ETF Research Center

ARK Web x.O 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 Web x.O. These companies are focused on shifting technology infrastructure from hardware and software to the cloud, enabling mobile and local services. Companies may generate their entire business through websites.

FUND BASICS
Category	Global Equities
Fund Sponsor	ARK Investment Management LLC
Website	www.ark-funds.com
Inception date	Sep 30, 2014
Assets (mns)	$472
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	38
Wgt avg mkt cap (mns)	$76,733
Large cap (>$10bn)	70.6%
Mid cap ($2-10bn)	19.5%
Small cap (<$2bn)	9.9%
Developed mkts	90.9%
Emerging mkts	9.1%

TOP TEN HOLDINGS
Total	47.2 %
TESLA MOTORS INC	11.4 %
SQUARE, INC. CLASS A	8.1 %
SPLUNK INC	3.8 %
XILINX INC	3.7 %
ZILLOW GROUP, INC. CLASS C	3.6 %
TWITTER INC	3.6 %
ALIBABA GROUP HOLDING LTD. SPONSOR	3.5 %
NETFLIX INC	3.2 %
ROKU, INC. CLASS A	3.2 %
LENDINGCLUB CORP	3.1 %

TOP COUNTRY EXPOSURE
	UNITED STATES	83.3 %
	CHINA	11.0 %
	ARGENTINA	2.2 %
	LUXEMBOURG	1.4 %
	BRITAIN	1.1 %
	CANADA	1.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
21.3%	8.9%	24.5%	--	24.4%

Market Correlations
versus...	Beta	R-squared
S&P500	1.31	52%
MSCI EAFE	1.24	39%
MSCI Emg. Mkts.	1.00	42%

Technical Indicators
Recent close	$53.65
30d moving avg.	$50.64
Annualized volatility	22.0%
Short interest (ETF)	0.1%
Short interest (Underlying)	9.1%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	52
Turnover	0.6%
Bid/Ask (% of price)	0.10%
ADV underlying (mns)	$23,252

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

ARKW

Expense:

75 bp

ALTAR Score™:

-0.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH ARKW
Ticker	Fund Name	Overlap¹ vs ARKW (%)	Expense ratio (bp)	Savings vs ARKW (bp)	ALTAR Score™ (%)	ALTAR vs ARKW (%)
ARKK	ARK Innovation	50.8	75	0	-4.8	-3.9
ARKF	ARK Fintech Innovation	47.9	75	0	2.0	+2.9
PLAT	WisdomTree Modern Tech Platforms	30.3	45	30	2.9	+3.8
GIGE	SoFi Gig Economy	30.3	59	16	0.5	+1.4
ARKQ	ARK Industrial Innovation	29.2	75	0	1.0	+1.9
AIQ	Global X Future Analytics Tech	26.5	68	7	4.7	+5.6
XNTK	SPDR NYSE Technology	26.1	35	40	5.5	+6.4
OGIG	O'Shares Global Internet Giants	26.0	48	27	1.6	+2.5
BKCH	AdvisorShares Sabretooth ETF	20.2	85	-10	0.0	+0.9
SKYY	First Trust Cloud Computing	18.9	60	15	2.5	+3.4
IRBO	iShares Robotics and Artificial Intelligence	18.6	47	28	2.5	+3.4
FNG	AdvisorShares New Tech & Media ETF	18.5	86	-11	1.9	+2.8
XITK	SPDR FactSet Innovative Technology	17.9	45	30	2.7	+3.6
ENTR	ERShares Entrepreneur 30	17.7	49	26	4.0	+4.9
PNQI	Invesco Nasdaq Internet	16.4	62	13	2.9	+3.8
BOSS	Global X Founder-Run Companies	15.5	45	30	3.7	+4.6
CLOU	Global X Cloud Computing	15.4	68	7	1.3	+2.2
TTTN	TigerShares China-U.S. Internet Titans	15.3	59	16	4.0	+4.9
GBUY	Goldman Sachs Motif New Age Consumer	15.1	50	25	3.6	+4.5
FDN	First Trust DJ Internet	15.0	52	23	3.4	+4.3

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 Web x.O
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	-1.0	%
Divided by: Fwd. P/BV	6.4	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	1.50	CATEGORY AVERAGE	1.54

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.