ARKK vs QQQ
ARK Innovation ETF vs Invesco QQQ Trust, Series 1
Which is better, ARKK or QQQ?
Each has led over a different period.
QQQ has a lower expense ratio. ARKK led over 3Y, QQQ over 1Y, 5Y and the full window. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 50.9%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | ARKK | QQQ |
|---|---|---|
| Expense Ratio | 0.75% | 0.18%Best |
| AUM | $5.6B | $498.6B |
| Dividend Yield | 0.00% | 0.42% |
| Holdings | 84 | 321 |
| YTD Return | +14.71% | +22.67%Best |
| 1Y Return | +0.68% | +24.33%Best |
| 3Y Return (annualized) | +33.27%Best | +29.05% |
| 5Y Return (annualized) | -3.32% | +17.00%Best |
| Volatility (annualized) | 35.9% | 18.5%Best |
| Max Drawdown | -80.9% | -35.1%Best |
| $10,000 over 5 years | $8,447 | $21,924Best |
| Top 10 Weight | 50.9% | 47.2%Best |
| Fund Family | Ark Invest | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Oct 31, 2014 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Oct 31, 2014 to Oct 2, 2026 (11.9 years).
ARKK vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 11.9 years both funds cover.
ARKK vs QQQ Performance
ARK Innovation ETF (ARKK) is an ETF from Ark Invest and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year ARKK returned +0.68% while QQQ returned +24.33%. Year to date, ARKK is up 14.71% versus a gain of 22.67% for QQQ.
Over three years, ARKK compounded at +33.27% per year against +29.05% for QQQ; over five years the annualized figures are -3.32% and +17.00% respectively. Across the full 12-year window we track, QQQ has the edge at +18.60% annualized vs +14.25%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ARKK has been the more volatile fund, with annualized monthly volatility of 35.9% compared with 18.5% 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 -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.79. 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 0.42% for QQQ.
Holdings Overlap
39.6% of ARKK's money is in holdings QQQ also owns. 35.6% of QQQ's money is in holdings ARKK also owns.
The two portfolios partly overlap.
14 positions in common, counted across the 42 positions we hold weights for in ARKK and 102 in QQQ, against full books of 84 and 321.
What only one of them owns
Our book lists 83 positions for QQQ that do not appear in our book for ARKK (62.8% of the fund), and 25 for ARKK that do not appear in QQQ (53.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in ARKK | Weight in QQQ | Difference |
|---|---|---|---|
| TSLATesla Inc | 9.11% | 2.92% | 6.19% |
| NVDANvidia Corp | 2.99% | 8.45% | 5.46% |
| SPCXSpace Exploration Technologies | 6.56% | 1.28% | 5.28% |
| AMDAdvanced Micro Devices Inc | 3.35% | 3.71% | 0.36% |
| AMZNAmazon.Com Inc | 2.60% | 4.41% | 1.81% |
| METAMeta Platforms Inc | 2.48% | 3.07% | 0.59% |
| AVGOBroadcom Inc | 1.69% | 2.74% | 1.05% |
| GOOGAlphabet Inc. C | 1.49% | 2.93% | 1.44% |
| PLTRPalantir Technologies Inc | 2.21% | 1.69% | 0.52% |
| SHOP:CAShopify Inc. Cl A | 2.72% | 0.69% | 2.03% |
39.6% of ARKK is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $57 a year on a $10,000 investment.
Which performed better, ARKK or QQQ?
Over the past year ARKK returned +0.68% vs +24.33% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), ARKK annualized +14.25% vs +18.60% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ARKK or QQQ?
ARKK has been the more volatile fund at 35.9% annualized versus 18.5% for QQQ. Worst drawdown: ARKK -80.9% vs QQQ -35.1%.
Should I hold both ARKK and QQQ?
ARKK and QQQ have a monthly-return correlation of 0.79, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between ARKK and QQQ?
39.6% of ARKK's money is in holdings QQQ also owns. 35.6% of QQQ's is in holdings ARKK also owns. They hold 14 positions in common, counted across the 42 positions we hold weights for in ARKK and 102 in QQQ.
Which pays a higher dividend, ARKK or QQQ?
ARKK yields 0.00% while QQQ yields 0.42%, so QQQ currently pays the higher dividend yield.
Is QQQ better than ARKK?
QQQ has a lower expense ratio. ARKK led over 3Y, QQQ over 1Y, 5Y and the full window. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 50.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.