ARKW vs BAI
ARK Next Generation Technology ETF vs iShares AI Innovation and Tech Active ETF
Which is better, ARKW or BAI?
Each has led over a different period.
BAI has a lower expense ratio. ARKW led over the full window, BAI over 1Y.
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 | ARKW | BAI |
|---|---|---|
| Expense Ratio | 0.76% | 0.55%Best |
| AUM | $2.0B | $10.1B |
| Dividend Yield | 1.60% | 1.40% |
| Holdings | 86 | 114 |
| YTD Return | -2.35% | +12.00%Best |
| 1Y Return | -9.93% | +8.73%Best |
| 3Y Return (annualized) | +35.75% | - |
| 5Y Return (annualized) | -0.21% | - |
| Volatility (annualized) | 37.9%Best | 38.8% |
| Max Drawdown | -36.2%Best | -40.0% |
| $10,000 over 2.1 years | $17,123Best | $15,543 |
| Fund Family | Ark Invest | iShares by BlackRock (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Sep 30, 2014 | Oct 21, 2024 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 2.1 years row, are measured over the window both funds cover: Oct 22, 2024 to Nov 11, 2026 (2.1 years).
ARKW vs BAI 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 2.1 years both funds cover.
ARKW vs BAI Performance
ARK Next Generation Technology ETF (ARKW) is an ETF from Ark Invest and iShares AI Innovation and Tech Active ETF (BAI) is an ETF from iShares by BlackRock (US). Over the past year ARKW returned -9.93% while BAI returned +8.73%. Year to date, ARKW is down 2.35% versus a gain of 12.00% for BAI.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BAI has been the more volatile fund, with annualized monthly volatility of 38.8% compared with 37.9% for ARKW. 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 -36.2% for ARKW and -40.0% for BAI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ARKW charges 0.76% per year while BAI charges 0.55%. On a $10,000 position that is $76 vs $55 annually, a gap of $21 per year that compounds over a long holding period. On income, ARKW currently yields 1.60% against 1.40% for BAI.
Holdings Overlap
At least 33.3% of BAI's money is in holdings ARKW also owns.
Stated as a floor: for ARKW, our book for it covers 94.9% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
The two portfolios partly overlap.
11 positions in common, counted across the 39 positions we hold weights for in ARKW and 50 in BAI, against full books of 86 and 114.
Top Shared Holdings
| Stock | Weight in ARKW | Weight in BAI | Difference |
|---|---|---|---|
| NVDANvidia Corp | 4.19% | 5.45% | 1.26% |
| TSLATesla Inc | 7.42% | 1.01% | 6.41% |
| AMDAdvanced Micro Devices Inc | 2.96% | 5.39% | 2.43% |
| SPCXSpace Exploration Technologies | 3.73% | 3.33% | 0.40% |
| AVGOBroadcom Inc | 2.54% | 4.45% | 1.91% |
| 2330:TWTaiwan Semiconductor Manufacturing Co Ltd | 2.13% | 4.71% | 2.58% |
| AMZNAmazon.Com Inc | 4.22% | 2.02% | 2.20% |
| CRWVCoreweave Inc Common Equity | 3.74% | 1.37% | 2.37% |
| CRWDCrowdstrike Holdings Inc | 2.16% | 2.20% | 0.04% |
| SNOWSnowflake Inc | 1.00% | 3.04% | 2.04% |
33.3% of BAI is already inside ARKW.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, ARKW or BAI?
ARKW has an expense ratio of 0.76% while BAI charges 0.55%. BAI is the cheaper option, by $21 a year on a $10,000 investment.
Which performed better, ARKW or BAI?
Over the past year ARKW returned -9.93% vs +8.73% for BAI, so BAI leads on 1-year performance. Over the longest common window we track (2 years), ARKW annualized +29.19% vs +23.37% for BAI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ARKW or BAI?
BAI has been the more volatile fund at 38.8% annualized versus 37.9% for ARKW. Worst drawdown: ARKW -36.2% vs BAI -40.0%.
Should I hold both ARKW and BAI?
ARKW and BAI have a monthly-return correlation of 0.71, 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 ARKW and BAI?
At least 33.3% of BAI's money is in holdings ARKW also owns. Our book for ARKW is partial, so the real figure is this or higher. They hold 11 positions in common, counted across the 39 positions we hold weights for in ARKW and 50 in BAI.
Which pays a higher dividend, ARKW or BAI?
ARKW yields 1.60% while BAI yields 1.40%, so ARKW currently pays the higher dividend yield.
Is BAI better than ARKW?
BAI has a lower expense ratio. ARKW led over the full window, BAI over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.