ARKW vs. IMCG

Last updated Jun 4, 2026

ARKW (ARK Next Generation Internet ETF) and IMCG (iShares Morningstar Mid-Cap Growth ETF) are both Mid Cap Growth Equities funds. ARKW is actively managed, while IMCG is passively managed. Over the past 10 years, ARKW returned 22.99%/yr vs 14.46%/yr for IMCG. A 0.78 correlation means they provide meaningful diversification when combined. ARKW charges 0.76%/yr vs 0.06%/yr for IMCG.

Performance

ARKW vs. IMCG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ARK Next Generation Internet ETF (ARKW) and iShares Morningstar Mid-Cap Growth ETF (IMCG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ARKW achieves a -0.79% return, which is significantly lower than IMCG's 20.05% return. Over the past 10 years, ARKW has outperformed IMCG with an annualized return of 22.99%, while IMCG has yielded a comparatively lower 14.46% annualized return.

ARKW

• 1D: -2.98%
• 1M: 2.53%
• YTD: -0.79%
• 6M: -3.36%
• 1Y: 19.55%
• 3Y*: 40.12%
• 5Y*: 1.89%
• 10Y*: 22.99%

IMCG

• 1D: -0.26%
• 1M: 8.33%
• YTD: 20.05%
• 6M: 18.28%
• 1Y: 23.35%
• 3Y*: 18.91%
• 5Y*: 8.62%
• 10Y*: 14.46%

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

ARKW vs. IMCG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ARKW ARK Next Generation Internet ETF	-0.79%	38.93%	42.27%	96.89%	-67.49%	-18.85%	157.44%	35.76%	4.24%	87.29%
IMCG iShares Morningstar Mid-Cap Growth ETF	20.05%	6.55%	18.14%	20.73%	-25.79%	15.39%	45.64%	35.70%	-3.68%	25.57%

Correlation

The correlation between ARKW and IMCG is 0.69, 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	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (10Y) Calculated over the trailing 10-year period	0.80
Correlation (All Time) Calculated using the full available price history since Oct 1, 2014	0.78

The correlation between ARKW and IMCG shifts across timeframes, from 0.69 (1 year) to 0.80 (10 years), reflecting how their relationship changes across market environments.

ARKW vs. IMCG - Sectors Allocation Comparison

Sectors	ARKW	IMCG
Technology	44.2%	30.4%
Consumer Cyclical	16.3%	10.0%
Communication Services	15.0%	2.6%
Financial Services	14.2%	9.1%
Industrials	1.7%	26.6%
Basic Materials	-	4.5%
Consumer Defensive	-	1.2%
Energy	-	2.1%
Healthcare	-	7.4%
Real Estate	-	3.4%
Utilities	-	2.7%

Return for Risk

ARKW vs. IMCG — Risk / Return Rank

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

ARKW

ARKW Risk / Return Rank: 17
ARKW Sharpe Ratio Rank: 18
ARKW Sortino Ratio Rank: 19
ARKW Omega Ratio Rank: 19
ARKW Calmar Ratio Rank: 15
ARKW Martin Ratio Rank: 14

IMCG

IMCG Risk / Return Rank: 44
IMCG Sharpe Ratio Rank: 42
IMCG Sortino Ratio Rank: 42
IMCG Omega Ratio Rank: 40
IMCG Calmar Ratio Rank: 46
IMCG Martin Ratio Rank: 52

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.

ARKW vs. IMCG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ARK Next Generation Internet ETF (ARKW) and iShares Morningstar Mid-Cap Growth ETF (IMCG). 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.

	ARKW	IMCG	Difference
Sharpe ratio: Return per unit of total volatility	0.60	1.51	-0.92
Sortino ratio: Return per unit of downside risk	1.01	2.18	-1.17
Omega ratio: Gain probability vs. loss probability	1.12	1.26	-0.14
Calmar ratio: Return relative to maximum drawdown	0.54	2.31	-1.77
Martin ratio: Return relative to average drawdown	1.12	8.97	-7.85
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ARKW vs. IMCG - Sharpe Ratio Comparison

The current ARKW Sharpe Ratio is 0.60, which is lower than the IMCG Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of ARKW and IMCG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ARKW	IMCG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.60	1.51	-0.92
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.04	0.43	-0.39
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.61	0.71	-0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.58	0.54	+0.04

Drawdowns

ARKW vs. IMCG - Drawdown Comparison

The maximum ARKW drawdown since its inception was -80.52%, which is greater than IMCG's maximum drawdown of -58.96%. Use the drawdown chart below to compare losses from any high point for ARKW and IMCG.

Drawdown Indicators

	ARKW	IMCG	Difference
Max Drawdown Largest peak-to-trough decline	-80.52%	-58.96%	-21.56%
Max Drawdown (1Y) Largest decline over 1 year	-36.21%	-10.17%	-26.04%
Max Drawdown (3Y) Largest decline over 3 years	-36.21%	-21.92%	-14.29%
Max Drawdown (5Y) Largest decline over 5 years	-77.36%	-35.08%	-42.28%
Max Drawdown (10Y) Largest decline over 10 years	-80.52%	-35.08%	-45.44%
Current Drawdown Current decline from peak	-20.48%	-0.26%	-20.22%
Average Drawdown Average peak-to-trough decline	-23.98%	-9.22%	-14.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	17.52%	2.61%	+14.91%

Volatility

ARKW vs. IMCG - Volatility Comparison

ARK Next Generation Internet ETF (ARKW) has a higher volatility of 7.95% compared to iShares Morningstar Mid-Cap Growth ETF (IMCG) at 4.65%. This indicates that ARKW's price experiences larger fluctuations and is considered to be riskier than IMCG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARKW	IMCG	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.95%	4.65%	+3.30%
Volatility (6M) Calculated over the trailing 6-month period	23.54%	12.53%	+11.01%
Volatility (1Y) Calculated over the trailing 1-year period	32.93%	15.53%	+17.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	43.49%	20.17%	+23.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.69%	20.51%	+17.18%

ARKW vs. IMCG - Expense Ratio Comparison

ARKW has a 0.76% expense ratio, which is higher than IMCG's 0.06% expense ratio.

Dividends

ARKW vs. IMCG - Dividend Comparison

ARKW's dividend yield for the trailing twelve months is around 1.60%, more than IMCG's 0.65% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARKW ARK Next Generation Internet ETF	1.60%	1.59%	0.00%	0.00%	0.00%	0.17%	1.29%	0.00%	13.05%	2.05%	0.00%	2.29%
IMCG iShares Morningstar Mid-Cap Growth ETF	0.65%	0.78%	0.78%	0.85%	0.91%	0.41%	0.09%	0.30%	0.35%	0.45%	0.52%	0.38%

Frequently Asked Questions

Can I hold both ARKW and IMCG in my portfolio?

ARKW and IMCG have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARKW or IMCG?

ARKW has higher volatility (7.95%) compared to IMCG (4.65%). In terms of maximum drawdown, ARKW dropped -80.52% vs IMCG's -58.96%.

Which ETF is better, ARKW or IMCG?

On 10-year performance, ARKW leads with 22.99% vs 14.46% for IMCG. On fees, IMCG is cheaper at 0.06% per year. On volatility, IMCG has been the lower-risk option at 4.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ARKW or IMCG?

Over the 10-year period, ARKW has performed better with a 22.99% return vs 14.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ARKW or IMCG?

IMCG is cheaper with a 0.06% expense ratio, compared with 0.76% for ARKW.

Which ETF pays a higher dividend yield, ARKW or IMCG?

ARKW has the higher dividend yield at 1.60%, compared with 0.65% for IMCG.

What is the main difference between ARKW and IMCG?

They also come from different issuers: ARK and iShares. Their fees differ too: 0.76% for ARKW and 0.06% for IMCG.

Which has better risk-adjusted returns?

IMCG currently has the higher Sharpe Ratio (1.51 vs 0.60), 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.