Cathie Wood's ARK Investment Management has partnered with Guggenheim to introduce a unit investment trust that invests in disruptive innovation. The new product will follow ARK's playbook and aims to give investors exposure to early stage growth potential and diverse investments in underrepresented companies, according to the Guggenheim fact card. Its sales fee has been set at $0.275 per unit.
The early stage disruptor exposure will include five "defined innovation platforms of artificial intelligence, DNA sequencing, robotics, energy storage and blockchain technology."
The trust will be made up of about 80% small-capitalization firms and 20% mid-cap equities. Growth stocks will comprise roughly 48% of holdings, while value will represent about 37%.
Guggenheim states that it sees the global economy going through a transformation, "the likes of which hasn't been seen in more than a century," and that early stage disruptor companies are leading the charge. These disruptors "offer the potential to stimulate substantial growth or even create new markets, while upending existing sectors," it adds.
