense:

75 bp

ALTAR Score™:

0.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH ARKQ
Ticker	Fund Name	Overlap¹ vs ARKQ (%)	Expense ratio (bp)	Savings vs ARKQ (bp)	ALTAR Score™ (%)	ALTAR vs ARKQ (%)
ARKK	ARK Innovation	34.6	75	0	-4.4	-5.3
ARKW	ARK Web x.O	28.0	75	0	-0.8	-1.7
LOUP	Innovator Loup Frontier Tech	22.2	70	5	2.7	+1.8
PRNT	3D Printing	19.6	66	9	-0.4	-1.3
XKST	SPDR Kensho Smart Mobility	19.0	45	30	5.9	+5.0
ROBT	First Trust Nasdaq Artificial Intelligence & Robotics	17.7	65	10	2.5	+1.6
XNTK	SPDR NYSE Technology	17.4	35	40	5.6	+4.7
GMAN	Goldman Sachs Motif Manufacturing Revolution	17.0	50	25	4.8	+3.9
QTEC	First Trust NASDAQ 100 Tech	16.2	57	18	6.0	+5.1
KARS	KraneShares Electric Vehicles & Future Mobility Index	15.3	70	5	6.5	+5.6
ROBO	Robo Global Robotics & Automation	14.8	95	-20	3.6	+2.7
EKAR	Innovation Shares NextGen Vehicles & Technology	14.8	95	-20	6.9	+6.0
IDRV	iShares Self-driving EV & Tech	14.7	47	28	8.9	+8.0
IRBO	iShares Robotics and Artificial Intelligence	14.2	47	28	1.9	+1.0
ARKF	ARK Fintech Innovation	13.8	75	0	1.8	+0.9
GDAT	Goldman Sachs Motif Data-Driven World	13.5	50	25	6.0	+5.1
DRIV	Global X Autonomous & Electric Vehicles	13.0	68	7	7.5	+6.6
SOXX	iShares PHLX SOX Semiconductor	12.8	46	29	6.1	+5.2
SMH	VanEck Vectors Semiconductors	12.4	35	40	6.3	+5.4
IFLY	ETFMG Drone Economy Strategy	12.1	75	0	0.8	-0.1

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 Industrial 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	5.0	%
Divided by: Fwd. P/BV	3.0	x
Less: Expense ratio	75	bp
Equals: ALTAR Score	0.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.60	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.