Direxion Moonshot Innovators ETF (NYSEARCA:MOON), a smaller fund inspired by the Ark Innovation ETF (NYSEARCA:ARKK) headed by millionaire stockpicker Cathie Wood, has outpaced its larger peer in the first months of 2021 by notching up growth of 39% in the year-to-date.
According to a Bloomberg report last week, Direxion beat out Ark’s growth by around ten-fold, with the latter rising just 3.5% over the same period.
The Direxion ETF tracks the 50 companies pursuing innovative technologies that make up the S&P Kensho Moonshots Index, which it says have the highest “early-stage composite innovation scores”, with the themes spanning emerging sectors such as smart transportation, clean power, and the human evolution.
The ETF’s top themes by fund allocation are genetic engineering, cybersecurity and clean technology, a contrast to Ark which focuses more on cloud computing, digital media and e-commerce.
Since its creation last November, the Direxion ETF has risen by around 70%, however, it remains relatively small scale with assets under management of just under US$200mln, a paltry figure compared to Ark’s US$24bn.