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)	$203
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	39
Wgt avg mkt cap (mns)	$120,287
Large cap (>$10bn)	65.5%
Mid cap ($2-10bn)	11.3%
Small cap (<$2bn)	23.2%
Developed mkts	90.8%
Emerging mkts	9.2%

TOP TEN HOLDINGS
Total	53.9 %
TESLA MOTORS INC	12.5 %
STRATASYS LTD.	7.3 %
PROTO LABS INC	6.1 %
MATERIALISE NV SPONSORED ADR	5.0 %
XILINX INC	5.0 %
2U INC	4.3 %
APTIV PLC	3.7 %
AEROVIRONMENT INC	3.6 %
NVIDIA CORP	3.2 %
BAIDU INC - SPON ADR	3.1 %

TOP COUNTRY EXPOSURE
	UNITED STATES	76.2 %
	CHINA	7.9 %
	BELGIUM	5.0 %
	IRELAND	3.7 %
	NETHERLANDS	2.5 %
	TAIWAN	1.2 %
	ISRAEL	1.2 %
	JAPAN	1.0 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
3.9%	16.0%	16.4%	--	14.4%

Market Correlations
versus...	Beta	R-squared
S&P500	1.49	71%
MSCI EAFE	1.55	64%
MSCI Emg. Mkts.	1.07	53%

Technical Indicators
Recent close	$41.08
30d moving avg.	$40.63
Annualized volatility	21.4%
Short interest (ETF)	0.0%
Short interest (Underlying)	9.8%
Relative strength (RSI)	63

Liquidity measures
Avg. volume (thou.)	37
Turnover	0.8%
Bid/Ask (% of price)	0.15%
ADV underlying (mns)	$38,780

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Ark Industrial Innovation ETF 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™:

1.2%

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 ETF	35.2	75	0	-3.1	-4.3
LOUP	Innovator Loup Frontier Tech ETF	28.9	70	5	3.6	+2.5
ARKW	ARK Web x.0 ETF	25.9	76	-1	-0.5	-1.7
XNTK	SPDR Morgan Stanley Technology ETF	22.8	35	40	4.7	+3.6
PRNT	The 3D Printing ETF	22.7	66	9	1.6	+0.4
GMAN	Goldman Sachs Motif Manufacturing Revolution ETF	22.2	50	25	4.5	+3.3
QTEC	First Trust NASDAQ-100 Technology Sector Index Fund	20.8	57	18	5.5	+4.4
IDRV	iShares Self-driving EV & Tech ETF	19.1	47	28	8.2	+7.0
XKST	SPDR Kensho Smart Mobility ETF	18.8	45	30	3.7	+2.6
ROBT	First Trust Nasdaq Artificial Intelligence & Robotics ETF	18.0	65	10	3.0	+1.8
EKAR	Innovation Shares NextGen Vehicles & Technology ETF	17.1	65	10	6.7	+5.6
KARS	KraneShares Electric Vehicles & Future Mobility Index ETF	17.1	70	5	5.4	+4.3
ROBO	Robo Global Robotics & Automation Index ETF	15.8	95	-20	3.6	+2.5
DRIV	Global X Autonomous & Electric Vehicles ETF	15.4	68	7	7.1	+5.9
QQEW	First Trust Nasdaq-100 Equal Weighted Index Fund	14.9	60	15	5.0	+3.8
QQQE	Direxion NASDAQ-100 Equal Weighted Index Shares	14.9	35	40	5.2	+4.1
QYLD	Global X NASDAQ 100 Covered Call ETF	13.6	60	15	4.6	+3.4
IFLY	ETFMG Drone Economy Strategy ETF	13.3	75	0	1.0	-0.2
QQQ	Invesco QQQ Trust	13.3	20	55	4.8	+3.7
CARZ	First Trust NASDAQ Global Auto Index Fund	13.2	70	5	13.1	+12.0

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%.

Content on this tab for subscribers only**

RESULTS & ESTIMATES

	2015	2016	2017	2018	2019	2020E	2021E
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

Content on this tab for subscribers only

VALUATION METRICS

	2019	2020E	2021E
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 ETF
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	6.4	%
Divided by: Fwd. P/BV	3.4	x
Less: Expense ratio	75	bp
Equals: ALTAR Score	1.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.63	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.