In 2014, after Cathie Wood's idea for actively managed exchange-traded funds based on disruptive innovation was deemed too risky by AllianceBernstein, where she was chief investment officer of global thematic strategies, she left and founded Ark Invest. The company is named after the Ark of the Covenant. Wood, a devout Christian, was reading the One-Year Bible at the time of founding. It is also a backronym for Active Research Knowledge.
In October 2014, the company launched its first four active funds: the Innovation ETF, the Genomic Revolution ETF, the Next Generation Internet ETF and the Autonomous Technology & Robotics ETF. These were followed by the Fintech Innovation ETF in 2019 and the Space Exploration & Innovation ETF in 2021.
The company also maintains two index funds: the 3D Printing ETF, launched in 2016, and the Israel Innovative Technology ETF, launched in 2017.
In November 2020, Resolute Investment Managers announced it would exercise its option to acquire a majority stake in the company. However, in December 2020, Cathie Wood repurchased the option, maintaining control of the company, while continuing to use Resolute's distribution services, obtaining financing from Eldridge Industries.Resolute Investment remains a minority shareholder.
In December 2020, the Innovation ETF became the largest actively managed ETF, with $17 billion in assets under management and a 170% return in 2020.
On January 11, 2021, the company became one of the top 10 issuers of exchange-traded funds.
ARK Invest focuses on investing in disruptive technology. These technologies include artificial intelligence, DNA sequencing, CRISPR gene editing, robotics, electric vehicles, energy storage, fintech, 3D printing and blockchain technology. It has also invested in cryptocurrencies. The company invests in stocks it projects to double in value over a five-year period. From 2014 to 2021, the ARK Innovation ETF averaged an annual 39% return on investment, over three times the return of the S&P 500 during that time.
ARK publishes current analysis, transactions and portfolios, and also opens its research reviews to the public. In addition to financial analysts, ARK employs scientists and computer scientists, as they can better assess the impact of disruptive technologies.Most of the company's analysts are millennials without prior Wall Street experience.