ARKK vs VOO
ARK Innovation ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | ARKK | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.03% | |
| AUM | $5.6B | $997.4B | |
| Dividend Yield | 0.00% | 1.08% | |
| Holdings | 48 | 509 | |
| YTD Return | +3.56% | +14.27% | |
| 1Y Return | +5.26% | +21.79% | |
| 3Y Return (annualized) | +24.37% | +22.19% | |
| 5Y Return (annualized) | -6.92% | +13.28% | |
| Volatility (annualized) | 36.0% | 14.2% | |
| Max Drawdown | -80.9% | -34.3% | |
| Fund Family | Ark Invest | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 31, 2014 | Sep 7, 2010 |
ARKK vs VOO Performance
ARK Innovation ETF (ARKK) is a ETF from Ark Invest and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year ARKK returned +5.26% while VOO returned +21.79%. Year to date, ARKK is up 3.56% versus a gain of 14.27% for VOO.
Over three years, ARKK compounded at +24.37% per year against +22.19% for VOO; over five years the annualized figures are -6.92% and +13.28% respectively. Across the full 12-year window we track, VOO has the edge at +13.59% annualized vs +13.43%. 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 14.2% for VOO. 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 -34.3% for VOO. 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 VOO charges 0.03%. On a $10,000 position that is $75 vs $3 annually, a gap of $72 per year that compounds over a long holding period. On income, ARKK currently yields 0.00% against 1.08% for VOO.
Holdings Overlap
ARKK and VOO share 15 holdings out of 535 unique holdings combined, representing a 14.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ARKK or VOO?
ARKK has an expense ratio of 0.75% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $72 per year of difference.
Which performed better, ARKK or VOO?
Over the past year ARKK returned +5.26% vs +21.79% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (12 years), ARKK annualized +13.43% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, ARKK or VOO?
ARKK has been the more volatile fund at 36.0% annualized versus 14.2% for VOO. Worst drawdown: ARKK -80.9% vs VOO -34.3%.
Should I hold both ARKK and VOO?
ARKK and VOO 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 VOO?
ARKK and VOO share 15 common holdings with a 14.2% weight overlap. Combined, they hold 535 unique securities.
Which pays a higher dividend, ARKK or VOO?
ARKK yields 0.00% while VOO yields 1.08%, so VOO currently pays the higher dividend yield.
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