Bank of Montreal’s investment arm is partnering with controversial investor Cathie Wood’s Ark Invest to launch a new series of exchange-traded funds (ETFs) that focus on disruptive technologies.
BMO ARK Funds is offering Canadian investors three new ETFs that are concentrated on secular trends and technologies, the companies said in a joint press release.
The BMO ARK Genomic Revolution Fund, the BMO ARK Innovation Fund, and the BMO ARK Next Generation Internet Fund each started trading on the Toronto Stock Exchange (TSX) yesterday (November 17).
Cathie Wood is highly controversial in the U.S. and known for investing in many of the worst performing stocks available on American exchanges. ARK Investment Management currently has $25.1 billion U.S. of assets under management.
Some of the top holdings in Wood’s Ark Invest funds include Roku (ROKU), Teladoc Health (TDOC) and Coinbase (COIN), each of which are down more than 70% this year.
Wood is also known for adding to losing positions even as share prices continue to fall. She recently bought more Coinbase stock despite its share price falling more than 80% this year.
As a result of her investment approach, Wood’s flagship fund, the Ark Innovation ETF (ARKK) is down 62% on the year and has fallen nearly 70% in the past 12 months. Over five years, the Ark Innovation fund is up less than 1%.
In launching the new funds with Bank of Montreal, Wood said she sees potential in Canadian e-commerce company Shopify (SHOP).
“We think it's going to be a spectacular stock going forward,” said Wood.
Shopify’s stock is down 72% this year.
