What You Need to Know
- Ark’s Transparency ETF aims to track an index that is made up mainly of large tech and consumer firms such as Salesforce and Tesla.
Cathie Wood is getting ready to debut a new exchange-traded fund focused on transparency.
The top holdings in the 100-company gauge are largely tech and consumer firms such as Salesforce.com Inc., Microsoft Corp., Apple Inc., Nike Inc. and Chipotle Mexican Grill Inc. An old Ark favorite, Elon Musk’s Tesla Inc., also makes the cut.
“This is kind of Ark’s version of ESG,” said Eric Balchunas at Bloomberg Intelligence, referring to products that reflect higher environmental, social and governance standards. “It’s intriguing because it doesn’t have a moralizing vibe to it, it’s like they’re saying if you go after transparency, you’re probably going to buy good companies.”
Ark didn’t immediately respond to a request for comment.
If approved, the ETF would be the second that Ark has launched this year. In March, the company started a fund focused on space-related investments, which has risen about 4% since its debut and now has more than $600 million in assets.