ARK Next Generation Internet ETF

ARK Next Generation Internet ETF (ARKW) is an actively managed fund from ARK Invest. It held 43 stocks tied to cloud computing, online shopping, digital payments and crypto as of July 31, 2026, led by Tesla, AMD and a bitcoin ETF. Two things set it apart: big, concentrated bets that make its returns swing widely (up 157.08% in 2020, down 67.49% in 2022), and a 0.76% expense ratio, above most similar funds.

• Over the year to Oct 27, 2026, ARKW returned -11.7%, 8th of 9 among similar funds.
• Its 5-year annualized return was +0.8% and its 10-year +22.4%.
• In the 2020 COVID crash it fell 40.7% and regained its old high 2 months after the low.
• Its worst full calendar year was 2022 (-67.5%); its best was 2020 (+157.4%).
• The deepest fall in its price history was 80.5% (Feb 12, 2021 to Dec 28, 2022), not yet recovered.

As of Jul 31, 2026, the fund held 43 securities; the ten largest made up 47.98% of assets.

By sector

• Over the three months to Jul 31, 2026, investors withdrew a net $40.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +11.65%, -5.38%, -5.70%.

ARKW does not track an index. ARK's managers pick the holdings. At least 80% of assets go into US and foreign stocks tied to what ARK calls the "next generation internet": computing moving to the cloud, mobile services, online retail, streaming, big data, digital payments and blockchain. It also covers the "internet of things," meaning devices that share data over a network without a person involved. The managers start "top down," estimating how big a market could become. Then they work "bottom up," studying each company's valuation and finances. They consider ESG (environmental, social and governance) factors but do not exclude companies because of them.

The fund is concentrated. More than 25% of its assets sit in internet information providers and online and mail-order retailers. As of July 31, 2026, it had 43 holdings, and the top 10 made up about 48% of assets. The largest were Tesla (7.5%) and AMD (7.4%). Holdings also included SpaceX (3.4%) and OpenAI preferred stock (2.6%). The prospectus sets no weighting formula or rebalancing schedule; the managers decide position sizes. Portfolio turnover was 44%.

ARKW gets its crypto exposure indirectly, through a Cayman Islands subsidiary that can hold up to 25% of total assets and buys crypto funds. One example is the ARK 21Shares Bitcoin ETF, at 4.9%. That exposure can change over time. The fund held no derivatives as of July 31, 2026.

• ARKW charges 0.76% a year, versus an average of 0.46% for the similar funds below (8th of 9, cheapest first).
• Of that, 0.75% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $78 in the first year and $942 over 10 years (assuming a 5% annual return).

ARKW is a concentrated, actively managed bet on internet, fintech and crypto companies, and it has fallen much harder than the broad market in downturns.

ARKW could add a small, focused stake in internet and fintech growth companies alongside a broad core fund. Its losses can be severe. In the 2020 COVID crash it fell 40.7%, but it was back at its peak by May 19, 2020. In the 2022 bear market it dropped 64% and did not regain its January 2022 level until January 30, 2025. Its worst calendar year was 2022, at -67.49%. Its deepest drop, 80.5% from February 2021 to December 2022, had still not been recovered as of October 27, 2026. The fund launched in 2014, so it has no 2008 record. Anyone forced to sell shares in a year like 2022 would lock in steep losses. It pays a distribution once a year (a 1.5% yield as of October 27, 2026), so it is not an income fund. On the SEC's standard $10,000 example, costs come to $78 in the first year. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.