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ARK etf

Questions › Category: Miscellaneous › ARK etf
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wahwhiz asked 2 years ago

i read news of Ark this morning that Resolute Investment Managers will exercise its option to take majority control of ARK Investment Management, a move not supported by ARK’s leader. ( https://www.pionline.com/money-management/resolute-take-majority-ownershi… .  how should one, who ivested in ARKF and ARKK react to these negative news. Please share your opinions. thanks

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Victor Chng answered 2 years ago

Hi Wahwhiz,
 
The case is still not confirmed yet which may take sometime before it becomes concrete. I think the only thing you need to take note is will Cathie Wood still be the fund manager in the event of losing the controlling stake. Most people bought the ARK ETF because of the stocks that Cathie Wood purchased so if she is not managing it then probably it is a risk.

Tony replied 2 years ago

Hi Victor,

If Cathie Wood leaves, how would the share prices of the ARK ETFs be affected?

My understanding is that the share price of an ETF is closely tied to the AUM per share of that ETF. Thus, given that her leaving the company would not result in any changes to the AUM, the share price would also be unaffected.

Is my understanding correct?

By the way, thanks for the youtube video on the Airbnb IPO.

Cheers,
Tony

Tony replied 2 years ago

Apologies for the duplicate post

Victor Chng replied 2 years ago

Hi Tony,

As you mentioned that the share price is tied to the AUM so it probably be unlikely that the share price will be affected if Cathie Wood leave. Then again, the emotion of the market is hard to predict too, hence there may be chances that it will be affected.

Good to hear that you like the AirBNB video. :)