Investment Case-CTRU

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Description

Why Invest in Transparency? For Informational Purposes Only | As of October 31, 2021

www.ark-funds.com

CTRU

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Disclosure

Risks of Investing in Transparency Please note, companies that ARK believes are capitalizing on disruptive innovation and developing technologies to displace older technologies or create new markets may not in fact do so. ARK aims to educate investors and seeks to size the potential investment opportunity of Transparency, noting that risks and uncertainties may impact our projections and research models. Investors should use the content presented for informational purposes only, and be aware of market risk, disruptive innovation risk, regulatory risk, and risks related to certain innovation areas. In addition, the potential growth or displacement of market industries discussed herein may not translate to favorable investment performance. Please read risk disclosure carefully.

RISK FACTORS OF INVESTING IN TRANSPARENCY Rapid Pace of Change

Exposure Across Sectors and Market Cap

Barriers to Entry

Uncertainty and Unknowns

à Aim for a cross-sector understanding Source: ARK Investment Management LLC, 2019

of technology and combine top down and bottom up research.

Regulatory Hurdles

Disruptive Innovation

Political or Legal Pressure

Patent Protection and Intellectual Property Rights

Competitive Landscape

à Aim to understand the regulatory, market, sector, and company risks. (See Risk and Disclosure at the end)

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ARK Seeks To Capture Transparency

WHY INVESTORS SHOULD CONSIDER THE ARK TRANSPARENCY ETF (CTRU) 1. Invest with Impact: ARK believes that transparency enhances the performance of companies while benefiting the well-being of all. Transparency implies openness, communication, and accountability. 2. Growth Potential: The ARK Transparency ETF seeks to provide investment results that closely correspond, before fees and expenses, to the Transparency IndexTM (TRANSPCY), which is designed to track the stock price movements of the 100 most transparent companies globally. ARK believes transparent companies have less friction which could lead to exponential growth opportunities.

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Fossil Fuel Industry Exposure

98%

Fewer Financial Crimes1

[1] Source: Transparency, LLC, 2021 | Compared to companies in The S&P 500® Index.

95%

Fewer Environmental Violations1

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Why Invest In Transparency?

IMPACT INVESTING FROM THE TOP DOWN The Transparency IndexTM utilizes an exclusionary screening process to remove what the index describes as non-transparent industries. The index excludes the following Global Industry Classification Standard (GICS) industries:

Alcohol

Fossil Fuel Transportation

Oil & Natural Gas

Banking

Chemical

Confectionary

Tobacco

Gambling

Metals & Minerals

The Global Industry Classification Standard (GICS) is a method for assigning companies to a specific economic sector and industry group that best defines its business operations.

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Why Invest In Transparency?

A SOCIAL IMPACT COMPARISON1 BETWEEN THE TRANSPARENCY INDEXTM AND THE S&P 500® AS OF 9/30/21 Transparency IndexTM

Envionrmental Violations

95% LESS

S&P 500®

Financial

Fossil Fuel

Labor

Toxic Air

Toxic Water

Data Privacy

Weapons

Crimes Violations

Industry Exposure

Relations Violations

Pollution Exposure

Pollution

Violations

Industry Exposure

98% LESS

100%

98%

94%

99%

LESS

LESS

LESS

97% LESS

100% LESS

LESS

Because of an exclusionary screening process, the Transparency IndexTM differentiates itself from the S&P 500®. Excluded GICS industries include Alcohol, Banking, Chemical, Confectionary, Fossil Fuel Transportation, Gambling, Metals & Minerals, Oil & Natural Gas, Tobacco. [1] Source: YourStake.org, S&P 500®. The data shown is calculated quarterly and is as of September 30, 2021. The Transparency IndexTM is composed of equity securities and American Depositary Receipts (“ADRs”) traded on U.S. public securities exchanges that are considered the 100 most transparent companies in the world based on a proprietary scoring methodology provided by Transparency, LLC. The Index is unmanaged, which means that the companies included in the Index are selected according to a proprietary algorithm of Transparency Invest that serves as the basis of the Index methodology. The Index is equal weighted, which means that the 100 companies included in the Index each represents approximately 1% of the Index – with variations due to market performance. The S&P 500® Index is a widely recognized capitalization-weighted index that measures the performance of the large-capitalization sector of the U.S. stock market.

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Why Invest In Transparency?

TRANSPARENCY INDEXTM FUNNEL

58,708 6,312 1,254

All companies globally1

Publicly Traded on U.S. Exchange2

After applying exclusions • Minimum $1B Market Cap • 9 Excluded Industries3 • After pre-revenue screen

540

After applying 6 KPI4 Proprietary Scoring Algorithm

100

After Quality Control Index Analyst Validation using the same 6 KPI4 Scoring Algorithm

For more details, please review methodology of the Index Provider at https://transparencyinvest.com. [1] 58,708 Securities - Thomson and Reuters Global Securities Data Set. [2] 6,312 Securities - Trading on NYSE, NASDAQ and AMEX (ADR) as of 9/30/21. [3] GICS Industries excluded from the Transparency IndexTM : Alcohol, Banking, Chemical, Confectionary, Fossil Fuel Transportation, Gambling, Metals & Minerals, Oil & Natural Gas, Tobacco.[4] The 6 KPIs (key performance indicators) of the Transparency IndexTM are Transparency Standards®, Terms, Total Accountability, Transparent CostTM, Truth and Trust.

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Why Invest in Transparency?

HOW TO MEASURE THE LEVEL OF TRANSPARENCY? Six Key Performance Indicators (KPIs) determine the level of transparency throughout an organization as defined by the Index Provider.1

A 2020 article in the Journal of Human Relations states that organizational transparency can be measured across the dimensions of timely information disclosure, clarity and accuracy. Furthermore, research has shown that a “measure of transparency consisting of these three dimensions is capable of explaining variation in important outcomes.”2 Benefits of Organizational Transparency: • • • •

Factor for Employee Satisfaction Brand Loyalty Client Retention Potential for Increased Revenue Growth

For more details, please review methodology of the Index Provider at https://transparencyinvest.com. [1] 2020. 6 KPIs Transparency Wave Paul A. Pagnato. [2] 2020. The dimensional structure of transparency: A construct validation of transparency as disclosure, clarity, and accuracy in organizations. Human Relations, 1-33. Schnackenberg, Tomlinson, & Coen.

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ARK Seeks To Capture Transparency

THE ARK TRANSPARENCY ETF (CTRU) TRACKS THE PERFORMANCE OF THE TRANSPARENCY INDEX (TRANSPCY) The ARK Transparency ETF seeks to provide investment results that closely correspond, before fees and expenses, to the Transparency IndexTM (TRANSPCY), which is designed to track the price movements of stocks of the 100 most transparent companies. The companies in the Transparency IndexTM are deemed to be the 100 most transparent companies globally by Transparency LLC, (Index Provider) based on a proprietary scoring methodology.

Summary of Transparency IndexTM Index Classification Selection Universe Index Management Listed Exchanges Index Ticker Index Provider Minimum Market Cap Revenue Criteria Security Selection Number of Securities Rebalancing Portfolio Weighting

Excluded GICS Industries

Thematic Index Investing Global Equities Passive NYSE, NASDAQ, AMEX (ADRS) TRANSPCY Transparency, LLC $1B No pre-revenue companies Rules Based 100 Quarterly Equally Weighted Portfolio, 1% Alcohol, Banking, Chemical, Confectionary, Fossil Fuel Transportation, Gambling, Tobacco, Metals & Minerals, Oil & Natural Gas

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ARK Seeks To Capture Transparency

The ARK TRANSPARENCY ETF — CTRU The ARK Transparency ETF seeks to provide investment results that closely correspond, before fees and expenses, to the Transparency IndexTM (TRANSPCY), which is designed to track the price movements of stocks of the 100 most transparent companies. The companies in the Transparency IndexTM are deemed to be the 100 most transparent companies globally by Transparency, LLC, (Index Provider) based on a proprietary scoring methodology. • Ticker: • Number of Holdings: • Expense Ratio:

• Benchmark: Transparency IndexTM • Weighting Method: Equal Weight

CTRU 100 0.55%

SECTORS1 TOP 10 HOLDINGS1

Weight (%)

(%)

Communication Services

3.99%

Consumer Discretionary

19.65%

CLOUDFLARE INC

1.58%

BLOOM ENERGY CORP

1.53%

ENPHASE ENERGY INC

1.41%

Health Care

TESLA INC

1.31%

Industrials

10.02%

SPOTIFY TECHNOLOGY SA

1.17%

Information Technology

49.34%

MAXLINEAR INC

1.17%

Materials

1.74%

TERADYNE INC

1.16%

Real Estate

1.07%

DIGITALOCEAN HOLDINGS INC

1.15%

CHARGEPOINT HOLDINGS INC

1.13%

NVIDIA CORP

1.13% 12.74%

Consumer Staples

3.52%

Financials

0.85%

MARKET CAPITALIZATION1

9.83%

(%)

Mega ($100B+)

20.34%

Large ($10-$100B)

43.85%

Medium ($2-$10B)

28.28%

Small ($300M-$2B)

7.52%

Micro ($50-$300M)

0.00%

Holdings are subject to change and should not be considered as investment advice, or a recommendation to buy, sell or hold any particular security. The securities identified do not represent all of the securities purchased, sold or recommended for client accounts. It should not be assumed that an investment in the securities identified was or will be profitable. [1] The data shown herein represents that of the Transparency IndexTM as of October 31, 2021, which the ARK Transparency ETF seeks to reflect.

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What Are The Rules Of The Index?

MARKET-CAP WEIGHTED VS EQUAL WEIGHTED INDEX A market-cap weighted index has the tendency to be biased towards large caps, concentration, and momentum. An equal-weighted methodology can offer a more balanced portfolio and correct what some investors may consider a common flaw in market-cap weighted indices.

CHARACTERISTICS OF AN EQUAL-WEIGHT INDEX: • When rebalancing, an equal-weight index sells what has been bid up and buys more of what has been left behind. Therefore, an equal-weight index typically tends to be cheaper than a market-cap weighted index measured by lower price/earnings, sales, book or cash flow. • An equal-weight index tends to have exposure farther down the market cap spectrum. • An equal-weight index tends to be less prone to inadvertent concentration. If a sector or stock becomes popular, its weight in a cap weighted index automatically grows, even if its business prospects or fundamental attractiveness do not.

Source: Rose, Brian. "Investment Strategy Insights." UBS, 2015, ubs.com/content/dam/WealthManagementAmericas/documents/investment-strategy-insights-2015-05-15-equal-weighted-investing.pdf.

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ARK Innovation ETFs

Thematic Strategies Focused on Disruptive Innovation ARKK

ARK Innovation ETF

ARKW

ARK Next Generation Internet ETF

ARKQ

ARK Autonomous Tech. & Robotics ETF

ARKG

ARK Genomic Revolution ETF

ARKF

ARK Fintech Innovation ETF

ARKX

ARK Space Exploration & Innovation ETF

PRNT

The 3D Printing ETF

IZRL

Israel Innovative Technology ETF

CTRU

ARK Transparency ETF

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ARK Investment Management LLC

CONTACTS

ABOUT THE INDEX PROVIDER

Rebecca L. Burke Vice President | National ETF Sales Resolute Investment Managers, Inc. M. 978.609.0553 [email protected]

Transparency, LLC Our mission is to accelerate the world’s adoption of Transparency.

Matt Murphy, CFA, CAIA Vice President | National ETF Sales Resolute Investment Managers, Inc. M. 214-918-3342 [email protected] Ryan Hodapp Vice President | Product Specialist, ARK Invest Resolute Investment Managers, Inc. M. 617.279.3571 [email protected] ARK Investment Management LLC St. Petersburg, FL

We create groundbreaking innovations, develop impact products and relentlessly pursue solutions to solve the world’s biggest problems through transparency. Our creative and diverse team has a massive transformative purpose to positively impact one billion lives.

Factsheet, prospectus, and latest performance reports are available for download on our website: ark-funds.com/investor-material

©2021, ARK Investment Management LLC. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of ARK Investment Management LLC (“ARK”). The information provided is for informational purposes only and is subject to change without notice. This presentation does not constitute, either explicitly or implicitly, any provision of services or products by ARK, and investors should determine for themselves whether a particular investment management service is suitable for their investment needs. All statements made regarding companies or securities are strictly beliefs and points of view held by ARK, and are not endorsements by ARK of any company or security or recommendations to buy, sell or hold any security. Historical results are not indications of future results. Certain of the statements contained in this presentation may be statements of future expectations and other forward-looking statements that are based on ARK's current views and assumptions, and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The matters discussed in this presentation may also involve risks and uncertainties described from time to time in ARK's filings with the U.S. Securities and Exchange Commission. ARK assumes no obligation to update any forward-looking information contained in this presentation. ARK and its clients as well as its related persons may (but do not necessarily) have financial interests in securities or issuers that are discussed. Certain information was obtained from sources that ARK believes to be reliable; however, ARK does not guarantee the accuracy or completeness of any information obtained from any third party.

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Disclosure

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus and summary prospectus, which may be obtained by visiting www.ark-funds.com. Please read the prospectus carefully before you invest. The principal risks of investing in ARK’s Index ETFs include equity, market, concentration and non- diversification risks, as well as fluctuations in market value and net asset value (“NAV”). The principal risks of investing in CTRU: Equity Securities Risk. The value of the equity securities the Fund holds may fall due to general market and economic conditions. Foreign Securities Risk. Investments in the securities of foreign issuers involve risks beyond those associated with investments in U.S. securities. Index Tracking Risk. The returns of the ETF may not match the returns of the underlying index that the ETF is designed to track. Consumer Discretionary Sector Risk. Companies in this sector may be adversely impacted by changes in domestic/international economies, exchange/interest rates, social trends and consumer preferences. Industrials Sector Risk. Companies in the industrials sector may be adversely affected by changes in government regulation, world events, economic conditions, environmental damages, product liability claims and exchange rates. Information Technology Sector Risk. Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. Detailed information regarding the specific risks of CTRU ETF can be found in the prospectus. Additional risks of investing in CTRU include equity, market, management and non-diversification risks, as well as fluctuations in market value and NAV. An investment in an ETF is subject to risks and you can lose money on your investment in an ETF. There can be no assurance that the ETF will achieve its investment objective. The ETF’s portfolio is more volatile than broad market averages. Shares of CTRU are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. ETF shares may only be redeemed directly with the ETF at NAV by Authorized Participants, in very large creation units. There can be no guarantee that an active trading market for ETF shares will develop or be maintained, or that their listing will continue or remain unchanged. Buying or selling ETF shares on an exchange may require the payment of brokerage commissions and frequent trading may incur brokerage costs that detract significantly from investment returns. Index Descriptions: The Transparency IndexTM is composed of equity securities and American Depositary Receipts (“ADRs”) traded on U.S. public securities exchanges that are considered the 100 most transparent companies in the world based on a proprietary scoring methodology provided by Transparency, LLC. Transparency, LLC has contracted with Solactive AG to maintain the Index rules and methodology, calculate the Index and disseminate information about the Index including the performance shown herein. Solactive does not manage actual assets. The Index is unmanaged, which means that the companies included in the Index are selected according to a proprietary algorithm of Transparency Invest that serves as the basis of the Index methodology. The Index is equal weighted, which means that the 100 companies included in the Index each represents approximately 1% of the Index – with variations due to market performance. Solactive rebalances the Index back to a 1% weight for each index constituent at the end of every quarter using the Index methodology explained herein. The S&P 500® Index is a widely recognized capitalization-weighted index that measures the performance of the largecapitalization sector of the U.S. stock market. The MSCI World Index represents large and mid-cap equity performance across 23 developed markets countries. Returns shown for the MSCI World Index are net of foreign withholding taxes applicable to U.S. investors. Securities in the ETF’s portfolio will not match those in any index. The ETF is benchmark agnostic and corresponding portfolios may have significant non-correlation to any index. Index returns are generally provided as an overall market indicator. You cannot invest directly in an index. Although reinvestment of dividend and interest payments is assumed, no expenses are netted against an index’s returns. Index performance information was furnished by sources deemed reliable and is believed to be accurate, however, no warranty or representation is made as to the accuracy thereof and the information is subject to correction.

ARK Investment Management LLC is the investment adviser to the ARK ETFs. Foreside Fund Services LLC, distributor. Not FDIC Insured — No Bank Guarantee — May Lose Value

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