ARKW vs. LITE

Last updated Jun 13, 2026

ARKW (ARK Next Generation Internet ETF) is Mid Cap Growth Equities fund actively managed by ARK, while LITE (Lumentum Holdings Inc.) is a stock. Over the past 10 years, ARKW returned 22.51%/yr vs 43.74%/yr for LITE. At a 0.46 correlation, their price movements are largely independent.

Performance

ARKW vs. LITE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ARK Next Generation Internet ETF (ARKW) and Lumentum Holdings Inc. (LITE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ARKW achieves a -4.37% return, which is significantly lower than LITE's 150.02% return. Over the past 10 years, ARKW has underperformed LITE with an annualized return of 22.51%, while LITE has yielded a comparatively higher 43.74% annualized return.

ARKW

• 1D: 0.87%
• 1M: -3.08%
• YTD: -4.37%
• 6M: -7.45%
• 1Y: 10.46%
• 3Y*: 36.42%
• 5Y*: 0.46%
• 10Y*: 22.51%

LITE

• 1D: 3.59%
• 1M: -10.56%
• YTD: 150.02%
• 6M: 184.13%
• 1Y: 977.85%
• 3Y*: 158.28%
• 5Y*: 62.72%
• 10Y*: 43.74%

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

ARKW vs. LITE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ARKW ARK Next Generation Internet ETF	-4.37%	38.93%	42.27%	96.89%	-67.49%	-18.85%	157.44%	35.76%	4.24%	87.29%
LITE Lumentum Holdings Inc.	150.02%	339.06%	60.15%	0.48%	-50.68%	11.57%	19.55%	88.76%	-14.09%	26.52%

Correlation

The correlation between ARKW and LITE is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.25
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (10Y) Calculated over the trailing 10-year period	0.47
Correlation (All Time) Calculated using the full available price history since Aug 4, 2015	0.46

Over the past year, the correlation between ARKW and LITE has dropped to 0.25 - well below their long-term average of 0.46, suggesting their price drivers have been diverging.

Return for Risk

ARKW vs. LITE — Risk / Return Rank

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

ARKW

ARKW Risk / Return Rank: 14
ARKW Sharpe Ratio Rank: 15
ARKW Sortino Ratio Rank: 15
ARKW Omega Ratio Rank: 15
ARKW Calmar Ratio Rank: 13
ARKW Martin Ratio Rank: 12

LITE

LITE Risk / Return Rank: 99
LITE Sharpe Ratio Rank: 100
LITE Sortino Ratio Rank: 99
LITE Omega Ratio Rank: 98
LITE Calmar Ratio Rank: 100
LITE Martin Ratio Rank: 100

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. LITE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ARK Next Generation Internet ETF (ARKW) and Lumentum Holdings Inc. (LITE). 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.

	ARKW	LITE	Difference
Sharpe ratio: Return per unit of total volatility	0.32	11.43	-11.11
Sortino ratio: Return per unit of downside risk	0.65	5.42	-4.77
Omega ratio: Gain probability vs. loss probability	1.08	1.71	-0.63
Calmar ratio: Return relative to maximum drawdown	0.29	34.43	-34.14
Martin ratio: Return relative to average drawdown	0.59	126.26	-125.68

ARKW vs. LITE - Sharpe Ratio Comparison

The current ARKW Sharpe Ratio is 0.32, which is lower than the LITE Sharpe Ratio of 11.43. The chart below compares the historical Sharpe Ratios of ARKW and LITE, 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

ARKW vs. LITE - Drawdown Comparison

The maximum ARKW drawdown since its inception was -80.52%, which is greater than LITE's maximum drawdown of -66.89%. Use the drawdown chart below to compare losses from any high point for ARKW and LITE.

Drawdown Indicators

	ARKW	LITE	Difference
Max Drawdown Largest peak-to-trough decline	-80.52%	-66.89%	-13.63%
Max Drawdown (1Y) Largest decline over 1 year	-36.21%	-28.70%	-7.51%
Max Drawdown (3Y) Largest decline over 3 years	-36.21%	-50.63%	+14.42%
Max Drawdown (5Y) Largest decline over 5 years	-77.36%	-66.48%	-10.88%
Max Drawdown (10Y) Largest decline over 10 years	-80.52%	-66.89%	-13.63%
Current Drawdown Current decline from peak	-23.35%	-12.49%	-10.86%
Average Drawdown Average peak-to-trough decline	-23.97%	-23.57%	-0.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	17.89%	7.81%	+10.08%

Volatility

ARKW vs. LITE - Volatility Comparison

The current volatility for ARK Next Generation Internet ETF (ARKW) is 10.38%, while Lumentum Holdings Inc. (LITE) has a volatility of 28.12%. This indicates that ARKW experiences smaller price fluctuations and is considered to be less risky than LITE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARKW	LITE	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.38%	28.12%	-17.74%
Volatility (6M) Calculated over the trailing 6-month period	24.57%	69.73%	-45.16%
Volatility (1Y) Calculated over the trailing 1-year period	32.92%	86.47%	-53.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	43.59%	59.94%	-16.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.73%	56.62%	-18.89%

Dividends

ARKW vs. LITE - Dividend Comparison

ARKW's dividend yield for the trailing twelve months is around 1.66%, while LITE has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARKW ARK Next Generation Internet ETF	1.66%	1.59%	0.00%	0.00%	0.00%	0.17%	1.29%	0.00%	13.05%	2.05%	0.00%	2.29%
LITE Lumentum Holdings Inc.	0.00%	0.00%	0.00%	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 ARKW and LITE in my portfolio?

ARKW and LITE have a correlation of 0.25, 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 LITE?

LITE has higher volatility (28.12%) compared to ARKW (10.38%). In terms of maximum drawdown, ARKW dropped -80.52% vs LITE's -66.89%.

Which has better risk-adjusted returns?

LITE currently has the higher Sharpe Ratio (11.43 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.