ARK Autonomous Technology & Robotics ETF

ARKQ

Market cap $1.54B

ARKQ trades at an average 89.78x P/E (equal-weighted), far above the NASDAQ, making it extremely expensive. Holdings grow EPS by 17.6% annually, below top tech leaders, yet the ETF's P/E is roughly twice as high. Only 84% of holdings are profitable, with cash-burning companies excluded from my P/E calculation.

The incredible success of some of the top holdings in the ARK Autonomous Technology & Robotics ETF has propelled it to strong gains this year. The ETF is on track to generate returns of at least 30% for a third straight year.

Robotics ETFs can be a great way for investors to get exposure to this exciting technology trend. The GlobalX Robotics and Artificial Intelligence ETF tracks an index of more than 50 robotics stocks.

Investing in individual artificial intelligence stocks isn't the best move for everyone. The Invesco QQQ ETF has surprising amount of AI exposure for a minimal ongoing cost.

The Ark Autonomous Technology & Robotics ETF is handily outpacing the "Magnificent Seven" stocks in 2025. The Cathie Wood ETF owns 36 stocks, and some of its largest positions are smaller, up-and-coming companies.

Artificial intelligence (AI) is one of the most transformative technologies in history, and as such, is full of investment opportunities. But choosing individual AI stocks can be tricky.

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.