Innovation ETF (ARKK) Hits New 52-Week High

For investors seeking momentum, ARK Innovation ETF ARKK is probably on the radar. The fund just hit a 52-week high and is up about 92.4% from its 52-week low price of $36.85/share. 

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

ARKK in Focus

ARK Innovation ETF provides thematic multi-cap exposure to “disruptive innovation.” It is an actively managed fund investing in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research related to the areas of DNA technologies and genomic revolution, automation, robotics, energy storage, artificial intelligence, next-generation Internet and Fintech innovation. ARKK charges 75 bps in annual fees (see: all the Broad Developed World ETFs here).

Why the Move?

This ETF has been an area to watch lately, given Cathie Wood’s, the high-profile CEO of Ark Investment Management, explosive moves in a few stock holdings of ARKK. Cathie Wood continued its active bets on disruptive innovation by purchasing shares of CRISPR Therapeutics AG CRSP and selling 908 Devices Inc. MASS and Roku Inc. ROKU. This move reinforces ARK’s long-standing bullish stance on gene-editing technologies. ARK also bought a few shares of Beam Therapeutics Inc. BEAM, reflecting evolving conviction in the future of biotech innovation. 

Cathie Wood remains bullish on the transformative power of emerging technologies despite the market turbulence.

More Gains Ahead?

ARKK might remain strong going ahead, given a weighted alpha of 60.23 and a higher 20-day volatility of 29.55%. There is definitely some promise for investors who want to ride on this surging ETF.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research