ARKX vs VYM
ARK Space & Defense Innovation ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. ARKX delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | ARKX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.04% | |
| AUM | $760M | $81.6B | |
| Dividend Yield | 0.00% | 2.24% | |
| Holdings | 37 | 616 | |
| YTD Return | +13.19% | +15.75% | |
| 1Y Return | +27.89% | +23.85% | |
| 3Y Return (annualized) | +33.93% | +19.14% | |
| 5Y Return (annualized) | +11.41% | +12.45% | |
| Volatility (annualized) | 28.1% | 14.6% | |
| Max Drawdown | -43.6% | -58.8% | |
| Fund Family | Ark Invest | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 30, 2021 | Nov 10, 2006 |
ARKX vs VYM Performance
ARK Space & Defense Innovation ETF (ARKX) is a ETF from Ark Invest and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ARKX returned +27.89% while VYM returned +23.85%. Year to date, ARKX is up 13.19% versus a gain of 15.75% for VYM.
Over three years, ARKX compounded at +33.93% per year against +19.14% for VYM; over five years the annualized figures are +11.41% and +12.45% respectively. Across the full 5-year window we track, ARKX has the edge at +10.04% annualized vs +7.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ARKX has been the more volatile fund, with annualized monthly volatility of 28.1% 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 -43.6% for ARKX 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ARKX charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, ARKX currently yields 0.00% against 2.24% for VYM.
Holdings Overlap
ARKX and VYM share 6 holdings out of 633 unique holdings combined, representing a 1.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ARKX or VYM?
ARKX has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, ARKX or VYM?
Over the past year ARKX returned +27.89% vs +23.85% for VYM, so ARKX leads on 1-year performance. Over the longest common window we track (5 years), ARKX annualized +10.04% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, ARKX or VYM?
ARKX has been the more volatile fund at 28.1% annualized versus 14.6% for VYM. Worst drawdown: ARKX -43.6% vs VYM -58.8%.
Should I hold both ARKX and VYM?
ARKX and VYM have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ARKX and VYM?
ARKX and VYM share 6 common holdings with a 1.4% weight overlap. Combined, they hold 633 unique securities.
Which pays a higher dividend, ARKX or VYM?
ARKX yields 0.00% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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