Offering Exposure to Cutting-Edge Technology

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager.

One of the most interesting and potentially disruptive technological innovations of the digital age has been the rise of 3D printing.

Indeed, the advent of this new technology has raised questions about intellectual property rights, aerospace regulation and gun legislation that have yet to be answered satisfactorily. At the same time, this invention also has triggered new opportunities for investors.

For instance, the Ark 3D Printing ETF (BATS:PRNT) is the first such fund on the market that can provide investors with exposure to companies that are involved in 3D printing and 3D printing businesses. Currently, PRNT limits its geographic reach to companies that are based in the United States, non-U.S. developed markets and Taiwan.

PRNT’s underlying index is made up of five components related to 3D printing. Those components are 3D printing hardware, CAD and 3D printing software, 3D printing centers, scanners and measurement and 3D printing materials. While each of these components is weighted differently (50%, 30%, 13%, 5% and 2%, respectively), selected securities within each category receive the same weight.

Some of this fund’s top holdings include ExOne Co. (NASDAQ: XONE), Stratasys Ltd. (NASDAQ: SSYS), MGI Digital Graphic Technology (OTCMKTS: FRIIF), Prodways Group SA (EPA: PWG), Reinshaw plc (OTCMKTS: RNSHF), 3D Systems Corporation (NYSE: DDD), HP Inc. (NYSE: HPQ) and Organovo Holdings Inc. (NASDAQ: ONVO).

While these companies are mainly in the computers, phones & household electronics sector (25.95%), this ETF also has holdings in companies that produce software and IT services (24.32%), machinery, equipment and components (16.83%), professional & commercial services (8.25%), biotechnology and medical research (5.09%) and health care equipment (5.09%).

Exclusive  Celebrating Big Gains -- With a Hint of Short-Term Caution

The fund currently has $38.45 million in assets under management and an average spread of 0.97%. It also has an expense ratio of 0.66%, meaning that it is more expensive to hold in comparison to other exchange-traded funds.

In terms of PRNT’s MSCI ESG Fund Quality Score, PRNT’s score of 5.75 ranks in the 51st percentile within its peer group and in the 58th percentile within the global universe of all funds in the MSCI ESG Fund Metrics coverage.

This fund’s performance has been quite solid in the long term. While it only has climbed 0.01% in the past month, it rose 12.04% during the past three months and jumped 14.81% year to date.

Chart courtesy of StockCharts.com

In short, while PRNT does have several advantages over some of its peer funds and provides an investor with the ability to profit from some truly cutting-edge technology, this ETF’s risks and costs are not zero.

Thus, interested investors always should do their due diligence and decide whether the fund is suitable for their portfolios.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Like This Article?
Now Get Jim's FREE Special Report:
The Top 11 Dividend ETFs to
Buy Right Now

Get up to 5X the yields of traditional income plays.

Get Access to the Report, 100% FREE


img
previous article

Jim Woods discusses how he feels when he has to pay his taxes on April 15 and proposes several songs to help cope with the April 15 blues.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE