ARKK vs. NFXS

Last updated Jun 24, 2026

ARKK (ARK Innovation ETF) and NFXS (Direxion Daily NFLX Bear 1X Shares) are both exchange-traded funds - ARKK is a Technology Equities fund actively managed by ARK, while NFXS is a Inverse Equities fund actively managed by Direxion. Both are actively managed. Over the past year, ARKK returned 11.37% vs 64.26% for NFXS. At a correlation of -0.33, they often move in opposite directions. ARKK charges 0.75%/yr vs 1.03%/yr for NFXS.

Performance

ARKK vs. NFXS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ARK Innovation ETF (ARKK) and Direxion Daily NFLX Bear 1X Shares (NFXS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ARKK achieves a -0.31% return, which is significantly lower than NFXS's 24.21% return.

ARKK

• 1D: -2.23%
• 1M: 0.37%
• YTD: -0.31%
• 6M: -4.76%
• 1Y: 11.37%
• 3Y*: 22.42%
• 5Y*: -9.10%
• 10Y*: 15.90%

NFXS

• 1D: 0.09%
• 1M: 21.28%
• YTD: 24.21%
• 6M: 24.00%
• 1Y: 64.26%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

ARKK vs. NFXS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ARKK ARK Innovation ETF	-0.31%	35.49%	23.76%
NFXS Direxion Daily NFLX Bear 1X Shares	24.21%	-8.56%	-21.49%

Correlation

The correlation between ARKK and NFXS is -0.16, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.16
Correlation (All Time) Calculated using the full available price history since Oct 3, 2024	-0.33

The correlation between ARKK and NFXS shifts across timeframes, from -0.33 (all time) to -0.16 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

ARKK vs. NFXS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ARKK

ARKK Risk / Return Rank: 13
ARKK Sharpe Ratio Rank: 13
ARKK Sortino Ratio Rank: 14
ARKK Omega Ratio Rank: 13
ARKK Calmar Ratio Rank: 13
ARKK Martin Ratio Rank: 12

NFXS

NFXS Risk / Return Rank: 55
NFXS Sharpe Ratio Rank: 65
NFXS Sortino Ratio Rank: 60
NFXS Omega Ratio Rank: 68
NFXS Calmar Ratio Rank: 45
NFXS Martin Ratio Rank: 39

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ARKK vs. NFXS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ARK Innovation ETF (ARKK) and Direxion Daily NFLX Bear 1X Shares (NFXS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ARKK	NFXS	Difference
Sharpe ratio: Return per unit of total volatility	0.32	1.91	-1.60
Sortino ratio: Return per unit of downside risk	0.69	2.55	-1.86
Omega ratio: Gain probability vs. loss probability	1.08	1.36	-0.28
Calmar ratio: Return relative to maximum drawdown	0.36	2.06	-1.70
Martin ratio: Return relative to average drawdown	0.78	5.64	-4.85

ARKK vs. NFXS - Sharpe Ratio Comparison

The current ARKK Sharpe Ratio is 0.32, which is lower than the NFXS Sharpe Ratio of 1.91. The chart below compares the historical Sharpe Ratios of ARKK and NFXS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ARKK vs. NFXS - Drawdown Comparison

The maximum ARKK drawdown since its inception was -80.97%, which is greater than NFXS's maximum drawdown of -50.37%. Use the drawdown chart below to compare losses from any high point for ARKK and NFXS.

Drawdown Indicators

	ARKK	NFXS	Difference
Max Drawdown Largest peak-to-trough decline	-80.97%	-50.37%	-30.60%
Max Drawdown (1Y) Largest decline over 1 year	-31.35%	-31.31%	-0.04%
Max Drawdown (3Y) Largest decline over 3 years	-39.56%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-77.23%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-80.97%	—	—
Current Drawdown Current decline from peak	-50.35%	-12.88%	-37.47%
Average Drawdown Average peak-to-trough decline	-30.20%	-31.93%	+1.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	14.57%	11.45%	+3.12%

Volatility

ARKK vs. NFXS - Volatility Comparison

ARK Innovation ETF (ARKK) has a higher volatility of 12.53% compared to Direxion Daily NFLX Bear 1X Shares (NFXS) at 7.74%. This indicates that ARKK's price experiences larger fluctuations and is considered to be riskier than NFXS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARKK	NFXS	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.53%	7.74%	+4.79%
Volatility (6M) Calculated over the trailing 6-month period	26.71%	26.22%	+0.49%
Volatility (1Y) Calculated over the trailing 1-year period	36.20%	33.81%	+2.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	46.46%	34.65%	+11.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.40%	34.65%	+5.75%

ARKK vs. NFXS - Expense Ratio Comparison

ARKK has a 0.75% expense ratio, which is lower than NFXS's 1.03% expense ratio.

Dividends

ARKK vs. NFXS - Dividend Comparison

ARKK has not paid dividends to shareholders, while NFXS's dividend yield for the trailing twelve months is around 3.23%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARKK ARK Innovation ETF	0.00%	0.00%	0.00%	0.70%	0.00%	0.55%	1.64%	0.38%	3.14%	1.32%	0.00%	2.27%
NFXS Direxion Daily NFLX Bear 1X Shares	3.23%	3.53%	0.87%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ARKK and NFXS in my portfolio?

ARKK and NFXS have a correlation of -0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARKK or NFXS?

ARKK has higher volatility (12.53%) compared to NFXS (7.74%). In terms of maximum drawdown, ARKK dropped -80.97% vs NFXS's -50.37%.

Which ETF is better, ARKK or NFXS?

On 1-year performance, NFXS leads with 64.26% vs 11.37% for ARKK. On fees, ARKK is cheaper at 0.75% per year. On volatility, NFXS has been the lower-risk option at 7.74%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ARKK or NFXS?

Over the 1-year period, NFXS has performed better with a 64.26% return vs 11.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ARKK or NFXS?

ARKK is cheaper with a 0.75% expense ratio, compared with 1.03% for NFXS.

Which ETF pays a higher dividend yield, ARKK or NFXS?

NFXS has the higher dividend yield at 3.23%, compared with 0.00% for ARKK.

What is the main difference between ARKK and NFXS?

ARKK is categorized as Technology Equities, while NFXS is Inverse Equities. They also come from different issuers: ARK and Direxion. Their fees differ too: 0.75% for ARKK and 1.03% for NFXS.

Which has better risk-adjusted returns?

NFXS currently has the higher Sharpe Ratio (1.91 vs 0.32), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.