What is ARKY and what does it do?

ARKY is the ARK Active Autocallable Income ETF, an actively managed ETF designed to generate high monthly income. It does this by building a diversified portfolio of autocallables that reference individual stocks from ARK's innovation universe. Each autocallable pays a regular coupon as long as the underlying stock stays above a defined level, called a barrier. The result is a yield target of 17.5%,[1] delivered through a daily-liquid ETF structure with no minimums, no lock-ups, and simple 1099 tax reporting.

[1] ARKY seeks the target yield and current income exposure through Synthetic Equity-Linked Notes (‘Synthetic ELNs’). A Synthetic ELN is a structured instrument, built using options or other derivatives rather than a traditional issued note, that is designed to replicate the economic exposure of an equity-linked note. In ARKY’s case, this exposure is tied to the performance of ARK’s innovation equity universe.