ARKK vs SPY
ARK Innovation ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | ARKK | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.09% | |
| AUM | $5.6B | $821.1B | |
| Dividend Yield | 0.00% | 1.01% | |
| Holdings | 48 | 505 | |
| YTD Return | +6.38% | +13.17% | |
| 1Y Return | +12.54% | +21.53% | |
| 3Y Return (annualized) | +26.60% | +22.06% | |
| 5Y Return (annualized) | -5.90% | +13.35% | |
| Volatility (annualized) | 36.1% | 15.3% | |
| Max Drawdown | -80.9% | -56.5% | |
| Fund Family | Ark Invest | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Oct 31, 2014 | Jan 22, 1993 |
ARKK vs SPY Performance
ARK Innovation ETF (ARKK) is a ETF from Ark Invest and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year ARKK returned +12.54% while SPY returned +21.53%. Year to date, ARKK is up 6.38% versus a gain of 13.17% for SPY.
Over three years, ARKK compounded at +26.60% per year against +22.06% for SPY; over five years the annualized figures are -5.90% and +13.35% respectively. Across the full 12-year window we track, ARKK has the edge at +13.68% annualized vs +8.82%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ARKK has been the more volatile fund, with annualized monthly volatility of 36.1% compared with 15.3% for SPY. 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 -56.5% for SPY. 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ARKK charges 0.75% per year while SPY charges 0.09%. On a $10,000 position that is $75 vs $9 annually, a gap of $66 per year that compounds over a long holding period. On income, ARKK currently yields 0.00% against 1.01% for SPY.
Holdings Overlap
ARKK and SPY share 15 holdings out of 534 unique holdings combined, representing a 13.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ARKK or SPY?
ARKK has an expense ratio of 0.75% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, ARKK or SPY?
Over the past year ARKK returned +12.54% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (12 years), ARKK annualized +13.68% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, ARKK or SPY?
ARKK has been the more volatile fund at 36.1% annualized versus 15.3% for SPY. Worst drawdown: ARKK -80.9% vs SPY -56.5%.
Should I hold both ARKK and SPY?
ARKK and SPY have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ARKK and SPY?
ARKK and SPY share 15 common holdings with a 13.6% weight overlap. Combined, they hold 534 unique securities.
Which pays a higher dividend, ARKK or SPY?
ARKK yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.