ARKG vs FAAR
ARK Genomic Revolution ETF vs First Trust Alternative Absolute Return Strategy ETF
Quick Verdict
ARKG has a lower expense ratio. ARKG delivered stronger 1-year returns. ARKG offers more diversification with 31 holdings.
Side-by-Side Comparison
| Metric | ARKG | FAAR | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.97% | |
| AUM | $1.6B | $191M | |
| Dividend Yield | 0.00% | 9.19% | |
| Holdings | 33 | 6 | |
| YTD Return | +47.50% | +13.94% | |
| 1Y Return | +84.80% | +19.26% | |
| 3Y Return (annualized) | +9.13% | +8.78% | |
| 5Y Return (annualized) | -13.10% | +7.33% | |
| Volatility (annualized) | 36.3% | 9.2% | |
| Max Drawdown | -83.6% | -18.8% | |
| Fund Family | Ark Invest | First Trust Portfolios (US) | |
| Category | Equity | Commodity | |
| Inception | Oct 31, 2014 | May 18, 2016 |
ARKG vs FAAR Performance
ARK Genomic Revolution ETF (ARKG) is a ETF from Ark Invest and First Trust Alternative Absolute Return Strategy ETF (FAAR) is a ETF from First Trust Portfolios (US). Over the past year ARKG returned +84.80% while FAAR returned +19.26%. Year to date, ARKG is up 47.50% versus a gain of 13.94% for FAAR.
Over three years, ARKG compounded at +9.13% per year against +8.78% for FAAR; over five years the annualized figures are -13.10% and +7.33% respectively. Across the full 10-year window we track, ARKG has the edge at +7.65% annualized vs +3.32%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ARKG has been the more volatile fund, with annualized monthly volatility of 36.3% compared with 9.2% for FAAR. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -83.6% for ARKG and -18.8% for FAAR. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at -0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ARKG charges 0.75% per year while FAAR charges 0.97%. On a $10,000 position that is $75 vs $97 annually, a gap of $22 per year that compounds over a long holding period. On income, ARKG currently yields 0.00% against 9.19% for FAAR.
Holdings Overlap
ARKG and FAAR share 0 holdings out of 32 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ARKG or FAAR?
ARKG has an expense ratio of 0.75% while FAAR charges 0.97%. ARKG is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, ARKG or FAAR?
Over the past year ARKG returned +84.80% vs +19.26% for FAAR, so ARKG leads on 1-year performance. Over the longest common window we track (10 years), ARKG annualized +7.65% vs +3.32% for FAAR. Past performance does not guarantee future results.
Which is riskier, ARKG or FAAR?
ARKG has been the more volatile fund at 36.3% annualized versus 9.2% for FAAR. Worst drawdown: ARKG -83.6% vs FAAR -18.8%.
Should I hold both ARKG and FAAR?
ARKG and FAAR have a monthly-return correlation of -0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ARKG and FAAR?
ARKG and FAAR share 0 common holdings with a 0.0% weight overlap. Combined, they hold 32 unique securities.
Which pays a higher dividend, ARKG or FAAR?
ARKG yields 0.00% while FAAR yields 9.19%, so FAAR currently pays the higher dividend yield.
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