ARKK vs QQQ
ARK Innovation ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | ARKK | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.18% | |
| AUM | $5.6B | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 48 | 108 | |
| YTD Return | +3.56% | +19.52% | |
| 1Y Return | +5.26% | +26.68% | |
| 3Y Return (annualized) | +24.37% | +26.64% | |
| 5Y Return (annualized) | -6.92% | +15.36% | |
| Volatility (annualized) | 36.0% | 30.6% | |
| Max Drawdown | -80.9% | -83.0% | |
| Fund Family | Ark Invest | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 31, 2014 | Mar 10, 1999 |
ARKK vs QQQ Performance
ARK Innovation ETF (ARKK) is a ETF from Ark Invest and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ARKK returned +5.26% while QQQ returned +26.68%. Year to date, ARKK is up 3.56% versus a gain of 19.52% for QQQ.
Over three years, ARKK compounded at +24.37% per year against +26.64% for QQQ; over five years the annualized figures are -6.92% and +15.36% respectively. Across the full 12-year window we track, ARKK has the edge at +13.43% annualized vs +13.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ARKK has been the more volatile fund, with annualized monthly volatility of 36.0% compared with 30.6% for QQQ. 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 -80.9% for ARKK and -83.0% for QQQ. 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ARKK charges 0.75% per year while QQQ charges 0.18%. On a $10,000 position that is $75 vs $18 annually, a gap of $57 per year that compounds over a long holding period. On income, ARKK currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
ARKK and QQQ share 13 holdings out of 134 unique holdings combined, representing a 19.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ARKK or QQQ?
ARKK has an expense ratio of 0.75% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, ARKK or QQQ?
Over the past year ARKK returned +5.26% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), ARKK annualized +13.43% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, ARKK or QQQ?
ARKK has been the more volatile fund at 36.0% annualized versus 30.6% for QQQ. Worst drawdown: ARKK -80.9% vs QQQ -83.0%.
Should I hold both ARKK and QQQ?
ARKK and QQQ have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ARKK and QQQ?
ARKK and QQQ share 13 common holdings with a 19.0% weight overlap. Combined, they hold 134 unique securities.
Which pays a higher dividend, ARKK or QQQ?
ARKK yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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