ARKK vs VYM
ARK Innovation ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | ARKK | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.04% | |
| AUM | $5.6B | $81.6B | |
| Dividend Yield | 0.00% | 2.24% | |
| Holdings | 48 | 616 | |
| YTD Return | +3.56% | +16.42% | |
| 1Y Return | +5.26% | +24.22% | |
| 3Y Return (annualized) | +24.37% | +19.03% | |
| 5Y Return (annualized) | -6.92% | +12.21% | |
| Volatility (annualized) | 36.0% | 14.6% | |
| Max Drawdown | -80.9% | -58.8% | |
| Fund Family | Ark Invest | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 31, 2014 | Nov 10, 2006 |
ARKK vs VYM Performance
ARK Innovation ETF (ARKK) is a ETF from Ark Invest and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ARKK returned +5.26% while VYM returned +24.22%. Year to date, ARKK is up 3.56% versus a gain of 16.42% for VYM.
Over three years, ARKK compounded at +24.37% per year against +19.03% for VYM; over five years the annualized figures are -6.92% and +12.21% respectively. Across the full 12-year window we track, ARKK has the edge at +13.43% annualized vs +7.10%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ARKK charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, ARKK currently yields 0.00% against 2.24% for VYM.
Holdings Overlap
ARKK and VYM share 1 holdings out of 647 unique holdings combined, representing a 1.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in ARKK | Weight in VYM | Difference |
|---|---|---|---|
| AVGO | 1.21% | 7.29% | 6.08% |
Frequently Asked Questions
Which is cheaper, ARKK or VYM?
ARKK has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, ARKK or VYM?
Over the past year ARKK returned +5.26% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), ARKK annualized +13.43% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, ARKK or VYM?
ARKK has been the more volatile fund at 36.0% annualized versus 14.6% for VYM. Worst drawdown: ARKK -80.9% vs VYM -58.8%.
Should I hold both ARKK and VYM?
ARKK and VYM have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ARKK and VYM?
ARKK and VYM share 1 common holdings with a 1.2% weight overlap. Combined, they hold 647 unique securities.
Which pays a higher dividend, ARKK or VYM?
ARKK yields 0.00% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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