ARKX vs. XLE

Last updated Jun 13, 2026

ARKX (ARK Space Exploration & Innovation ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both exchange-traded funds - ARKX is a Aerospace & Defense fund actively managed by ARK, while XLE is a Energy Equities fund tracking the Energy Select Sector Index. ARKX is actively managed, while XLE is passively managed. Over the past 5 years, ARKX returned 10.38%/yr vs 20.12%/yr for XLE. At a 0.27 correlation, their price movements are largely independent. ARKX charges 0.75%/yr vs 0.08%/yr for XLE.

Performance

ARKX vs. XLE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ARK Space Exploration & Innovation ETF (ARKX) and State Street Energy Select Sector SPDR ETF (XLE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ARKX achieves a 16.56% return, which is significantly lower than XLE's 29.56% return.

ARKX

• 1D: -1.94%
• 1M: -2.96%
• YTD: 16.56%
• 6M: 17.78%
• 1Y: 52.99%
• 3Y*: 31.55%
• 5Y*: 10.38%
• 10Y*: —

XLE

• 1D: 0.75%
• 1M: -0.14%
• YTD: 29.56%
• 6M: 28.37%
• 1Y: 37.19%
• 3Y*: 16.18%
• 5Y*: 20.12%
• 10Y*: 9.91%

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

ARKX vs. XLE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
ARKX ARK Space Exploration & Innovation ETF	16.56%	48.46%	26.67%	24.37%	-34.27%	-8.05%
XLE State Street Energy Select Sector SPDR ETF	29.56%	7.88%	5.56%	-0.63%	64.32%	15.36%

Correlation

The correlation between ARKX and XLE is 0.00, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.00
Correlation (3Y) Calculated over the trailing 3-year period	0.20
Correlation (5Y) Calculated over the trailing 5-year period	0.27
Correlation (All Time) Calculated using the full available price history since Mar 30, 2021	0.27

Over the past year, the correlation between ARKX and XLE has dropped to 0.00 - well below their long-term average of 0.27, suggesting their price drivers have been diverging.

ARKX vs. XLE - Sectors Allocation Comparison

Sectors	ARKX	XLE
Industrials	55.7%	-
Technology	27.4%	-
Consumer Cyclical	7.8%	-
Communication Services	7.6%	-
Healthcare	1.5%	-
Basic Materials	0.0%	-
Consumer Defensive	-	-
Energy	-	100.0%
Financial Services	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

ARKX vs. XLE — Risk / Return Rank

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

ARKX

ARKX Risk / Return Rank: 51
ARKX Sharpe Ratio Rank: 53
ARKX Sortino Ratio Rank: 50
ARKX Omega Ratio Rank: 45
ARKX Calmar Ratio Rank: 60
ARKX Martin Ratio Rank: 47

XLE

XLE Risk / Return Rank: 61
XLE Sharpe Ratio Rank: 64
XLE Sortino Ratio Rank: 58
XLE Omega Ratio Rank: 54
XLE Calmar Ratio Rank: 71
XLE Martin Ratio Rank: 56

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.

ARKX vs. XLE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ARK Space Exploration & Innovation ETF (ARKX) and State Street Energy Select Sector SPDR ETF (XLE). 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.

	ARKX	XLE	Difference
Sharpe ratio: Return per unit of total volatility	1.59	1.82	-0.23
Sortino ratio: Return per unit of downside risk	2.15	2.40	-0.25
Omega ratio: Gain probability vs. loss probability	1.26	1.30	-0.04
Calmar ratio: Return relative to maximum drawdown	2.61	3.10	-0.49
Martin ratio: Return relative to average drawdown	6.87	8.63	-1.77

ARKX vs. XLE - Sharpe Ratio Comparison

The current ARKX Sharpe Ratio is 1.59, which is comparable to the XLE Sharpe Ratio of 1.82. The chart below compares the historical Sharpe Ratios of ARKX and XLE, 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

ARKX vs. XLE - Drawdown Comparison

The maximum ARKX drawdown since its inception was -43.61%, smaller than the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for ARKX and XLE.

Drawdown Indicators

	ARKX	XLE	Difference
Max Drawdown Largest peak-to-trough decline	-43.61%	-71.26%	+27.65%
Max Drawdown (1Y) Largest decline over 1 year	-20.42%	-12.05%	-8.37%
Max Drawdown (3Y) Largest decline over 3 years	-25.47%	-20.14%	-5.33%
Max Drawdown (5Y) Largest decline over 5 years	-43.61%	-26.04%	-17.57%
Max Drawdown (10Y) Largest decline over 10 years	—	-66.81%	—
Current Drawdown Current decline from peak	-10.49%	-8.01%	-2.48%
Average Drawdown Average peak-to-trough decline	-19.92%	-17.97%	-1.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.74%	4.32%	+3.42%

Volatility

ARKX vs. XLE - Volatility Comparison

ARK Space Exploration & Innovation ETF (ARKX) has a higher volatility of 12.77% compared to State Street Energy Select Sector SPDR ETF (XLE) at 7.26%. This indicates that ARKX's price experiences larger fluctuations and is considered to be riskier than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARKX	XLE	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.77%	7.26%	+5.51%
Volatility (6M) Calculated over the trailing 6-month period	26.51%	16.79%	+9.72%
Volatility (1Y) Calculated over the trailing 1-year period	33.50%	20.57%	+12.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.02%	26.05%	+1.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.65%	29.58%	-1.93%

ARKX vs. XLE - Expense Ratio Comparison

ARKX has a 0.75% expense ratio, which is higher than XLE's 0.08% expense ratio.

Dividends

ARKX vs. XLE - Dividend Comparison

ARKX has not paid dividends to shareholders, while XLE's dividend yield for the trailing twelve months is around 2.59%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARKX ARK Space Exploration & Innovation ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XLE State Street Energy Select Sector SPDR ETF	2.59%	3.28%	3.36%	3.55%	3.68%	4.21%	5.62%	6.72%	3.54%	3.03%	2.26%	3.39%

Frequently Asked Questions

Can I hold both ARKX and XLE in my portfolio?

ARKX and XLE have a correlation of 0.00, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARKX or XLE?

ARKX has higher volatility (12.77%) compared to XLE (7.26%). In terms of maximum drawdown, ARKX dropped -43.61% vs XLE's -71.26%.

Which ETF is better, ARKX or XLE?

On 5-year performance, XLE leads with 20.12% vs 10.38% for ARKX. On fees, XLE is cheaper at 0.08% per year. On volatility, XLE has been the lower-risk option at 7.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ARKX or XLE?

Over the 5-year period, XLE has performed better with a 20.12% return vs 10.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ARKX or XLE?

XLE is cheaper with a 0.08% expense ratio, compared with 0.75% for ARKX.

Which ETF pays a higher dividend yield, ARKX or XLE?

XLE has the higher dividend yield at 2.59%, compared with 0.00% for ARKX.

What is the main difference between ARKX and XLE?

ARKX is categorized as Aerospace & Defense, while XLE is Energy Equities. They also come from different issuers: ARK and State Street. Their fees differ too: 0.75% for ARKX and 0.08% for XLE.

Which has better risk-adjusted returns?

XLE currently has the higher Sharpe Ratio (1.82 vs 1.59), 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.