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ARK Invest Europe, led by famed US investor Cathie Wood, is closing its digital payments ETF as the thematic specialist looks to rationalize its range ahead of new launches.
The Rize Digital Payments Economy ETF (PMNT) was acquired as part of the 2023 takeover of Rize ETF. As the name implies, the exchange-traded fund invests in companies that build technologies to support what ARK calls the emerging “digital payments economy theme.”
However, the fund has struggled to gather assets under management and currently houses just $5.6 million, according to ETFBook data.
PMNT, which launched in November 2021, will cease trading March 24.
ARK previously closed four Rize ETFs, which focused on themes like e-commerce, medical cannabis and pet care, in November 2023 shortly after the acquisition. The remaining seven products—including PMNT—currently holding assets of around $390 million, ETFBook data show.
According to the shareholder notice, however, PMNT’s directors exercised their right to close the ETF once its AUM sat below $50 million for at least 30 consecutive days.
The Next Move for ARK Invest
The firm will now turn its focus on its actively managed thematic range—marketed under the ARK brand—which comprises three ETFs with a combined AUM of over $110 million.
The flagship ARK Innovation UCITS ETF (ARXK) houses $45 million in assets, while the ARK Artificial Intelligence & Robotics UCITS ETF (ARKI) boasts $60 million in AUM and the ARK Genomic Revolution UCITS ETF (ARKG) has $8 million, according to ARK’s website.
In a release, ARK stated that it is “preparing the ground for additional fund launches in 2025” and has decided to “focus on the funds it believes have the strongest potential for growth in the coming years.”
The firm’s head of European sales James Thomas recently departed to State Street Global Advisors while its ETFs were recently added to the Revolut trading platform.
This article was originally published in etf.com sister publication ETF Stream.