Large actively managed biotech investment funds
ARKG and other biotech investment funds and what is their 5-year performance
Investors looking beyond ARK Genomic Revolution ETF (ARKG) can find several sizable, high-profile biotech-focused funds with active management. Below are some of the most prominent, noted for their significant assets under management (AUM), influential strategies, media presence, and track records in the biotech sector. Each fund’s approach and key holdings are highlighted, with sources from financial media and official reports for verification.
ARK Genomic Revolution ETF (ARKG)
AUM & Background: ARKG is an actively managed ETF run by Cathie Wood’s ARK Invest, dedicated to genomics and biotechnology innovations. It currently manages roughly $1–2 billion in assets. ARKG garnered fame for its explosive gains in 2019 (+43.8%) and 2020 (+180.5%) before a steep drawdown in 2021–2022, exemplifying its high volatility.
Strategy: The fund targets companies poised to benefit from breakthroughs in gene editing, genetic therapy, molecular diagnostics, and stem-cell technology. Unlike index-based biotech ETFs, ARKG is fully actively managed – Wood and her team hand-pick and weight holdings based on proprietary research rather than tracking a benchmark. This gives ARKG the potential to outperform broader health indices (which it did prior to 2022) but also to underperform during downturns.
Key Holdings: ARKG’s portfolio skews toward emerging innovators (often mid- and small-caps) rather than big pharmaceutical companies. Top holdings have included high-growth names such as Twist Bioscience, Recursion Pharma, Tempus, Natera, Guardant Health or Care Dx, but these names change in time. For example, at one point Exact Sciences comprised ~8.4% and Teladoc ~5.5% of the fund, whereas now it’s companies like Twist Bio (8.82%) or Recursion Pharma (8.15%) that occupy a large part of the ARKG fund. This tilt toward smaller, cutting-edge biotech firms (versus large defensive pharma) reflects ARKG’s aggressive pursuit of genomic “revolution” opportunities.
Influence & Media: ARKG’s dramatic performance swings and Cathie Wood’s bold bets make it a frequent subject in financial news and social media discussions. It is often compared to passive genomics ETFs like iShares IDNA, though ARKG’s stock-picking approach leads to a very different portfolio (e.g. ARKG holds more small-cap innovators while IDNA holds larger names like Moderna and Regeneron). ARKG’s sizable AUM (nearly $2 billion as of 2023) and ARK Invest’s outspoken market views give it outsized visibility for a biotech fund.