MSEQX vs. ARKK

Last updated Jun 3, 2026

MSEQX (Morgan Stanley Growth Portfolio Class I) and ARKK (ARK Innovation ETF) are both funds - MSEQX is a Large Cap Growth Equities fund managed by Morgan Stanley, while ARKK is a Technology Equities fund actively managed by ARK. Over the past 10 years, MSEQX returned 17.55%/yr vs 16.01%/yr for ARKK. Their correlation of 0.85 suggests significant overlap in exposure. MSEQX charges 0.56%/yr vs 0.75%/yr for ARKK.

Performance

MSEQX vs. ARKK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Morgan Stanley Growth Portfolio Class I (MSEQX) and ARK Innovation ETF (ARKK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSEQX achieves a 0.37% return, which is significantly lower than ARKK's 3.89% return. Over the past 10 years, MSEQX has outperformed ARKK with an annualized return of 17.55%, while ARKK has yielded a comparatively lower 16.01% annualized return.

MSEQX

• 1D: 0.72%
• 1M: 7.34%
• YTD: 0.37%
• 6M: 0.96%
• 1Y: 11.46%
• 3Y*: 29.85%
• 5Y*: 1.68%
• 10Y*: 17.55%

ARKK

• 1D: -1.66%
• 1M: 3.89%
• YTD: 3.89%
• 6M: 2.16%
• 1Y: 39.87%
• 3Y*: 24.63%
• 5Y*: -5.49%
• 10Y*: 16.01%

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

MSEQX vs. ARKK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MSEQX Morgan Stanley Growth Portfolio Class I	0.37%	24.78%	46.65%	50.36%	-60.18%	-0.00%	115.60%	38.25%	5.38%	43.91%
ARKK ARK Innovation ETF	3.89%	35.49%	8.40%	69.04%	-66.97%	-23.60%	152.71%	35.08%	3.52%	87.33%

Correlation

The correlation between MSEQX and ARKK is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Nov 3, 2014	0.85

The correlation between MSEQX and ARKK has been stable across timeframes, ranging from 0.82 to 0.90 - a consistent structural relationship.

Return for Risk

MSEQX vs. ARKK — Risk / Return Rank

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

MSEQX

MSEQX Risk / Return Rank: 5
MSEQX Sharpe Ratio Rank: 5
MSEQX Sortino Ratio Rank: 6
MSEQX Omega Ratio Rank: 6
MSEQX Calmar Ratio Rank: 5
MSEQX Martin Ratio Rank: 4

ARKK

ARKK Risk / Return Rank: 28
ARKK Sharpe Ratio Rank: 30
ARKK Sortino Ratio Rank: 31
ARKK Omega Ratio Rank: 28
ARKK Calmar Ratio Rank: 27
ARKK Martin Ratio Rank: 23

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.

MSEQX vs. ARKK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morgan Stanley Growth Portfolio Class I (MSEQX) and ARK Innovation ETF (ARKK). 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.

	MSEQX	ARKK	Difference
Sharpe ratio Return per unit of total volatility	0.45	1.10	-0.65
Sortino ratio Return per unit of downside risk	0.81	1.67	-0.87
Omega ratio Gain probability vs. loss probability	1.10	1.19	-0.10
Calmar ratio Return relative to maximum drawdown	0.47	1.33	-0.86
Martin ratio Return relative to average drawdown	1.02	2.98	-1.96
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MSEQX vs. ARKK - Sharpe Ratio Comparison

The current MSEQX Sharpe Ratio is 0.45, which is lower than the ARKK Sharpe Ratio of 1.10. The chart below compares the historical Sharpe Ratios of MSEQX and ARKK, 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

	MSEQX	ARKK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.45	1.10	-0.65
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.04	-0.12	+0.16
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	0.40	+0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.48	0.35	+0.12

Drawdowns

MSEQX vs. ARKK - Drawdown Comparison

The maximum MSEQX drawdown since its inception was -69.48%, smaller than the maximum ARKK drawdown of -80.97%. Use the drawdown chart below to compare losses from any high point for MSEQX and ARKK.

Drawdown Indicators

	MSEQX	ARKK	Difference
Max Drawdown Largest peak-to-trough decline	-69.48%	-80.97%	+11.49%
Max Drawdown (1Y) Largest decline over 1 year	-27.73%	-31.35%	+3.62%
Max Drawdown (3Y) Largest decline over 3 years	-32.52%	-39.56%	+7.04%
Max Drawdown (5Y) Largest decline over 5 years	-69.48%	-77.23%	+7.75%
Max Drawdown (10Y) Largest decline over 10 years	-69.48%	-80.97%	+11.49%
Current Drawdown Current decline from peak	-12.26%	-48.26%	+36.00%
Average Drawdown Average peak-to-trough decline	-16.90%	-30.11%	+13.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	12.80%	14.03%	-1.23%

Volatility

MSEQX vs. ARKK - Volatility Comparison

The current volatility for Morgan Stanley Growth Portfolio Class I (MSEQX) is 8.06%, while ARK Innovation ETF (ARKK) has a volatility of 9.30%. This indicates that MSEQX experiences smaller price fluctuations and is considered to be less risky than ARKK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSEQX	ARKK	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.06%	9.30%	-1.24%
Volatility (6M) Calculated over the trailing 6-month period	21.31%	25.13%	-3.82%
Volatility (1Y) Calculated over the trailing 1-year period	28.00%	36.31%	-8.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	39.71%	46.30%	-6.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	33.75%	40.27%	-6.52%

MSEQX vs. ARKK - Expense Ratio Comparison

MSEQX has a 0.56% expense ratio, which is lower than ARKK's 0.75% expense ratio.

Dividends

MSEQX vs. ARKK - Dividend Comparison

Neither MSEQX nor ARKK has paid dividends to shareholders.

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%
MSEQX Morgan Stanley Growth Portfolio Class I	0.00%	0.00%	0.55%	0.05%	16.79%	24.24%	9.36%	21.39%	5.38%	21.18%	12.71%	7.55%

Frequently Asked Questions

Can I hold both MSEQX and ARKK in my portfolio?

MSEQX and ARKK have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSEQX or ARKK?

ARKK has higher volatility (9.30%) compared to MSEQX (8.06%). In terms of maximum drawdown, MSEQX dropped -69.48% vs ARKK's -80.97%.

Which has better risk-adjusted returns?

ARKK currently has the higher Sharpe Ratio (1.10 vs 0.45), 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.