ARK Invest has many growth-oriented funds that have been doing well this year. The hottest one in 2023 has been the ARK Next Generation Internet ETF (NYSE Arca:ARKW). This is an actively managed exchange-traded fund (ETF) that invests in business centered around the theme of "next generation internet." Year to date, it is up around 30%.
What the fund invests in are companies that are involved with big data, cloud computing, internet of things, artificial intelligence, new payment methods, and so on. One of the reasons the fund has been doing well this year is due to Bitcoin's strong performance thus far. As investors have been worried about the state of the economy, they have been putting more money into cryptocurrencies.
The top stock in the Next Generation Internet ETF is Coinbase Global (NASDAQ:COIN), which accounts for 8.4% of the fund's total weight. Coinbase Global is a top cryptocurrency exchange platform and so when Bitcoin is doing well, that means its platform is active and the stock is popular as well. This ARK fund also has Grayscale Bitcoin Trust (OTC:GBTC), another crypto-related stock among its top-3 holdings, as it accounts for 7.2% of the total ETF's weight.
The Next Generation Internet ETF has some considerable exposure to crypto and for risk-averse investors it may not be a suitable investment option for the long term. If, however, you're bullish on the future of digital currencies, especially Bitcoin – which is up 71% this year, then this could be an ETF worth buying right now.
