ARKK vs. XLI

Last updated Jul 21, 2026

ARKK (ARK Innovation ETF) and XLI (Industrial Select Sector SPDR Fund) are both exchange-traded funds - ARKK is a Technology Equities fund actively managed by ARK, while XLI is a Industrials Equities fund tracking the Industrial Select Sector Index. ARKK is actively managed, while XLI is passively managed. Over the past 10 years, ARKK returned 14.94%/yr vs 13.76%/yr for XLI. A 0.51 correlation means they provide meaningful diversification when combined. ARKK charges 0.75%/yr vs 0.08%/yr for XLI.

Performance

ARKK vs. XLI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ARK Innovation ETF (ARKK) and Industrial Select Sector SPDR Fund (XLI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ARKK achieves a -2.56% return, which is significantly lower than XLI's 15.43% return. Over the past 10 years, ARKK has outperformed XLI with an annualized return of 14.94%, while XLI has yielded a comparatively lower 13.76% annualized return.

ARKK

• 1D: -0.33%
• 1M: -6.53%
• 6M: -8.24%
• YTD: -2.56%
• 1Y: -3.45%
• 3Y*: 16.39%
• 5Y*: -9.13%
• 10Y*: 14.94%
• ALL TIME*: 12.69%

XLI

• 1D: -0.72%
• 1M: -1.30%
• 6M: 7.29%
• YTD: 15.43%
• 1Y: 19.12%
• 3Y*: 19.29%
• 5Y*: 13.15%
• 10Y*: 13.76%
• ALL TIME*: 9.61%

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

ARKK vs. XLI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ARKK ARK Innovation ETF	-2.56%	35.49%	8.40%	69.04%	-66.97%	-23.60%	152.71%	35.08%	3.52%	87.33%
XLI Industrial Select Sector SPDR Fund	15.43%	19.35%	17.31%	18.13%	-5.57%	21.08%	10.91%	29.08%	-13.25%	23.98%

Correlation

The correlation between ARKK and XLI is 0.54, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.57
Correlation (10Y) Calculated over the trailing 10-year period	0.51
Correlation (All Time) Calculated using the full available price history since Oct 31, 2014	0.51

The correlation between ARKK and XLI has been stable across timeframes, ranging from 0.51 to 0.59 - a consistent structural relationship.

ARKK vs. XLI - Sectors Allocation Comparison

Sectors	ARKK	XLI
Healthcare	32.0%	-
Technology	25.8%	6.3%
Consumer Cyclical	13.0%	0.2%
Financial Services	12.8%	-
Industrials	9.4%	93.3%
Communication Services	7.1%	-
Basic Materials	-	0.1%
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	-
Utilities	-	5.3%

Return for Risk

ARKK vs. XLI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments 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: 9
ARKK Martin Ratio Rank: 9

XLI

XLI Risk / Return Rank: 43
XLI Sharpe Ratio Rank: 43
XLI Sortino Ratio Rank: 43
XLI Omega Ratio Rank: 39
XLI Calmar Ratio Rank: 40
XLI Martin Ratio Rank: 49

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. XLI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ARK Innovation ETF (ARKK) and Industrial Select Sector SPDR Fund (XLI). 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	XLI	Difference
Sharpe ratio: Return per unit of total volatility	-0.10	1.15	-1.25
Sortino ratio: Return per unit of downside risk	0.12	1.71	-1.60
Omega ratio: Gain probability vs. loss probability	1.01	1.20	-0.19
Calmar ratio: Return relative to maximum drawdown	-0.11	1.57	-1.68
Martin ratio: Return relative to average drawdown	-0.23	6.09	-6.32

ARKK vs. XLI - Sharpe Ratio Comparison

The current ARKK Sharpe Ratio is -0.10, which is lower than the XLI Sharpe Ratio of 1.15. The chart below compares the historical Sharpe Ratios of ARKK and XLI, 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. XLI - Drawdown Comparison

The maximum ARKK drawdown since its inception was -80.97%, which is greater than XLI's maximum drawdown of -62.26%. Use the drawdown chart below to compare losses from any high point for ARKK and XLI.

Drawdown Indicators

	ARKK	XLI	Difference
Max Drawdown Largest peak-to-trough decline	-80.97%	-62.26%	-18.71%
Max Drawdown (1Y) Largest decline over 1 year	-31.35%	-12.21%	-19.14%
Max Drawdown (3Y) Largest decline over 3 years	-39.56%	-18.49%	-21.07%
Max Drawdown (5Y) Largest decline over 5 years	-76.27%	-21.64%	-54.63%
Max Drawdown (10Y) Largest decline over 10 years	-80.97%	-42.33%	-38.64%
Current Drawdown Current decline from peak	-51.47%	-4.01%	-47.46%
Average Drawdown Average peak-to-trough decline	-30.31%	-9.17%	-21.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.08%	3.15%	+11.93%

Volatility

ARKK vs. XLI - Volatility Comparison

ARK Innovation ETF (ARKK) has a higher volatility of 9.21% compared to Industrial Select Sector SPDR Fund (XLI) at 5.03%. This indicates that ARKK's price experiences larger fluctuations and is considered to be riskier than XLI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARKK	XLI	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.21%	5.03%	+4.18%
Volatility (6M) Calculated over the trailing 6-month period	27.14%	13.80%	+13.34%
Volatility (1Y) Calculated over the trailing 1-year period	36.37%	16.68%	+19.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	46.49%	17.53%	+28.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.43%	20.01%	+20.42%

ARKK vs. XLI - Expense Ratio Comparison

ARKK has a 0.75% expense ratio, which is higher than XLI's 0.08% expense ratio.

Dividends

ARKK vs. XLI - Dividend Comparison

ARKK has not paid dividends to shareholders, while XLI's dividend yield for the trailing twelve months is around 1.16%.

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%
XLI Industrial Select Sector SPDR Fund	1.16%	1.29%	1.44%	1.63%	1.63%	1.25%	1.55%	1.94%	2.15%	1.77%	2.07%	2.15%

Frequently Asked Questions

Can I hold both ARKK and XLI in my portfolio?

ARKK and XLI have a correlation of 0.54, 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 XLI?

ARKK has higher volatility (9.21%) compared to XLI (5.03%). In terms of maximum drawdown, ARKK dropped -80.97% vs XLI's -62.26%.

Which ETF is better, ARKK or XLI?

On 10-year performance, ARKK leads with 14.94% vs 13.76% for XLI. On fees, XLI is cheaper at 0.08% per year. On volatility, XLI has been the lower-risk option at 5.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ARKK or XLI?

Over the 10-year period, ARKK has performed better with a 14.94% return vs 13.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ARKK or XLI?

XLI is cheaper with a 0.08% expense ratio, compared with 0.75% for ARKK.

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

XLI has the higher dividend yield at 1.16%, compared with 0.00% for ARKK.

What is the main difference between ARKK and XLI?

ARKK is categorized as Technology Equities, while XLI is Industrials Equities. They also come from different issuers: ARK and State Street. Their fees differ too: 0.75% for ARKK and 0.08% for XLI.

Which has better risk-adjusted returns?

XLI currently has the higher Sharpe Ratio (1.15 vs -0.10), 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.