Cathie Wood has been a figure of much discussion in investment circles for some years, so when Asset Allocator was given the opportunity to ask her a question or two about the launch of her ETFs in the UK our interest was piqued.
Her firm, Ark Invest, bought London-based Rize ETF from Martin Gilbert's AssetCo in October and earlier this month came the announcement of their first batch of thematic active ETFs on European shores.
These are the flagship Ark Innovation ETF, Ark Genomic Revolution, and Ark Artificial Intelligence & Robotics.
Ark Innovation, which takes big bets on companies like Tesla, hit the headlines during the Covid-19 pandemic when it performed strongly on the back of tech's surge - though it since fell away.
We asked Wood if she would have a tougher time distributing her funds in the UK where distribution is more intermediated and there are fewer people who invest on their own account.
Wood told us Ark is focussing most of its efforts on winning over the intermediary market in the UK, which she called the "gatekeepers" of their funds.
Most of their distribution will go through institutions and the wholesale market, she said, and she sought to dispell the "myth" that retail investors in the US are the direct client, when in fact they are the end client.
A typical passive ETF is usually among one of the cheapest products in the market – though these actively-managed beasts will carry an OCF of 0.75 per cent.
When Ark's acquisition of Rize was first announced, Asset Allocator conducted a deep dive into the use of thematic ETFs by our allocators, which you can refresh your memory on here.
It’s worth remembering that ETFs in the UK don’t enjoy the same tax leniencies as in the US, and that UK platforms are hardwired better for traditional mutual fund purchasing rather than ETFs as it stands.
We’ll let you know if we see Ark's products begin to crop up in the corners of our databases in future
Her firm, Ark Invest, bought London-based Rize ETF from Martin Gilbert's AssetCo in October and earlier this month came the announcement of their first batch of thematic active ETFs on European shores.
These are the flagship Ark Innovation ETF, Ark Genomic Revolution, and Ark Artificial Intelligence & Robotics.
Ark Innovation, which takes big bets on companies like Tesla, hit the headlines during the Covid-19 pandemic when it performed strongly on the back of tech's surge - though it since fell away.
We asked Wood if she would have a tougher time distributing her funds in the UK where distribution is more intermediated and there are fewer people who invest on their own account.
Wood told us Ark is focussing most of its efforts on winning over the intermediary market in the UK, which she called the "gatekeepers" of their funds.
Most of their distribution will go through institutions and the wholesale market, she said, and she sought to dispell the "myth" that retail investors in the US are the direct client, when in fact they are the end client.
A typical passive ETF is usually among one of the cheapest products in the market – though these actively-managed beasts will carry an OCF of 0.75 per cent.
When Ark's acquisition of Rize was first announced, Asset Allocator conducted a deep dive into the use of thematic ETFs by our allocators, which you can refresh your memory on here.
It’s worth remembering that ETFs in the UK don’t enjoy the same tax leniencies as in the US, and that UK platforms are hardwired better for traditional mutual fund purchasing rather than ETFs as it stands.
We’ll let you know if we see Ark's products begin to crop up in the corners of our databases in future
