Shopify Inc. advances fell after the Canadian software maker reported better-than-expected earnings, dragging ARK Investment Management's ETF pair, its largest shareholder, behind it.
The shares of the company, which are included in 73 exchange funds, fell by 5.5% as of noon. It has grown by 75% so far this year.
Meanwhile, the ARK FinTech Innovation ( ARKF ) ETF by Cathy Woods was down about 1%. This fund's 10% Shopify allocation is the largest of any ETF. This year it has increased by 67%. ARK's other fund, the ARK Innovation ETF ( ARKK ) , holds the most shares of Shopify, with 5.6 million shares. This fund is down 1.2% today. According to Cathy's Arc, Shopify is the 10th largest holding of the $62.4 million ETF.
Shopify, whose software is used by stores and online stores for payments and other services, reported sales and earnings yesterday that beat analysts' estimates. The company also said it expects revenue growth of about 20%, including the sale of its logistics business.
Shopify has approximately 15.4 million shares in the US ETF market. US ETFs hold 1.76% of SHOP in their portfolios, according to etf.com.
Additionally, SHOP stocks are a favorite among active and vanilla ETFs. It probably belongs in a broad-based ETF. The top ETF with SHOP as a holding over the past 12 months is the Fidelity Crypto Industry and Digital Payments (FDIG) ETF , which has returned 46%.
Confluent Inc., whose streaming services range from BMW to Citigroup Inc. and eBay Inc. Use in corporates also helped boost ETF prices on Thursday. The company's shares rose 15% after second-quarter earnings beat analysts' estimates.
The Confluent ETF's largest holding by allocation is the Spear Alpha ETF (SPRX) . This fund provided a 4.1% stake in Confluent worth $509. This ETF is up less than 1% today. The First Trust Dow Jones Internet Index Fund (FDN) is the largest company by value at approximately $66 million.
Contact Ron Day at ron.day@etf.com or follow him on Twitter at @RonDayETF.
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