ARKW vs VYM
ARK Next Generation Internet 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 | ARKW | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.04% | |
| AUM | $1.6B | $81.6B | |
| Dividend Yield | 1.72% | 2.24% | |
| Holdings | 44 | 616 | |
| YTD Return | +2.17% | +16.42% | |
| 1Y Return | -3.32% | +24.22% | |
| 3Y Return (annualized) | +39.28% | +19.03% | |
| 5Y Return (annualized) | +1.74% | +12.21% | |
| Volatility (annualized) | 33.7% | 14.6% | |
| Max Drawdown | -80.0% | -58.8% | |
| Fund Family | Ark Invest | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 30, 2014 | Nov 10, 2006 |
ARKW vs VYM Performance
ARK Next Generation Internet ETF (ARKW) is a ETF from Ark Invest and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ARKW returned -3.32% while VYM returned +24.22%. Year to date, ARKW is up 2.17% versus a gain of 16.42% for VYM.
Over three years, ARKW compounded at +39.28% per year against +19.03% for VYM; over five years the annualized figures are +1.74% and +12.21% respectively. Across the full 12-year window we track, ARKW has the edge at +21.09% annualized vs +7.10%. 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 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 -80.0% for ARKW 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ARKW charges 0.76% per year while VYM charges 0.04%. On a $10,000 position that is $76 vs $4 annually, a gap of $72 per year that compounds over a long holding period. On income, ARKW currently yields 1.72% against 2.24% for VYM.
Holdings Overlap
ARKW and VYM share 1 holdings out of 643 unique holdings combined, representing a 2.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in ARKW | Weight in VYM | Difference |
|---|---|---|---|
| AVGO | 2.26% | 7.29% | 5.03% |
Frequently Asked Questions
Which is cheaper, ARKW or VYM?
ARKW has an expense ratio of 0.76% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $72 per year of difference.
Which performed better, ARKW or VYM?
Over the past year ARKW returned -3.32% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), ARKW annualized +21.09% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, ARKW or VYM?
ARKW has been the more volatile fund at 33.7% annualized versus 14.6% for VYM. Worst drawdown: ARKW -80.0% vs VYM -58.8%.
Should I hold both ARKW and VYM?
ARKW and VYM have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ARKW and VYM?
ARKW and VYM share 1 common holdings with a 2.3% weight overlap. Combined, they hold 643 unique securities.
Which pays a higher dividend, ARKW or VYM?
ARKW yields 1.72% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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