What You Need to Know
- The changes were made in an updated supplement to Ark Invest's ETF Trust prospectus.
- Ark Invest removed limits on investing in more than 30% of a company’s securities and more than 20% of its shares.
- It also launched its Space Exploration ETF this week, which attracted more than $200 million in assets its first day.
Cathie Wood’s Ark Investment Management has not just debuted a new space ETF; it has eliminated investment caps and added warnings about the investment risks of special purpose acquisition companies in an updated prospectus supplement for its ETFs.
The ARK Space Exploration ETF (ARKX) collected nearly $200 million in assets on Tuesday, its first trading day, but lost slightly more than 1% by the close. By midday trading on Wednesday, the ETF was trading just slightly above its $20.50 debut price.
Just days earlier, as first tweeted by Morningstar’s Chief Ratings Officer Jeffrey Ptak, Ark Invest filed a supplement to the prospectuses for its ETF Trust with the SEC that removed the limits on investing in more than 30% of a company’s securities and more than 20% of a company’s outstanding shares.