What's going on?

ARK Invest is casting its net across the Atlantic, snagging European counterpart Rize ETF.

What does this mean?

Cathie Wood, ARK�s captain, has always sailed a steady course: even during the 2022 tempest, she held firm to the belief that the tech tide was just beginning to rise � and judging by 2023�s AI-driven market surge, she wasn�t wrong. But it�s not all been positive: a few navigational errors in recent years have thinned out ARK�s asset treasure chest massively, so the purchase of Rize might just be the compass the firm needs. At the very least, it�s a savvy strategy to replenish the assets ARK�s managing.

Why should I care?

Zooming in: Missing the tide.
On the face of it, ARK�s flagship Innovation ETF has grown by a respectable 36% this year. But when you realize it�s still anchored 70% below its 2021 peak and trails the Nasdaq 100�s 39% rise, it�s clear the firm�s hit some rough seas. And the fact of the matter is that ARK�s stockpickers have come up short. Case in point: offloading Nvidia earlier in the year, and missing its meteoric ascent. Given that the stock would have been perfect for a tech fund focused on long-term investments, that�s not just a misstep: it�s walking the plank.

Zooming out: European catch-up.
Performance aside, ARK�s visionary calls have been on the money, and this move into Europe looks particularly savvy. After all, ETFs currently make up just 8% of European investments, according to ETF giant iShares, compared to 12% in the US. Plus, the US tech sector, now a colossal 30% or so of the S&P 500, was a mere 10% ten years ago � and Europe could be on the cusp of something similar.