The ARK Autonomous Technology & Robotics ETF (ARKQ) is an actively managed fund that invests in domestic and foreign equities of autonomous technology and robotics companies that align with the fund’s investment theme of disruptive innovation.
Managed by ARK Invest, ARKQ seeks to capture opportunities in technologies driving transformative changes. Other notable funds in the Ark Invest portfolio include the Innovation Fund, ARKK.
ARK Autonomous Technology & Robotics ETF (ARKQ) ETF Price and Chart
Launched in September 2014, ARKQ takes a high-conviction, research-driven approach to selecting companies poised to benefit from advancements in autonomous and robotic technologies. Notable holdings include Tesla, Rocket Lab USA, and UiPath.
ARK Invest says the companies it invests in may develop, produce, or enable: Autonomous mobility, intelligent devices, advanced battery technologies, adaptive robotics, neural networks, reusable rockets, next-gen cloud, or 3D printing.
As of the end 2024, ARKQ’s total net assets stood at $947.7 million.
ARK Autonomous Technology & Robotics ETF (ARKQ) ETF Performance
Throughout most of this year, the ETF moved mostly sideways. However, it broke out in October and is ended the year up ~41%.
| Year | Total Return |
|---|---|
| 2024 | +40.99% |
| 2023 | +40.70% |
| 2022 | -46.75% |
| 2021 | +2.56% |
| 2020 | +107.22% |
ARKQ Top Holdings (end 2024)
| Company | Weight (%) |
|---|---|
| Tesla | 16.99% |
| Teradyne | 8.42% |
| Kratos Defense & Security | 7.82% |
| Rocket Lab USA | 6.41% |
| Archer Aviation | 5.89% |
| Iridium Communications | 4.87% |
| Palantir | 4.21% |
| Trimble | 4.12% |
| AeroVironment | 2.80% |
| UiPath | 2.80% |
ARKQ Forecast
Bull Argument: TradingView's summary of technical indicators for the ETF suggests it is currently a buy. However, this is primarily based on moving averages which show a “strong buy.” Oscillators show a “Neutral.” Nevertheless, when assessing other bullish factors for the ETF, some investors may point to its disruptive potential, with the adoption of autonomous technology, robotics, and AI expected to transform industries, leading to significant growth opportunities. Its diverse exposure is also another potential bullish factor.ARKQ’s investments span various sectors, reducing reliance on a single market. The active management may also be seen as a positive, with the approach allowing for dynamic allocation to emerging leaders in rapidly evolving fields.
Bear Argument: However, there are also bearish factors that could impact the ETF's performance in the near and long term. For example, the fund’s focus on innovation exposes it to potentially large market fluctuations. As a result, some investors may see the higher volatility as a negative. There are also early-stage risks. For example, many of ARKQ’s holdings are in early growth stages, increasing the risk of underperformance. Finally, while not a significant factor, there are some who may see the expense ratio as a bearish factor to consider. At 0.75%, ARKQ’s management fees are higher than those of many passive ETFs. Charles Schwab states: “Generally, low-cost equity ETFs will have a net expense ratio of no more than 0.25%.”
Our View: Like other ARK Invest ETFs, the Autonomous Technology & Robotics ETF provides potential investors with an opportunity to gain exposure to companies at the forefront of technological innovation, with the holdings here aiming to drive the future of automation and robotics. While its active management and focus on emerging technologies make it a compelling choice, the fund’s volatility and expense ratio may deter risk investors. However, for those with a bullish outlook on autonomous technology, AI, and robotics, ARKQ represents a forward-looking investment option.
Who Should Buy the ARK Autonomous Technology & Robotics ETF?
Just because an ETF or the sector sounds exciting, it does not mean it will be a suitable investment for everyone. There are aspects that may mean ARKQ is not the ideal ETF for you.Â
Of course, investors interested in the transformative potential of autonomous technology and robotics will find the ETF a solid option. However, as mentioned, its focus on high-growth sectors means ARKQ could be prone to significant short-term swings, making it a less attractive option for risk-averse investors.
While investors with growth-oriented portfolios may find it a great option due to the high-growth opportunities in cutting-edge industries, income-focused investors will more than likely want to look elsewhere as most holdings in the fund reinvest earnings into growth rather than paying dividends.
Finally, investors with a multi-year horizon willing to ride out volatility for potentially significant returns will see the ETF as a potentially attractive addition to their portfolios. However, cost-sensitive investors may be more cautious as the ETF’s expense ratio is higher than that of many passive funds.
