Cathie Woods' ARK lands on European shores with Rize ETF acquisition
20/09/2023 16:14
By Bansari Mayur Kamdar
Sept 20 (Reuters) - Popular investor Cathie Woods is
entering the European market with the acquisition of Rize ETF,
but some investors are skeptical about the one-time pandemic
darling's foray into the region's nascent ETF market.
Wood's ARK Invest acquired Rize ETF, a provider of thematic
and sustainable investing, from British asset and wealth
management business AssetCo ASTO.L in a private deal for an
undisclosed amount on Tuesday, it said in a statement.
The Rize ETF brand will be phased out, as the platform
transitions into "ARK Invest Europe".
Thematic ETFs, which usually track high-growth and volatile
stocks, are seeing a recovery this year after sharp outflows
last year following their pandemic-era boom, investors said.
Shares of Ark's flagship fund, ARK Innovation ARKK.N ,
have gained 33% so far this year, after two straight years of
sharp losses.
"It will be interesting to see the demand for ARK products
in Europe, especially after a few years of poor performance,"
said Laith Khalaf, head of investment analysis at AJ Bell.
"ARK now has a foot in the European door, but it still has
work to do to persuade fund buyers they need exposure to their
specialist, high-octane fund range."
As of Aug. 31, 2023, Rize ETF managed $452 million across 11
UCITS ETFs distributed throughout Europe, according to its
statement.
ARK, meanwhile, manages nearly $25 billion in ETFs and other
products globally.
ARK Invest said in a statement the acquisition was driven by
dynamic shifts in the investment landscape and Europe's growing
appetite for active ETFs.
Overall, adoption of active ETFs in Europe has lagged U.S.
peers, according to Kamil Sudiyarov, product manager at VanEck
Europe.
"Europe has a lot of catch up to do."
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(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by
Saumyadeb Chakrabarty)
((BansariMayur.Kamdar@thomsonreuters.com; Follow on X:
@BansariKamdar;))