ARKF is an actively managed ETF from ARK Invest focused on companies the managers believe are changing financial services through technology, including mobile payments, digital wallets, blockchain, online lending and digital banking. The portfolio is concentrated, with a small number of positions accounting for a large share of assets, and holdings change as the managers revise their views. Performance has been very volatile: the fund rose sharply during the 2020-2021 growth stock rally and fell steeply in 2022 when higher interest rates reduced valuations of high-growth companies. The expense ratio is higher than that of passive index funds, as is typical for active management. Returns depend heavily on the manager stock selection and on sentiment toward high-growth stocks.
