5 Best Performing Technology ETFs in 2023

3. ARK Next Generation Internet ETF (NYSE:ARKW)

YTD Share Price Performance as of August 24: 47.52%

ARK Next Generation Internet ETF (NYSE:ARKW) is one of the best performing ETFs in the technology space. ARK Next Generation Internet ETF (NYSE:ARKW) is an actively managed ETF aiming to invest in the theme of next-generation internet. The companies included in ARKW are concentrated on the transition of technology infrastructure to cloud-based platforms. Established on September 30, 2014, the ETF holds net assets valued at $1.65 billion as of July 31, 2023, and offers an expense ratio of 0.88%. 

ARK Next Generation Internet ETF (NYSE:ARKW) is heavily invested in Roku, Inc. (NASDAQ:ROKU), a California-based company operating a TV streaming platform. On July 27, Roku, Inc. (NASDAQ:ROKU) reported a Q2 GAAP EPS of -$0.76 and a revenue of $847 million, outperforming Wall Street estimates by $0.51 and $72.47 million, respectively. There were 73.5 million active accounts in Q2, representing a growth of 1.9 million accounts from Q1 2023. Roku’s total streaming hours reached 25.1 billion, indicating an annual increase of 4.4 billion hours.

According to Insider Monkey’s second quarter database, 29 hedge funds were bullish on Roku, Inc. (NASDAQ:ROKU), compared to 27 funds in the earlier quarter. Cathie Wood’s ARK Investment Management is the leading position holder in the company, with approximately 12 million shares worth $764.85 million. 

Here is what Saga Partners has to say about Roku, Inc. (NASDAQ:ROKU) in its Q2 2022 investor letter:

“The Portfolio first bought Roku in Q3’20. It was a company we followed closely given our investment in The Trade Desk and its importance in connected television (CTV). Roku continued to impressively grow its CTV market share and it took some extra work to understand the underlying dynamics causing Roku’s success. I think there is some misunderstanding surrounding the connected television landscape. Since I haven’t written extensively on the topic in past letters, I thought it would be helpful to provide a little more background on the underlying dynamics of the space below…” (Click here to see the full text)