The ARK Space Exploration & Innovation ETF (NYSEARCA: ARKX) began trading Tuesday morning. It’s the latest exchange-traded fund in Cathie Wood’s hugely popular stable of six actively managed ETFs.
The 38 equities in the fund include a lot of the usual suspects–Boeing, Lockheed, Virgin Galactic–along with a number of unusual inclusions–Amazon, Netflix, Alphabet, Workhorse, Deere.
Here’s how Ark defines the securities it plans to invest in:
Orbital Aerospace Companies that launch, make, service, or operate platforms in the orbital space, including satellites and launch vehicles.
Suborbital Aerospace Companies that launch, make, service, or operate platforms in the suborbital space, but do not reach a velocity needed to remain in orbit around a planet.
Enabling Technologies Companies that develop technologies used by Space Exploration related companies for successful value-add aerospace operations. These operations include artificial intelligence, robotics, 3D printing, materials and energy storage.
Aerospace Beneficiary Companies whose operations stand to benefit from aerospace activities, including agriculture, internet access, global positioning system (GPS), construction, imaging, drones, air taxis, and electric aviation vehicles.
According to the Ark website, ARKX’s investment objective is long-term capital growth. The fund “will invest under normal circumstances primarily (at least 80% of its assets) in domestic and foreign equity securities of companies that are engaged in the Fund’s investment theme of Space Exploration and innovation.” The term “space exploration” is defined as leading, enabling, or benefitting from technologically enabled products and/or services that occur beyond the surface of the Earth.”
ARKX’s top holding is Trimble Inc. which accounted for 8.61% of the fund’s holdings at the launch. Trimble is known for its GPS and navigational products which will one day be cornerstones of fully self-driving vehicles. Other companies that fit this category are Deere & Co. (3.17% weight in ARKX) and Raven Industries (1.77% weight). Deere manufactures farming equipment that uses, among other things, Raven’s GPS-guidance steering systems. All three firms are included in Ark’s Autonomous Technology & Robotics ETF (NYSEARCA: ARKQ) and Deere and Trimble are among the fund’s top 10 holdings.
Among the other top holdings in ARKX are Ark’s own 3D Printing ETF (PRNT) the second-largest holding with a weight of 6.03%, Kratos Defense & Security with a weight of 5.98%, L3Harris with a weight of 5.12%, and JD.com with a weight of 4.93%. The top 10 holdings account for just over 50% of the fund’s investments.
Here’s a complete list of the companies and weighting currently included in the ARKX ETF. The total value of the fund at launch is just over $4 million and shares were trading at $20.50 about 90 minutes after the opening bell. More than 7 million shares have traded.
|THE 3D PRINTING ETF||PRNT||6,544||244,025.76||6.03|
|KRATOS DEFENSE & SECURITY||KTOS||8,812||241,713.16||5.98|
|L3HARRIS TECHNOLOGIES INC||LHX||1,020||206,896.80||5.12|
|LOCKHEED MARTIN CORP||LMT||500||186,395.00||4.61|
|IRIDIUM COMMUNICATIONS INC||IRDM||4,528||171,543.28||4.24|
|SPIRIT AEROSYSTEMS HOLD-CL A||SPR||2,748||132,728.40||3.28|
|DEERE & CO||DE||348||128,053.56||3.17|
|ALPHABET INC-CL C||GOOG||52||106,909.40||2.64|
|TELEDYNE TECHNOLOGIES INC||TDY||260||105,591.20||2.61|
|DASSAULT SYSTEMES SE||DSY||484||103,885.15||2.57|
|GARMIN LTD||GRMN U||640||83,180.80||2.06|
|VIRGIN GALACTIC HOLDINGS INC||SPCE||2,688||78,516.48||1.94|
|RAVEN INDUSTRIES INC||RAVN||2,048||71,598.08||1.77|
|ALIBABA GROUP HOLDING-SP ADR||BABA||288||66,775.68||1.65|
|ELBIT SYSTEMS LTD||ESLT||432||60,320.16||1.49|
|HONEYWELL INTERNATIONAL INC||HON||212||46,402.56||1.15|
|WORKHORSE GROUP INC||WKHS||3,212||41,531.16||1.03|
|TAIWAN SEMICONDUCTOR-SP ADR||TSM||356||40,722.84||1.01|
|TENCENT HOLDINGS LTD-UNS ADR||TCEHY||512||40,289.28||1|
|REINVENT TECHNOLOGY-CLASS A||RTP||2,936||30,211.44||0.75|
|ATLAS CREST INVESTMENT COR-A||ACIC||2,920||30,046.80||0.74|