ARKW vs QQQ
ARK Next Generation Internet ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | ARKW | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.18% | |
| AUM | $1.6B | $496.3B | |
| Dividend Yield | 1.72% | 0.44% | |
| Holdings | 44 | 108 | |
| YTD Return | +1.52% | +16.23% | |
| 1Y Return | +0.07% | +26.23% | |
| 3Y Return (annualized) | +40.67% | +25.75% | |
| 5Y Return (annualized) | +1.67% | +14.78% | |
| Volatility (annualized) | 33.7% | 30.6% | |
| Max Drawdown | -80.0% | -83.0% | |
| Fund Family | Ark Invest | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 30, 2014 | Mar 10, 1999 |
ARKW vs QQQ Performance
ARK Next Generation Internet ETF (ARKW) is a ETF from Ark Invest and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ARKW returned +0.07% while QQQ returned +26.23%. Year to date, ARKW is up 1.52% versus a gain of 16.23% for QQQ.
Over three years, ARKW compounded at +40.67% per year against +25.75% for QQQ; over five years the annualized figures are +1.67% and +14.78% respectively. Across the full 12-year window we track, ARKW has the edge at +20.99% annualized vs +13.02%. 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 30.6% 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 -83.0% for QQQ. 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 0.81. 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 1.72% against 0.44% for QQQ.
Holdings Overlap
ARKW and QQQ share 18 holdings out of 125 unique holdings combined, representing a 26.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $58 per year of difference.
Which performed better, ARKW or QQQ?
Over the past year ARKW returned +0.07% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), ARKW annualized +20.99% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, ARKW or QQQ?
ARKW has been the more volatile fund at 33.7% annualized versus 30.6% for QQQ. Worst drawdown: ARKW -80.0% vs QQQ -83.0%.
Should I hold both ARKW and QQQ?
ARKW and QQQ have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ARKW and QQQ?
ARKW and QQQ share 18 common holdings with a 26.8% weight overlap. Combined, they hold 125 unique securities.
Which pays a higher dividend, ARKW or QQQ?
ARKW yields 1.72% while QQQ yields 0.44%, so ARKW currently pays the higher dividend yield.
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