ARK Active Autocallable Income ETF

Frequently Asked Questions About ARKY

What does ARKY invest in?

ARKY is an actively managed ETF that seeks to generate income through a portfolio of derivatives designed to replicate the economics of autocallable equity-linked notes (ELNs) referencing equities within ARK's disruptive innovation universe. The investment universe spans genomics, artificial intelligence, energy transformation, automation, next-generation internet, and blockchain and fintech innovation companies. Rather than investing directly in equities, the fund systematically harvests volatility premia the difference between implied and realized volatility of the reference securities and converts that volatility into income streams. Each synthetic ELN incorporates defined observation dates and barrier levels: a Coupon Barrier, a Strike Price call barrier, and a Maturity Barrier, determining whether periodic coupons are paid, the position terminates early, or the fund bears downside exposure at expiration.

What is the expense ratio of ARKY?

ARK Active Autocallable Income ETF (ARKY) charges an expense ratio of 0.85%. This is the annual fee deducted from fund assets to cover management and operations.

What is ARKY's distribution yield?

ARKY's trailing-twelve-month yield is 1.37%, calculated from the sum of distributions over the past year divided by the current price.

How does ARKY's covered-call strategy work?

ARKY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside. When the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is ARKY?

ARK Active Autocallable Income ETF (ARKY) manages $42.0M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is ARKY actively managed or an index fund?

ARKY's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.