Due to European PRIIPs regulations, buying ARK Invest ETFs is generally not possible from Europe/U.K. Instead, you can buy various European alternatives to ARK ETFs.
Alternatively, it is still possible for Europeans to buy all ARK funds (and other U.S. domiciled ETFs) through a U.S. based broker π½ instead. Should you be interested in this method, please find detailed steps explaining this method here. Another method is to replicate the funds using the Trading 212 pie feature as explained here, though this only works with ARK ETFs, not with other U.S. ETFs.
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When using a π European broker, one will generally have to rely on alternative ETFsβsimilar to the ARK onesβshould you want to invest in these funds. This blog post aims to provide you with a selection of European alternatives to ARK ETFs. Thus, buying any of these alternative funds will allow you to mimic ARK Invests’ results to some degree.
The alternatives offered in this overview imitate ARK’s holdings as best I could find. Nevertheless, significant differences in holdings are still common. Additionally, liquidity is much lower and total expense πΈ ratios (TER) can be higher. If you’d prefer buying the real funds, consider buying the real ARK Invest ETFs through a U.S. broker.
Click to jump to the ETF you want to view:
- ARKK π§ Innovation
- ARKW π°οΈ Next Generation Internet
- ARKQ π€ Autonomous Technology & Robotics
- ARKG 𧬠Genomic Revolution
- ARKF π³ Fintech Innovation
- ARKX π½ Space Exploration
A European alternative to ARKK Innovation
The first ETF we will analyze is also ARK’s most popular one. The actively managed ARKK targets disruptive innovation. Its holdings are innovative companies such as π Tesla, Square, and Spotify.
Though this ETF has a UCITS variant via Nikko Asset Managementβwhich would ordinarily allow it to trade in Europeβit’s still largely restricted, because it’s not currently listed on any retail investor platforms. Besides, even on the institutional ones, there’s an additional 5% entry fee plus a 1.61% yearly charge.
Lyxor MSCI Disruptive Technology ESG Filtered (LU2023678282, UNIC, DTEC), an ETF tracking the a disruptive technology index, seems to be the best European alternative. The aim of the index is, according to its own description, achieving high exposure to business activities such as 3D Printing, internet of things, βοΈ cloud computing, fin-tech, digital payments, healthcare innovation, robotics, cyber security, clean energy and smart grids.
Though the index is much more diversified than ARKK (some 200 versus around 50 portfolio components), it tracks companies similar to it. A major difference between the funds is how they’re managed, with ARK taking an active approach. This means ARK π hand-picks, and often changes, its holdings. Lyxor, on the other hand, is simply following an index passively.
Ultimately, the two ETFs behave similarly in the sense that they generally move in the same direction. However, the less diversified approach of ARKK has lead to more volatile behavior andβthus farβbetter results. π
Another alternative that was suggested to me is HAN-GINS Tech Megatrend Equal Weight (IE00BDDRF700, ITEK, T3KE), which performs similarly to Lyxor but is distinct in that it allocates equal weight to it’s holding. This means that the majority of the holdings cannot be made up of only a few large companies. If you like this idea, this might be a good ETF for you.
For a guide on how to directly purchase ARKK instead of a European alternative, click here.
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European alternatives to ARKW Next Gen Internet
The ARKW Next Generation Internet ETF aims to provide exposure to sectors ranging from cloud computing, social media, big data, and AI to π e-commerce and even blockchain related businesses. Unfortunately, a European alternative cannot currently replicate such a wide variety of holdings.
Through my research I’ve found the closest alternative may be a mix of European ETFs, namely:
- WisdomTree Cloud Computing (IE00BJGWQN72, WCLD, KLWD)
- HANetf Emerging Markets Internet and Ecommerce (IE00BFYN8Y92, EMQQ, EMQP)
- Invesco Elwood Global Blockchain (IE00BGBN6P67, BNXG, BCHN, BCHS, BCHE)
If you don’t want to buy a mix of funds, read how to buy ARKW directly here.
A European alternative to ARKQ Autonomous Tech & Robotics
Fortunately, the next ETF we will look at is a bit easier to replicate with a European alternative. Though ARKQ is actively managed, and the alternative is not, you could consider the iShares Automation & Robotics (IE00BYZK4552, RBOT, RBTX, 2B76) ETF.
Both ETFs aim to invest in companies contributing to advancements in π€ robotics and automation. Thus far, each one has achieved impressive results as well. Stillβas with the other fundsβARK has outperformed its iShares counterpart and this could well continue to be the case.
Another very similar option would be L&G ROBO Global Robotics and Automation (IE00BMW3QX54, ROBO, ROBE, ROBG, IROB, ETL8), which sometimes performs a bit better and sometimes a bit worse than iShares.
Should you like ARK’s track record and prefer to buy ARKQ instead, you can find instructions on how to do so from Europe here.
A European alternative to ARKG Genomic Revolution
If you’re looking for exposure to 𧬠gene editing, therapeutics, agricultural biology, and health care innovation, ARKG would make for a great candidate. Unfortunately, finding a European alternative is a tough job.
So far, it seems the best option is to aim for a broader π©ββοΈ healthcare innovation ETF. iShares Healthcare Innovation (IE00BYZK4776 HEAL, DRDR, 2B78) seems to have the best results in this area, but it still doesn’t even come close to those of ARKG.
Another similar suggestion that was made to me is L&G Healthcare Breakthrough (IE00BK5BC677, DOCT, DOCG, XMLH). The concept is the same, and so far it seems to perform a little better than iShares. Might be worth considering!
Should you be open to using a U.S. broker instead, here you can read how to buy ARKG directly from Europe.
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A European alternative to ARKF Fintech Innovation
The last on our list of European alternatives to ARK ETFs is a fintech related fund. Perhaps one would expect various European π³ fintech ETFs to be available. It seems, however, that Invesco KBW Nasdaq Fintech (IE00BYMS5W68, FTEK) is currently our only option.
As the name suggests, it picks its holdings from the Nasdaq only. It follows an index of roughly 50 companies with fintech related activities. ARKF, on the other hand, doesn’t determine its holdings based on exchange. Instead, innovative fintech companies are selected no matter their exchange.
As a result, ARKF has significantly outperformed π° the Invesco fund. Sadly, this is our only European option, so there’s not much we can do about it. However, it is possible to directly buy ARKF from a U.S. broker instead, as I have detailed here.
A European alternative to ARKX Space Exploration
ARK recently started offering a new ETF focused on π½ space exploration. The ETF mainly contains companies in the defense sector and companies involved in innovative technologies such as drones, 3D printing, and AI.
For the latter technologies you’ll be able to find suitable ETFs elsewhere on this page. Unfortunately, the same cannot be said about the former. Though my goal was to provide European alternatives to ARK ETFs, there currently are no European ETFs covering the aerospace and defense π£ sector.
In this case, the only options is to buy ARKX directly from a U.S. broker. Here you an find a guide on how to do this as a European.
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Trading 212 is one of the most popular free trading apps. Create your own ETFs using the pie feature and invest automatically via a schedule.
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Did you buy any of the alternatives provided, or did you choose to buy the real ARK funds instead? Leave a comment and share your own suggestions!
Thank you for a thorough and precise article.
Very useful.
Hi, wonderful and very helpful article! May I also suggest HANetf HAN-GINS Tech Megatrend Equal Weight as an alternative to ARKK, L&G Healthcare Breakthrough for ARKG and L&G ROBO Global Robotics and Automation for ARKQ
Hi Themis, thanks a lot for your suggestions. When I find some time I’ll have a look and update the article!
–
EDIT: I have now added your suggestions, thank you!
Cool picks! I do think (IS3R) is a way better ARKK clone than (UNIC)
(IS3R) iShares Edge World Momentum Factor UCITS ETF – USD ACC
> TSLA, AAPL, NVDA, SQ, ROKU, SHOP, PYPL, TWLO, …
I’m thinking of starting a separate portfolio with a mix
25% IS3R
20% DRDR
15% UNIC
15% EMQQ
10% RBOT
10% WCLD
5% BCHS
Thanks for your suggestion, I might add it at some point. π I like your portfolio too, I also recently discovered EMQQ and might put some of that in my IRA. Only downside is the expense ratio.
You are my hero! Thank you for the job !
thanks very useful
Hi,
From Europe, instead of using a US broker, you could also use one from Switserland, like Swissquote. However, I haven’t done a comparison between US and Swiss fees yet. Please inform me when you have… π
Greetings.
Hi Sunny,
You are correct that Swissquote offers U.S. ETFs at the moment. However, you should be aware that Switzerland, like the EU, will also adopt European PRIIPs regulation starting next year. Most likely this means Swiss brokers will no longer be able to offer U.S. ETFs to their clients, just like E.U. brokers can’t… Additionally, Swissquote isn’t exactly cheap either. Both these things considered, I would therefore suggest using a U.S. broker (like Tastyworks) instead.
Good luck!