ARKW vs QQQ
ARK Next Generation Internet ETF vs Invesco QQQ Trust, Series 1
Which is better, ARKW or QQQ?
Each has led over a different period.
QQQ has a lower expense ratio. ARKW led over 3Y and the full window, QQQ over 1Y and 5Y. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 48.0%.
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 | QQQ |
|---|---|---|
| Expense Ratio | 0.76% | 0.18%Best |
| AUM | $1.6B | $483.5B |
| Dividend Yield | 1.49% | 0.44% |
| Holdings | 44 | 107 |
| YTD Return | +4.27% | +16.87%Best |
| 1Y Return | -2.52% | +22.98%Best |
| 3Y Return (annualized) | +38.95%Best | +24.98% |
| 5Y Return (annualized) | +1.94% | +14.39%Best |
| Volatility (annualized) | 33.7% | 18.5%Best |
| Max Drawdown | -80.0% | -35.1%Best |
| $10,000 over 5 years | $11,008 | $19,586Best |
| Top 10 Weight | 48.0% | 46.5%Best |
| Fund Family | Ark Invest | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Sep 30, 2014 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Sep 30, 2014 to Sep 11, 2026 (11.9 years).
ARKW 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.
ARKW vs QQQ Performance
ARK Next Generation Internet ETF (ARKW) is an ETF from Ark Invest and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year ARKW returned -2.52% while QQQ returned +22.98%. Year to date, ARKW is up 4.27% versus a gain of 16.87% for QQQ.
Over three years, ARKW compounded at +38.95% per year against +24.98% for QQQ; over five years the annualized figures are +1.94% and +14.39% respectively. Across the full 12-year window we track, ARKW has the edge at +21.14% annualized vs +18.34%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ARKW has been the more volatile fund, with annualized monthly volatility of 33.7% 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 -80.0% for ARKW 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ARKW charges 0.76% per year while QQQ charges 0.18%. On a $10,000 position that is $76 vs $18 annually, a gap of $58 per year that compounds over a long holding period. On income, ARKW currently yields 1.49% against 0.44% for QQQ.
Holdings Overlap
54.4% of ARKW's money is in holdings QQQ also owns. 38.8% of QQQ's money is in holdings ARKW also owns.
The two portfolios partly overlap.
18 positions in common, counted across the 41 positions we hold weights for in ARKW and 102 in QQQ, against full books of 44 and 107.
What only one of them owns
Our book lists 78 positions for QQQ that do not appear in our book for ARKW (59.0% of the fund), and 19 for ARKW that do not appear in QQQ (40.4%).
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 ARKW | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 2.31% | 8.44% | 6.13% |
| AMDAdvanced Micro Devices Inc. | 7.00% | 3.45% | 3.55% |
| TSLATesla Inc | 7.36% | 2.56% | 4.80% |
| AMZNAmazon.Com Inc | 4.01% | 4.67% | 0.66% |
| GOOGAlphabet Inc | 3.51% | 3.13% | 0.38% |
| SHOP:CAShopify Inc. | 4.71% | 0.77% | 3.94% |
| METAMeta Platforms, Inc. | 2.68% | 2.78% | 0.10% |
| AVGOBroadcom Inc | 2.05% | 3.16% | 1.11% |
| SPCXSpace Exploration Technologies | 4.12% | 0.91% | 3.21% |
| PLTRPalantir Technologies Inc | 3.10% | 1.60% | 1.50% |
54.4% of ARKW 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, ARKW or QQQ?
ARKW has an expense ratio of 0.76% while QQQ charges 0.18%. QQQ is the cheaper option, by $58 a year on a $10,000 investment.
Which performed better, ARKW or QQQ?
Over the past year ARKW returned -2.52% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), ARKW annualized +21.14% vs +18.34% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ARKW or QQQ?
ARKW has been the more volatile fund at 33.7% annualized versus 18.5% for QQQ. Worst drawdown: ARKW -80.0% vs QQQ -35.1%.
Should I hold both ARKW and QQQ?
ARKW and QQQ have a monthly-return correlation of 0.81, 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 QQQ?
54.4% of ARKW's money is in holdings QQQ also owns. 38.8% of QQQ's is in holdings ARKW also owns. They hold 18 positions in common, counted across the 41 positions we hold weights for in ARKW and 102 in QQQ.
Which pays a higher dividend, ARKW or QQQ?
ARKW yields 1.49% while QQQ yields 0.44%, so ARKW currently pays the higher dividend yield.
Is QQQ better than ARKW?
QQQ has a lower expense ratio. ARKW led over 3Y and the full window, QQQ over 1Y and 5Y. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 48.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.