Why ARK is Buying Alibaba’s Rivals

There are reasons to be wary of the ARK Innovation ETF doubling down on the Chinese mega tech names.

Kate Lin, CAIA 21 May, 2021 | 8:00
Facebook Twitter LinkedIn


While global techs are faltering, ARK Invest’s founder Cathie Wood says, in the flagship ARK Innovation ETF (ARKK), she has been loading up Chinese tech names, such as JD.com (JD), Tencent (700) and Baidu (BIDU), the most known rivals to Alibaba (BABA). Wood is betting on them taking a large market share from Jack Ma’s e-commerce empire.

It wouldn’t be surprising that these potential global leaders of tomorrow would draw interests from global growth or innovation-theme managers. But also because these names happen to be large in scale and continue growing, the decision in gaining such large-cap exposure is more than reflecting Wood’s investing convictions. Robby Greengold, a Chicago-based strategist of Morningstar, sees snares in ARKK’s portfolio risks and constraints.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Member.

Register For Free
Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alibaba Group Holding Ltd ADR127.53 USD-3.10Rating
Baidu Inc ADR149.84 USD-0.30Rating
JD.com Inc ADR84.11 USD-4.32Rating
Tencent Holdings Ltd468.80 HKD2.05Rating

About Author

Kate Lin, CAIA

Kate Lin, CAIA  is a Data Journalist for Morningstar Asia, and is based in Hong Kong

© Copyright 2021 Morningstar Asia Ltd. All rights reserved.

Terms of Use        Privacy Policy