Table of Contents

Table of Contents

 

   

Shareholder Letter

 

1

Shareholder Expense Examples

 

3

Sector Diversification

 

4

Schedule of Investments

 

6

ARK Genomic Revolution ETF

 

6

ARK Autonomous Technology & Robotics ETF

 

9

ARK Innovation ETF

 

11

ARK Next Generation Internet ETF

 

14

ARK Fintech Innovation ETF

 

16

ARK Space Exploration & Innovation ETF

 

18

The 3D Printing ETF

 

20

ARK Israel Innovative Technology ETF

 

22

Statements of Assets and Liabilities

 

24

Statements of Operations

 

26

Statements of Changes in Net Assets

 

28

Financial Highlights

 

32

Notes to Financial Statements

 

40

Supplemental Information

 

45

Risks Involved with Investing in the Funds

 

46

 

Table of Contents

Shareholder Letter

(Unaudited)

 

 

   

Dear Shareholder:

ARK Investment Management LLC (“ARK” or the “Adviser”), the investment adviser to the ARK ETF Trust (the “ARK ETFs”) specializes in thematic investing in disruptive innovation. The ARK ETFs include portfolio companies that we believe are leading and benefiting from five innovation platforms: artificial intelligence (“AI”), energy storage, robotics, multiomic sequencing, and blockchain technology. These platforms involve 14 technologies, including neural networks, multiomic technologies, autonomous mobility, and cryptocurrencies. According to ARK’s research, these five innovation platforms are, in our view, converging to create unprecedented growth trajectories. AI is the most important catalyst, its velocity cascading through all other technologies. The market value of disruptive innovation platforms could scale 42% at an annual rate during this business cycle, from $19 trillion today to $220 trillion by 2030.1 In 2030, the market value associated with disruptive innovation could account for the majority of the global equity market capitalization.

In 2023, in particular the fourth quarter, investment strategies focused on disruptive innovation performed quite well, buoyed in part by the growing consensus that the U.S. Federal Reserve (Fed) will lower interest rates in 2024. In response to an unprecedented 24-fold hike in interest rates over 17 months, corporations seem to be losing pricing power and are beginning to downsize, which could cause a harder-than-expected landing. During the past two years, the U.S. economy seems to have been in a rolling recession that has depressed housing, autos, and commercial real estate, while inventories have continued to build in the aftermath of the double- and triple-ordering that took place in response to supply chain bottlenecks from 2020 through 2022. As inflation gives way to broad based deflation during the next year, companies associated with ARK’s Five Innovation Platforms could play an outsized role in salvaging corporate profit margins. Innovation solves problems!

While the bear market in 2022 punished companies investing aggressively to capitalize on technology breakthroughs, innovation continued apace in 2023 thanks to advances in artificial intelligence (AI), blockchain technology, multiomic technologies, robotics, and energy storage. Early last year, OpenAI’s GPT-4 unleashed the power of AI by achieving top-percentile scores across a range of standardized tests from law to calculus. On the Uniform Bar Exam, it scored in the 90th percentile, a leap from GPT-3.5’s 10th percentile in 2022.

As a reminder, bitcoin’s price appreciated 40%+ during the U.S. regional bank crisis of 2023, validating its role as an insurance policy against central points of failure in the U.S. and European banking systems. Indeed, since the peak of the FTX-related crisis in 2022, the Bitcoin network has not skipped a beat, facilitating $3.6 trillion in approximately 163 million transactions, issuing approximately 373,000 new bitcoin, and attracting approximately 187 million new addresses. Moreover, bitcoin continued to rally throughout the year as the SEC prepared to approve 11 spot Bitcoin ETFs in early 2024.

On December 8, 2023, the Food and Drug Administration (FDA) approved the first gene-editing therapy in the U.S. Developed and manufactured by CRISPR Therapeutics and Vertex Pharmaceuticals, Casgevy will treat patients with severe Sickle Cell Disease (SCD) and beta thalassemia. In our view, companies sacrificing short-term profitability to invest aggressively in innovative technologies should enjoy exponential and highly profitable long-term growth opportunities.

Moreover, innovation should be a source of good deflation, as learning curves cut costs and increase productivity. Yet, many legacy companies that have catered to risk-averse short-term oriented shareholders have leveraged their balance sheets to buy back stock, bolster earnings, and increase dividends. In so doing, many have curtailed research and development (R&D) and capital spending and, now, could be ill-prepared for the potential disintermediation associated with disruptive innovation. For these and other reasons, we believe disruptive innovation taking place outside the remit of broad-based equity benchmarks could transform the playing field in 2024 and beyond.

As such, it may be prudent to complement, hedge, or diversify core benchmark exposures by investing in alternative public equity exposures. Since 2014, with tech-specific domain expertise, ARK analysts have focused on the industries, companies, and stocks that ARK believes are likely to be prime beneficiaries of the AI revolution. Given ARK analysts’ understanding of hardware, software, and applications, ARK portfolios offer significant exposure to the AI opportunity.

1             ARK Investment Management LLC. 2024. “Big Ideas – Technological Convergence.”

1

 

Table of Contents

Shareholder Letter (concluded)

(Unaudited)

 

   

On the following pages, you will find information relating to your ARK ETF investment. If you have any questions, I encourage you to contact your financial advisor or ARK directly. You can find additional information, including our daily portfolio holdings, on the ARK ETF website located at: www.ark-funds.com.

We appreciate the opportunity to help you meet your investment goals and thank you for enabling us to invest for you at the pace of innovation!

Sincerely,

Catherine D. Wood
Chief Investment Officer and Chief Executive Officer
ARK Investment Management LLC

2

 

Table of Contents

Shareholder Expense Examples

(Unaudited)

 

 

   

As a shareholder of an ARK ETF (each, a “Fund” and collectively, “Funds”) you incur two types of costs: (1) transaction costs for purchasing and selling shares; and (2) ongoing costs, including management fees and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars and cents) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The examples below are based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (August 1, 2023 through January 31, 2024).

Actual Expenses

The first line under each Fund in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for your Fund under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line under each Fund in the table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate your actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund to other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of Fund shares. Therefore, the second line under each Fund in the table is useful in comparing ongoing Fund costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Beginning
Account Value
8
/1/2023

Ending
Account Value
1
/31/2024

Annualized
Expense Ratios
Based on the
Six-Month Period

Expenses Paid
During the
Six-Month Period*

ARK Genomic Revolution ETF

       

Actual

$1,000.00

$750.70

0.75%

$3.30

Hypothetical (5% return before expenses)

$1,000.00

$1,021.37

0.75%

$3.81

ARK Autonomous Technology & Robotics ETF

       

Actual

$1,000.00

$892.20

0.75%

$3.57

Hypothetical (5% return before expenses)

$1,000.00

$1,021.37

0.75%

$3.81

ARK Innovation ETF

       

Actual

$1,000.00

$901.10

0.75%

$3.58

Hypothetical (5% return before expenses)

$1,000.00

$1,021.37

0.75%

$3.81

ARK Next Generation Internet ETF

       

Actual

$1,000.00

$1,034.40

0.75%

$3.84

Hypothetical (5% return before expenses)

$1,000.00

$1,021.37

0.75%

$3.81

ARK Fintech Innovation ETF

       

Actual

$1,000.00

$1,058.30

0.75%

$3.88

Hypothetical (5% return before expenses)

$1,000.00

$1,021.37

0.75%

$3.81

ARK Space Exploration & Innovation ETF

       

Actual

$1,000.00

$916.30

0.72%

$3.47

Hypothetical (5% return before expenses)

$1,000.00

$1,021.52

0.72%

$3.66

The 3D Printing ETF

       

Actual

$1,000.00

$903.00

0.66%

$3.16

Hypothetical (5% return before expenses)

$1,000.00

$1,021.82

0.66%

$3.35

ARK Israel Innovative Technology ETF

       

Actual

$1,000.00

$972.70

0.49%

$2.43

Hypothetical (5% return before expenses)

$1,000.00

$1,022.67

0.49%

$2.49

*        Expenses are equal to each Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 366 (the number of days in the period, then divided by 366).

3

 

Table of Contents

Sector Diversification (as a percentage of total investments)

January 31, 2024 (Unaudited)

 

   

4

 

Table of Contents

Sector Diversification (as a percentage of total investments) (concluded)

January 31, 2024 (Unaudited)

 

 

   

5

 

Table of Contents

Schedule of Investments

ARK Genomic Revolution ETF

 

January 31, 2024 (Unaudited)

   

Investments

 

Shares

 

Value

COMMON STOCKS – 99.7%

Biotechnology – 60.3%

     

 

 

Absci Corp.*

 

430,916

 

$

     1,706,427

Amgen, Inc.

 

28,490

 

 

8,953,268

Arcturus Therapeutics Holdings, Inc.*

 

1,738,717

 

 

57,325,500

Beam Therapeutics, Inc.*

 

2,204,760

 

 

53,796,144

CareDx, Inc.*

 

6,033,617

 

 

51,647,761

Compass Pathways PLC (United Kingdom)*(a)

 

2,223,490

 

 

25,058,732

CRISPR Therapeutics AG (Switzerland)*

 

1,736,173

 

 

109,292,090

Exact Sciences Corp.*

 

2,069,857

 

 

135,368,648

Incyte Corp.*

 

451,315

 

 

26,523,783

Intellia Therapeutics, Inc.*

 

2,073,352

 

 

49,387,245

Ionis Pharmaceuticals, Inc.*

 

1,471,354

 

 

75,612,882

Moderna, Inc.*

 

348,084

 

 

35,173,888

Nurix Therapeutics, Inc.*

 

2,710,369

 

 

21,411,915

Prime Medicine, Inc.*

 

2,522,247

 

 

16,016,269

Recursion Pharmaceuticals, Inc., Class A*

 

8,614,106

 

 

81,058,737

Regeneron Pharmaceuticals, Inc.*

 

21,479

 

 

20,249,972

Repare Therapeutics, Inc. (Canada)*

 

2,750,042

 

 

17,985,275

Senti Biosciences, Inc.*

 

1,905,324

 

 

857,586

Twist Bioscience Corp.*

 

2,662,495

 

 

86,264,838

Veracyte, Inc.*

 

1,941,183

 

 

48,568,399

Vertex Pharmaceuticals, Inc.*

 

100,707

 

 

43,644,400

Verve Therapeutics, Inc.*

 

2,912,709

 

 

31,515,511

Total Biotechnology

 

 

 

 

997,419,270

Chemicals – 3.7%

     

 

 

Ginkgo Bioworks Holdings, Inc.*

 

50,199,129

 

 

60,740,946

Electronic Equipment, Instruments & Components – 1.6%

908 Devices, Inc.*

 

3,644,629

 

 

25,803,973

Health Care Equipment & Supplies – 1.3%

Butterfly Network, Inc.*

 

11,621,014

 

 

10,471,695

Cerus Corp.*

 

5,913,672

 

 

10,703,746

Total Health Care Equipment & Supplies

 

 

 

 

21,175,441

Health Care Providers & Services 4.6%

     

 

 

Accolade, Inc.*

 

5,773,197

 

 

65,352,590

Guardant Health, Inc.*

 

371,516

 

 

8,147,346

Invitae Corp.*

 

8,354,015

 

 

3,258,066

Total Health Care Providers & Services

 

 

 

 

76,758,002

Health Care Technology 11.0%

     

 

 

Schrodinger, Inc.*

 

2,590,832

 

 

68,527,506

Teladoc Health, Inc.*

 

3,773,575

 

 

73,320,562

Veeva Systems, Inc., Class A*

 

192,424

 

 

39,910,662

Total Health Care Technology

 

 

 

 

181,758,730

Investments

 

Shares

 

Value

Life Sciences Tools & Services – 13.6%

10X Genomics, Inc., Class A*

 

1,296,562

 

$

      54,027,739

Adaptive Biotechnologies Corp.*

 

10,871,678

 

 

39,899,058

Pacific Biosciences of California, Inc.*

 

11,216,232

 

 

73,017,670

Personalis, Inc.*

 

5,594,307

 

 

7,496,372

Quantum-Si, Inc.*

 

13,137,145

 

 

20,493,946

Standard Biotools, Inc.*

 

13,415,701

 

 

30,453,641

Total Life Sciences Tools & Services

 

 

 

 

225,388,426

Pharmaceuticals – 0.2%

Pfizer, Inc.

 

118,286

 

 

3,203,185

Semiconductors & Semiconductor Equipment 1.2%

NVIDIA Corp.

 

33,157

 

 

20,400,507

Software – 2.2%

UiPath, Inc., Class A*

 

1,600,220

 

 

36,773,056

Total Common Stocks
(Cost $5,326,384,169)

 

 

 

 

1,649,421,536

MONEY MARKET FUND – 0.1%

Goldman Sachs Financial Square Treasury Obligations Fund, 5.21%(b)
(Cost $2,158,025)

 

2,158,025

 

 

2,158,025

Total Investments – 99.8%
(Cost $5,328,542,194)

 

 

 

 

1,651,579,561

Other Assets in Excess of Liabilities – 0.2%

     

 

3,428,149

Net Assets – 100.0%

 

 

 

$

1,655,007,710

*     Non-income producing security

     Affiliated security

(a)   American Depositary Receipt

(b)  Rate shown represents annualized 7-day yield as of January 31, 2024.

See accompanying Notes to Financial Statements.

6

 

Table of Contents

Schedule of Investments (continued)
ARK Genomic Revolution ETF

 

 

January 31, 2024 (Unaudited)

   

Affiliated Issuer Transactions

An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities, or a company that is under common ownership or control. Period-to-date transactions with companies which are or were affiliates are as follows:

Value ($) at 7/31/2023

Purchases
Cost
($)

Sales
Proceeds
($)

Net Realized
Gain
/(Loss)
($)

Net Change in
Unrealized
Appreciation
(Depreciation)
($)

Dividend
Income
($)

Capital Gain Distributions
($)

Number of
Shares at
1
/31/2024

Value ($) at
1
/31/2024

Common Stocks  19.2%

Biotechnology — 9.0%

Arcturus Therapeutics Holdings, Inc.

68,837,324

14,331,214

(21,617,847)

(1,802,147)

(2,423,044)

1,738,717

57,325,500

CareDx, Inc.

75,455,294

16,977,404

(24,404,603)

(4,409,929)

(11,970,405)

6,033,617

51,647,761

Compass Pathways PLC^

23,469,503

5,036,059

(7,893,815)

68,680

4,378,305

2,223,490

25,058,732

Nurix Therapeutics, Inc.

22,662,383

11,788,641

(8,960,471)

934,968

(5,013,606)

2,710,369

21,411,915

Repare Therapeutics, Inc.

24,961,228

7,657,831

(7,470,757)

(650,828)

(6,512,199)

2,750,042

17,985,275

Twist Bioscience Corp.^

72,213,227

23,197,063

(31,893,549)

3,420,267

19,327,830

2,662,495

86,264,838

Electronic Equipment, Instruments & Components — 1.6%

908 Devices, Inc.

28,538,589

9,076,997

(11,199,117)

(1,360,507)

748,011

3,644,629

25,803,973

Health Care Equipment & Supplies — 0.6%

Butterfly Network, Inc.

33,824,279

4,022,379

(5,972,001)

(1,568,681)

(19,834,281)

11,621,014

10,471,695

Health Care Providers & Services — 3.9%

Accolade, Inc.

89,210,554

24,106,739

(27,914,217)

1,933,906

(21,984,392)

5,773,197

65,352,590

Health Care Technology — 0.0%

Schrodinger, Inc.^

183,463,620

25,659,768

(54,139,834)

(24,064,275)

(62,391,773)

2,590,832

68,527,506

Life Sciences Tools & Services — 4.1%

Adaptive Biotechnologies Corp.

93,226,864

23,306,420

(22,238,592)

(2,094,964)

(52,300,670)

10,871,678

39,899,058

Codexis, Inc.^

12,541,558

120,195

(6,342,749)

(62,218,482)

55,899,478

Personalis, Inc.

13,973,286

2,900,045

(3,607,839)

(67,451)

(5,701,669)

5,594,307

7,496,372

Quantum-Si, Inc.

57,609,356

7,302,002

(10,004,523)

(155,437)

(34,257,452)

13,137,145

20,493,946

SomaLogic, Inc.^

32,105,075

9,611,802

(123,265,543)

(63,466)

81,612,132

Standard Biotools, Inc.^

116,446,198

(5,134,989)

(153,170)

(80,704,398)

13,415,701

30,453,641

$832,092,140

$301,540,757

$(372,060,446)

$(92,251,516)

$(141,128,133)

$    

$    

84,767,233

$528,192,802

^     As of January 31, 2024, the company was no longer considered to be an affiliated security.

See accompanying Notes to Financial Statements.

7

 

Table of Contents

Schedule of Investments (continued)

ARK Genomic Revolution ETF

 

January 31, 2024 (Unaudited)

   

Fair Value Measurement

The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (i) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (ii) the Fund’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:

    Level 1 – Quoted prices in active markets for identical assets.

    Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

    Level 3 – Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the valuations as of January 31, 2024, based upon the three levels defined above:

ARK Genomic Revolution ETF

Level 1

Level 2

Level 3

Total

Assets

       

Common Stocks

$1,649,421,536

$       

$     

$1,649,421,536

Money Market Fund

2,158,025

2,158,025

Total

$1,651,579,561

$       

$     

$1,651,579,561

     Please refer to the Schedule of Investments to view securities segregated by industry type.

See accompanying Notes to Financial Statements.

8

 

Table of Contents

Schedule of Investments
ARK Autonomous Technology & Robotics ETF

 

 

January 31, 2024 (Unaudited)

   

Investments

 

Shares

 

Value

COMMON STOCKS – 99.8%

     

 

 

Aerospace & Defense – 20.7%

     

 

 

AeroVironment, Inc.*

 

318,110

 

$

   38,376,791

Archer Aviation, Inc., Class A*

 

7,420,110

 

 

35,839,131

Elbit Systems Ltd. (Israel)

 

75,275

 

 

15,566,870

Kratos Defense & Security Solutions, Inc.*

 

4,464,085

 

 

75,576,959

Lockheed Martin Corp.

 

21,972

 

 

9,434,997

Rocket Lab USA, Inc.*

 

3,542,384

 

 

17,180,562

Total Aerospace & Defense

 

 

 

 

191,975,310

Automobile Components – 1.8%

     

 

 

Magna International, Inc. (Canada)

 

298,901

 

 

16,992,522

Automobiles – 11.1%

     

 

 

BYD Co. Ltd. (China)(a)

 

171,286

 

 

7,694,167

Tesla, Inc.*

 

508,939

 

 

95,319,185

Total Automobiles

 

 

 

 

103,013,352

Diversified Consumer Services – 0.1%

     

 

 

2U, Inc.*

 

654,477

 

 

556,764

Diversified Telecommunication – 7.1%

     

 

 

Iridium Communications, Inc.

 

1,828,675

 

 

66,307,756

Electronic Equipment, Instruments & Components – 9.0%

Teledyne Technologies, Inc.*

 

29,422

 

 

12,312,224

Trimble, Inc.*

 

1,327,490

 

 

67,516,142

Vuzix Corp.*

 

2,366,666

 

 

3,952,332

Total Electronic Equipment, Instruments & Components

 

 

 

 

83,780,698

Health Care Equipment & Supplies – 1.7%

 

 

 

Intuitive Surgical, Inc.*

 

40,535

 

 

15,331,148

Interactive Media & Services – 2.5%

     

 

 

Alphabet, Inc., Class C*

 

165,158

 

 

23,419,404

Machinery – 11.6%

     

 

 

3D Systems Corp.*

 

1,757,291

 

 

8,417,424

Caterpillar, Inc.

 

63,884

 

 

19,185,004

Deere & Co.

 

87,058

 

 

34,264,288

Komatsu Ltd. (Japan)(a)

 

1,269,256

 

 

36,072,255

Markforged Holding Corp.*

 

11,280,629

 

 

7,638,114

Stratasys Ltd.*

 

5,948

 

 

78,633

Velo3D, Inc.*

 

7,564,898

 

 

2,371,595

Total Machinery

 

  

 

 

108,027,313

Oil, Gas & Consumable Fuels – 1.6%

     

 

 

Cameco Corp. (Canada)

 

311,766

 

 

14,886,826

Passenger Airlines – 2.8%

     

 

 

Blade Air Mobility, Inc.*

 

4,760,135

 

 

14,185,202

Joby Aviation, Inc.*

 

2,200,637

 

 

12,015,478

Total Passenger Airlines

 

  

 

 

26,200,680

Investments

 

Shares

 

Value

Semiconductors & Semiconductor Equipment – 14.9%

 

 

 

 

Advanced Micro Devices, Inc.*

 

107,908

 

$

   18,095,093

 

NVIDIA Corp.

 

49,914

 

 

30,710,587

 

QUALCOMM, Inc.

 

35,337

 

 

5,247,898

 

Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)(a)

 

184,241

 

 

20,811,863

 

Teradyne, Inc.

 

659,170

 

 

63,669,230

 

Total Semiconductors & Semiconductor Equipment

 

  

 

 

138,534,671

 

Software – 14.9%

     

 

 

 

ANSYS, Inc.*

 

38,078

 

 

12,483,111

 

Materialise NV (Belgium)*(a)

 

948,124

 

 

5,375,863

 

Synopsys, Inc.*

 

28,376

 

 

15,134,339

 

UiPath, Inc., Class A*

 

3,817,129

 

 

87,717,624

 

Unity Software, Inc.*

 

537,969

 

 

17,430,196

 

Total Software

 

  

 

 

138,141,133

 

Total Common Stocks
(Cost $1,425,290,020)

     

 

927,167,577

 

MONEY MARKET FUND – 0.2%

     

 

 

 

Goldman Sachs Financial Square Treasury Obligations Fund 5.21%(b)
(Cost $2,228,590)

 

2,228,590

 

 

2,228,590

 

Total Investments – 100.0%
(Cost $1,427,518,610)

     

 

929,396,167

 

Liabilities in Excess of Other Assets – (0.0)%(c)

 

 

(386,625

)

Net Assets – 100.0%

 

  

 

$

929,009,542

 

      Affiliated security

*      Non-income producing security

(a)   American Depositary Receipt

(b)   Rate shown represents annualized 7-day yield as of January 31, 2024.

(c)   Less than 0.05%

See accompanying Notes to Financial Statements.

9

 

Table of Contents

Schedule of Investments (continued)
ARK Autonomous Technology & Robotics ETF

 

January 31, 2024 (Unaudited)

   

Affiliated Issuer Transactions

An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities, or a company that is under common ownership or control. Period-to-date transactions with companies which are or were affiliates are as follows:

Value ($) at 7/31/2023



Purchases
Cost

($)



Sales
Proceeds
($)



Net Realized
Gain
/(Loss)
($)

Net Change in
Unrealized
Appreciation
(Depreciation)
($)



Dividend
Income
($)



Capital Gain
Distributions
($)



Number
of
Shares at
1/31/2024




Value ($) at
1/31/
2024

Common Stocks — 2.3%

               

Machinery — 0.8%

               

Markforged Holding Corp.

               

24,905,366

1,033,667

(1,420,428)

(223,169)

(16,657,322)

11,280,629

7,638,114

Passenger Airlines — 1.5%

               

Blade Air Mobility, Inc.

               

22,198,478

141,557

(1,790,309)

(1,769,253)

(4,595,271)

4,760,135

14,185,202

$47,103,844

$1,175,224

$(3,210,737)

$(1,992,422)

$(21,252,593)

$   

$   

16,040,764

$21,823,316

Fair Value Measurement

The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (i) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (ii) the Fund’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:

    Level 1 – Quoted prices in active markets for identical assets.

    Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

    Level 3 – Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the valuations as of January 31, 2024, based upon the three levels defined above:

ARK Autonomous
Technology &
Robotics ETF

 



Level 1

 



Level 2

 



Level 3

 



Total

Assets

               

Common Stocks

 

$927,167,577

 

$    

 

$    

 

$927,167,577

Money Market Fund

 

2,228,590

 

 

 

2,228,590

Total

 

$929,396,167

 

$    

 

$     

 

$929,396,167

     Please refer to the Schedule of Investments to view securities segregated by industry type.

See accompanying Notes to Financial Statements.

10

 

Table of Contents

Schedule of Investments
ARK Innovation ETF

 

 

January 31, 2024 (Unaudited)

   

Investments

 

Shares

 

Value

COMMON STOCKS – 99.9%

     

 

 

Aerospace & Defense – 0.8%

     

 

 

Archer Aviation, Inc., Class A*†

 

12,999,367

 

$

      62,786,943

Automobiles – 8.0%

     

 

 

Tesla, Inc.*

 

3,203,328

 

 

599,951,301

Biotechnology – 16.3%

     

 

 

Beam Therapeutics, Inc.*

 

6,000,363

 

 

146,408,857

CRISPR Therapeutics AG (Switzerland)*

 

5,984,984

 

 

376,754,743

Exact Sciences Corp.*

 

2,296,932

 

 

150,219,353

Intellia Therapeutics, Inc.*

 

7,517,816

 

 

179,074,377

Recursion Pharmaceuticals, Inc., Class A*

 

12,877,053

 

 

121,173,069

Twist Bioscience Corp.*

 

3,491,286

 

 

113,117,666

Veracyte, Inc.*

 

4,070,762

 

 

101,850,465

Verve Therapeutics, Inc.*

 

3,086,708

 

 

33,398,180

Total Biotechnology

 

 

 

 

1,221,996,710

Capital Markets – 11.8%

     

 

 

Coinbase Global, Inc., Class A*

 

5,233,526

 

 

670,938,033

Robinhood Markets, Inc., Class A*

 

20,292,596

 

 

217,942,481

Total Capital Markets

 

 

 

 

888,880,514

Chemicals – 2.0%

     

 

 

Ginkgo Bioworks Holdings, Inc.*†

 

123,410,876

 

 

149,327,160

Diversified Consumer Services – 0.1%

     

 

 

2U, Inc.*†

 

6,246,665

 

 

5,314,038

Entertainment – 12.0%

     

 

 

ROBLOX Corp., Class A*

 

8,160,341

 

 

316,702,834

Roku, Inc.*

 

6,675,396

 

 

587,835,372

Total Entertainment

 

 

 

 

904,538,206

Financial Services – 6.3%

     

 

 

Block, Inc.*

 

7,294,940

 

 

474,244,049

Health Care Equipment & Supplies – 0.3%

Cerus Corp.*†

 

12,717,509

 

 

23,018,691

Health Care Providers & Services – 0.1%

 

 

 

Invitae Corp.*†

 

18,151,368

 

 

7,079,034

Health Care Technology – 3.1%

     

 

 

Teladoc Health, Inc.*†

 

11,841,315

 

 

230,076,750

Hotels, Restaurants & Leisure – 3.4%

     

 

 

DraftKings, Inc., Class A*

 

6,476,449

 

 

252,905,334

Interactive Media & Services – 1.4%

     

 

 

Meta Platforms, Inc., Class A*

 

200,043

 

 

78,044,776

Pinterest, Inc., Class A*

 

744,340

 

 

27,890,420

Total Interactive Media & Services

 

 

 

 

105,935,196

IT Services – 7.3%

     

 

 

Shopify, Inc., Class A (Canada)*

 

3,438,995

 

 

275,360,330

Twilio, Inc., Class A*

 

3,888,253

 

 

273,460,833

Total IT Services

 

 

 

 

548,821,163

Investments

 

Shares

 

Value

Life Sciences Tools & Services – 3.4%

     

 

 

 

10X Genomics, Inc., Class A*

 

3,255,116

 

$

    135,640,684

 

Pacific Biosciences of California, Inc.*

 

18,508,246

 

 

120,488,681

 

Total Life Sciences Tools & Services

 

 

 

 

256,129,365

 

Media – 1.4%

     

 

 

 

Trade Desk, Inc. (The), Class A*

 

1,527,179

 

 

104,504,859

 

Semiconductors & Semiconductor Equipment – 1.0%

 

 

 

 

Teradyne, Inc.

 

799,942

 

 

77,266,398

 

Software – 21.2%

     

 

 

 

PagerDuty, Inc.*

 

7,534,053

 

 

178,406,375

 

Palantir Technologies, Inc., Class A*

 

8,210,888

 

 

132,113,188

 

UiPath, Inc., Class A*

 

21,133,656

 

 

485,651,415

 

Unity Software, Inc.*

 

8,328,552

 

 

269,845,085

 

Zoom Video Communications, Inc., Class A*

 

8,066,031

 

 

521,146,263

 

Total Software

 

 

 

 

1,587,162,326

 

Total Common Stocks
(Cost $16,502,458,212)

 

 

 

 

7,499,938,037

 

MONEY MARKET FUND – 0.2%

     

 

 

 

Goldman Sachs Financial Square Treasury Obligations Fund, 5.21%(a)
(Cost $15,420,867)

 

15,420,867

 

 

15,420,867

 

Total Investments – 100.1%
(Cost $16,517,879,079)

     

 

7,515,358,904

 

Liabilities in Excess of Other Assets – (0.1)%

 

 

(11,110,783

)

Net Assets – 100.0%

 

 

 

$

7,504,248,121

 

     Affiliated security

*     Non-income producing security

(a)   Rate shown represents annualized 7-day yield as of January 31, 2024.

See accompanying Notes to Financial Statements.

11

 

Table of Contents

Schedule of Investments (continued)
ARK Innovation ETF

 

January 31, 2024 (Unaudited)

   

Affiliated Issuer Transactions

An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities, or a company that is under common ownership or control. Period-to-date transactions with companies which are or were affiliates are as follows:

Value ($) at 7/31/2023

Purchases
Cost
($)

Sales
Proceeds
($)

Net Realized
Gain
/(Loss)
($)

Net Change in 
Unrealized
Appreciation
(Depreciation)
($)

Dividend
Income
($)

Capital Gain
Distributions
($)

Number of
Shares at
1
/31/2024

Value ($) at
1
/31/2024

Common Stocks — 32.0%

Aerospace & Defense — 0.8%

Archer Aviation, Inc.

121,459,761

(46,721,360)

3,354,965

(15,306,423)

12,999,367

62,786,943

Biotechnology — 13.8%

Beam Therapeutics, Inc.

             

187,666,293

110,330,450

(114,197,188)

578,322

(37,969,020)

6,000,363

146,408,857

CRISPR Therapeutics AG

             

302,287,216

260,428,162

(224,871,904)

14,374,708

24,536,561

5,984,984

376,754,743

Intellia Therapeutics, Inc.

             

286,103,983

189,170,348

(167,536,687)

1,365,851

(130,029,118)

7,517,816

179,074,377

Recursion Pharmaceuticals, Inc.

             

129,753,506

(28,981,017)

10,101,709

10,298,871

12,877,053

121,173,069

Twist Bioscience Corp.

90,859,200

58,171,254

(66,493,577)

(200,421)

30,781,210

3,491,286

113,117,666

Veracyte, Inc.

             

124,735,243

66,681,370

(78,461,968)

(3,523,856)

(7,580,324)

4,070,762

101,850,465

Chemicals — 2.0%

             

Ginkgo Bioworks Holdings, Inc.

             

288,528,574

156,816,423

(143,967,030)

8,423,140

(160,473,947)

123,410,876

149,327,160

Diversified Consumer Services — 0.1%

2U, Inc.

28,757,020

10,491,081

(9,279,415)

(884,659)

(23,769,989)

6,246,665

5,314,038

Entertainment — 7.8%

Roku, Inc.

875,800,633

421,144,015

(630,589,377)

(468,102,331)

389,582,432

6,675,396

587,835,372

Health Care Equipment & Supplies — 0.3%

Cerus Corp.

41,127,633

15,256,218

(16,810,706)

(686,302)

(15,868,152)

12,717,509

23,018,691

Health Care Providers & Services — 0.1%

Invitae Corp.

27,488,455

8,829,700

(9,514,036)

(986,486)

(18,738,599)

18,151,368

7,079,034

Health Care Technology — 3.1%

Teladoc Health, Inc.

365,234,882

165,881,230

(178,186,433)

805,389

(123,658,318)

11,841,315

230,076,750

Life Sciences Tools & Services — 1.6%

Pacific Biosciences of California, Inc.

189,323,805

149,211,303

(112,352,629)

5,826,006

(111,519,804)

18,508,246

120,488,681

Software — 2.4%

PagerDuty, Inc.

213,407,887

137,554,738

(157,855,295)

(9,951,113)

(4,749,842)

7,534,053

178,406,375

UiPath, Inc.^

522,311,927

333,837,910

(505,129,080)

(209,818,130)

344,448,788

21,133,656

485,651,415

$3,543,632,751

$2,335,017,469

$(2,490,947,702)

$(649,323,208)

$149,984,326

$    

$    

279,160,715

$2,888,363,636

^     As of January 31, 2024, the company was no longer considered to be an affiliated security.

See accompanying Notes to Financial Statements.

12

 

Table of Contents

Schedule of Investments (continued)

ARK Innovation ETF

 

 

January 31, 2024 (Unaudited)

   

Fair Value Measurement

The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (i) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (ii) the Fund’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:

    Level 1 – Quoted prices in active markets for identical assets.

    Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

    Level 3 – Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the valuations as of January 31, 2024, based upon the three levels defined above:

ARK Innovation
ETF

Level 1

Level 2

Level 3

Total

Assets

       

Common Stocks

$7,499,938,037

$     

$     

$7,499,938,037

Money Market Fund

15,420,867

15,420,867

Total

$7,515,358,904

$     

$     

$7,515,358,904

     Please refer to the Schedule of Investments to view securities segregated by industry type.

See accompanying Notes to Financial Statements.

13

 

Table of Contents

Schedule of Investments
ARK Next Generation Internet ETF

 

January 31, 2024 (Unaudited)

   

Investments

 

Shares

 

Value

COMMON STOCKS – 92.7%

     

 

 

Automobiles – 5.4%

     

 

 

Tesla, Inc.*

 

439,984

 

$

      82,404,603

Banks – 0.8%

     

 

 

NU Holdings Ltd., Class A (Brazil)*

 

1,360,437

 

 

11,713,363

Biotechnology – 1.1%

     

 

 

Veracyte, Inc.*

 

676,187

 

 

16,918,199

Broadline Retail – 1.3%

     

 

 

MercadoLibre, Inc. (Brazil)*

 

12,008

 

 

20,555,415

Capital Markets – 13.2%

     

 

 

Coinbase Global, Inc., Class A*

 

1,042,818

 

 

133,689,267

Robinhood Markets, Inc., Class A*

 

6,328,136

 

 

67,964,181

Total Capital Markets

 

 

 

 

201,653,448

Diversified Consumer Services – 0.1%

2U, Inc.*

 

1,185,844

 

 

1,008,798

Electronic Equipment Instruments & Components – 0.4%

Vuzix Corp.*

 

3,168,037

 

 

5,290,622

Entertainment – 13.8%

     

 

 

ROBLOX Corp., Class A*

 

1,618,565

 

 

62,816,507

Roku, Inc.*

 

1,446,399

 

 

127,369,896

Spotify Technology SA*

 

96,251

 

 

20,727,653

Total Entertainment

 

 

 

 

210,914,056

Financial Services – 10.0%

     

 

 

Adyen NV (Netherlands)*(a)

 

1,519,909

 

 

19,059,659

Block, Inc.*

 

1,849,056

 

 

120,207,130

Toast, Inc., Class A*

 

728,652

 

 

12,948,146

Total Financial Services

 

 

 

 

152,214,935

Health Care Technology – 2.2%

     

 

 

Teladoc Health, Inc.*

 

1,725,571

 

 

33,527,845

Hotels, Restaurants & Leisure – 7.2%

DraftKings, Inc., Class A*

 

1,658,200

 

 

64,752,710

Genius Sports Ltd. (United Kingdom)*

 

6,616,371

 

 

44,395,849

Total Hotels, Restaurants & Leisure

 

 

 

 

109,148,559

Interactive Media & Services – 3.3%

Meta Platforms, Inc., Class A*

 

73,684

 

 

28,747,076

Nextdoor Holdings, Inc.*

 

10,132,504

 

 

15,401,406

Pinterest, Inc., Class A*

 

167,207

 

 

6,265,246

Total Interactive Media & Services

 

 

 

 

50,413,728

IT Services – 7.8%

     

 

 

Cloudflare, Inc., Class A*

 

414,019

 

 

32,728,202

Shopify, Inc., Class A (Canada)*

 

561,303

 

 

44,943,531

Twilio, Inc., Class A*

 

578,994

 

 

40,720,648

Total IT Services

 

 

 

 

118,392,381

Investments

 

Shares

 

Value

Media – 1.5%

     

 

 

 

Trade Desk, Inc. (The), Class A*

 

327,357

 

$

      22,401,040

 

Semiconductors & Semiconductor Equipment – 3.1%

 

Advanced Micro Devices, Inc.*

 

94,787

 

 

15,894,832

 

NVIDIA Corp.

 

26,571

 

 

16,348,339

 

QUALCOMM, Inc.

 

57,055

 

 

8,473,238

 

Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)(a)

 

56,225

 

 

6,351,176

 

Total Semiconductors & Semiconductor Equipment

 

 

 

 

47,067,585

 

Software – 20.3%

     

 

 

 

Crowdstrike Holdings, Inc., Class A*

 

107,530

 

 

31,452,525

 

Microsoft Corp.

 

40,017

 

 

15,909,959

 

PagerDuty, Inc.*

 

1,248,275

 

 

29,559,152

 

Palantir Technologies, Inc., Class A*

 

1,439,261

 

 

23,157,710

 

UiPath, Inc., Class A*

 

2,848,698

 

 

65,463,080

 

Unity Software, Inc.*

 

1,950,911

 

 

63,209,516

 

Zoom Video Communications, Inc., Class A*

 

1,239,233

 

 

80,066,844

 

Total Software

 

 

 

 

308,818,786

 

Technology Hardware, Storage & Peripherals – 1.2%

 

Pure Storage, Inc., Class A*

 

457,161

 

 

18,281,868

 

Total Common Stocks
(Cost $2,595,805,563)

 

 

 

 

1,410,725,231

 

EXCHANGE – TRADED FUNDS – 7.3%

 

Financials – 7.3%

     

 

 

 

ARK 21Shares Active Bitcoin Futures Strategy ETF

 

18,796

 

 

791,121

 

ARK 21Shares Bitcoin ETF

 

2,480,644

 

 

105,551,402

 

Proshares Bitcoin Strategy ETF

 

286,475

 

 

5,878,467

 

Total Financials

 

 

 

 

112,220,990

 

Total Exchange – Traded Funds
(Cost $108,551,096)

 

 

 

 

112,220,990

 

MONEY MARKET FUND – 0.3%

 

 

 

 

Goldman Sachs Financial Square Treasury Obligations Fund, 5.21%(b)
(Cost $4,186,792)

 

4,186,792

 

 

4,186,792

 

Total Investments – 100.3%
(Cost $2,708,543,451)

 

 

 

 

1,527,133,013

 

Liabilities in Excess of Other Assets – (0.3)%

 

 

(4,097,375

)

Net Assets – 100.0%

 

 

 

$

1,523,035,638

 

     Affiliated security

*     Non-income producing security

(a)   American Depositary Receipt

(b)   Rate shown represents annualized 7-day yield as of January 31, 2024.

See accompanying Notes to Financial Statements.

14

 

Table of Contents

Schedule of Investments (continued)
ARK Next Generation Internet ETF

 

 

January 31, 2024 (Unaudited)

   

Affiliated Issuer Transactions

An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities, or a company that is under common ownership or control. Period-to-date transactions with companies which are or were affiliates are as follows:

Value ($) at 7/31/2023

Purchases
Cost
($)

Sales
Proceeds
($)

Net Realized
Gain
/(Loss)
($)

Net Change in
Unrealized
Appreciation
(Depreciation)
($)

Dividend
Income
($)

Capital Gain
Distributions
($)

Number of
Shares at
1
/31/2024

Value ($) at
1
/31/2024

Exchange  Traded Funds  7.0%

Financials  7.0%

ARK 21Shares Active Bitcoin Futures Strategy ETF

867,329

(51,082)

(1,131)

(23,995)

3,437

18,796

791,121

ARK 21Shares Bitcoin ETF

101,659,844

3,891,558

2,480,644

105,551,402

Common Stocks  1.4%

Electronic Equipment Instruments & Components – 0.4%

Vuzix Corp.

19,329,832

820,915

(2,418,556)

(6,263,684)

(6,177,885)

3,168,037

5,290,622

Interactive Media & Services  1.0%

Nextdoor Holdings, Inc.

22,546,330

7,509,677

(2,634,033)

51,814

(12,072,382)

10,132,504

15,401,406

$41,876,162

$110,857,765

$(5,103,671)

$(6,213,001)

$(14,382,704)

$3,437

$    

15,979,981

$127,034,551

Fair Value Measurement

The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (i) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (ii) the Fund’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:

     Level 1 – Quoted prices in active markets for identical assets.

     Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

     Level 3 – Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the valuations as of January 31, 2024, based upon the three levels defined above:

ARK Next
Generation Internet
ETF

Level 1

Level 2

Level 3

Total

Assets

       

Common Stocks

$1,410,725,231

$     

$     

$1,410,725,231

Exchange – Traded Funds

$   112,220,990

$     

$     

$   112,220,990

Money Market Fund

4,186,792

4,186,792

Total

$1,527,133,013

$     

$     

$1,527,133,013

     Please refer to the Schedule of Investments to view securities segregated by industry type.

See accompanying Notes to Financial Statements.

15

 

Table of Contents

Schedule of Investments
ARK Fintech Innovation ETF

 

January 31, 2024 (Unaudited)

   

Investments

 

Shares

 

Value

COMMON STOCKS – 100.1%

     

 

 

Banks – 1.9%

     

 

 

NU Holdings Ltd., Class A (Brazil)*

 

2,275,150

 

$

      19,589,041

Broadline Retail – 8.0%

     

 

 

Global-e Online Ltd. (Israel)*

 

1,076,080

 

 

40,643,542

MercadoLibre, Inc. (Brazil)*

 

24,199

 

 

41,424,090

Total Broadline Retail

 

 

 

 

82,067,632

Capital Markets – 16.4%

     

 

 

Coinbase Global, Inc., Class A*

 

899,835

 

 

115,358,847

Intercontinental Exchange, Inc.

 

66,176

 

 

8,426,190

Robinhood Markets, Inc., Class A*

 

4,178,755

 

 

44,879,829

Total Capital Markets

 

 

 

 

168,664,866

Consumer Finance – 3.4%

     

 

 

Kaspi.KZ JSC (Kazakhstan)(a)

 

162,799

 

 

14,977,508

SoFi Technologies, Inc.*

 

2,505,352

 

 

19,616,906

Total Consumer Finance

 

 

 

 

34,594,414

Entertainment – 5.0%

     

 

 

ROBLOX Corp., Class A*

 

614,549

 

 

23,850,647

Roku, Inc.*

 

313,499

 

 

27,606,722

Total Entertainment

 

 

 

 

51,457,369

Financial Services – 19.7%

     

 

 

Adyen NV (Netherlands)*(b)

 

38,374

 

 

48,570,379

AvidXchange Holdings, Inc.*

 

1,053,909

 

 

11,550,843

Block, Inc.*

 

1,262,577

 

 

82,080,131

StoneCo Ltd., Class A (Brazil)*

 

1,652,484

 

 

28,406,200

Toast, Inc., Class A*

 

1,819,928

 

 

32,340,120

Total Financial Services

 

 

 

 

202,947,673

Health Care Technology – 1.7%

     

 

 

Teladoc Health, Inc.*

 

901,504

 

 

17,516,223

Hotels, Restaurants & Leisure – 6.9%

 

 

 

DraftKings, Inc., Class A*

 

1,816,644

 

 

70,939,948

Insurance – 2.6%

     

 

 

Discovery Ltd. (South Africa)

 

3,544,782

 

 

26,228,263

Interactive Media & Services – 4.3%

 

 

 

LY Corp. (Japan)

 

5,374,814

 

 

16,871,613

Meta Platforms, Inc., Class A*

 

15,828

 

 

6,175,136

Pinterest, Inc., Class A*

 

563,350

 

 

21,108,725

Total Interactive Media & Services

 

 

 

 

44,155,474

IT Services – 14.8%

     

 

 

Shopify, Inc., Class A (Canada)*

 

1,234,709

 

 

98,863,150

Twilio, Inc., Class A*

 

760,146

 

 

53,461,068

Total IT Services

 

 

 

 

152,324,218

Investments

 

Shares

 

Value

Real Estate Management & Development – 0.5%

 

Zillow Group, Inc., Class C*

 

87,736

 

$

        4,986,914

 

Semiconductors & Semiconductor Equipment – 1.2%

 

NVIDIA Corp.

 

20,740

 

 

12,760,700

 

Software – 13.7%

     

 

 

 

BILL Holdings Inc*

 

249,243

 

 

19,453,416

 

Crowdstrike Holdings, Inc., Class A*

 

26,133

 

 

7,643,902

 

Intuit, Inc.

 

61,633

 

 

38,910,762

 

Palantir Technologies, Inc., Class A*

 

794,729

 

 

12,787,190

 

UiPath, Inc., Class A*

 

2,713,635

 

 

62,359,332

 

Total Software

 

 

 

 

141,154,602

 

Total Common Stocks
(Cost $1,582,200,987)

 

  

 

 

1,029,387,337

 

MONEY MARKET FUND – 0.0%(c)

     

 

 

 

Goldman Sachs Financial Square
Treasury Obligations Fund, 5.21%
(d)
(Cost $200,412)

 

200,412

 

 

200,412

 

Total Investments – 100.1%
(Cost $1,582,401,399)

     

 

1,029,587,749

 

Liabilities in Excess of Other Assets – (0.1)%

 

 

(518,605

)

Net Assets – 100.0%

 

 

 

$

1,029,069,144

 

*     Non-income producing security

(a)   American Depositary Receipt

(b)  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

(c)   Less than 0.05%

(d)  Rate shown represents annualized 7-day yield as of January 31, 2024.

See accompanying Notes to Financial Statements.

16

 

Table of Contents

Schedule of Investments (continued)
ARK Fintech Innovation ETF

 

 

January 31, 2024 (Unaudited)

   

Fair Value Measurement

The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (i) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (ii) the Fund’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:

     Level 1 – Quoted prices in active markets for identical assets.

     Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

     Level 3 – Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the valuations as of January 31, 2024, based upon the three levels defined above:

ARK Fintech
Innovation
ETF

Level 1

Level 2

Level 3

Total

Assets

       

Common Stocks

$1,029,387,337

$     

$     

$1,029,387,337

Money Market Fund

200,412

200,412

Total

$1,029,587,749

$     

$     

$1,029,587,749

     Please refer to the Schedule of Investments to view securities segregated by industry type.

See accompanying Notes to Financial Statements.

17

 

Table of Contents

Schedule of Investments
ARK Space Exploration & Innovation ETF

 

January 31, 2024 (Unaudited)

   

Investments

 

Shares

 

Value

COMMON STOCKS – 94.8%

     

 

 

Aerospace & Defense – 36.3%

     

 

 

AeroVironment, Inc.*

 

164,944

 

$

   19,898,844

Airbus SE (France)

 

22,175

 

 

3,541,942

Archer Aviation, Inc., Class A*

 

1,942,781

 

 

9,383,632

Elbit Systems Ltd. (Israel)

 

20,723

 

 

4,285,516

HEICO Corp.

 

18,213

 

 

3,270,873

Kratos Defense & Security Solutions, Inc.*

 

1,134,348

 

 

19,204,512

L3Harris Technologies, Inc.

 

62,980

 

 

13,126,292

Lockheed Martin Corp.

 

6,324

 

 

2,715,589

Mynaric AG (Germany)*(a)

 

553,743

 

 

3,045,586

Rocket Lab USA, Inc.*

 

1,117,071

 

 

5,417,794

Spirit AeroSystems Holdings, Inc., Class A*

 

43,017

 

 

1,181,247

Thales SA (France)

 

37,820

 

 

5,532,012

Total Aerospace & Defense

 

 

 

 

90,603,839

Air Freight & Logistics – 1.1%

     

 

 

JD Logistics, Inc. (China)*(b)

 

3,217,854

 

 

2,798,867

Broadline Retail – 3.1%

     

 

 

Amazon.com, Inc.*

 

50,270

 

 

7,801,904

Diversified Telecommunication – 7.7%

     

 

 

Iridium Communications, Inc.

 

528,061

 

 

19,147,492

Electronic Equipment, Instruments & Components – 9.9%

Teledyne Technologies, Inc.*

 

7,132

 

 

2,984,528

Trimble, Inc.*

 

425,101

 

 

21,620,637

Total Electronic Equipment, Instruments & Components

 

 

 

 

24,605,165

Household Durables – 2.2%

     

 

 

Garmin Ltd.

 

46,402

 

 

5,544,575

Industrial Conglomerates – 1.6%

     

 

 

Honeywell International, Inc.

 

19,504

 

 

3,944,879

Interactive Media & Services – 2.1%

     

 

 

Alphabet, Inc., Class C*

 

36,546

 

 

5,182,223

Machinery – 9.5%

     

 

 

3D Systems Corp.*

 

289,422

 

 

1,386,331

Deere & Co.

 

18,797

 

 

7,398,123

Komatsu Ltd. (Japan)

 

421,188

 

 

12,148,003

Markforged Holding Corp.*

 

3,005,458

 

 

2,034,996

Stratasys Ltd.*

 

790

 

 

10,444

Velo3D, Inc.*

 

2,416,618

 

 

757,610

Total Machinery

 

 

 

 

23,735,507

Passenger Airlines – 4.3%

     

 

 

Blade Air Mobility, Inc.*

 

1,567,803

 

 

4,672,053

Joby Aviation, Inc.*

 

1,123,034

 

 

6,131,765

Total Passenger Airlines

 

 

 

 

10,803,818

Investments

 

Shares

 

Value

Semiconductors & Semiconductor Equipment – 4.2%

Teradyne, Inc.

 

108,219

 

$

   10,452,873

Software – 12.8%

     

 

 

ANSYS, Inc.*

 

10,412

 

 

3,413,366

Dassault Systemes SE (France)

 

190,426

 

 

9,926,402

Synopsys, Inc.*

 

7,374

 

 

3,932,923

UiPath, Inc., Class A*

 

462,862

 

 

10,636,569

Unity Software, Inc.*

 

126,127

 

 

4,086,515

Total Software

 

 

 

 

31,995,775

Total Common Stocks
(Cost $337,370,890)

 

 

 

 

236,616,917

EXCHANGE-TRADED FUND – 5.0%

     

 

 

Equity Fund – 5.0%

     

 

 

The 3D Printing ETF*

(Cost $22,338,704)

 

568,963

 

 

12,477,359

MONEY MARKET FUND – 0.2%

     

 

 

Goldman Sachs Financial Square Treasury Obligations Fund 5.21%(c)

(Cost $568,594)

 

568,594

 

 

568,594

Total Investments – 100.0%
(Cost $360,278,188)

     

 

249,662,870

Other Assets in Excess of Liabilities – 0.0%(d)

 

 

2,266

Net Assets – 100.0%

 

 

 

$

249,665,136

     Affiliated security

*     Non-income producing security

(a)   American Depositary Receipt

(b)  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

(c)   Rate shown represents annualized 7-day yield as of January 31, 2024.

(d)  Less than 0.05%

See accompanying Notes to Financial Statements.

18

 

Table of Contents

Schedule of Investments (continued)
ARK Space Exploration & Innovation ETF

 

 

January 31, 2024 (Unaudited)

   

Affiliated Issuer Transactions

An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities, or a company that is under common ownership or control. Period-to-date transactions with companies which are or were affiliates are as follows:

Value ($) at 7/31/2023

Purchases
Cost
($)

Sales
Proceeds
($)

Net Realized
Gain/(Loss)
($)

Net Change in
Unrealized
Appreciation
(Depreciation)
($)

Dividend
Income
($)

Capital Gain
Distributions
($)

Number of
Shares at
1/31/2024

Value ($) at
1/31/2024

Exchange-Traded Fund — 5.0%

               

Equity Fund — 5.0%

               

The 3D Printing ETF
16,332,566

(2,095,286)

(1,896,649)

136,728

568,963

12,477,359

$16,332,566

$    

$(2,095,286)

$(1,896,649)

$136,728

$    

$    

568,963

$12,477,359

Fair Value Measurement

The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (i) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (ii) the Fund’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:

     Level 1 – Quoted prices in active markets for identical assets.

     Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

     Level 3 – Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the valuations as of January 31, 2024, based upon the three levels defined above:

ARK Space Exploration &
Innovation ETF

Level 1

Level 2

Level 3

Total

Assets

       

Common Stocks

$236,616,917

$   

$   

$236,616,917

Exchange – Traded Fund

12,477,359

12,477,359

Money Market Fund

568,594

568,594

Total

$249,662,870

$   

$   

$249,662,870

     Please refer to the Schedule of Investments to view securities segregated by industry type.

See accompanying Notes to Financial Statements.

19

 

Table of Contents

Schedule of Investments
The 3D Printing ETF

 

January 31, 2024 (Unaudited)

   

Investments

 

Shares

 

Value

COMMON STOCKS – 99.7%

     

 

 

Aerospace & Defense – 3.3%

     

 

 

Hexcel Corp.

 

2,052

 

$

136,232

L3Harris Technologies, Inc.

 

10,860

 

 

2,263,441

Moog, Inc., Class A

 

15,891

 

 

2,221,562

Total Aerospace & Defense

 

   

 

 

4,621,235

Air Freight & Logistics – 1.4%

     

 

 

United Parcel Service, Inc., Class B

 

14,274

 

 

2,025,481

Automobile Components – 1.6%

     

 

 

Cie Generale des Etablissements Michelin SCA (France)

 

66,892

 

 

2,227,974

Chemicals – 0.8%

     

 

 

5N Plus, Inc. (Canada)*

 

54,896

 

 

149,443

Arkema SA (France)

 

1,404

 

 

153,702

Avient Corp.

 

4,165

 

 

150,815

Koninklijke DSM NV (Netherlands)

 

1,409

 

 

149,346

DuPont de Nemours, Inc.

 

2,069

 

 

127,864

Eastman Chemical Co.

 

1,745

 

 

145,795

Evonik Industries AG (Germany)

 

8,143

 

 

150,878

Toray Industries, Inc. (Japan)

 

31,188

 

 

156,915

Total Chemicals

 

   

 

 

1,184,758

Electrical Equipment – 1.7%

     

 

 

AMETEK, Inc.

 

14,191

 

 

2,299,651

SGL Carbon SE (Germany)*

 

23,584

 

 

149,992

Total Electrical Equipment

 

   

 

 

2,449,643

Electronic Equipment, Instruments & Components – 9.6%

FARO Technologies, Inc.*

 

254,778

 

 

5,768,174

Hexagon AB, Class B (Sweden)

 

214,304

 

 

2,347,600

Jabil, Inc.

 

1,171

 

 

146,715

Renishaw PLC (United Kingdom)

 

120,041

 

 

5,330,558

Total Electronic Equipment, Instruments & Components

 

   

 

 

13,593,047

Health Care Equipment & Supplies – 9.1%

 

 

 

Align Technology, Inc.*

 

8,656

 

 

2,313,922

DENTSPLY SIRONA, Inc.

 

147,295

 

 

5,118,501

Straumann Holding AG (Switzerland)

 

35,723

 

 

5,480,880

Total Health Care Equipment & Supplies

 

   

 

 

12,913,303

Household Durables – 4.0%

     

 

 

Nikon Corp. (Japan)

 

541,404

 

 

5,582,148

Investments

 

Shares

 

Value

Industrial Conglomerates – 5.5%

     

 

 

3M Co.

 

1,426

 

$

134,543

General Electric Co.

 

17,489

 

 

2,315,893

Siemens AG (Germany)

 

29,858

 

 

5,378,332

Total Industrial Conglomerates

 

   

 

 

7,828,768

Life Sciences Tools & Services – 4.8%

     

 

 

BICO Group AB (Sweden)*

 

1,169,293

 

 

6,707,902

Machinery – 21.7%

     

 

 

3D Systems Corp.*

 

1,102,689

 

 

5,281,880

Desktop Metal, Inc., Class A*

 

7,824,332

 

 

5,075,644

Kennametal, Inc.

 

6,231

 

 

152,784

Lincoln Electric Holdings, Inc.

 

10,369

 

 

2,304,199

Markforged Holding Corp.*

 

5,914,670

 

 

4,004,823

OC Oerlikon Corp. AG (Switzerland)

 

561,719

 

 

2,457,907

Proto Labs, Inc.*

 

148,074

 

 

5,343,991

Sandvik AB (Sweden)

 

7,685

 

 

162,021

Stratasys Ltd.*

 

397,309

 

 

5,252,425

Velo3D, Inc.*

 

2,054,556

 

 

644,103

Total Machinery

 

   

 

 

30,679,777

Metals & Mining – 2.0%

     

 

 

ATI Inc.*

 

3,565

 

 

145,702

Carpenter Technology Corp.

 

2,302

 

 

141,780

Kaiser Aluminum Corp.

 

36,691

 

 

2,381,246

voestalpine AG (Austria)

 

5,157

 

 

153,819

Total Metals & Mining

 

   

 

 

2,822,547

Software – 22.2%

     

 

 

Altair Engineering, Inc., Class A*

 

60,571

 

 

5,149,746

ANSYS, Inc.*

 

15,468

 

 

5,070,874

Autodesk, Inc.*

 

21,091

 

 

5,353,107

Dassault Systemes SE (France)

 

104,137

 

 

5,428,386

Materialise NV (Belgium)*(a)

 

888,611

 

 

5,038,424

PTC, Inc.*

 

29,784

 

 

5,380,480

Total Software

 

   

 

 

31,421,017

Technology Hardware, Storage & Peripherals – 8.2%

Eastman Kodak Co.*

 

44,754

 

 

154,401

HP, Inc.

 

185,170

 

 

5,316,231

Nano Dimension Ltd. (Israel)*(a)

 

2,445,106

 

 

5,868,255

Xerox Holdings Corp.

 

9,503

 

 

175,425

Total Technology Hardware, Storage & Peripherals

 

   

 

 

11,514,312

See accompanying Notes to Financial Statements.

20

 

Table of Contents

Schedule of Investments (continued)
The 3D Printing ETF

 

 

January 31, 2024 (Unaudited)

   

Investments

 

Shares

 

Value

Trading Companies & Distributors – 3.8%

 

 

 

Xometry, Inc., Class A*

 

164,344

 

$

5,288,590

Total Common Stocks
(Cost $199,948,851)

 

   

 

 

140,860,502

PREFERRED STOCK – 0.1%

     

 

 

Household Products – 0.1%

     

 

 

Henkel AG & Co. KGaA (Germany)
(Cost $199,584)

 

1,884

 

 

144,762

MONEY MARKET FUND – 0.1%

     

 

 

Goldman Sachs Financial Square Treasury Obligations Fund, 5.21%(b)
(Cost $139,810)

 

139,810

 

 

139,810

Total Investments – 99.9%
(Cost $200,288,245)

 

   

 

 

141,145,074

Other Assets in Excess of Liabilities – 0.1%

     

 

188,057

Net Assets – 100.0%

 

   

 

$

141,333,131

*     Non-income producing security

(a)   American Depositary Receipt

(b)  Rate shown represents annualized 7-day yield as of January 31, 2024

Fair Value Measurement

The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (i) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (ii) the Fund’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:

    Level 1 – Quoted prices in active markets for identical assets.

    Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

    Level 3 – Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the valuations as of January 31, 2024, based upon the three levels defined above:

The 3D Printing ETF

Level 1

Level 2

Level 3

Total

Assets

       

Common Stocks

$141,009,848

$149,346

$  —

$140,860,502

Preferred Stock

144,762

144,762

Money Market Fund

139,810

139,810

Total

$140,995,728

$149,346

$  —

$141,145,074

     Please refer to the Schedule of Investments to view securities segregated by industry type.

See accompanying Notes to Financial Statements.

21

 

Table of Contents

Schedule of Investments
ARK Israel Innovative Technology ETF

 

January 31, 2024 (Unaudited)

   

Investments

 

Shares

 

Value

COMMON STOCKS – 99.8%

     

 

 

Aerospace & Defense – 2.1%

     

 

 

Elbit Systems Ltd. (Israel)

 

10,847

 

$

2,239,131

Automobile Components – 1.9%

     

 

 

Mobileye Global, Inc., Class A (Israel)*

 

79,545

 

 

2,057,034

Biotechnology – 2.3%

     

 

 

Gamida Cell Ltd. (Israel)*

 

1,554

 

 

598

UroGen Pharma Ltd.*

 

153,371

 

 

2,407,925

Total Biotechnology

 

  

 

 

2,408,523

Communications Equipment – 6.3%

     

 

 

AudioCodes Ltd. (Israel)

 

193,483

 

 

2,165,075

Ceragon Networks Ltd. (Israel)*

 

2,196

 

 

5,402

Gilat Satellite Networks Ltd. (Israel)*

 

376,027

 

 

2,380,251

Ituran Location and Control Ltd. (Israel)

 

86,883

 

 

2,161,649

Total Communications Equipment

 

  

 

 

6,712,377

Diversified Telecommunication – 2.2%

     

 

 

Bezeq The Israeli Telecommunication Corp. Ltd. (Israel)

 

1,732,139

 

 

2,297,331

Electronic Equipment, Instruments & Components – 4.4%

Nayax Ltd. (Israel)*

 

100,334

 

 

2,460,662

Telsys Ltd. (Israel)

 

33,310

 

 

2,172,421

Total Electronic Equipment, Instruments & Components

 

 

 

 

4,633,083

Entertainment – 2.1%

     

 

 

Playtika Holding Corp.*

 

305,886

 

 

2,208,497

Health Care Equipment & Supplies – 4.1%

Inmode Ltd.*

 

96,986

 

 

2,297,599

Nano-X Imaging Ltd. (Israel)*

 

385,255

 

 

2,095,787

Total Health Care Equipment & Supplies

 

 

 

 

4,393,386

Hotels, Restaurants & Leisure – 4.2%

Fattal Holdings 1998 Ltd. (Israel)*

 

20,135

 

 

2,293,494

NEOGAMES SA (Israel)*

 

78,905

 

 

2,207,762

Total Hotels, Restaurants & Leisure

 

 

 

 

4,501,256

Interactive Media & Services – 2.4%

     

 

 

Taboola.com Ltd. (Israel)*

 

552,763

 

 

2,609,041

IT Services – 6.4%

     

 

 

Matrix IT Ltd. (Israel)

 

119,969

 

 

2,266,017

One Software Technologies Ltd. (Israel)

 

180,582

 

 

2,274,757

Wix.com Ltd. (Israel)*

 

18,022

 

 

2,286,631

Total IT Services

 

  

 

 

6,827,405

Life Sciences Tools & Services – 2.6%

     

 

 

Compugen Ltd. (Israel)*

 

1,089,358

 

 

2,806,006

Machinery – 2.1%

     

 

 

Stratasys Ltd.*

 

167,247

 

 

2,211,005

Media – 2.2%

     

 

 

Perion Network Ltd. (Israel)*

 

78,349

 

 

2,307,378

Investments

 

Shares

 

Value

Personal Care Products – 2.0%

     

 

 

Oddity Tech Ltd., Class A (Israel)*

 

51,778

 

$

2,138,431

Pharmaceuticals – 4.4%

     

 

 

Taro Pharmaceutical Industries Ltd.*

 

52,873

 

 

2,276,183

Teva Pharmaceutical Industries Ltd. (Israel)*(a)

 

201,386

 

 

2,436,771

Total Pharmaceuticals

 

 

 

 

4,712,954

Professional Services – 6.7%

     

 

 

Danel Adir Yeoshua Ltd. (Israel)

 

25,637

 

 

2,221,604

Fiverr International Ltd.*

 

90,401

 

 

2,433,595

Hilan Ltd. (Israel)

 

43,931

 

 

2,449,610

Total Professional Services

 

  

 

 

7,104,809

Semiconductors & Semiconductor Equipment – 6.4%

Camtek Ltd. (Israel)*

 

29,243

 

 

2,276,275

Nova Ltd. (Israel)*

 

16,213

 

 

2,347,804

Tower Semiconductor Ltd. (Israel)*

 

76,966

 

 

2,220,469

Valens Semiconductor Ltd. (Israel)*

 

3,224

 

 

7,480

Total Semiconductors & Semiconductor Equipment

 

  

 

 

6,852,028

Software – 30.7%

     

 

 

Cellebrite DI Ltd. (Japan)*

 

269,900

 

 

2,439,896

Check Point Software Technologies Ltd. (Israel)*

 

14,068

 

 

2,235,827

Cognyte Software Ltd. (Israel)*

 

382,979

 

 

2,711,491

CyberArk Software Ltd.*

 

9,782

 

 

2,283,901

JFrog Ltd. (Israel)*

 

67,288

 

 

2,188,879

Magic Software Enterprises Ltd. (Israel)

 

205,901

 

 

2,090,761

Monday.com Ltd.*

 

11,622

 

 

2,441,085

Nice Ltd. (Israel)*(a)

 

10,851

 

 

2,258,093

Pagaya Technologies Ltd., Class A*

 

2,048,596

 

 

2,396,857

Radware Ltd. (Israel)*

 

130,854

 

 

2,392,011

Riskified Ltd., Class A*

 

510,641

 

 

2,343,843

Sapiens International Corp. NV (Israel)

 

81,976

 

 

2,237,945

SimilarWeb Ltd. (Israel)*

 

402,737

 

 

2,505,024

WalkMe Ltd. (Israel)*

 

210,150

 

 

2,164,545

Total Software

 

  

 

 

32,690,158

Wireless Telecommunication Services – 4.3%

Cellcom Israel Ltd. (Israel)*

 

553,029

 

 

2,274,124

Partner Communications Co. Ltd. (Israel)*

 

487,666

 

 

2,259,353

Total Wireless Telecommunication Services

 

  

 

 

4,533,477

Total Common Stocks
(Cost $107,208,395)

 

 

 

 

106,243,310

See accompanying Notes to Financial Statements.

22

 

Table of Contents

Schedule of Investments (concluded)
ARK Israel Innovative Technology ETF

 

 

January 31, 2024 (Unaudited)

   

Investments

 

Shares

 

Value

MONEY MARKET FUND – 0.2%

 

Goldman Sachs Financial Square Treasury Obligations Fund, 5.21%(b)
(Cost $285,385)

 

285,385

 

$

285,385

 

Total Investments – 100.0%
(Cost $107,493,780)

     

 

106,528,695

 

Liabilities in Excess of Other Assets – (0.0)%(c)

     

 

(42,531

)

Net Assets – 100.0%

 

  

 

$

106,486,164

 

*     Non-income producing security

(a)   American Depositary Receipt

(b)  Rate shown represents annualized 7-day yield as of January 31, 2024.

(c)   Less than 0.05%

Country

Value

% of Net
Assets

Israel

$   80,502,924

75.6%

Japan

2,439,896

2.3

United States

23,585,875

22.1

Total Investments

106,528,695

100.0

Liabilities in Excess of Other Assets

(42,531)

(0.0)(c)

Net Assets

$106,486,164

100.0%

Fair Value Measurement

The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (i) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (ii) the Fund’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:

    Level 1 – Quoted prices in active markets for identical assets.

    Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

    Level 3 – Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the valuations as of January 31, 2024, based upon the three levels defined above:

ARK Israel
Innovative
Technology ETF

 

Level 1

 

Level 2

 

Level 3

 

Total

Assets

Common Stocks

 

$106,243,310

 

$  —

 

$  —

 

$106,243,310

Money Market Fund

 

285,385

 

 

 

285,385

Total

 

$106,528,695

 

$  —

 

$  —

 

$106,528,695

     Please refer to the Schedule of Investments to view securities segregated by industry type.

See accompanying Notes to Financial Statements.

23

 

Table of Contents

Statements of Assets and Liabilities

 

January 31, 2024 (Unaudited)

   

     

 

ARK
Genomic
Revolution
ETF

 

ARK
Autonomous
Technology &
Robotics ETF

 

ARK
Innovation ETF

 

ARK Next
Generation
Internet ETF

 

ASSETS:

                 

Investments in non-affiliated securities at fair value (Note 2)

 

$ 1,333,691,476

 

$   907,572,851

 

$   5,112,646,683

 

$ 1,400,098,462

 

Investments in affiliated securities at fair value (Note 2)

 

317,888,085

 

21,823,316

 

2,402,712,221

 

127,034,551

 

Receivables:

                 

Dividends and interest

 

68,421

 

226,593

 

49,431

 

4,530

 

Capital shares sold

 

 

 

18,750,595

 

 

Investment securities sold

 

59,040,280

 

7,558,269

 

167,126,025

 

9,160,890

 

Tax reclaims

 

5,173,433

 

44,776

 

1,778,642

 

 

Total Assets

 

1,715,861,695

 

937,225,805

 

7,703,063,597

 

1,536,298,433

 

LIABILITIES:

                 

Payables:

                 

Capital shares purchased

 

59,250,693

 

5,248,614

 

137,323,203

 

7,052,099

 

Investment securities purchased

 

338,016

 

2,341,638

 

56,242,525

 

5,192,388

 

Management fees (Note 3)

 

1,265,276

 

626,011

 

5,249,748

 

1,018,308

 

Total Liabilities

 

60,853,985

 

8,216,263

 

198,815,476

 

13,262,795

 

NET ASSETS

 

$ 1,655,007,710

 

$   929,009,542

 

$   7,504,248,121

 

$ 1,523,035,638

 

NET ASSETS CONSIST OF:

                 

Paid-in capital

 

$ 6,859,014,209

 

$1,766,653,889

 

$ 20,925,809,439

 

$ 3,923,586,796

 

Total accumulated loss

 

(5,204,006,499)

 

(837,644,347)

 

(13,421,561,318)

 

(2,400,551,158

)

NET ASSETS

 

$ 1,655,007,710

 

$   929,009,542

 

$   7,504,248,121

 

$ 1,523,035,638

 

Shares outstanding no par value (unlimited shares authorized)

 

58,100,000

 

17,700,000

 

165,150,000

 

21,900,000

 

Net asset value, per share

 

$               28.49

 

$              52.49

 

$                 45.44

 

$               69.55

 

Investments in non-affiliated securities at cost

 

$ 3,692,561,679

 

$1,272,281,757

 

$   8,963,064,426

 

$ 2,492,609,606

 

Investments in affiliated securities at cost

 

$ 1,635,980,515

 

$   155,236,853

 

$   7,554,814,653

 

$    215,933,845

 

See accompanying Notes to Financial Statements.

24

 

Table of Contents

Statements of Assets and Liabilities (concluded)

 

 

January 31, 2024 (Unaudited)

   

     

 

ARK Fintech
Innovation ETF

 

ARK Space
Exploration &
Innovation ETF

 

The 3D
Printing ETF

 

ARK Israel
Innovative
Technology ETF

 

ASSETS:

                 

Investments in non-affiliated securities at fair value (Note 2)

 

$ 1,029,587,749

 

$ 237,185,511

 

$ 141,145,074

 

$ 106,528,695

 

Investments in affiliated securities at fair value (Note 2)

 

 

12,477,359

 

 

 

Cash

 

 

 

594,464

 

351,331

 

Receivables:

                 

Dividends and interest

 

3,396

 

30,541

 

29,901

 

588

 

Investment securities sold

 

5,349,096

 

644,301

 

 

 

Tax reclaims

 

17,779

 

118,626

 

248,762

 

 

Total Assets

 

1,034,958,020

 

250,456,338

 

142,018,201

 

106,880,614

 

LIABILITIES:

                 

Due to custodian for foreign currency

 

7,785

 

4,090

 

9,863

 

860

 

Due to Broker

 

 

 

 

544

 

Payables:

                 

Investment securities purchased

 

5,201,926

 

629,960

 

594,464

 

351,331

 

Management fees (Note 3)

 

679,165

 

157,152

 

79,512

 

40,857

 

Other accrued expenses

 

 

 

1,231

 

858

 

Total Liabilities

 

5,888,876

 

791,202

 

685,070

 

394,450

 

NET ASSETS

 

$ 1,029,069,144

 

$ 249,665,136

 

$ 141,333,131

 

$ 106,486,164

 

NET ASSETS CONSIST OF:

                 

Paid-in capital

 

$ 2,751,960,601

 

$ 411,444,078

 

$ 389,906,900

 

$ 234,849,538

 

Total accumulated loss

 

(1,722,891,457)

 

(161,778,942)

 

(248,573,769)

 

(128,363,374

)

NET ASSETS

 

$ 1,029,069,144

 

$ 249,665,136

 

$ 141,333,131

 

$ 106,486,164

 

Shares outstanding no par value (unlimited shares authorized)

 

40,250,000

 

17,500,000

 

6,400,000

 

5,450,000

 

Net asset value, per share

 

$               25.57

 

$            14.27

 

$            22.08

 

$            19.54

 

Investments in non-affiliated securities at cost

 

$ 1,582,401,399

 

$ 337,939,484

 

$ 200,288,245

 

$ 107,493,780

 

Investments in affiliated securities at cost

 

$                

 

$   22,338,704

 

$            

 

$            

 

See accompanying Notes to Financial Statements.

25

 

Table of Contents

Statements of Operations

 

For the Six Months Ended January 31, 2024 (Unaudited)

   

     

ARK
Genomic
Revolution ETF

 

ARK
Autonomous
Technology &
Robotics ETF

 

ARK
Innovation ETF

 

ARK Next
Generation
Internet ETF

 

INVESTMENT INCOME:

               

Unaffiliated dividend income

$         325,398

 

$      2,445,378

 

$         361,031

 

$        122,607

 

Affiliated dividend income

 

 

 

3,437

 

Foreign withholding tax

 

(216,844)

 

 

(9,011

)

Total Income

325,398

 

2,228,534

 

361,031

 

117,033

 

EXPENSES:

               

Management fees (Note 3)

7,003,942

 

3,789,384

 

29,067,315

 

5,409,753

 

Overdraft expense

248

 

 

1,770

 

11

 

Total Expenses

7,004,190

 

3,789,384

 

29,069,085

 

5,409,764

 

Net Investment Loss

(6,678,792)

 

(1,560,850)

 

(28,708,054)

 

(5,292,731

)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSLATION:

               

Net realized gain (loss) on:

               

Investments in non-affiliated securities

(285,201,847)

 

(68,663,784)

 

(621,382,776)

 

(402,734,110

)

Investments in affiliated securities

(85,835,533)

 

 

(765,970,980)

 

(3,934,575

)

In-kind redemptions – non-affiliated securities

26,547,101

 

20,225,309

 

444,569,791

 

50,406,838

 

In-kind redemptions – affiliated securities

(6,415,983)

 

(1,992,422)

 

116,647,772

 

(2,278,426

)

Net realized loss

(350,906,262)

 

(50,430,897)

 

(826,136,193)

 

(358,540,273

)

Change in unrealized appreciation (depreciation) on:

               

Investments in non-affiliated securities

(479,434,831)

 

(52,997,492)

 

(511,544,072)

 

437,177,091

 

Investments in affiliated securities

212,050,242

 

(21,252,593)

 

458,113,212

 

(44,857,147

)

Change in unrealized appreciation (depreciation)

(267,384,589)

 

(74,250,085)

 

(53,430,860)

 

392,319,944

 

Net realized and unrealized gain (loss) on investments and foreign currency translation

(618,290,851)

 

(124,680,982)

 

(879,567,053)

 

33,779,671

 

Net Increase (Decrease) in Net Assets Resulting From Operations

$(624,969,643)

 

$(126,241,832)

 

$(908,275,107)

 

$  28,486,940

 

See accompanying Notes to Financial Statements.

26

 

Table of Contents

Statements of Operations (concluded)

 

 

For the Six Months Ended January 31, 2024 (Unaudited)

   

     

 

ARK Fintech
Innovation ETF

 

ARK Space
Exploration &
Innovation ETF

 

The 3D
Printing ETF

 

ARK Israel
Innovative
Technology ETF

 

INVESTMENT INCOME:

                 

Unaffiliated dividend income

 

$      1,029,362

 

$      803,457

 

$         568,510

 

$    229,433

 

Foreign withholding tax

 

(34,139)

 

(31,145)

 

(16,782)

 

(56,147

)

Total Income

 

995,223

 

772,312

 

551,728

 

173,286

 

EXPENSES:

                 

Management fees (Note 3)

 

3,536,587

 

990,192

 

487,332

 

222,929

 

Overdraft expense

 

1,087

 

154

 

467

 

345

 

Other expenses

 

 

 

7,479

 

4,644

 

Total Expenses

 

3,537,674

 

990,346

 

495,278

 

227,918

 

Less expense waivers and reimbursements

 

 

(42,125)(1)

 

 

 

Net Expenses

 

3,537,674

 

948,221

 

495,278

 

227,918

 

Net Investment Income (Loss)

 

(2,542,451)

 

(175,909)

 

56,450

 

(54,632

)

NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSLATION:

                 

Net realized gain (loss) on:

                 

Investments in non-affiliated securities

 

(108,738,925)

 

(14,849,431)

 

(13,646,410)

 

(9,570,181

)

Investments in affiliated securities

 

 

(898,095)

 

 

 

Foreign currency transactions

 

26,690

 

(4,231)

 

(3,662)

 

(14,119

)

In-kind redemptions – non-affiliated securities

 

28,287,731

 

754,850

 

2,060,628

 

2,490,118

 

In-kind redemptions – affiliated securities

 

 

(998,554)

 

 

 

Net realized loss

 

(80,424,504)

 

(15,995,461)

 

(11,589,444)

 

(7,094,182

)

Change in unrealized appreciation (depreciation) on:

                 

Investments in non-affiliated securities

 

122,117,998

 

(9,128,949)

 

(7,047,927)

 

4,022,893

 

Investments in affiliated securities

 

 

136,728

 

 

 

Foreign currency translation

 

(696)

 

1,916

 

1,050

 

(15

)

Change in unrealized appreciation (depreciation)

 

122,117,302

 

(8,990,305)

 

(7,046,877)

 

4,022,878

 

Net realized and unrealized gain (loss) on investments and foreign currency translation

 

41,692,798

 

(24,985,766)

 

(18,636,321)

 

(3,071,304

)

Net Increase (Decrease) in Net Assets Resulting From
Operations

 

$    39,150,347

 

$(25,161,675)

 

$   (18,579,871)

 

$(3,125,936

)

(1)  See Notes to Financial Statements (Note 3).

See accompanying Notes to Financial Statements.

27

 

Table of Contents

Statements of Changes in Net Assets

 

     
 

ARK Genomic
Revolution ETF

 

ARK Autonomous
Technology & Robotics ETF

 
   

Six Months
Ended
January 31,
2024
(Unaudited)

 

Year Ended
July 31, 2023

 

Six Months
Ended
January 31,
2024
(Unaudited)

 

Year Ended
July 31, 2023

 

OPERATIONS:

                 

Net investment loss

 

$      (6,678,792)

 

$     (15,689,972)

 

$      (1,560,850)

 

$      (3,125,835

)

Net realized loss on investments and foreign currency transactions

 

(350,906,262)

 

(853,818,426)

 

(50,430,897)

 

(277,949,443

)

Net change in unrealized appreciation (depreciation) on investments and foreign currency translations

 

(267,384,589)

 

884,732,526

 

(74,250,085)

 

309,108,305

 

Net increase (decrease) in net assets resulting from operations

 

(624,969,643)

 

15,224,128

 

(126,241,832)

 

28,033,027

 

DISTRIBUTIONS TO SHAREHOLDERS

                 

Distributions from distributable earnings

 

 

 

 

 

SHAREHOLDER TRANSACTIONS:

                 

Proceeds from shares sold

 

517,693,099

 

1,362,712,302

 

2,920,797

 

69,227,641

 

Cost of shares redeemed

 

(734,377,345)

 

(1,661,300,555)

 

(118,327,147)

 

(138,541,694

)

Net decrease in net assets resulting from shareholder transactions

 

(216,684,246)

 

(298,588,253)

 

(115,406,350)

 

(69,314,053

)

Decrease in net assets

 

(841,653,889)

 

(283,364,125)

 

(241,648,182)

 

(41,281,026

)

NET ASSETS:

                 

Beginning of period

 

2,496,661,599

 

2,780,025,724

 

1,170,657,724

 

1,211,938,750

 

End of period

 

$1,655,007,710

 

$ 2,496,661,599

 

$   929,009,542

 

$1,170,657,724

 

CHANGES IN SHARES OUTSTANDING:

                 

Shares outstanding, beginning of period

 

65,800,000

 

75,805,000

 

19,900,000

 

21,600,000

 

Shares sold

 

17,150,000

 

41,200,000

 

50,000

 

1,300,000

 

Shares redeemed

 

(24,850,000)

 

(51,205,000)

 

(2,250,000)

 

(3,000,000

)

Shares outstanding, end of period

 

58,100,000

 

65,800,000

 

17,700,000

 

19,900,000

 

See accompanying Notes to Financial Statements.

28

 

Table of Contents

Statements of Changes in Net Assets (continued)

   
     
 

ARK Innovation ETF

 

ARK Next Generation Internet ETF

 
   

Six Months
Ended
January 31,
2024
(Unaudited)

 

Year Ended
July 31, 2023

 

Six Months
Ended
January 31,
2024
(Unaudited)

 

Year Ended
July 31, 2023

 

OPERATIONS:

                 

Net investment loss

 

$     (28,708,054)

 

$      (56,870,224)

 

$      (5,292,731)

 

$      (9,318,781

)

Net realized loss on investments and foreign currency transactions

 

(826,136,193)

 

(2,067,804,437)

 

(358,540,273)

 

(468,661,159

)

Net change in unrealized appreciation (depreciation) on investments and foreign currency translations

 

(53,430,860)

 

3,013,683,487

 

392,319,944

 

758,506,498

 

Net increase (decrease) in net assets resulting from operations

 

(908,275,107)

 

889,008,826

 

28,486,940

 

280,526,558

 

DISTRIBUTIONS TO SHAREHOLDERS

                 

Distributions from distributable earnings

 

 

 

 

 

SHAREHOLDER TRANSACTIONS:

                 

Proceeds from shares sold

 

4,772,315,219

 

9,791,568,164

 

176,461,947

 

376,471,902

 

Cost of shares redeemed

 

(5,655,144,791)

 

(10,722,043,209)

 

(332,424,210)

 

(462,986,678

)

Net decrease in net assets resulting from shareholder transactions

 

(882,829,572)

 

(930,475,045)

 

(155,962,263)

 

(86,514,776

)

Increase (decrease) in net assets

 

(1,791,104,679)

 

(41,466,219)

 

(127,475,323)

 

194,011,782

 

NET ASSETS:

                 

Beginning of period

 

9,295,352,800

 

9,336,819,019

 

1,650,510,961

 

1,456,499,179

 

End of period

 

$ 7,504,248,121

 

$   9,295,352,800

 

$1,523,035,638

 

$1,650,510,961

 

CHANGES IN SHARES OUTSTANDING:

                 

Shares outstanding, beginning of period

 

184,350,000

 

206,850,000

 

24,550,000

 

26,700,000

 

Shares sold

 

108,000,000

 

245,750,000

 

2,450,000

 

7,600,000

 

Shares redeemed

 

(127,200,000)

 

(268,250,000)

 

(5,100,000)

 

(9,750,000

)

Shares outstanding, end of period

 

165,150,000

 

184,350,000

 

21,900,000

 

24,550,000

 

See accompanying Notes to Financial Statements.

29

 

Table of Contents

Statements of Changes in Net Assets (continued)

 

     
 

ARK Fintech Innovation ETF

 

ARK Space Exploration &
Innovation ETF

 
   

Six Months
Ended
January 31,
2024
(Unaudited)

 

Year Ended
July 31, 2023

 

Six Months
Ended
January 31,
2024
(Unaudited)

 

Year Ended
July 31, 2023

 

OPERATIONS:

                 

Net investment loss

 

$      (2,542,451)

 

$      (4,720,822)

 

$      (175,909)

 

$      (287,594

)

Net realized loss on investments and foreign currency transactions

 

(80,424,504)

 

(397,541,775)

 

(15,995,461)

 

(8,877,064

)

Net change in unrealized appreciation (depreciation) on investments and foreign currency translations

 

122,117,302

 

663,871,900

 

(8,990,305)

 

18,584,402

 

Net increase (decrease) in net assets resulting from operations

 

39,150,347

 

261,609,303

 

(25,161,675)

 

9,419,744

 

DISTRIBUTIONS TO SHAREHOLDERS

                 

Distributions from distributable earnings

 

 

 

 

 

SHAREHOLDER TRANSACTIONS:

                 

Proceeds from shares sold

 

30,734,178

 

152,224,444

 

 

5,571,035

 

Cost of shares redeemed

 

(129,104,799)

 

(261,975,876)

 

(24,111,685)

 

(35,588,100

)

Net decrease in net assets resulting from shareholder transactions

 

(98,370,621)

 

(109,751,432)

 

(24,111,685)

 

(30,017,065

)

Increase (decrease) in net assets

 

(59,220,274)

 

151,857,871

 

(49,273,360)

 

(20,597,321

)

NET ASSETS:

                 

Beginning of period

 

1,088,289,418

 

936,431,547

 

298,938,496

 

319,535,817

 

End of period

 

$1,029,069,144

 

$1,088,289,418

 

$249,665,136

 

$298,938,496

 

CHANGES IN SHARES OUTSTANDING:

                 

Shares outstanding, beginning of period

 

45,050,000

 

52,300,001

 

19,200,000

 

21,400,001

 

Shares sold

 

1,150,000

 

8,050,000

 

 

450,000

 

Shares redeemed

 

(5,950,000)

 

(15,300,001)

 

(1,700,000)

 

(2,650,001

)

Shares outstanding, end of period

 

40,250,000

 

45,050,000

 

17,500,000

 

19,200,000

 

See accompanying Notes to Financial Statements.

30

 

Table of Contents

Statements of Changes in Net Assets (concluded)

 

 

     
 

The 3D Printing ETF

 

ARK Israel
Innovative Technology ETF

 
   

Six Months
Ended
January 31,
2024
(Unaudited)

 

Year Ended
July 31, 2023

 

Six Months
Ended
January 31,
2024
(Unaudited)

 

Year Ended
July 31, 2023

 

OPERATIONS:

                 

Net investment income (loss)

 

$         56,450

 

$        (10,814)

 

$        (54,632)

 

$        (16,504

)

Net realized loss on investments and foreign currency transactions

 

(11,589,444)

 

(61,642,381)

 

(7,094,182)

 

(34,260,183

)

Net change in unrealized appreciation (depreciation) on investments and foreign currency translations

 

(7,046,877)

 

69,897,846

 

4,022,878

 

37,194,723

 

Net increase (decrease) in net assets resulting from operations

 

(18,579,871)

 

8,244,651

 

(3,125,936)

 

2,918,036

 

DISTRIBUTIONS TO SHAREHOLDERS

                 

Distributions from distributable earnings

 

 

 

 

 

SHAREHOLDER TRANSACTIONS:

                 

Proceeds from shares sold

 

 

3,488,712

 

26,827,932

 

8,621,228

 

Cost of shares redeemed

 

(25,941,949)

 

(35,428,704)

 

(17,149,862)

 

(29,739,323

)

Net increase (decrease) in net assets resulting from shareholder transactions

 

(25,941,949)

 

(31,939,992)

 

9,678,070

 

(21,118,095

)

Increase (decrease) in net assets

 

(44,521,820)

 

(23,695,341)

 

6,552,134

 

(18,200,059

)

NET ASSETS:

                 

Beginning of period

 

185,854,951

 

209,550,292

 

99,934,030

 

118,134,089

 

End of period

 

$141,333,131

 

$185,854,951

 

$106,486,164

 

$  99,934,030

 

CHANGES IN SHARES OUTSTANDING:

                 

Shares outstanding, beginning of period

 

7,600,000

 

9,050,001

 

4,975,000

 

6,100,001

 

Shares sold

 

 

150,000

 

1,450,000

 

450,000

 

Shares redeemed

 

(1,200,000)

 

(1,600,001)

 

(975,000)

 

(1,575,001

)

Shares outstanding, end of period

 

6,400,000

 

7,600,000

 

5,450,000

 

4,975,000

 

See accompanying Notes to Financial Statements.

31

 

Table of Contents

Financial Highlights

ARK Genomic Revolution ETF

For a share outstanding throughout each period presented.

 

Six Months
Ended
January 31,
2024
(Unaudited)

Year Ended
July 31, 2023

Year Ended
July 31, 2022

Year Ended
July 31, 2021

Year Ended
July 31, 2020

Year Ended
July 31, 2019

Per Share Data:

           

Net asset value, beginning of period

$       37.94

$       36.67

$       84.40

$       53.70

$       34.50

$    29.36

Net investment loss(1)

(0.11)

(0.23)

(0.35)

(0.24)

(0.28)

(0.19)

Net realized and unrealized gain (loss) on investments

(9.34)

1.50

(47.00)

31.73

20.53

5.80

Total gain (loss) from investment operations

(9.45)

1.27

(47.35)

31.49

20.25

5.61

Distributions to shareholders:

           

Net realized gains

(0.38)

(0.79)

(1.05)

(0.47)

Total distributions

(0.38)

(0.79)

(1.05)

(0.47)

Net asset value, end of period

$       28.49

$       37.94

$       36.67

$       84.40

$       53.70

$    34.50

Market value, end of period

$       28.44

$       38.00

$       36.61

$       84.35

$       53.70

$    34.58

Total Return at Net Asset Value(2)

(24.93)%

3.46%

(56.27)%

58.48%

60.41%

19.87%

Total Return at Market Value(2)

(25.16)%

3.80%

(56.32)%

58.39%

60.05%

20.00%

Ratios/Supplemental Data:

           

Net assets, end of period (000’s omitted)

$1,655,008

$2,496,662

$2,780,026

$8,588,014

$1,589,856

$465,966

Ratio to average net assets of:

           

Expenses

0.75%(3)

0.75%

0.75%

0.75%

0.75%

0.75%

Net investment loss

(0.72)%(3)

(0.70)%

(0.62)%

(0.28)%

(0.73)%

(0.63)%

Portfolio turnover rate(4)

10%

28%

51%

45%

50%

64%

(1)  Based on average daily shares outstanding.

(2)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends, and distributions at market value during the period, and sale at the market value on the last day of the period. Market returns are based on the trade price at which shares are bought and sold on the Cboe BZX Exchange, Inc. using the last share trade. Total return calculated for a period of less than one year is not annualized.

(3)  Annualized.

(4)  Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund’s capital shares.

See accompanying Notes to Financial Statements.

32

 

Table of Contents

Financial Highlights

ARK Autonomous Technology & Robotics ETF

For a share outstanding throughout each period presented.

   

Six Months
Ended
January 31,
2024
(Unaudited)

Year Ended July 31, 2023

Year Ended July 31, 2022

Year Ended July 31, 2021

Year Ended July 31, 2020

Year Ended July 31, 2019

Per Share Data:

           

Net asset value, beginning of period

$    58.83

$       56.11

$       81.12

$       52.69

$    33.05

$    34.93

Net investment loss(1)

(0.08)

(0.16)

(0.30)

(0.33)

(0.13)

(0.13)

Net realized and unrealized gain (loss) on investments

(6.26)

2.88

(24.10)

29.42

19.77

(0.91)

Total gain (loss) from investment operations

(6.34)

2.72

(24.40)

29.09

19.64

(1.04)

Distributions to shareholders:

           

Net realized gains

(0.61)

(0.66)

(0.84)

Total distributions

(0.61)

(0.66)

(0.84)

Net asset value, end of period

$    52.49

$       58.83

$       56.11

$       81.12

$    52.69

$    33.05

Market value, end of period

$    52.45

$       58.86

$       56.07

$       81.18

$    52.78

$    33.06

Total Return at Net Asset Value(2)

(10.78)%

4.85%

(30.27)%

55.31%

59.43%

(2.66)%

Total Return at Market Value(2)

(10.89)%

4.98%

(30.38)%

55.17%

59.65%

(2.84)%

Ratios/Supplemental Data:

           

Net assets, end of period (000’s omitted)

$929,010

$1,170,658

$1,211,939

$2,806,640

$447,887

$166,897

Ratio to average net assets of:

           

Expenses

0.75%(3)

0.75%

0.75%

0.75%

0.75%

0.75%

Net investment loss

(0.31)%(3)

(0.32)%

(0.42)%

(0.41)%

(0.34)%

(0.39)%

Portfolio turnover rate(4)

7%

21%

54%

86%

71%

54%

(1)  Based on average daily shares outstanding.

(2)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends, and distributions at market value during the period, and sale at the market value on the last day of the period. Market returns are based on the trade price at which shares are bought and sold on the Cboe BZX Exchange, Inc. using the last share trade. Total return calculated for a period of less than one year is not annualized.

(3)  Annualized.

(4)  Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund’s capital shares.

See accompanying Notes to Financial Statements.

33

 

Table of Contents

Financial Highlights

ARK Innovation ETF

For a share outstanding throughout each period presented.

 

Six Months
Ended
January 31,
2024
(Unaudited)

Year Ended July 31, 2023

Year Ended July 31, 2022

Year Ended July 31, 2021

Year Ended July 31, 2020

Year Ended July 31, 2019

Per Share Data:

           

Net asset value, beginning of period

$       50.42

$       45.14

$     119.91

$         80.37

$       48.36

$       44.51

Net investment loss(1)

(0.16)

(0.30)

(0.60)

(0.75)

(0.38)

(0.30)

Net realized and unrealized gain (loss) on investments

(4.82)

5.58

(73.39)

42.33

32.58

5.32

Total gain (loss) from investment operations

(4.98)

5.28

(73.99)

41.58

32.20

5.02

Distributions to shareholders:

           

Net realized gains

(0.78)

(2.04)

(0.19)

(1.17)

Total distributions

(0.78)

(2.04)

(0.19)

(1.17)

Net asset value, end of period

$       45.44

$       50.42

$       45.14

$       119.91

$       80.37

$       48.36

Market value, end of period

$       45.41

$       50.45

$       45.13

$       120.00

$       80.37

$       48.46

Total Return at Net Asset Value(2)

(9.89)%

11.71%

(62.04)%

51.65%

66.82%

12.14%

Total Return at Market Value(2)

(9.99)%

11.79%

(62.08)%

51.76%

66.47%

12.27%

Ratios/Supplemental Data:

           

Net assets, end of period (000’s omitted)

$7,504,248

$9,295,353

$9,336,819

$22,495,429

$6,132,599

$1,731,253

Ratio to average net assets of:

           

Expenses

0.75%(3)

0.75%

0.75%

0.75%

0.75%

0.75%

Net investment loss

(0.74)%(3)

(0.74)%

(0.75)%

(0.63)%

(0.70)%

(0.67)%

Portfolio turnover rate(4)

15%

26%

55%

71%

80%

80%

(1)  Based on average daily shares outstanding.

(2)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends, and distributions at market value during the period, and sale at the market value on the last day of the period. Market returns are based on the trade price at which shares are bought and sold on the NYSE Arca, Inc. using the last share trade. Total return calculated for a period of less than one year is not annualized.

(3)  Annualized.

(4)  Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund’s capital shares.

See accompanying Notes to Financial Statements.

34

 

Table of Contents

Financial Highlights

ARK Next Generation Internet ETF

For a share outstanding throughout each period presented.

   

Six Months
Ended
January 31,
2024
(Unaudited)

Year Ended July 31, 2023

Year Ended July 31, 2022

Year Ended July 31, 2021

Year Ended July 31, 2020

Year Ended July 31, 2019

Per Share Data:

           

Net asset value, beginning of period

$       67.23

$       54.55

$     147.37

$       99.48

$       52.32

$    55.10

Net investment loss(1)

(0.23)

(0.37)

(0.81)

(0.98)

(0.45)

(0.33)

Net realized and unrealized gain (loss) on investments

2.55

13.05

(88.70)

50.76

47.61

3.09

Total gain (loss) from investment operations

2.32

12.68

(89.51)

49.78

47.16

2.76

Distributions to shareholders:

           

Net realized gains

(3.31)

(1.89)

(5.54)

Total distributions

(3.31)

(1.89)

(5.54)

Net asset value, end of period

$       69.55

$       67.23

$       54.55

$     147.37

$       99.48

$    52.32

Market value, end of period

$       69.57

$       67.31

$       54.48

$     147.55

$       99.49

$    52.48

Total Return at Net Asset Value(2)

3.44%

23.25%

(61.95)%

50.06%

90.13%

7.49%

Total Return at Market Value(2)

3.36%

23.55%

(62.04)%

50.24%

89.58%

7.80%

Ratios/Supplemental Data:

           

Net assets, end of period (000’s omitted)

$1,523,036

$1,650,511

$1,456,499

$5,813,640

$1,920,045

$431,660

Ratio to average net assets of:

           

Expenses

0.75%(3)

0.75%

0.75%

0.75%

0.75%

0.75%

Net investment loss

(0.73)%(3)

(0.74)%

(0.75)%

(0.69)%

(0.68)%

(0.63)%

Portfolio turnover rate(4)

30%

33%

76%

120%

93%

92%

(1)  Based on average daily shares outstanding.

(2)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends, and distributions at market value during the period, and sale at the market value on the last day of the period. Market returns are based on the trade price at which shares are bought and sold on the NYSE Arca, Inc. using the last share trade. Total return calculated for a period of less than one year is not annualized.

(3)  Annualized.

(4)  Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund’s capital shares.

See accompanying Notes to Financial Statements.

35

 

Table of Contents

Financial Highlights

ARK Fintech Innovation ETF

For a share outstanding throughout each period presented.

 

Six Months
Ended
January 31,
2024
(Unaudited)

Year Ended July 31, 2023

Year Ended July 31, 2022

Year Ended July 31, 2021

Year Ended July 31, 2020

For the Period
February 4, 2019
(1)
through
July 31, 2019

Per Share Data:

           

Net asset value, beginning of period

$       24.16

$       17.91

$    50.67

$       36.18

$    22.84

$  20.00

Net investment loss(2)

(0.06)

(0.10)

(0.24)

(0.30)

(0.10)

(0.03)

Net realized and unrealized gain (loss) on investments

1.47

6.35

(32.52)

14.97

13.74

2.87

Total gain (loss) from investment operations

1.41

6.25

(32.76)

14.67

13.64

2.84

Distributions to shareholders:

           

Net realized gains

(0.18)

(0.30)

Total distributions

(0.18)

(0.30)

Net asset value, end of period

$       25.57

$       24.16

$    17.91

$       50.67

$    36.18

$  22.84

Market value, end of period

$       25.54

$       24.20

$    17.88

$       50.68

$    36.26

$  22.86

Total Return at Net Asset Value(3)

5.83%

34.92%

(64.66)%

40.58%

60.36%

14.21%

Total Return at Market Value(3)

5.54%

35.35%

(64.72)%

40.29%

60.59%

14.30%

Ratios/Supplemental Data:

           

Net assets, end of period (000’s omitted)

$1,029,069

$1,088,289

$936,432

$3,610,269

$347,337

$74,233

Ratio to average net assets of:

           

Expenses

0.75%(4)

0.75%

0.75%

0.75%

0.75%

0.75%(4)

Net investment loss

(0.54)%(4)

(0.56)%

(0.65)%

(0.60)%

(0.40)%

(0.24)%(4)

Portfolio turnover rate(5)

11%

26%

75%

78%

55%

22%

(1)  Commencement of operations.

(2)  Based on average daily shares outstanding.

(3)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends, and distributions at market value during the period, and sale at the market value on the last day of the period. Market returns are based on the trade price at which shares are bought and sold on the NYSE Arca, Inc. using the last share trade. Total return calculated for a period of less than one year is not annualized.

(4)  Annualized.

(5)  Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund’s capital shares.

See accompanying Notes to Financial Statements.

36

 

Table of Contents

Financial Highlights

ARK Space Exploration & Innovation ETF

For a share outstanding throughout each period presented.

   

Six Months
Ended
January 31,
2024
(Unaudited)

Year Ended
July 31, 2023

Year Ended
July 31, 2022

For the Period
March 30, 2021
(1)
through
July 31, 2021

Per Share Data:

       

Net asset value, beginning of period

$    15.57

$    14.93

$    20.35

$    20.00

Net investment loss(2)

(0.01)

(0.01)

(0.03)

(0.02)

Net realized and unrealized gain (loss) on investments

(1.29)

0.65

(5.39)

0.37

Total gain (loss) from investment operations

(1.30)

0.64

(5.42)

0.35

Total distributions

Net asset value, end of period

$    14.27

$    15.57

$    14.93

$    20.35

Market value, end of period

$    14.27

$    15.59

$    14.93

$    20.34

Total Return at Net Asset Value(3)

(8.37)%

4.27%

(26.64)%

1.77%

Total Return at Market Value(3)

(8.47)%

4.42%

(26.60)%

1.70%

Ratios/Supplemental Data:

       

Net assets, end of period (000’s omitted)

$249,665

$298,938

$319,536

$607,553

Ratio to average net assets of:

       

Expenses, prior to expense waivers and reimbursements

0.75%(4)

0.75%

0.75%

0.75%(4)

Expenses, net of expense waivers and reimbursements

0.72%(4)

0.71%

0.70%

0.71%(4)

Net investment loss

(0.13)%(4)

(0.10)%

(0.18)%

(0.26)%(4)

Portfolio turnover rate(5)

5%

8%

41%

46%

(1)  Commencement of operations.

(2)  Based on average daily shares outstanding.

(3)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends, and distributions at market value during the period, and sale at the market value on the last day of the period. Market returns are based on the trade price at which shares are bought and sold on the Cboe BZX Exchange, Inc. using the last share trade. Total return calculated for a period of less than one year is not annualized.

(4)  Annualized.

(5)  Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund’s capital shares.

See accompanying Notes to Financial Statements.

37

 

Table of Contents

Financial Highlights

The 3D Printing ETF

For a share outstanding throughout each period presented.

 

Six Months
Ended
January 31,
2024
(Unaudited)

Year Ended
July 31, 2023

Year Ended
July 31, 2022

Year Ended
July 31, 2021

Year Ended
July 31, 2020

Year Ended
July 31, 2019

Per Share Data:

           

Net asset value, beginning of period

$    24.45

$    23.15

$    38.04

$    22.28

$  22.04

$  24.22

Net investment income (loss)(1)

0.01

(0.00)(2)

(0.05)

0.00(2)

(0.00)(2)

(0.01)

Net realized and unrealized gain (loss) on investments

(2.38)

1.30

(14.84)

15.76

0.25

(2.01)

Total gain (loss) from investment operations

(2.37)

1.30

(14.89)

15.76

0.25

(2.02)

Distributions to shareholders:

           

Net investment income

(0.00)(2)

(0.01)

Net realized gains

(0.16)

Total distributions

(0.00)

(0.01)

(0.16)

Net asset value, end of period

$    22.08

$    24.45

$    23.15

$    38.04

$  22.28

$  22.04

Market value, end of period

$    21.93

$    24.43

$    23.16

$    38.00

$  22.16

$  22.25

Total Return at Net Asset Value(3)

(9.70)%

5.61%

(39.14)%

70.76%

1.15%

(8.25)%

Total Return at Market Value(3)

(10.23)%

5.48%

(39.05)%

71.48%

(0.34)%

(7.76)%

Ratios/Supplemental Data:

           

Net assets, end of period (000’s omitted)

$141,333

$185,855

$209,550

$515,504

$41,217

$39,672

Ratio to average net assets of:

           

Expenses

0.66%(4)

0.66%

0.66%

0.66%

0.66%

0.66%

Net investment loss

0.08%(4)

(0.01)%

(0.15)%

0.00%(5)

0.00%(5)

(0.04)%

Portfolio turnover rate(6)

21%

45%

37%

59%

37%

51%

(1)  Based on average daily shares outstanding.

(2)  Amount represents less than $0.005.

(3)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends, and distributions at market value during the period, and sale at the market value on the last day of the period. Market returns are based on the trade price at which shares are bought and sold on the Cboe BZX Exchange, Inc. using the last share trade. Total return calculated for a period of less than one year is not annualized.

(4)  Annualized.

(5)  Amount represents less than 0.00%.

(6)  Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund’s capital shares.

See accompanying Notes to Financial Statements.

38

 

Table of Contents

Financial Highlights

ARK Israel Innovative Technology ETF

For a share outstanding throughout each period presented.

   

Six Months
Ended
January 31,
2024
(Unaudited)

Year Ended
July 31, 2023

Year Ended
July 31, 2022

Year Ended
July 31, 2021

Year Ended
July 31, 2020

Year Ended
July 31, 2019

Per Share Data:

           

Net asset value, beginning of period

$    20.09

$  19.37

$    30.26

$    25.00

$  20.54

$  20.85

Net investment income (loss)(1)

(0.01)

(0.00)(2)

(0.04)

0.05

(0.03)

0.08

Net realized and unrealized gain (loss) on investments

(0.54)

0.72

(10.75)

5.21

4.97

0.18

Total gain (loss) from investment operations

(0.55)

0.72

(10.79)

5.26

4.94

0.26

Distributions to shareholders:

           

Net investment income

(0.10)

(0.48)

(0.57)

Total distributions

(0.10)

(0.48)

(0.57)

Net asset value, end of period

$    19.54

$  20.09

$    19.37

$    30.26

$  25.00

$  20.54

Market value, end of period

$    19.37

$  20.07

$    19.36

$    30.15

$  24.74

$  20.64

Total Return at Net Asset Value(3)

(2.73)%

3.72%

(35.79)%

21.06%

24.31%

1.57%

Total Return at Market Value(3)

(3.49)%

3.67%

(35.57)%

21.87%

22.41%

1.20%

Ratios/Supplemental Data:

           

Net assets, end of period (000’s omitted)

$106,486

$99,934

$118,134

$283,716

$48,123

$19,512

Ratio to average net assets of:

           

Expenses

0.49%(4)

0.49%

0.49%

0.49%

0.49%

0.49%

Net investment income (loss)

(0.12)%(4)

(0.02)%

(0.15)%

0.15%

(0.14)%

0.37%

Portfolio turnover rate(5)

21%

51%

58%

88%

86%

57%

(1)  Based on average daily shares outstanding.

(2)  Amount represents less than $0.005.

(3)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends, and distributions at market value during the period, and sale at the market value on the last day of the period. Market returns are based on the trade price at which shares are bought and sold on the Cboe BZX Exchange, Inc. using the last share trade. Total return calculated for a period of less than one year is not annualized.

(4)  Annualized.

(5)  Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund’s capital shares.

See accompanying Notes to Financial Statements.

39

 

Table of Contents

Notes to Financial Statements

January 31, 2024 (Unaudited)

 

1. Organization

ARK ETF Trust (“Trust”) is an open-end management investment company registered under the Investment Company Act of 1940, as amended (“1940 Act”) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). The Trust was organized as a Delaware statutory trust on June 7, 2013. The Trust consists of eight (8) investment portfolios: ARK Genomic Revolution ETF, ARK Autonomous Technology & Robotics ETF, ARK Innovation ETF, ARK Next Generation Internet ETF, ARK Fintech Innovation ETF, ARK Space Exploration & Innovation ETF, The 3D Printing ETF, and ARK Israel Innovative Technology ETF (each, a “Fund” and collectively, “Funds”). Each Fund is classified as a non-diversified management investment company under the 1940 Act.

The investment objective of the ARK Genomic Revolution ETF, ARK Autonomous Technology & Robotics ETF, ARK Innovation ETF, ARK Next Generation Internet ETF, ARK Fintech Innovation ETF, and ARK Space Exploration & Innovation ETF is long-term growth of capital. The 3D Printing ETF seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Total 3D-Printing Index. The ARK Israel Innovative Technology ETF seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the ARK Israel Innovation Index. There can be no assurance that the Funds will achieve their respective investment objectives.

The Trust’s fiscal and tax reporting year ends July 31.

2. Significant Accounting Policies

These financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which require management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements, and the reported amount of increase and decrease in net assets from operations during the fiscal period. Actual amounts could differ from these estimates. The Trust is an investment company and follows the investment company accounting standards and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standard Codification (“ASC”) Topic 946, “Financial Services — Investment Companies”. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative guidance for SEC registrants. The following summarizes the significant accounting policies of the Funds:

Investment Valuation

The values of each Fund’s securities that are traded on a securities market are based on such securities’ closing prices on the principal market on which the securities are traded. Such valuations would typically be categorized as Level 1 in the fair value hierarchy. If a security’s market price is not readily available or does not otherwise accurately reflect the market value of such security, the security will be fair valued by the Adviser, which was selected by the Board of Trustees of the Trust (“Board of Trustees”) as valuation designee, to provide such fair values in accordance with the Adviser’s valuation policies and procedures that were reviewed by, and subject to the oversight of, the Board of Trustees. Each Fund may use fair value pricing in a variety of circumstances, including but not limited to, situations when the value of a Fund’s security has been materially affected by events occurring after the close of the market on which such security is principally traded (such as a corporate action or other news that may materially affect the price of such security) or trading in such security has been suspended or halted. Such valuations would typically be categorized as Level 2 or Level 3 in the fair value hierarchy. Fair value pricing involves subjective judgments and it is possible that a fair value determination for a security could be materially different than the value that could be realized upon the sale of such security. Investments in money market funds are valued at their NAV as of the close of each business day. Exchange-traded funds are valued at their last sale or official closing price on the principal market.

Investment Transactions

Investment transactions are accounted for on the trade date. Realized gains and losses on sales of investment securities are calculated using the identified cost method. Dividend income is recognized on the ex-dividend date, except for certain foreign dividends that may be recorded as soon as such information becomes available. Interest income and expenses are recognized on an accrual basis.

Dividend Distributions

Distributions to shareholders are recorded on the ex-dividend date and are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Each Fund distributes all or substantially all of its net investment income to shareholders in the form of dividends. Net realized capital gains are distributed to shareholders as capital gain distributions. Net investment income, if any, and net capital gains, if any, are typically distributed to shareholders at least annually. Dividends may be declared and paid more frequently to improve index tracking or to comply with the distribution requirements of the Internal Revenue Code.

40

 

Table of Contents

Notes to Financial Statements (continued)

January 31, 2024 (Unaudited)

   

Currency Translation

Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions.

The effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments in each Fund’s statement of operations. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.

Wholly-owned Subsidiary

ARK Next Generation Internet ETF gains exposure to cryptocurrency through investments in the ARK Next Generation Internet (Cayman) Fund, a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Island (the “Subsidiary”). The Subsidiary is advised by the Adviser, and has the same investment objective as ARK Next Generation Internet ETF. All intercompany transactions and balances have been eliminated in consolidation.

3. Management and Other Agreements

Management

The ARK Genomic Revolution ETF, ARK Autonomous Technology & Robotics ETF, ARK Innovation ETF, ARK Next Generation Internet ETF, ARK Fintech Innovation ETF, and ARK Space Exploration & Innovation ETF, each pay the Adviser a fee calculated daily and payable monthly at an annual rate (stated as a percentage of the average daily net assets of the Fund) of 0.75% (“Management Fee”) in return for providing investment management and supervisory services under a comprehensive unitary structure. The 3D Printing ETF pays the Adviser a Management Fee of 0.65% in return for providing investment management and supervisory services under a comprehensive unitary structure. The ARK Israel Innovative Technology ETF pays the Adviser a Management Fee of 0.48% in return for providing investment management and supervisory services under a comprehensive unitary structure. Subject to the oversight of the Board, the Adviser provides investment management services to each Fund and provides, or causes to be furnished, all supervisory and other services reasonably necessary for the operation of each Fund and also bears the costs of trustee fees and various third-party services required by the Funds, including administration, certain custody, audit, legal, transfer agency, and printing costs. In addition to the Management Fee, each Fund bears other fees and expenses, such as taxes and governmental fees, brokerage fees, commissions and other transaction expenses, certain foreign custodial fees and expenses, costs of borrowing money, including interest expenses, and extraordinary expenses (such as litigation and indemnification expenses).

The Adviser has agreed to reduce their Management Fee for the ARK Space Exploration & Innovation ETF as a result of investing in The 3D Printing ETF. As such, the Management Fees in the Statement of Operations have been reduced by $42,125. The Adviser has also agreed to waive or credit a portion of the Management Fee in an amount equal to any net fees received by the Adviser for the ARK Next Generation Internet ETF as a result of investing in ARK 21Shares Bitcoin ETF. The Adviser has not received any net fees for the six-month period ending January 31, 2024.

Administrator, Custodian, Transfer Agent and Accounting Agent

The Bank of New York Mellon is the administrator for the Funds, the custodian of the Funds’ assets and also provides transfer agency, fund accounting and various administrative services to the Funds (in each capacity, “Administrator,” “Custodian,” “Transfer Agent” or “Accounting Agent”). The Bank of New York Mellon is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.

Distribution

Foreside Fund Services, LLC serves as the Funds’ distributor (“Distributor”). The Trust has adopted a distribution and service plan (“Rule 12b-1 Plan”) pursuant to Rule 12b-1 under the 1940 Act. Under the Rule 12b-1 Plan, each Fund is authorized to pay distribution fees in connection with the sale and distribution of its shares and pay service fees in connection with the provision of ongoing services to shareholders. To date, the Rule 12b-1 Plan has not been implemented for the Funds and there is no current intention to implement the Rule 12b-1 Plan.

Board of Trustees

Each Independent Trustee receives an annual retainer fee of $230,000 for services provided as a Trustee of the Trust, plus out-of-pocket expenses related to attendance at Board and Committee Meetings. The Chairs of the Board and of the Audit Committee each also receive an additional annual retainer fee of $60,000 and $20,000, respectively, for their service as such. Annual Trustee fees may be reviewed periodically and changed by the Trust’s Board.

41

 

Table of Contents

Notes to Financial Statements (continued)

January 31, 2024 (Unaudited)

 

4. Creation and Redemption Transactions

As of January 31, 2024, there were an unlimited number of shares of beneficial interest without par value authorized by the Trust. Individual shares of a Fund may only be purchased and sold at market prices on a national securities exchange through a broker-dealer. Such transactions may be subject to customary commission rates imposed by the broker-dealer, and market prices for a Fund’s shares may be at, above or below its net asset value (“NAV”) depending on the premium or discount at which the Fund’s shares trade.

Each Fund issues and redeems shares at its NAV only in a large specified number of shares each called a “Creation Unit,” or multiples thereof, and only with “authorized participants” who have entered into contractual arrangements with the Distributor. A Creation Unit consists of 50,000 shares (25,000 shares with respect to the ARK Israel Innovative Technology ETF). Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets. The consideration for a purchase of Creation Units generally consists of the in-kind deposit of specified securities and an amount of cash or, as permitted or required by a Fund, of cash. A fixed transaction fee is imposed on each creation and redemption transaction. In addition, a variable charge for certain creation and redemption transactions may be imposed.

5. Investment Transactions

The cost of purchases and the proceeds from sales of investment securities (excluding in-kind subscriptions and redemptions and short-term investments) for the six months ended January 31, 2024 were as follows:

Fund

Purchases

Sales

ARK Genomic Revolution ETF

$   195,975,686

$   196,023,487

ARK Autonomous Technology & Robotics ETF

71,506,845

75,117,259

ARK Innovation ETF

1,155,628,711

1,174,319,615

ARK Next Generation Internet ETF

433,574,456

438,209,902

ARK Fintech Innovation ETF

108,339,185

106,637,069

ARK Space Exploration & Innovation ETF

13,118,975

13,732,130

The 3D Printing ETF

34,189,808

31,739,073

ARK Israel Innovative Technology ETF

19,383,081

19,832,072

For the six months ended January 31, 2024, the cost of in-kind subscriptions and the proceeds from in-kind redemptions were as follows:

In-Kind

Fund

Subscriptions

Redemptions

ARK Genomic Revolution ETF

$   514,310,364

$   731,320,208

ARK Autonomous Technology & Robotics ETF

2,921,210

118,030,387

ARK Innovation ETF

4,752,698,332

5,646,750,758

ARK Next Generation Internet ETF

170,114,679

326,550,187

ARK Fintech Innovation ETF

30,628,608

128,985,296

ARK Space Exploration & Innovation ETF

23,708,863

The 3D Printing ETF

25,872,328

ARK Israel Innovative Technology ETF

26,768,045

17,116,279

6. Federal Income Tax

Each Fund intends to continue to qualify as a “regulated investment company” under Subchapter M of the Internal Revenue Code of 1986, as amended. If so qualified, a Fund will not be subject to federal income tax to the extent it distributes substantially all of its net investment income and net capital gains to its shareholders. U.S. GAAP provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements, and requires the evaluation of tax positions taken or expected to be taken in the course of preparing a Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the more-than-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Interest and penalties related to income taxes would be recorded as income tax expense. The Funds record a foreign tax reclaim receivable on the ex-dividend date if the tax reclaim is “more likely than not” to be sustained assuming examination by tax authorities. This determination is based on, among other things, a jurisdiction’s legal obligation to pay reclaims as well as payment history and market convention. The management of the Funds is required to analyze all open tax years (2020 − 2023), as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of January 31, 2024, the Funds did not have a liability for any unrecognized tax benefits. The Funds have no examinations in progress and are not aware of any tax positions for which it is reasonably possible that the amounts of unrecognized tax benefits will significantly change in the next twelve months.

42

 

Table of Contents

Notes to Financial Statements (continued)

January 31, 2024 (Unaudited)

   

At January 31, 2024, the approximate cost of investments and net unrealized appreciation (depreciation) for federal income tax purposes was as follows:

Fund

Cost

Gross
Unrealized
Appreciation

Gross
Unrealized
Depreciation

Net Unrealized
Appreciation
(Depreciation)

 

ARK Genomic Revolution ETF

$  5,401,086,967

$  41,602,075

$ (3,718,564,708)

(3,676,962,633

)

ARK Autonomous Technology & Robotics ETF

1,434,631,417

96,301,843

(594,424,286)

(498,122,443

)

ARK Innovation ETF

17,433,426,952

85,173,350

(9,087,693,525)

(9,002,520,175

)

ARK Next Generation Internet ETF

2,795,907,797

82,106,104

(1,263,516,541)

(1,181,410,437

)

ARK Fintech Innovation ETF

1,662,520,155

93,549,216

(1,075,755,762)

(982,206,546

)

ARK Space Exploration & Innovation ETF

366,425,727

365,055,203

(201,819,666)

163,235,537

 

The 3D Printing ETF

204,597,378

38,202,491

(189,236,722)

(151,034,231

)

ARK Israel Innovative Technology ETF

112,593,626

21,891,528

(16,482,267)

5,409,261

 

The differences between book-basis and tax-basis components of net assets are primarily attributable to tax deferral of losses on wash sales, non-REIT income and basis adjustments, in-kind creation and redemption transactions, net operating losses, foreign currency gains and losses, passive foreign investment companies, grantor trust adjustments, and late year ordinary loss deferrals. Certain capital accounts in the financial statements have been adjusted for permanent book-tax differences. These adjustments have no impact on net asset values.

Under current tax regulations, capital losses on securities transactions realized after October 31 (“Post-October Losses”) and ordinary losses incurred after December 31 (“Late Year Ordinary Losses”) may be deferred and treated as occurring on the first business day of the following fiscal year. For the year ended July 31, 2023, the Funds incurred and elected to defer to August 1, 2023 Post-October Losses and Late Year Ordinary Losses as follows:

Fund

Late Year
Ordinary
Deferral

Capital
Post-October
Loss

ARK Genomic Revolution ETF

$   (8,249,382)

$     

ARK Autonomous Technology & Robotics ETF

(1,882,520)

ARK Innovation ETF

(32,533,949)

ARK Next Generation Internet ETF

(5,404,327)

ARK Fintech Innovation ETF

(2,711,581)

ARK Space Exploration & Innovation ETF

(147,855)

The 3D Printing ETF

(48,818)

ARK Israel Innovative Technology ETF

(81,576)

At July 31, 2023, for Federal income tax purposes, the Funds have capital loss carryforwards available as shown in the table below, to the extent provided by regulations, to offset future capital gains for an unlimited period. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders.

Short-Term

Long-Term

Total Amount

ARK Genomic Revolution ETF

$    250,757,963

$  837,906,694

$1,088,664,657

ARK Autonomous Technology & Robotics ETF

18,186,873

260,347,957

278,534,830

ARK Innovation ETF

1,042,848,686

1,573,266,388

2,616,115,074

ARK Next Generation Internet ETF

251,556,319

510,982,724

762,539,043

ARK Fintech Innovation ETF

570,104,221

434,174,811

1,004,279,032

ARK Space Exploration & Innovation ETF

18,119,835

10,568,839

28,688,674

The 3D Printing ETF

94,849,026

78,697,270

173,546,296

ARK Israel Innovative Technology ETF

59,766,481

55,301,555

115,068,036

7. Indemnification Obligations

The Funds have a variety of indemnification obligations under contracts with their service providers. The Funds’ maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.

43

 

Table of Contents

Notes to Financial Statements (concluded)

January 31, 2024 (Unaudited)

 

8. Investment Risks

The Funds’ prospectuses contain additional information regarding the risks associated with an investment in a Fund.

Concentration Risk: The ARK Autonomous Technology & Robotics ETF is concentrated in securities of issuers having their principal business activities in groups of industries in the industrials and information technology sectors, although it will not concentrate in any specific industry. The ARK Fintech Innovation ETF is concentrated in securities of issuers having their principal business activities in the communication, technology and financials group of industries. The ARK Genomic Revolution ETF is concentrated in securities of issuers having their principal business activities in any industry or group of industries in the health care sector, including issuers having their principal business activities in the biotechnology industry. The ARK Next Generation Internet ETF is concentrated in securities of issuers having their principal business activities in the internet information provider and catalog and mail order house industry. The ARK Space Exploration & Innovation ETF is concentrated in securities of issuers having their principal business activities in groups of industries in the (i) industrials sector and (ii) information technology sector. The 3D Printing ETF and the ARK Israel Innovative Technology ETF may each invest 25% or more of the value of its respective net assets in securities of issuers in any one industry or group of industries if their respective indices. The Total 3-D Printing Index and The ARK Israeli Innovation Index, concentrate in such industry or group of industries. This concentration limit does not apply to securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. The ARK Innovation ETF is not concentrated in any industry.

As of January 31, 2024, the ARK Genomic Revolution ETF had more than 25% of its assets invested in the biotechnology industry, the ARK Space Exploration & Innovation ETF had more than 25% of its assets invested in the aerospace & defense industry, and the ARK Israel Innovative Technology ETF had more than 25% of its assets invested in the software industry. To the extent a Fund’s holdings are concentrated in a particular industry or group of industries, adverse market conditions affecting those industries may have a more significant impact on the Fund than they would on a Fund investing in a broader range of securities and the value of the Fund’s shares may fluctuate more than shares of a fund investing in a broader range of securities.

Market Risk: The value of the Funds assets will fluctuate as the markets in which the Funds invests fluctuate. The value of the Funds investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, such as inflation (or expectations for inflation), deflation (or expectations for deflation), interest rates, global demand for particular products or resources, market instability, debt crises and downgrades, embargoes, tariffs, sanctions and other trade barriers, regulatory events, other governmental trade or market control programs and related geopolitical events. In addition, the value of the Funds investments may be negatively affected by the occurrence of global events such as war, military conflicts, acts of terrorism, social unrest, environmental disasters, natural disasters or events, recessions, supply chain disruptions, political instability, exchange trading suspensions and closures (including exchanges of the Funds underlying securities), infectious disease outbreaks or pandemics. For example, an outbreak of an infectious disease may negatively affect economies, markets and individual companies throughout the world, including those in which the Funds invest. The effects of this, or any future, pandemic to public health and business and market conditions, including exchange trading suspensions and closures, may have a significant negative impact on the performance of a Fund’s investments, increase a Fund’s volatility, negatively impact a Fund’s arbitrage and pricing mechanisms, exacerbate pre-existing political, social and economic risks to a Fund and negatively impact broad segments of businesses and populations. A Fund’s operations may be interrupted as a result, which may contribute to the negative impact on investment performance. In addition, governments, their regulatory agencies, or self-regulatory organizations have taken or may take actions in response to a pandemic that affect the instruments in which a Fund invests, or the issuers of such instruments, in ways that could have a significant negative impact on the Fund’s investment performance. The ultimate impact of any pandemic and the extent to which the associated conditions and governmental responses impact a Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to frequent changes.

9. New Accounting Pronouncement

In June 2022, the FASB issued Accounting Standards Update (“ASU”) No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this update clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also introduce new disclosure requirements related to such equity securities. The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within those fiscal years. Early adoption is permitted. Management has not yet elected to early adopt the new amendment, is continuously evaluating the new disclosure requirements and has currently determined that it is unlikely the ASU’s adoption will have a material impact on the Funds’ financial statements.

10. Subsequent Events

Subsequent events occurring after January 31, 2024 have been evaluated for potential impact to this Report through the date the Report was issued, and it has been determined that no additional events have occurred that require disclosure.

44

 

Table of Contents

Supplemental Information (Unaudited)

   

Quarterly Portfolio Schedule. The ARK ETF Trust files with the Securities and Exchange Commission on Form N-PORT the complete schedule of portfolio holdings for each ARK ETF for the first and third quarters of each fiscal year. The ARK ETF Trust’s Forms N-PORT are available on the Securities and Exchange Commission’s website at www.sec.gov. Copies of the filings are available without charge, upon request, by calling (727) 810-8160. In addition, each ARK ETF’s current portfolio holdings are updated daily and are available on our website, www.ark-funds.com.

Proxy Voting Policies and Procedures. A description of ARK Investment Management LLC’s proxy voting policies and procedures, which are applicable to the ARK ETFs, is available without charge, upon request, by calling (727) 810-8160 collect or visiting our website at www.ark-funds.com or the Securities and Exchange Commission’s website at www.sec.gov.

Proxy Voting Record. The ARK ETFs file with the Securities and Exchange Commission their proxy voting records on Form N-PX for each 12 month period ending June 30. Form N-PX must be filed each year by August 31. The most recent Form N-PX or voting record information is available without charge, upon request, by calling (727) 810-8160 collect or visiting the Securities and Exchange Commission’s website at www.sec.gov.

Premium/Discount Information. Information about the difference between daily market prices on the secondary market for shares of each ARK ETF and the ARK ETF’s net asset value can be found on our website, www.ark-funds.com.

45

 

Table of Contents

Risks Involved with Investing in the Funds (Unaudited)

 

This report should be read in conjunction with the Trust’s prospectus.

The principal risks of investing in the ARK ETFs include:

Disruptive Innovation Risk Companies that the Adviser believes create and capitalize on disruptive innovation and developing technologies to displace older technologies or create new markets may not in fact do so. Companies that initially develop a novel technology may not be able to capitalize on the technology. A Fund may invest in a company that does not currently derive any revenue from disruptive innovations or technologies, and there is no assurance that a company will derive any revenue from disruptive innovations or technologies in the future.

Equity Securities Risk The value of the equity securities the Funds hold may fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities the Funds hold participate or factors relating to specific companies in which the Funds invest (e.g., litigation or government regulation), among other factors. Equity securities may also be particularly sensitive to general movements in the stock market, and a decline in the broader market may affect the value of the Fund’s equity investments. The Funds may invest in stock of, warrants to purchase stock of, and other interests in special purpose acquisition companies (SPACs) or similar special purposes entities. A SPAC is a publicly traded company that raises investment capital for the purpose of acquiring or merging with an existing company. Investments in SPACs and similar entities are subject to a variety of risks beyond those associated with other equity securities. Because SPACs and similar entities do not have any operating history or ongoing business other than seeking acquisitions, the value of their securities is particularly dependent on the ability of the SPAC’s management to identify a merger target and complete an acquisition. Until an acquisition or merger is completed, a SPAC generally invests its assets, less a portion retained to cover expenses, in U.S. government securities, money market securities and cash and does not typically pay dividends in respect of its common stock. As a result, it is possible that an investment in a SPAC may lose value.

Foreign Securities Risk Investments in the securities of foreign issuers involve risks beyond those associated with investments in U.S. securities such as risks of currency exchange rates, differences in foreign accounting and legal standards, the availability of less reliable financial information, and government restrictions on repatriation of capital. Geopolitical risks, including those arising from trade tension and/or the imposition of trade tariffs, terrorist activity or acts of civil or international hostility, are increasing. For instance, military conflict and escalating tensions between countries could result in geopolitical instability and adversely affect the global economy or specific markets. Strategic competition between the U.S. and China and resulting tensions have also contributed to uncertainty in the geopolitical and regulatory landscapes. Similarly, other events outside of the Trust’s control, including natural disasters, climate change-related events, pandemics (such as the COVID-19 pandemic) or health crises may arise from time to time and be accompanied by governmental actions that may increase international tension. Any such events and responses, including regulatory developments, may cause significant volatility and declines in the global markets, disproportionate impacts to certain industries or sectors, disruptions to commerce (including to economic activity, travel and supply chains), loss of life and property damage, and may adversely affect the global economy or capital markets and may cause the Trust’s assets to decline.

Israel Risk Because the Fund invests in securities of Israeli Companies, the Fund may be exposed to special risks and considerations. There may be less information concerning the securities of Israeli Companies available to the public than the securities of U.S. companies. There is also potential difficulty in obtaining or enforcing a court judgment, and the unique characteristics of securities of Israeli Companies and the Israel stock market may have a negative impact on the Fund. Any major hostilities involving Israel, including hostilities with neighboring countries, or the interruption or curtailment of trade between Israel and its present trading partners, could have a negative impact on the Fund. Shares and dividends of Israeli Companies are often Israeli new shekel (“ILS”) denominated. Changes in the relationship of the ILS to the U.S. dollar and other currencies could have a negative impact on the Fund. The government of Israel may change the way in which Israeli Companies are taxed, or may impose taxes on foreign investment. Such actions could have an adverse impact on the overall market for securities of Israeli Companies and on the Fund.

Concentration Risk The Fund’s assets may be concentrated in a particular industry or group of industries to the extent the Index concentrates in a particular industry or group of industries. If the Fund’s assets are concentrated in a particular industry or group of industries, the Fund will be subject to the risk that economic, political or other conditions that have a negative effect on that industry or group of industries will negatively impact the Fund to a greater extent than if the Fund’s assets were invested in a wider variety of industries.

Index Tracking Risk An Index Fund’s return may not track the performance of the Index for a number of reasons. For example, an Index Fund incurs a number of operating expenses not applicable to the applicable Index and incurs costs associated with buying and selling securities, especially when rebalancing the Index Fund’s securities holdings to reflect changes in the composition of the applicable Index. An Index Fund also bears the costs and risks associated with buying and selling securities while such costs and risks are not factored into the return of the applicable Index. When the Index Fund’s Index is rebalanced and the Index Fund in turn rebalances its portfolio to attempt to increase the correlation between the Index Fund’s portfolio and its applicable Index, any transaction costs and market exposure arising from such portfolio rebalancing will be borne directly by the Index Fund and its shareholders. Apart from scheduled rebalances, the Index provider or its agents may carry out additional ad hoc rebalances to the Index Fund’s applicable Index, which may increase the costs to and the tracking error risk of the Index Fund. In addition, the Index Fund may not be able to invest in certain securities included in the applicable Index or may not

46

 

Table of Contents

Risks Involved with Investing in the Funds (Unaudited) (continued)

   

be able to invest in them in the exact proportions in which they are represented in the applicable Index, due to legal restrictions or limitations imposed by the governments of certain countries, potential adverse tax consequences or other regulatory reasons. The risk that the Index Fund may not track the performance of the applicable Index may be magnified during times of heightened market volatility or other unusual market conditions. A lack of liquidity may be due to various events, including markets events, economic conditions or investor perceptions. Illiquid securities may be difficult to value and their value may be lower than market price of comparable liquid securities, which would negatively affect the Index Fund’s performance. To the extent the Index Fund calculates its NAV based on “fair value” prices for certain securities and the value of the applicable Index is based on securities’ closing prices (i.e., the value of the Index is not based on “fair value” prices), the Index Fund’s ability to track the applicable Index may be adversely affected. For tax efficiency purposes, the Index Fund may sell certain securities to realize losses causing it to deviate from the applicable Index. Errors in the construction or calculation of the applicable Index may occur from time to time and any such errors may not be immediately identified and corrected by Solactive, which may have an adverse impact on the Index Fund and its shareholders.

Authorized Participants Concentration Risk A Fund has a limited number of financial institutions that may act as Authorized Participants (“APs”) on an agency basis (i.e., on behalf of other market participants). To the extent that those APs exit the business or are unable to process creation and/or redemption orders, and no other AP is able to step forward to create and redeem in either of these cases, Shares may possibly trade at a discount to net asset value (“NAV”). The AP risk may be heightened in the case of ETFs investing internationally because international ETFs often require APs to post collateral, which only certain APs are able to do.

Health Care Sector Risk Companies in the health care sector may be adversely affected by government regulations and government health care programs, restrictions on government reimbursement for medical expenses, increases or decreases in the cost of medical products and services and product liability claims, among other factors.

Consumer Discretionary Risk The consumer discretionary sector may be affected by changes in domestic and international economies, exchange and interest rates, competition, consumers’ disposable income and consumer preferences, social trends and marketing campaigns.

CyberSecurity Risk: As the use of Internet technology has become more prevalent in the course of business, funds have become more susceptible to potential operational risks through breaches in cybersecurity. A breach in cybersecurity refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. Cybersecurity breaches may involve unauthorized access to the Fund’s digital information systems through “hacking” or malicious software coding, but may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cybersecurity breaches of the Fund’s third-party service providers, such as its administrator, transfer agent or custodian, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cybersecurity breaches. While the Fund has established business continuity plans and risk management systems designed to reduce the risks associated with cybersecurity, there are inherent limitations in such plans and systems. Additionally, there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cybersecurity systems of issuers or third-party service providers.

Industrials Sector Risk Companies in the industrials sector may be adversely affected by changes in government regulation (such as through the imposition or removal of tariffs), world events, economic conditions, environmental damages, product liability claims and exchange rates.

Information Technology Sector Risk Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. The markets in which many information technology companies compete face rapidly evolving industry standards and government regulations, in the U.S. and abroad, including potential anti-trust actions, potential anti-trust actions, fines and penalties, and frequent new service and product announcements, introductions and enhancements, and changing customer demands.

Communications Sector Risk Communication companies are particularly vulnerable to the potential obsolescence of products and services due to technological advancement and the innovation of competitors. Companies in the communications sector may also be affected by other competitive pressures, such as pricing competition, as well as research and development costs, substantial capital requirements and government regulation.

Financial Technology Sector Risk Companies in the financial technology (“FinTech”) sector that are developing financial technologies that seek to disrupt or displace established financial institutions generally face competition from much larger and more established firms. FinTech companies may not currently derive any revenue, and there is no assurance that such companies will derive any revenue from innovative technologies in the future.

47

 

Table of Contents

Risks Involved with Investing in the Funds (Unaudited) (concluded)

 

Cryptocurrency Investment Risk ARKW may have exposure to cryptocurrency, such as bitcoin and Ether, indirectly through an investment in ARK 21Shares Bitcoin ETF, ProShares Bitcoin Strategy ETF, and ARK 21Shares Active Bitcoin Futures ETF that will experience any associated volatility of the underlying crytocurrency. Additionally, the Funds may have exposure to cryptocurrency indirectly through investments in public companies that are active in the cryptocurrency markets. The Funds’ exposure to cryptocurrencies may change over time and, accordingly, such exposure may not always be present in the Funds’ portfolios. Cryptocurrencies such as bitcoin are not “fiat” currencies of any central bank or government and currently are not subject to the authority of any central bank or government authority and are therefore not backed by any government, and regulatory and tax treatment of cryptocurrencies continues to develop.

Non-Diversified Risk As a non-diversified investment company, a Fund is subject to the risk that it will be more volatile than a diversified fund because the Fund may invest a relatively higher proportion of its assets in a relatively smaller number of issuers or may invest a larger proportion of its assets in a single issuer. As a result, the gains and losses on a single investment may have a greater impact on a Fund’s NAV and may make the Fund more volatile than more diversified funds.

Market Trading Risk Each Fund faces numerous market trading risks, including disruptions to the creation and redemption processes of the Fund, losses from trading in secondary markets, the existence of extreme market volatility, the potential lack of an active trading market for the Fund’s shares due to market stress, or trading halts impacting the Shares or the Fund’s underlying securities, which may result in the Fund’s shares trading at a significant premium or discount to NAV. Please see the ARK ETFs’ current prospectuses for more detailed descriptions of the risks of investing in the ARK ETFs.

Subsidiary Risk ARKW gains exposure to cryptocurrency through investments in the Subsidiary. By investing in the Subsidiary, the ARKW is indirectly exposed to the risks associated with the Subsidiary’s investments. The investments held by the Subsidiary are generally similar to those that are permitted to be held by ARKW and are subject to the same risks that apply to similar investments if held directly by ARKW. There can be no assurance that the investment objective of ARKW or the Subsidiary will be achieved. The Subsidiary is not registered under the 1940 Act, and generally is not subject to all the investor protections of the 1940 Act. In addition, changes in the laws of the United States and/or the Cayman Islands could result in the inability of ARKW and/or the Subsidiary to operate as intended and could adversely affect ARKW. Changes in the laws of the United States and/or the Cayman Islands could adversely affect the performance of ARKW and/or the Subsidiary.

Tax Risk ARKW may seek to gain exposure to cryptocurrency through investments in the Subsidiary. Treasury regulations generally treat ARKW’s income inclusion with respect to the Subsidiary as qualifying income either if (A) there is a current distribution out of the earnings and profits of the Subsidiary that are attributable to such income inclusion or (B) such inclusion is derived with respect to ARKW’s business of investing in stock, securities, or currencies. The tax treatment of ARKW’s investments in the Subsidiary may be adversely affected by future legislation, court decisions, Treasury Regulations and/or guidance issued by the IRS that could affect whether income derived from such investments is “qualifying income” under Subchapter M of the Internal Revenue Code, or otherwise affect the character, timing and/or amount of ARKW’s taxable income or any gains and distributions made by ARKW. No assurances can be provided that the IRS would not be able to successfully assert that ARKW’s income from investments in the Subsidiary was not “qualifying income,” in which case ARKW would fail to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code if over 10% of its gross income was derived from these investments. If ARKW failed to qualify as a regulated investment company, it would be subject to federal and state income tax on all of its taxable income at regular corporate tax rates with no deduction for any distributions paid to shareholders, which would significantly adversely affect the returns to, and could cause substantial losses for, fund shareholders. The Cayman Islands does not currently impose any income, corporate or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on the Subsidiary. If Cayman Islands law changes such that the Subsidiary must pay Cayman Islands taxes, Fund shareholders would likely suffer decreased investment returns.

48

 

Table of Contents

General Information (Unaudited)

   

Investment Adviser
ARK Investment Management LLC
200 Central Avenue
St. Petersburg, FL 
33701

Administrator, Custodian, Transfer Agent, and Accounting Agent
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286

Distributor
Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, ME 04101

Independent Registered Public Accounting Firm
Ernst & Young LLP
One Manhattan West
New York, NY 10001

 

Table of Contents

   

This report is submitted for the general information of the shareholders of each Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus, which includes information regarding the Funds’ risks, objectives, fees and expenses, experience of their management, and other information.

ARK Invest | 200 Central Avenue, St. Petersburg, FL 33701 | 727.810.8160 | info@ark-invest.com | ark-funds.com