Can you please add the Ark Innovation ETF (ARKK), CUSIP 00214Q 104
ARKK does not have a PRIIPs compliant KIID document which means for EU retail investors it is waaaay too dangerous according to MIFID II
edit: for a fun exercise you can try to find out who voted on behalf of you in EUP for such a legislation and which millionaires from EUC brought the suggestion for vote.
Cannot be added doesn’t comply with UK/EU regulations.
If I had penny for each time someone asks for non complaint ETF, I would be a rich person.
Yep, I agree. I would even go for a penny for each duplicated post for not using Search functionality.
Apologies for double posting. In this particular case copying the ETF is harder as it is active and holdings (can) change daily.
“Can” but “generally” don’t (that much)
The weightings change, yes. But that’s because of the price fluctuations of each component securities not moving in tandem… hence the fund size moves and the weighting % of each component security moves fractionally accordingly. Holding TSLA alone guarantees some wild valuation swings.
I’ve been auto monitoring ARKK for several weeks now and TSLA has only really moved in the 9%-10% weighting range.
Nothing to get truly worried about replicating down to the last fraction.
Since you can’t and won’t be able to buy this ETF anyway… what option do you have.
No need to apologise @DutchyJB just the amount of ETFs available to EU/UK investors are like less than 1% of US. And we pay a lot more management fees. I think people overreacted a bit.
To buy it elsewhere
For example IB, Lynx and CapTrader.
Something i do not understand, is how can some brokers offer these and others cannot ?
Can it be, that the reason is, that these are not initial offers, but only trades on the Open Market hence Exchange or OTC ?
Otherwise Berkshire or similar companies would also have to comply with the EU regulations…
Maybe someone can enlighten us…
Try and buy them (as Shares/Equity NOT CFDs) and see what happens…
Only place I know as a European you’re able to buy the actual shares and not a derivative position based on it is Stake … if your account balance is greater than $30k
Regulations are borderline dumb and illogical, I agree but you’re not truly comparing apples with apples. Brokers simply can not choose to comply or not.
I dont have to try…i have several ARK ETF’s in my CAP Trader account
So it works…
yes my acct is over 30k…
And how come i can buy all US ETF’s on IB, Lynx and CAP ? Also ARK !
can u explain that ?
He cannot as what you are describing is against EU law.
TLDR: I don’t know what you are trying to prove here. It is illegal within EU to sell these to retail investors.
We don’t like it either but law is clear. Retail investors cannot buy any packaged products without a PRIIPs compliant KIID inside UK & EU.
If you are really buying these as I haven’t used any of those platforms.
a- you are using a foreign trading platform
b- the trading platform you use, is disclosing you as a “non-retail” trader. (as in you are trading company or trading is your profession)
Gaining non-retail status is not as simple as having X amount of money (although 30K is a very low limit) There are several conditions and it will affect your tax status (at least in the UK) Even if you meet all the conditions it is still discretionary and up to your broker to grant you that. I am pasting an excerpt at the bottom of this post.
I can imagine some retailer blanket granting this option to all their customers above X amount of investment (because MIFID II is full of grey areas for interpretation) but I am almost certain this will have legal ramifications.
What is a retail investor?
The definition of “retail investor” encompasses anyone who is not a professional client as defined in MiFID2. Under MiFID, investors that are not automatically considered “per se professional clients” must meet certain requirements set out in two tests (a qualitative test and a quantitative test) in order to elect to be able to be treated as “elective professional clients”, and not as retail investors. Under MiFID II (which comes into force on 3 January 2018) local government pension schemes must be treated as retail investors unless they can be “opted up” to an elective professional client.
The qualitative test
UK Managers will be familiar with the qualitative test as this is the test used by them under the UK rules to “opt up” their executives and “friends and family” to elective professional client status. This is the only “opt up” test which needs to be met in such circumstances because operating a private equity or venture capital fund is non-MiFID business under the UK’s FCA rules. Under the qualitative test, the Manager must undertake an adequate assessment of the expertise, experience and knowledge of the individual that gives reasonable assurance, in light of the nature of the transactions or services envisaged, that the individual is capable of making his / her own investment decisions and understanding the risks involved. Certain disclosures must also be provided. It is generally a fairly straightforward test for a Manager to operate.
The quantitative test
For the purposes of the Regulation (which follows the MiFID tests), the qualitative test alone is not enough. Investors must also meet a more onerous quantitative test, by satisfying at least two of the following criteria:
- the investor has carried out transactions, in significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters (very few, if any, investors in private equity and venture capital funds will be investing in 40 funds per annum) ;
- the size of the investor’s financial instrument portfolio, cash deposits and financial instruments, exceeds €500,000 (a number of investors will likely meet this test) ; and
- the investor works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged (this test will likely be met by some of the Manager’s investment staff but friends, family, high-net-worth investors and sophisticated investors will not necessarily have worked in the private equity or venture capital industry) .
The FCA is implementing a different, more tailored, quantitative test for local government pension schemes which, it is expected, the larger local government pension schemes will be able to meet. This is as follows:
- the size of the investor’s financial instrument portfolio, cash deposits and financial instruments, exceeds £10m; and
- the investor has carried out transactions, in significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters; or
- the person authorised to carry out the transaction on behalf of the investor works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the provision of services envisaged; or
- the investor as an “administering authority” of the Local Government Pension Scheme (in accordance with the relevant regulations) is acting in that capacity.
As it can be hard to meet the quantitative test, a number of investors in private equity and venture capital funds previously treated as “professional clients” (including smaller local government pension schemes) will likely be considered retail investors for the purposes of the Regulation. As such, Managers may well be in the position of marketing to investors that meet the qualitative test and can therefore be considered “elective professional clients” for the purposes of being eligible to invest in the fund under current FCA rules, but that nonetheless will be considered retail investors for the purposes of the Regulation because they do not meet the quantitative test.
nothing, only pointing out, that there are ways to get those US ETF’s and also CEF and MLP’s.
Interestingly enough not even all the big banks are blacklisting the same ones…for example, Consors and Comdirect have differences…so there seem to be loopholes.
Nevermind, everyone can do what he wants, where he wants…not forcing you to do anything. Have only pointed out to @DutchyJB where he can get ARK
and now I’m out of here…
I refer you to what my esteemed and rational colleagues wrote above. ^
Your account is over the threshold to re classified as non-retail
I too hold ARKK in my Stake account (ie. so I know it’s possible…but thanks for pointing that out… oh, wait, no, I pointed that out already)
But I thank you for the inference that I am somehow wrong… when, in fact, all information was provided and you’ve simply confirmed. Thank you for your positive and informative input in to the debate.
Yeah, I just made a pie with the ARKK holdings that are higher in their table, plus a few stocks I wanted in there personally, (EXPI, APPS, STNE). And I adjusted Tesla so it had a higher %.
I did the same with ARKG, the large majority are available on Trading 212.
Just check Ark Invest website every so often to see how they change. I’ve kept an eye on them, things don’t change drastically.
Exactly… don’t sweat the fractional movements… they occur as the fund grows and the prices of underlying fluctuate. Your approach is entirely logical.
When I saw this thread crop up again I thought it was a new request to ‘add ARKK to T212’
I was thinking of doing this with the top 10 holdings adjusted weighted but couldn’t as Proto Labs Inc (PRLB) isn’t available. It is currently 3.65% of ARKK.
PSNL (3.54%) is not available - ARKG
How did you manage to get these done?
You’ll just have to do without (PRLB).
Tbh them and other 3D printing companies probably won’t be shooting to the moon any time soon. I’d just replace with EXPI. I’m not an expert and there’s probably a reason Ark didn’t add them to the ETF but they’ve done extremely well the last few months and they seem to be a similar company to Zillow if I’m not mistaken.
Also, take a look at SKIN, GRWG, SE (invest account). Your pie doesn’t have to match ARKK stock for stock. One or two you want to add won’t ruin anything.
4% of mine is SPCE. It isn’t doing great ATM but I’m still up 10% overall and I only made the pie the other week.
If you only want ARKK stocks though then pick the ones available and adjust the % as best you can.
It’s spread to the Freetrade forum now …