ARKX vs QQQ
ARK Space & Defense Innovation ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. ARKX delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | ARKX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.18% | |
| AUM | $760M | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 37 | 108 | |
| YTD Return | +9.66% | +16.23% | |
| 1Y Return | +29.30% | +26.23% | |
| 3Y Return (annualized) | +32.45% | +25.75% | |
| 5Y Return (annualized) | +10.67% | +14.78% | |
| Volatility (annualized) | 27.9% | 30.6% | |
| Max Drawdown | -43.6% | -83.0% | |
| Fund Family | Ark Invest | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 30, 2021 | Mar 10, 1999 |
ARKX vs QQQ Performance
ARK Space & Defense Innovation ETF (ARKX) is a ETF from Ark Invest and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ARKX returned +29.30% while QQQ returned +26.23%. Year to date, ARKX is up 9.66% versus a gain of 16.23% for QQQ.
Over three years, ARKX compounded at +32.45% per year against +25.75% for QQQ; over five years the annualized figures are +10.67% and +14.78% respectively. Across the full 5-year window we track, QQQ has the edge at +13.02% annualized vs +9.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 27.9% for ARKX. 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 -43.6% for ARKX 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ARKX charges 0.75% per year while QQQ charges 0.18%. On a $10,000 position that is $75 vs $18 annually, a gap of $57 per year that compounds over a long holding period. On income, ARKX currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
ARKX and QQQ share 14 holdings out of 124 unique holdings combined, representing a 21.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ARKX or QQQ?
ARKX has an expense ratio of 0.75% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, ARKX or QQQ?
Over the past year ARKX returned +29.30% vs +26.23% for QQQ, so ARKX leads on 1-year performance. Over the longest common window we track (5 years), ARKX annualized +9.38% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, ARKX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 27.9% for ARKX. Worst drawdown: ARKX -43.6% vs QQQ -83.0%.
Should I hold both ARKX and QQQ?
ARKX and QQQ have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ARKX and QQQ?
ARKX and QQQ share 14 common holdings with a 21.2% weight overlap. Combined, they hold 124 unique securities.
Which pays a higher dividend, ARKX or QQQ?
ARKX yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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