Investors closely monitor the exchange-traded funds (ETFs) under the ARK Invest umbrella, including the ARK Next Generation Internet ETF (ARKW -2.77%). Famed growth investor Cathie Wood has been at the helm of the ETF for more than a decade, providing investors with exposure to a basket of companies dedicated to developing cloud-based technological infrastructure and other niches within the tech industry.
NYSEMKT: ARKW
Key Data Points
Exchange-Traded Fund (ETF)
The ARK Next Generation Internet ETF allows investors to pick up exposure to companies leading the way toward an exceedingly digital future. From cryptocurrencies to smart devices to autonomous mobility, the ARK Next Generation Internet ETF includes a diverse assortment of tech-based businesses that, despite the ETF's name, go far beyond the internet.
What is the ARK Next Generation Internet ETF?
The ARK Next Generation Internet ETF is an actively-managed fund that includes companies facilitating the transition to a more digitally-based future. According to Ark Invest, the fund's manager, the ETF provides exposure to companies that are "expected to benefit from shifting the bases of technology infrastructure from hardware and software to the cloud, enabling mobile and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure and services."
Next-generation cloud stocks represent the largest weighting in the ETF -- about 25%. Smart devices are close behind with a 22% weighting. Combined, digital wallet, cryptocurrency, and neural network stocks make up the next three largest technologies found in the ETF.
Large-cap stocks, which ARK Invest defines as companies with market caps between $10 billion and $100 billion, make up 53% of the ETF. Mega-cap stocks (those with market caps over $100 billion) account for 37% of the fund.
To gain better insight into the fund's composition with respect to market caps, investors can look to the weighted average market cap, which is $400 billion.
How to buy the ARK Next Generation Internet ETF (ARKW)
As the companies in the ARK Next Generation Internet ETF pioneer new technologies to fortify digital infrastructure, investors must only follow a few ordinary steps to make their ETF investments.
- Open your brokerage app: Log into your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected, and adjust your investment strategy accordingly.
Should I invest in the ARK Next Generation Internet ETF?
Naturally, just because the ARK Next Generation Internet ETF is a smart investment for one person doesn't mean it's one of the best ETFs for another. If you can answer yes to most of the following questions, however, investing in the ARK Next Generation Internet ETF may be the right move for you.
- Are you looking for exposure to a wide variety of stocks that benefit from the growth of e-commerce, cryptocurrencies, online gaming, streaming video services, and other internet-based platforms?
- Do you want additional portfolio diversification?
- Are you interested in mitigating the risk of investing in individual stocks by investing in an ETF?
- Are you comfortable with not earning dividends from your investment?
- Since some online-focused businesses may not develop as quickly as expected, are you comfortable with exercising patience and allowing the industry to mature -- albeit slower than you previously thought?
Does ARK Next Generation Internet ETF pay a dividend?
As of September 2025, the ARK Next Generation Internet ETF doesn't pay a dividend and hasn't declared one since December 2021. If you're looking for passive income, you'll need to look at other investments, like dividend ETFs.
What is the ARK Next Generation Internet ETF expense ratio?
Some passively managed funds have extremely low investment fees. For example, many Vanguard ETFs have expense ratios as low as 0.03% or 0.04%. But the ARK Next Generation Internet ETF costs significantly more to own, with an expense ratio of 0.82% as of September 2025.
Expense Ratio
Historical performance of ARK Next Generation Internet ETF
Some ETFs aim to replicate the performance of a stock index, pay dividends, or provide exposure to a specific sector. However, ARK Invest states that the ARK Next Generation Internet ETF's objective is the "long-term growth of capital." How successful has the ETF been in achieving this? Let's gauge the fund's performance by comparing its total return to that of the S&P 500.
Fund | 1-Year | 3-Year | 5-Year | 10-Year |
|---|---|---|---|---|
ARK Next Generation Internet ETF | 106.7% | 195.9% | 112.5% | 849% |
S&P 500 Index | 20.2% | 69.4% | 68.7% | 300.6% |
The bottom line on the ARK Next Generation Internet ETF
The ARK Next Generation Internet ETF has significantly outperformed the S&P 500 at some points, including over the past year. But it's important to recognize that there's no guarantee it will achieve the same feat in the future. That said, it could be a top long-term ETF to invest in for forward-looking investors who are bullish on the idea of internet-based businesses across a variety of industries.
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