Q2?2022QUARTERLYREPORTActiveETFsARKQIndexETFsIZActiveETFsARKQIndexETFsIZRLCTRUUpdateasofJune30,2022ARKWARKGARKKARKFARKXARKInvestmentManagementLLCetfs@2ARKInvest|etfs@|2ARKINNOVATIONETFs–SecondQuarter2022estmentobjectivesandrisksaswellaschargesandexpensesofanaybeinanARKETFissubjecttorisksandyoucanlosemoneyonyourinvestmentinanARKETF.TherecanbenoassurancethattheARKETFswillachievetheirinvestmentobjectives.TheARKETFs’portfoliosaremorevolatilethanbroadmarketaverages.AdditionalrisksofinvestinginARKETFsincludeequity,market,managementandnon-diversificationrisks,aswellasfluctuationsinmarketvalueandNAV.TheETF’sportfolioismorevolatilethanbroadmarketaverages.SharesofARKETFsareboughtandsoldatmarketprice(notNAV)andarenotindividuallyredeemedfromtheETF.ETFsharesmayonlyberedeemeddirectlywiththeETFatNAVbyAuthorizedParticipants,inverylargecreationunits.TherecanbenoguaranteethatanactivetradingmarketforETFshareswilldeveloporbemaintained,orthattheirlistingwillcontinueorremainunchanged.BuyingorsellingETFsharesonanexchangemayrequirethepaymentofbrokeragecommissionsandfrequenttradingmayincurbrokeragecoststhatdetractsignificantlyfrominvestmentreturns.togeneralmarketandeconomicconditions.ForeignSecuritiesRisk.InvestmentsinthesecuritiesofforeignissuersinvolverisksbeyondthoseiatedwithinvestmentsinUSsecuritiesDisruptiveInnovationRiskCompaniesthatARKbelievesarecapitalizingondisruptiveinnovationanddevelopingtechnologiestodisplaceoldertechnologiesorcreatenewmarketsmaynotinfactdoso.Companiesthatinitiallydevelopanoveltechnologymaynotbeabletocapitalizeonthetechnology.Companiesthatdevelopdisruptivetechnologiesmayfacepoliticalorlegalattacksfromcompetitors,industrygroupsorlocalandnationalgovernments.Thesecompaniesmayalsobeexposedtorisksapplicabletosectorsotherthanthedisruptiveinnovationthemeforwhichtheyarechosen,andthesecuritiesissuedbythesecompaniesmayunderperformlarthemeSpecialPurposeAcquisitionCompaniesSPACRiskASPACisapubliclytradedcompanythatraisesinvestmentcapitalforthepurposeofacquiringormergingwithanexistingcompany.InvestmentsinPACsandsimilarentitiesdonothaveanyoperatinghistoryorongoingbusinessotherthanseekingacquisitions,thevalueoftheirsecuritiesisparticularlydependentontheabilityoftheSPAC’smanagementtoidentifyamergertargetandcompleteanacquisition.TheARKETFsalsohavespecificrisks,whicharedescribedbelow.MoredetailedinformationregardingtheseriskscanbefoundintheARKETFs’prospectuses.ehealthcaresectormaybeadverselyaffectedbygovernmentregulationsandgovernmenthealthcareprograms.CommunicationsSectorRisk.Companiesisthissectormaybeadverselyaffectedbypotentialobsolescenceofproducts/services,pricingcompetition,researchanddevelopmentcosts,substantialcapitalrequirementsandgovernmentregulation.InformationTechnologySectorRisk.Informationtechnologycompaniesfaceintensecompetition,bothdomesticallyandinternationally,whichmayhaveanadverseeffectonprofitmargins.TheprincipalrisksofinvestingintheARKQincludeIndustrialsSectorRiskCompaniesintheindustrialssectormaybeadverselyaffectedbychangesingovernmentregulation,worldeventsandeconomicconditions.Inaddition,companiesintheindustrialssectormaybeadverselyaffectedbyenvironmentaldamages,productliabilityclaimsandexchangerates.ConsumerDiscretionaryRisk.Companiesinthissectormaybeadverselyimpactedbychangesindomestic/internationaleconomies,exchange/interestrates,socialtrendsandconsumerpreferences.InformationTechnologySectorRisk.Informationtechnologycompaniesfaceintensecompetition,bothdomesticallyandinternationally,whichmayhaveanadverseeffectonprofitmargins.TheprincipalrisksofinvestingintheARKFinclude:FinancialTechnologyRisk.Companiesthataredevelopingfinancialtechnologiesthatseektodisruptordisplaceestablishedfinancialinstitutionsgenerallyfacecompetitionfrommuchlargerandmoreestablishedfirms.FintechInnovationCompaniesmaynotbeabletocapitalizeontheirdisruptivetechnologiesiftheyfacepoliticaland/orlegalattacksfromcompetitors,industrygroupsorlocalandnationalgovernments.Blockchaintechnologyisnewandmanyofitsusesmaybeuntested.BlockchainandDigitalcommoditiesandtheirassociatedplatformsarelargelyunregulated,andtheregulatoryenvironmentisrapidlyevolving.Asaresult,companiesengagedinsuchblockchainactivitiesmaybeexposedtoadverseregulatoryaction,fraudulentactivityorevenfailure.3ARKInvest|etfs@|3ARKINNOVATIONETFs–SecondQuarter2022TheprincipalrisksofinvestingintheARKWinclude:InformationTechnologySectorRisk.Informationtechnologycompaniesfaceintensecompetition,bothdomesticallyandinternationally,whichmayhaveanadverseeffectonprofitmargins.CryptocurrencyRisk.Cryptocurrency(notably,bitcoin),oftenreferredtoas‘‘virtualcurrency’’or‘‘digitalcurrency,’’operatesasadecentralized,peer-to-peerfinancialexchangeandvaluestoragethatisusedlikemoney.TheFundmayhaveexposuretobitcoin,acryptocurrency,indirectlythroughaninvestmentintheBitcoinInvestmentTrust(‘‘GBTC’’),aprivatelyoffered,open-endinvestmentvehicle.Cryptocurrencyoperateswithoutcentralauthorityorbanksandisnotbackedbyanygovernment.Evenindirectly,cryptocurrenciesmayexperienceveryhighvolatilityandrelatedinvestmentvehicleslikeGBTCmaybeaffectedbysuchvolatility.Asaresultofholdingcryptocurrency,theFundmayalsotradeatasignificantpremiumtoNAV.Cryptocurrencyisalsonotlegaltender.Federal,stateorforeigngovernmentsmayrestricttheuseandexchangeofcryptocurrency,andregulationintheU.S.isstilldeveloping.Cryptocurrencyexchangesmaystopoperatingorpermanentlyshutdownduetofraud,technicalglitches,hackersormalware.ManysignificantaspectsoftheU.S.federalincometaxtreatmentofinvestmentsinbitcoinareuncertainandaninvestmentinbitcoinmayproduceincomethatisnottreatedasqualifyingincomeforpurposesoftheincometestapplicabletoregulatedinvestmentcompanies,suchastheFund.GBTCisexpectedtobetreatedasagrantortrustforU.S.federalincometaxpurposes,andthereforeaninvestmentbytheFundinGBTCwillgenerallybetreatedasadirectinvestmentinbitcoinforsuchpurposes.See‘‘Taxes’’intheFund’sSAIformoreinformation.maybeadverselyaffectedbygovernmentregulationsandgovernmenthealthcareprograms,restrictionsongovernmentreimbursementsformedicalexpenses,increasesordecreasesinthecostofmedicalproductsandservicesandproductliabilityclaims,amongotherfactors.Manyhealthcarecompaniesareheavilydependentonpatentprotectionandintellectualpropertyrightsandtheexpirationofapatentmayadverselyaffecttheirprofitability.BiotechnologyCompanyRisk.Abiotechnologycompany’svaluationcanoftenbebasedlargelyonthepotentialoractualperformanceofalimitednumberofproductsandcanaccordinglybegreatlyaffectedifoneofitsproductsproves,amongotherthings,unsafe,ineffectiveorunprofitable.Biotechnologycompaniesaresubjecttoregulationby,andtherestrictionsof,theU.S.FoodandDrugAdministration,theU.S.EnvironmentalProtectionAgency,stateandlocalgovernments,andforeignregulatoryauthorities.PharmaceuticalCompanyRisk.Companiesinthepharmaceuticalindustrycanbesignificantlyaffectedby,amongotherthings,governmentapprovalofproductsandservices,governmentregulationandreimbursementrates,productliabilityclaims,patentexpirationsandprotectionandintensecompetition.TheprincipalrisksofinvestingintheARKXinclude:IndustrialsSectorRisk.Companiesintheindustrialssectormaybeadverselyaffectedbychangesingovernmentregulation,worldeventsandeconomicconditions.Inaddition,companiesintheindustrialssectormaybeadverselyaffectedbyenvironmentaldamages,productliabilityclaimsandexchangerates.InformationTechnologySectorRisk.Informationtechnologycompaniesfaceintensecompetition,havelimitedproductlines,markets,financialresourcesorpersonnel,facerapidproductobsolescence,areheavilydependentonintellectualpropertyandthelossofpatent,copyrightandtrademarkprotectionsmayadverselyaffecttheprofitabilityofthesecompanies.AerospaceandDefenseCompanyRisk.CompaniesintheaerospaceanddefenseindustryrelytoalargeextentonU.S.(andother)Governmentdemandfortheirproductsandservicesandmaybesignificantlyaffectedbychangesingovernmentregulationsandspending,aswellaseconomicconditions,industryconsolidationandotherdisasters.RisksspecifictoIndexETFs(IZRL,PRNT,CTRU)includeIndexTrackingRisk.ThereturnsoftheETFmaynotmatchthereturnsoftheunderlyingindexthattheETFisdesignedtotrack.RisksspecifictoIZRLincludeIsraelRisk.Israelicompaniesmaybeadverselyaffectedbychangesinpoliticalclimate,governmentregulation,worldevents,economicconditions,andexchangerates.TheuniquecharacteristicsofsecuritiesofIsraelicompaniesandtheIsraelstockmarketmayhaveanegativeimpactontheETF.AdditionalrisksofinvestinginARKETFsincludemarket,managementandnon-diversificationrisks,aswellasfluctuationsinmarketvalueNAV.ETFsharesmayonlyberedeemeddirectlywiththeETFatNAVbyAuthorizedParticipants,inverylargecreationunits.TherecanbenoguaranteethatanactivetradingmarketforETFshareswilldeveloporbemaintained,orthattheirlistingwillcontinueorremainunchanged.BuyingorsellingETFsharesonanexchangemayrequirethepaymentofbrokeragecommissionsandfrequenttradingmayincurbrokeragecoststhatdetractsignificantlyfrominvestmentreturns.ARKINNOVATIONETFs–SecondQuarter2022QuarterlyCommentaryCatherineD.Wood,ARKChiefInvestmentOfficerBroad-basedglobalequityindexes1depreciatedsignificantlyduringthesecondquarterasglobalrecessionfearsboiledtoatippingpoint,damagingconsumer,business,andinvestorconfidence.Innovationstocks,particularlythoseoutsidethebroad-basedindexes,wereparticularlyhardhitduringthefirsthalfofthequarterbeforesuccumbingtosignificantweeklypriceswingsduringthesecondhalf.BetweenMarch2021andtheendofthesecondquarter2022,theyieldcurve2flattenedfrom159basispointsto6basispointswithbriefinversions,suggestingthatbothrealgrowthandinflationcouldsurpriseonthelowsideofexpectations.AsmeasuredbytheUniversityofMichigan,USconsumersentiment3plummetedto50––ahistoriclowthatundercutlevelsseenduringthecoronaviruspandemic,the2008-2009GlobalFinancialCrisis,andtheearly1980swhentheeconomysufferedtworecessionsandinflationandinterestrateshitdoubledigits.TheoddsofaglobalrecessionincreasedmeaningfullyinMarchafterRussia’sinvasionofUkraine.Althoughinflationaryintheshort-term,theriseinoilpriceshasimposedahighlyregressivetaxonconsumers.DependentonRussiaforenergy,Europeseemstohaveenteredrecession.Chinaseemstohaveerredonthesideofrestraintandistryingtoresuscitategrowthand,intheUS,theAtlantaFed’sGDPNowisforecastingasecondsequentialdeclineinInourview,long-terminflationfearshavebeenmisplacedbecausethegoldpriceistradingatthelowendofatwo-yearrange,copperpriceshavebrokendownfromaone-yearrange,andglobalinventorieshavepiledup.Meanwhile,theUSconsumersavingsratehasdroppedto5.4%4,roughly250basispointsbelowitslevelpriortothecoronaviruscrisiswhich,whencoupledwithhistoricallylowconsumersentiment,suggestslessroom–ifany-forgrowthinconsumption.Duringthepastyear,inanoverreactiontobottlenecksinthesupplyofgoodsandservices,businessesandconsumersappeartohaveaccumulated“inventories”.Intheirfirst-quarterearningsreleases,WalmartandTarget––twocompaniesthathaveperfectedsupplychain1AsmeasuredbytheS&P500andMSCIWorld.2Asmeasuredbythedifferencebetweenyieldsonthe10-yearTreasurybondandthe2-yearTreasurynote.3AsofJune2022.4AsofMay2022.ARKInvest|etfs@|management––reportedthatinventoriesincreased32%and43%innominaltermsonayear-over-yearbasis,whichlikelytranslatedinto20-25%and30-35%inrealterms,respectively.Meanwhile,forthefirsttimesinceitslaunchinOctober2020,thepriceofNvidia’sRTX3070GPUhasdroppedmorethan65%totheMSRP(manufacturer’ssuggestedresaleprice),anditwasreportedthatcustomersofTaiwanSemiconductorarepullingsemiconductorordersinresponsetoexcessinventory.Inourview,inanattempttosatisfystrongerthanexpecteddemand,companiesdouble-andtriple-orderedgoods,creatinganinventoryglutthatwillunwindascompanieslowerpricestocleartheirshelves.Unsurprisingly,theInstituteforSupplyManagement(ISM)reportedthefirstcontractioninneworderssincemid-2020.5ThecombinationofgeopoliticalforcesandinventoryhoardinghaspushedUSconsumerpriceinflation––alaggingindicatorofinflation––to9.1%5onayear-over-yearbasis,aratethatwebelievedeflationaryforces––good,bad,andcyclical––arebeginningtounwind.Excessiveinventorylevelsarenottheonlycyclicalsignalflashingdeflation.Creditdefaultswaps(CDS)––insurancepoliciesagainstbankruptcies––havedoubledthisyear6,surpassingtheirpeaksduringthemarketroutinlate2018,andareheadingbacktowardCOVIDcrisislevels.TheUSDollarhasstrengthened9.4%thisyearandmorethan14.0%fromitslowslastyear,placingasignificantburdenonemergingandothermarketswithdollar-denominateddebt.Pricedindollars,commoditiesalsohavebeensuffering.Aftersoaringtoapeakofroughly$2,060perounceduring2020,thepriceofgoldhasdroppedroughly16%backto$17267,thelowendofitstradingrangeduringthelasttwoyears,whilethepriceofcopperhasbrokensignificantlybelow$4.00perpound,thelowendofaone-year$4-5range.Interestingly,electricvehicles––thebeneficiaryofaconsumerpreferenceshiftasenergypricessoar––require3-5xmorecopperthaninternalcombustionengines,suggestingthatcopper’sbreakdownisevenmoremeaningful.Finally,whiletheoilcartelandtheRussia-Ukrainewarhavepushedittolevelsonthehighendofexpectations,theoilpricedeclinedtothelowerendofthetradingrangeinplacesinceRussiainvadedUkraine.Inourview,Energy––thestrongest-performingsectorsincetherotationtocyclicalsbeganinFebruary2021––willbe5AsofJune2022.6AsmeasuredbyMarkitCDXNorthAmericaHighYieldIndex.AsofJune2022.7AsofJuly12,2022.45ARKInvest|etfs@|5ARKINNOVATIONETFs–SecondQuarter2022disruptedanddisintermediatedbyautonomouselectricvehiclesduringthenextfiveyears,leavingmanyinthecrowded“l(fā)ongoilandcommodities”trade8onthewrongsideofinnovation.Innovationisthesourceofgooddeflationbecauselearningcurvescutcostsandincreaseproductivity.Inourview,manycompanieshavecateredtotheshort-term-oriented,risk-averseshareholders,satisfyingdemandsforprofits/dividends“now”.Asaresult,manyhaveleveragedtheirbalancesheetstobuybackstock,bolsterearnings,andincreasedividends.Insodoing,theyhavecurtailedinvestmentsininnovationandcouldbeill-preparedforthedisintermediationassociatedwithdisruptiveinnovation.Saddledwithagingproductsandservices,theycouldbeforcedtocutprices,servicedebt,andclearunwantedinventories,causingbaddeflation.Ifwearecorrectinourassessmentthatgrowth,inflation,orbothwillsurpriseonthelowsideofexpectations,scarcedouble-digitgrowthopportunitiesshouldberewardedaccordingly.Theadoptionofnewtechnologiestypicallyacceleratesasconcernedbusinessesandconsumerschangetheirbehaviormuchmorerapidlythanotherwisewouldbethecase,givingnewleadershipanopportunitytosurfaceintheequitymarket.WebelievethecoronaviruscrisisandRussia’sinvasionofUkrainehavetransformedtheworldsignificantlyandpermanently,suggestingthatmanyinnovation-drivenstrategiesandstockscouldbeproductiveholdingsduringthenextfivetotenyears.Inourview,thewallofworrybuiltonthebackofhighmultiplestocksbodeswellforequitiesintheinnovationspace.Thestrongestbullmarketsclimbawallofworry,afactthatthosemakingcomparisonstothetechandtelecombubbleseemtoforget.Nowallofworryexistedortestedtheequitymarketin1999.Thistimearound,thewallofworryhasscaledtoenormousheights.Dominatingmostbroad-basedindexes,severalmega-capstocksseemtohaveluredrisk-aversebenchmark-sensitiveinvestorsintocrowdedtradesandawayfromemerginggrowthopportunitiescenteredondisruptiveinnovation.Inourview,investorsinbroad-basedequityindexesseemtobeshortinginnovation,perhapsinadvertentlyand,ifhistoryisanyguide,totheirdetriment.Asaresult,theycouldbemissinginvestmentopportunitieslikethenextAmazon,Apple,orTesla,companiesthatinvestaggressivelyattheexpenseofshort-termprofits.Foryears,asmanyinvestorsassumedthatitwouldgobankrupt,Amazoninvestedin8“Longoilandcommodities”isthemostcrowdedtrade,perBankofAmerica’sJuneFundManagerSurvey.anefforttodisruptlegacybrickandmortarbusinesses,capturingadisproportionateshareoftheretaile-commerceopportunity.Inearlydays,WallStreetalsomissedthepotentialofApple’siPhonetodisruptNokia,Samsung,andBlackberry.Recently,italsodenigratedbitcoinandothercryptoassetsasPonzischemes.Inanotherexampleoftrulydisruptiveinnovation,traditionalautoanalystsdeemedTesladoomedtofailure:theydidnotunderstandthatTeslawasarobotics,energystorage,andartificialintelligencecompany,notanautocompany.Controversialandvolatileintheshort-term,companiesfocusedoninnovationthatsolvesproblemsanddisruptslegacyindustriescansurpriseontheupsidewithsignificantexponentialgrowthtrajectories.Inourview,activemanagementwillplayacrucialroleasmanydisruptivecompanieswillcompeteinwinner-take-mostmarkets.Duringthesecondquarterof2022,ARK’ssixactivelymanagedETFsandthreeindexedETFsunderperformedrelativetotheS&P500IndexandtheMSCIWorldIndex.TheARKAutonomousTechnologyandRoboticsETF(ARKQ)underperformedbroad-basedmarketindexesduringthequarter.Tesla(TSLA)andVelo3D(VLD)werethetopdetractors.Despiteastrongfirst-quarterearningsreportthatfeaturedrecorddeliveriesandoperatingmargins,sharesofTeslawereunderpressureassell-sideanalystscutdeliveryestimates,citingmacroheadwindsandsupplychainproblemsincludingtheShanghaishutdown.Inourview,thesefearswereshort-sightedandoverblown.Additionally,investorswereconcernedthatMusk’sproposedacquisitionofTwitterwouldproveadistraction.Disagreeingwiththeconventionalwisdom,wewereencouragedbyTesla’splanstoproduceasteering-wheel-lessandpedal-lessrobotaxivehiclein2024,itsstrongestcommitmenttorobotaxicommercializationtodate.SharesofVelo3DfellsharplyinAprilfollowinganSECfilingdisclosingpotentialsupply-chaindelaysintheshipmentoftwoofitsprintermodels.Despiteafirst-quarterearningsreporthighlightingincreaseddemandforitsproducts,arecordbacklog,andinvestmentsfromcompanieslikeSpaceX,Velo3D’ssharessuccumbedtoabroaderbasedsell-offininnovationstocks.AmongthetopcontributorstoARKQ’sperformancewereBYD(BYDDY)andXpeng(XPEV).DespiteheadwindsfromCOVID’simpactontheChineseautoindustry,EVmanufacturerBYDreportedimpressiveresultsforfirst-quarternetincomeandvehiclesales.DefyingCOVID-relatedobstacles,thecompanyannounceda270%increaseinAprildeliveriesandanagreementtosupplybatteriestoTesla.SharesofChineseElectricvehiclemakerXpengralliedafterithitamilestoneof200,000cumulativeunits6ARKInvest|etfs@|6ARKINNOVATIONETFs–SecondQuarter2022deliveredandShanghaiannouncedstimulusmeasures.TheARKNextGenerationInternetETF(ARKW)underperformedbroad-basedmarketindexesduringthequarter.AmongthetopdetractorswereCoinbaseGlobal(COIN)andtheGrayscaleBitcoinTrust(GBTC).SharesofCoinbasedepreciatedfollowinglowerthanexpectedfirst-quarterearningsandtheTerraecosystemcollapse.Asfirst-quarterresultsfellshortofanalysts’expectations,thecompanyunveiledplanstoforgoshort-termprofitabilityandincreaseinvestments.Coinbasealsofacedinternalchallenges,includinglayoffsandless-than-expectedtractioninitsNFTmarketplace.Despitetheheadwinds,Coinbaseprovidedseveralupdatestoitscryptopaymentoffering,CoinbaseCommerce,andlaunchedseveralnewproductsincludingitsfirstderivativesproduct,NanoBitcoinFutures,andSolanastaking.Inourview,Coinbaseisthepremier,regulatory-compliantcryptoplatformwithmajorcompetitiveadvantagesinanindustryasitconsolidates.SharesofGrayscaleBitcoinTrust,adigital-nativeassetmanagerthattracksbitcoin’smarketprice,depreciatedsignificantly,hurtbyitsperceptionasarisk-onasset––asopposedtoaninflationhedge––astheFedincreasedinterestrates.AstheTerraecosystemcollapsedinMay,contagionspreadtomajorcryptolenders,includingBlockfi,Celsius,Babel,Voyager,andCoinFlex,contributingtotheinsolvencyoftheoncehighlyrespectedhedgefund,ThreeArrowsCapital.GBTCpremiumrelativetoNAVdroppedto-31%astheSECdeniedGrayscaleaspotbitcoinETFapproval.AmongthetopcontributorstoARKW’sperformancewereTwitter(TWTR)andVuzix(VUZI).SharesofTwitterappreciatedafterElonMuskdisclosedasignificantstakeinthecompanyandthenbidtopurchaseit.Inourview,MuskisavisionaryentrepreneurandactiveTwitteruserwhoseinvolvementcouldbenefitthecompanyinunexpectedways.VuzixsignedanexclusiveagreementtolicenseAtomistic’snext-generationmicro-light-emittingdiodedisplaysolution,withanoptiontoacquirethecompany.Withsufficientresearchanddevelopment,Atomistic’stechnologycoulddecreasethesizeofmicrodisplaysinARglasses,withoutsacrificingefficiency,toensurethatVuzix’sARglassesareergonomicandfashionable.TheARKGenomicRevolutionETF(ARKG)underperformedbroad-basedmarketindexesduringthequarter.AmongthetopdetractorswereExactSciences(EXAS)andTeladocHealth(TDOC).Likesmallergenomicsstocksthatarenotinbroadbasedbenchmark,sharesofExactSciencessuffered.Thecompanyownstwoofthelargestcancerdiagnosticfranchises:CologuardandOncotype.Inourview,ExactSciencescouldowntheoncologydiagnosticfunnelbylinkingscreeningandprognosticstests.SharesofTeladoc,thelargestglobaldigitalhealthplatform,fellsignificantlyafterthecompanyprojectedthatadjustedEBITDAwouldbe25%lowerthanitspreviousguidance,highlightingthatcompetitionforkeywordsinthetelehealthspace,particularlyinitsDTC(directtoconsumer)mentalhealthchannels,hadincreaseditscostofcustomeracquisition.Forperspective,thelasttimeittradedattheselevels,Teledocwascashflownegative,withvisitvolumesonly17%ofcurrentlevels,paidmembersat50%ofthecurrentnumber,andannualrevenue20%ofcurrentlevels.Today,1in6AmericansisafullmemberofTeladoc,andthecompanyiscashflowpositive.Ourfive-yearthesisforTeladocisbuiltarounditstransitionfromageneraltelehealthprovidertoaB2Benterprisesolutionforwhole-personhealthcare.AmongthetopcontributorstoARKG’sperformancewereVertexPharmaceuticals(VRTX)and908Devices(MASS).DouglasMelton,founderofSemmaTherapeutics,leftHarvardUniversitytojoinVertexandfocusondiabetestreatments.InJune,thecompanyannouncedthatUSandEuropeanregulatorsissuedkeydesignationsforitskidneydiseasecandidate,inaxaplin(VX-147),enablingthecompanytoexpediteitsregulatorywork.Additionally,VertexandCRISPRTherapeutics(CRSP)announcedupdateddataforthegene-editingtherapyexagamglogeneautotemcel,highlightingitspotentialtobecomeaone-timetherapyforbeta-thalassemiaandsicklecelldisease.Sharesof908DevicesralliedsharplyinJuneafterthecompanyshowcasedattheAmericanSocietyofMassSpectrometryitsprotocolsforexpeditingmassspectrometryprocedures.908Devicesisalifesciencestoolscompanythatminiaturizesmassspectrometrytoolstodecentralizechemicalandbiomolecularanalysis.Thecompanyalsosellsconsumablesandinstrumentsthatinterfacewithexistingstate-of-the-artmassspectrometerstoenhanceorexpandtheircapabilities.TheARKFintechInnovationETF(ARKF)underperformedbroad-basedmarketindexesduringthequart