ARKK vs. QQQ
Compare and contrast key facts about ARK Innovation ETF (ARKK) and Invesco QQQ (QQQ).
ARKK and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ARKK is an actively managed fund by ARK Investment Management. It was launched on Oct 31, 2014. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ARKK or QQQ.
Performance
ARKK vs. QQQ - Performance Comparison
Returns By Period
In the year-to-date period, ARKK achieves a 7.33% return, which is significantly lower than QQQ's 24.04% return. Over the past 10 years, ARKK has underperformed QQQ with an annualized return of 11.81%, while QQQ has yielded a comparatively higher 18.03% annualized return.
ARKK
7.33%
22.84%
26.66%
26.83%
3.78%
11.81%
QQQ
24.04%
3.57%
10.78%
30.56%
20.99%
18.03%
Key characteristics
| ARKK | QQQ | |
|---|---|---|
| Sharpe Ratio | 0.75 | 1.76 |
| Sortino Ratio | 1.24 | 2.35 |
| Omega Ratio | 1.15 | 1.32 |
| Calmar Ratio | 0.36 | 2.25 |
| Martin Ratio | 1.86 | 8.18 |
| Ulcer Index | 14.39% | 3.74% |
| Daily Std Dev | 35.62% | 17.36% |
| Max Drawdown | -80.91% | -82.98% |
| Current Drawdown | -63.50% | -1.62% |
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ARKK vs. QQQ - Expense Ratio Comparison
ARKK has a 0.75% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Correlation
The correlation between ARKK and QQQ is 0.73, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Risk-Adjusted Performance
ARKK vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for ARK Innovation ETF (ARKK) and Invesco QQQ (QQQ). 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.
Dividends
ARKK vs. QQQ - Dividend Comparison
ARKK has not paid dividends to shareholders, while QQQ's dividend yield for the trailing twelve months is around 0.60%.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARKK ARK Innovation ETF | 0.00% | 0.00% | 0.00% | 0.83% | 1.31% | 0.38% | 3.14% | 1.32% | 0.00% | 2.27% | 0.00% | 0.00% |
QQQ Invesco QQQ | 0.60% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.02% |
Drawdowns
ARKK vs. QQQ - Drawdown Comparison
The maximum ARKK drawdown since its inception was -80.91%, roughly equal to the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for ARKK and QQQ. For additional features, visit the drawdowns tool.
Volatility
ARKK vs. QQQ - Volatility Comparison
ARK Innovation ETF (ARKK) has a higher volatility of 13.83% compared to Invesco QQQ (QQQ) at 5.36%. This indicates that ARKK's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.