Cboe Canada's ETF roster has just grown again with three high-profile transfers from the TSX! This time, the funds come from BMO (TSX:BMO) and are as follows:
- BMO ARK Genomic Revolution Fund (ARKG)
- BMO ARK Innovation Fund (ARKK)
- BMO ARK Next Generation Internet Fund (ARKW)
If these funds sound familiar, it's because they are—they're CAD-listed variants of Cathie Wood's famous ARK Invest actively managed ETF family, launched in partnership with BMO. With these transfers, BMO's Cboe-listed ETF lineup has now expanded to 15 offerings.
"BMO's ARK ETFs give investors access to ARK Invest's flagship ETFs in Canadian dollars, on a Canadian exchange, saving them money by helping them to avoid currency conversion costs," says Erin Allen, Vice-President of Online Distribution at BMO ETFs. "Thematic ETFs like ARKK, ARKG, and ARKW can make great satellite positions in a well-diversified portfolio for investors looking to tilt toward these growth-oriented, future-disruptive innovations."
Here's what you need to know about each of the three BMO ARK ETFs as a Canadian investor.
BMO ARK Innovation Fund ETF Series (ARKK)
ARKK is the flagship "buy it all" ETF that encompasses a broad innovation theme. Unlike index-tracking ETFs, ARKK is actively managed and relies on research from Cathie Wood and her team of analysts.
As the flagship fund, ARKK has a broad mandate, capable of investing in various sectors such as fintech innovation, genomic innovation, industrial innovation, and next-generation internet. This approach blends different aspects of various more targeted ARK ETFs, providing a comprehensive innovation-focused portfolio.
Currently, ARKK holds 36 positions, with top names including Tesla (NASDAQ:TSLA), Coinbase (NASDAQ:COIN), Roku (NASDAQ:ROKU), Block, Roblox, Robinhood (NASDAQ:HOOD), and CRISPR Therapeutics. It has a management fee of 0.75%, the same as the USD ARK counterparts, and a management expense ratio of 0.83%.
Additionally, ARKK is very tax-efficient with a 0% annualized distribution yield, making it an attractive option for investors seeking exposure to cutting-edge technologies without frequent taxable distributions.
BMO ARK Next Generation Internet Fund ETF Series (ARKW)
For a pure play tech focus, the ARK ETF to watch is ARKW. As its name suggests, ARKW focuses on next-generation internet themes, specifically targeting cloud computing, e-commerce, payment platforms, the Internet of Things (IoT), big data, and social media.
As expected, top holdings include companies like Coinbase, Block, Meta (NASDAQ:META), and Robinhood. Additionally, ARKW has a 10% allocation to the 3IQ Bitcoin ETF (TSX:EBIT) (BTCQ) to provide cryptocurrency exposure.
The fund carries the same 0.75% management fee as its counterparts, resulting in a 0.84% expense ratio. It is also tax-efficient with a 0% distribution yield, making it an appealing choice for investors looking to gain exposure to cutting-edge internet technologies without frequent taxable distributions.
BMO ARK Genomic Revolution Fund ETF Series (ARKG)
The Canadian market is notably devoid of healthcare companies, so investors seeking exposure to the latest biotech and pharmaceutical breakthroughs need to venture into global markets.
While BMO offers the BMO Equal Weight US Health Care Index ETF (ZHU) for broad sector exposure, more aggressive, risk-inclined investors may prefer the actively managed ARKG.
This ETF targets a more specific genomics mandate, encompassing CRISPR, targeted therapeutics, bioinformatics, molecular diagnostics, stem cells, and agricultural biology.
ARKG includes 40 holdings with notable names like CRISPR Therapeutics, Twist Bioscience, Recursion Pharmaceuticals, and Moderna. It has a management fee of 0.65% and an expense ratio of 0.84%. As expected, it is very tax-efficient with a 0% distribution yield.
This content was originally published by our partners at the Canadian ETF Marketplace.