According to an SEC filing, the new fund from Ark Investment Management would follow a transparency index from Solactive, which is a Germany-based index provider.
The Ark Transparency ETF will hold roughly 100 stocks, with the biggest positions in tech and consumer stocks, such as Apple (AAPL), Microsoft (MSFT), Salesforce.com (CRM), Nike (NKE) and Chipotle Mexican Grill (CMG). Tesla (TSLA), an Ark favorite, also earns a spot.
Criteria that will affect inclusion in the new fund include involvement in legal issues and a company’s public reputation.
“Companies operating in the following industries, as determined by the Index provider, are excluded from the Index: (i) alcohol, (ii) banking, (iii) chemicals, (iv) confectionery, (v) fossil fuel transportation, (vi) gambling, (vii) metals, (viii) mineral, (ix) natural gas, (x) oil, and (xi) tobacco,” the filing says.
Cathie Wood Stocks
Shares of Apple rose 1.8% on the stock market today. Microsoft added 0.9%, Chipotle was flat, and Tesla added 0.6%.
The Transparency ETF would be Ark’s second launch of the year, if it wins regulatory approval. Wood’s Ark Space Exploration ETF (ARKX) launched in March.
Her other funds include the flagship Ark Innovation ETF as well as funds for finance, medicine and the internet.
Wood herself is famous for openly disclosing her stock picks, buys and sells. Big returns for Ark funds in 2020 fueled a cult following for the 65-year-old portfolio manager.
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