ARK Autonomous Technology & Robotics ETF

ARKQ

Market cap $1.56B

The global electric vehicle market remains highly competitive, with China as the dominant region and the U.S. seeing a temporary Q3 boost from expiring tax credits. BYD Company Limited leads in global EV sales but saw a rare year-over-year decline in Q3, mainly due to intense competition in China, though exports are surging. Xiaomi is emerging as a standout, rapidly scaling EV sales and maintaining strong momentum despite being a newcomer and not an EV pure-play.

Cathie Wood, CEO & CIO of ARK Invest, speaks about market optimism, US inflation, the crypto industry and IPOs. Wood speaks with Bloomberg's Katie Greifeld, Eric Balchunas and Scarlet Fu on "Bloomberg ETF IQ".

The ARK Autonomous Technology & Robotics ETF is an actively managed vehicle targeting companies in the disruptive innovation arena. ARKQ has delivered outstanding returns since 2014, though marred by horrible losses in the 2022 bear market and high volatility overall. Heavy in industrials, it has considerable growth factor exposure, though quality is mostly weak, which adds to risks.

Blending ARKQ ETF with IVES ETF balances risk-driven upside from innovation with quality growth from mega-cap tech, capturing AI potential while cushioning volatility. ARKQ offers concentrated bets on disruptive innovators and benefits most from Fed easing and AI enthusiasm, but is more volatile in tightening cycles. IVES focuses on established, cash-rich tech leaders, providing resilience and steady growth, especially during higher-for-longer rate environments or AI market slowdowns.

It's clear that artificial intelligence, or AI, is one of the most transformative technologies of our time -- and one of the most exciting investment opportunities. However, many investors are a bit intimidated when it comes to selecting which AI stocks to invest in, and understandably so.

ARK Autonomous Technology & Robotics ETF offers direct exposure to the real-world application layer of AI, focusing on robotics, automation, and smart hardware where software powers machines. The fund's top holdings—Tesla, Kratos Defense, and Teradyne—sit at the intersection of software and hardware, capturing the next wave of AI-driven value creation. ARKQ has delivered strong returns (74% over the past year) but comes with high volatility and a higher-than-average expense ratio, reflecting its aggressive, early-stage focus.

Ark Invest CEO Cathie Wood is known for her stock picks over the last decade, handpicking many of the growth stocks that find their way into the company's ETFs.

The S&P 500 tops 6,400 for the first time as large-cap tech and AI-fueled gains propel the index. Tap AI-based ETFs like AIQ and ARKQ.

ARKQ stands out with a strong buy quant rating and has outperformed competitors, tripling their 5-year returns through concentrated, selective holdings. What gave ARKQ the boost over other robotics ETFs? Its secret is the strong exposure to urban air mobility. This allowed it to benefit from the boom in aerospace, defense, and security stocks.

Artificial intelligence (AI) has been a major driver of stock market gains in recent years, and that's likely to continue since we're still in the early stages of this growth story. Analysts predict the AI market will reach into the trillions of dollars -- that will happen in about a decade, illustrating that this is indeed an area with much growth to come.