ARKK vs. SMH

Last updated Aug 1, 2026

ARKK (ARK Innovation ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - ARKK is a Technology Equities fund actively managed by ARK, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. ARKK is actively managed, while SMH is passively managed. Over the past 10 years, ARKK returned 14.31%/yr vs 34.16%/yr for SMH. Their 0.64 correlation means they have sometimes moved together and sometimes differently. ARKK charges 0.75%/yr vs 0.35%/yr for SMH.

Performance

ARKK vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ARK Innovation ETF (ARKK) and VanEck Semiconductor ETF (SMH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ARKK achieves a -7.38% return, which is significantly lower than SMH's 50.09% return. Over the past 10 years, ARKK has underperformed SMH with an annualized return of 14.31%, while SMH has yielded a comparatively higher 34.16% annualized return.

ARKK

• 1D: -2.28%
• 1M: -12.32%
• 6M: -4.85%
• YTD: -7.38%
• 1Y: 0.11%
• 3Y*: 13.25%
• 5Y*: -9.65%
• 10Y*: 14.31%
• ALL TIME*: 12.17%

SMH

• 1D: 0.30%
• 1M: -8.74%
• 6M: 33.97%
• YTD: 50.09%
• 1Y: 90.95%
• 3Y*: 50.56%
• 5Y*: 33.46%
• 10Y*: 34.16%
• ALL TIME*: 11.06%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ARKK ARK Innovation ETF	$356.24M	$389.65M	$523.48M
SMH VanEck Semiconductor ETF	$8.28B	$7.64B	$7.07B

ARKK vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ARKK ARK Innovation ETF	-7.38%	35.49%	8.40%	69.04%	-66.97%	-23.60%	152.71%	35.08%	3.52%	87.33%
SMH VanEck Semiconductor ETF	50.09%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between ARKK and SMH is 0.61, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.61
Correlation (3Y) Balances recent behavior with more history.	0.60
Correlation (5Y) Shows whether the relationship held over a longer period.	0.64
Correlation (10Y) Provides a long-term view across more market conditions.	0.65
Correlation (All Time) Calculated using the full available price history since Oct 31, 2014	0.64

The correlation between ARKK and SMH has been stable across timeframes, ranging from 0.60 to 0.65 - a consistent structural relationship.

ARKK vs. SMH - Sectors Allocation Comparison

Sectors	ARKK	SMH
Healthcare	32.0%	-
Technology	25.8%	100.0%
Consumer Cyclical	13.0%	-
Financial Services	12.8%	-
Industrials	9.4%	-
Communication Services	7.1%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

ARKK vs. SMH — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ARKK

ARKK Risk / Return Rank: 9
ARKK Sharpe Ratio Rank: 9
ARKK Sortino Ratio Rank: 10
ARKK Omega Ratio Rank: 10
ARKK Calmar Ratio Rank: 8
ARKK Martin Ratio Rank: 8

SMH

SMH Risk / Return Rank: 87
SMH Sharpe Ratio Rank: 91
SMH Sortino Ratio Rank: 83
SMH Omega Ratio Rank: 84
SMH Calmar Ratio Rank: 88
SMH Martin Ratio Rank: 91

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ARKK vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ARK Innovation ETF (ARKK) and VanEck Semiconductor ETF (SMH). 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	SMH	Difference
Sharpe ratio: Return per unit of total volatility	-0.15	2.29	-2.44
Sortino ratio: Return per unit of downside risk	0.05	2.70	-2.65
Omega ratio: Gain probability vs. loss probability	1.01	1.36	-0.35
Calmar ratio: Return relative to maximum drawdown	-0.17	3.58	-3.76
Martin ratio: Return relative to average drawdown	-0.35	14.64	-14.99

ARKK vs. SMH - Sharpe Ratio Comparison

The current ARKK Sharpe Ratio is -0.15, which is lower than the SMH Sharpe Ratio of 2.29. The chart below compares the historical Sharpe Ratios of ARKK and SMH, 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. SMH - Drawdown Comparison

The maximum ARKK drawdown since its inception was -80.97%, roughly equal to the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for ARKK and SMH.

Drawdown Indicators

	ARKK	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-80.97%	-84.96%	+3.99%
Max Drawdown (1Y) Largest decline over 1 year	-31.35%	-24.62%	-6.73%
Max Drawdown (3Y) Largest decline over 3 years	-39.56%	-35.74%	-3.82%
Max Drawdown (5Y) Largest decline over 5 years	-76.27%	-45.30%	-30.97%
Max Drawdown (10Y) Largest decline over 10 years	-80.97%	-45.30%	-35.67%
Current Drawdown Current decline from peak	-53.87%	-19.19%	-34.68%
Average Drawdown Average peak-to-trough decline	-30.38%	-40.89%	+10.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.57%	6.01%	+9.56%

Volatility

ARKK vs. SMH - Volatility Comparison

The current volatility for ARK Innovation ETF (ARKK) is 10.19%, while VanEck Semiconductor ETF (SMH) has a volatility of 14.70%. This indicates that ARKK experiences smaller price fluctuations and is considered to be less risky than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARKK	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.19%	14.70%	-4.51%
Volatility (6M) Calculated over the trailing 6-month period	27.72%	33.13%	-5.41%
Volatility (1Y) Calculated over the trailing 1-year period	36.83%	38.57%	-1.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	46.55%	36.50%	+10.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.48%	33.32%	+7.16%

ARKK vs. SMH - Expense Ratio Comparison

ARKK has a 0.75% expense ratio, which is higher than SMH's 0.35% expense ratio.

Dividends

ARKK vs. SMH - Dividend Comparison

ARKK has not paid dividends to shareholders, while SMH's dividend yield for the trailing twelve months is around 0.20%.

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%
SMH VanEck Semiconductor ETF	0.20%	0.31%	0.44%	0.60%	1.18%	0.51%	0.69%	1.50%	1.88%	1.43%	0.80%	2.14%

Frequently Asked Questions

Can I hold both ARKK and SMH in my portfolio?

ARKK and SMH have a correlation of 0.61, 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 SMH?

SMH has higher volatility (14.70%) compared to ARKK (10.19%). In terms of maximum drawdown, ARKK dropped -80.97% vs SMH's -84.96%.

Which ETF is better, ARKK or SMH?

On 10-year performance, SMH leads with 34.16% vs 14.31% for ARKK. On fees, SMH is cheaper at 0.35% per year. On volatility, ARKK has been the lower-risk option at 10.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ARKK or SMH?

Over the 10-year period, SMH has performed better with a 34.16% return vs 14.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ARKK or SMH?

SMH is cheaper with a 0.35% expense ratio, compared with 0.75% for ARKK.

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

SMH has the higher dividend yield at 0.20%, compared with 0.00% for ARKK.

What is the main difference between ARKK and SMH?

ARKK is categorized as Technology Equities, while SMH is Semiconductors. They also come from different issuers: ARK and VanEck. Their fees differ too: 0.75% for ARKK and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (2.29 vs -0.15), 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.