ARK Invest Launches Its First Income Strategy, ARKY, Targeting 17.5% Income Through Its Innovation Equity Universe

Where Innovation Meets Income, ARK Presents a Compelling New Opportunity For Investors

ST. PETERSBURG, Fla., Aug. 19, 2026 /PRNewswire/ -- ARK Investment Management LLC ("ARK" or "ARK Invest"), an investment adviser focused solely on disruptive innovation, today announced the launch of the ARK Active Autocallable Income ETF (ARKY). ARKY is now trading on the Cboe BZX Exchange.

The ARK Active Autocallable Income ETF is designed to combine ARK's innovation-driven equity universe with a systematic volatility harvesting strategy seeking to deliver a high-yield income premium or payment stream based on the market price movements of the referenced equities in a single ETF structure. The strategy provides investors with:

• A target 17.5% coupon. ARKY targets one of the most compelling income profiles in the autocallable ETF category. The portfolio is actively managed to prioritize consistency of income delivery over headline yield, seeking to ensure that target coupon is realized in investors' accounts.*
• Actively managed. ARKY's sub-advisor, SCG Asset Management, calibrates strike levels, maturities, and payoff structures on a position-by-position basis as market conditions evolve, with the goal of minimizing net asset value (NAV) erosion and maintaining stable income generation over time.
• Built on ARK's innovation companies. Each position in the portfolio references a single stock from ARK's high-conviction innovation universe. Innovation stocks carry higher realized volatility than the broad market, and ARKY is structured to harvest that volatility and convert it into a consistent yield stream.
• Diversified across 25–50 single-stock autocallables. Each holding in ARKY features a 50 to 60% coupon barrier, isolating risk at the position level. A breach in any single underlying asset affects only that position while the remainder of the portfolio could continue generating income.
• The income profile of a structured note, in the simplicity of an ETF. ARKY delivers the autocallable payoff profile historically available only through bank-issued structured notes, in a daily-liquid ETF with 1099 tax reporting, no investment minimums, and no lock-up periods.

"As investor interest in autocallable ETFs continues to grow, we believe active management is critical," said Rahul Bhushan, ARK's Global Head of Investment Products. "ARKY is designed to provide risk-managed exposure to autocallable strategies within a transparent and liquid ETF structure. By using ARK's innovation-focused equity universe as underlying reference assets, the fund seeks to transform the return profile of those stocks into an income-oriented solution targeting a 20% annual income rate."

"Innovation has historically been viewed as a source of growth, not income. ARKY challenges that assumption," stated Cathie Wood, ARK's Founder, CIO. "We believe the volatility created by disruptive innovation is not simply a risk to be managed but an opportunity to be harvested. ARKY is designed to convert that volatility into a compelling income stream, opening innovation investing to an entirely new audience."

Why Now?
Fixed income has long been a staple in investor portfolios. Dividend strategies have attracted a wide range of investors for decades. Now, equity income products have grown into a $180 billion-plus market. ARKY sits at the intersection of two things that appeal to very different audiences: ARK's innovation equity universe and an income-generating autocallable structure, reaffirming ARK's mission to make disruptive innovation accessible to all. As investors seek new sources of income beyond traditional fixed income and dividend strategies, ARK believes elevated volatility across innovative growth companies creates a unique opportunity to generate attractive cash flow. ARKY was designed to capitalize on this market dynamic through an actively managed autocallable portfolio. For advisor inquiries, please contact your American Beacon sales representative. Retail investors can reach ARK directly at [email protected].

About ARK Invest

ARK Investment Management LLC is a federally registered investment adviser and privately held firm headquartered in St. Petersburg, Florida. Founded by Cathie Wood in 2014, ARK focuses solely on disruptive innovation, aiming to identify large-scale investment opportunities across artificial intelligence, robotics, energy storage, multiomic sequencing, blockchain technology, and beyond.

For more information about the ARK Active Autocallable Income ETF, visit www.ark-funds.com/funds/arky.

*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.

Important Information
Investors should carefully consider the investment objectives and risks as well as charges and expenses of an ARK ETF before investing. This and other information are contained in the ARK ETFs' prospectuses and summary prospectuses, which may be obtained by visiting www.ark-funds.com. The prospectus and summary prospectus should be read carefully before investing.

An investment in an ARK ETF is subject to risks and you can lose money on your investment in an ARK ETF. There can be no assurance that the ARK ETFs will achieve their investment objectives. The ARK ETFs' portfolios are more volatile than broad market averages. The ARK ETFs also have specific risks, which are described in the ARK ETFs' prospectuses.

The principal risks of investing in the ARK Active Autocallable Income ETF (ARKY) include: Derivatives Risk: The Fund's use of derivatives involves risks that may be greater than those associated with traditional investments, including market, leverage, liquidity, counterparty, and valuation risks. Changes in the value of an underlying asset may result in losses that exceed the Fund's initial investment. Derivatives may be difficult to value or exit, particularly during periods of market stress, and the Fund could experience losses if a counterparty fails to meet its obligations. Leverage Risk: The Fund's use of leverage may magnify gains and losses, increase volatility, and cause the Fund to liquidate investments at unfavorable times to meet its obligations. Liquidity Risk — Synthetic ELNs: There is no liquid secondary trading market for Synthetic ELNs. Terminating the Synthetic ELNs may require the payment of a premium or acceptance of a discounted price and may take longer to complete. These features may adversely impact the value of the Synthetic ELNs and the value of your investment. Equity Securities Risk – Synthetic ELNs: The Fund gains its investment exposure primarily through Synthetic ELNs that reference individual equity securities. The value of these Synthetic ELNs may decline due to market conditions, economic events, industry developments, company-specific factors, changes in interest rates, inflation, or investor sentiment affecting the underlying reference securities. Broad market declines may adversely affect the value of the Fund's investments and performance. SPAC Risk: The Fund's Synthetic ELNs may reference Special Purpose Acquisition Companies (SPACs). SPAC investments may be speculative and highly dependent on management's ability to complete and successfully execute a business combination. If a transaction is not completed or does not perform as expected, the value of the referenced SPAC securities, and therefore the Fund's Synthetic ELNs, may decline. Disruptive Innovation Risk: The Fund's Synthetic ELNs may reference companies pursuing disruptive technologies or business models. Such companies may fail to develop, commercialize, or profit from innovative technologies, may face significant competition or regulatory challenges, and may experience greater volatility than the broader market. The success of a disruptive innovation may not translate into improved financial performance or higher security values, which could adversely affect the Fund's performance. Additional risks of investing in ARKY include market, management and non-diversification risks as well as risks associated with the various sectors and industries in which the fund invests. Detailed information regarding the specific risks of the ARKY ETF can be found in the prospectus.

New Fund Risk. There can be no assurance that the Fund will grow to or maintain an economically viable size, in which case the Board may determine to liquidate the Fund if it determines that liquidation is in the best interest of shareholders. Liquidation of the Fund can be initiated without shareholder approval. As a result, the timing of the Fund's liquidation may not be favorable.

Shares of ARK ETFs 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.

ARK Investment Management, LLC is the investment adviser to the ARK ETFs.

Foreside Fund Services LLC, distributor.

Shaina Lamb
517.652.1296
[email protected]

SOURCE ARK Investment Management LLC