TMFE vs. ARKK

Last updated Jun 23, 2026

TMFE (The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF) and ARKK (ARK Innovation ETF) are both exchange-traded funds - TMFE is a Large Cap Blend Equities fund tracking the Motley Fool Capital Efficiency 100 Index, while ARKK is a Technology Equities fund actively managed by ARK. TMFE is passively managed, while ARKK is actively managed. Over the past 3 years, TMFE returned 17.10%/yr vs 23.35%/yr for ARKK. A 0.69 correlation means they provide meaningful diversification when combined. TMFE charges 0.50%/yr vs 0.75%/yr for ARKK.

Performance

TMFE vs. ARKK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF (TMFE) 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, TMFE achieves a -0.66% return, which is significantly lower than ARKK's 1.96% return.

TMFE

• 1D: -1.15%
• 1M: -3.09%
• YTD: -0.66%
• 6M: -1.05%
• 1Y: 7.47%
• 3Y*: 17.10%
• 5Y*: —
• 10Y*: —

ARKK

• 1D: -2.19%
• 1M: 2.66%
• YTD: 1.96%
• 6M: -3.76%
• 1Y: 15.80%
• 3Y*: 23.35%
• 5Y*: -8.43%
• 10Y*: 16.16%

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

TMFE vs. ARKK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
TMFE The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF	-0.66%	11.10%	27.95%	41.12%	-25.84%	-0.21%
ARKK ARK Innovation ETF	1.96%	35.49%	8.40%	69.04%	-66.97%	-2.18%

Correlation

The correlation between TMFE and ARKK is 0.64, 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	0.64
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (All Time) Calculated using the full available price history since Dec 31, 2021	0.69

The correlation between TMFE and ARKK has been stable across timeframes, ranging from 0.63 to 0.69 - a consistent structural relationship.

TMFE vs. ARKK - Sectors Allocation Comparison

Sectors	TMFE	ARKK
Technology	33.6%	25.9%
Consumer Cyclical	17.2%	14.1%
Communication Services	15.3%	10.0%
Consumer Defensive	10.0%	-
Financial Services	9.0%	16.2%
Healthcare	8.8%	28.1%
Industrials	4.3%	5.7%
Basic Materials	1.8%	-
Energy	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

TMFE vs. ARKK — Risk / Return Rank

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

TMFE

TMFE Risk / Return Rank: 18
TMFE Sharpe Ratio Rank: 18
TMFE Sortino Ratio Rank: 17
TMFE Omega Ratio Rank: 16
TMFE Calmar Ratio Rank: 16
TMFE Martin Ratio Rank: 20

ARKK

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

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.

TMFE vs. ARKK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF (TMFE) 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.

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.

	TMFE	ARKK	Difference
Sharpe ratio: Return per unit of total volatility	0.60	0.44	+0.16
Sortino ratio: Return per unit of downside risk	0.92	0.85	+0.07
Omega ratio: Gain probability vs. loss probability	1.11	1.10	+0.01
Calmar ratio: Return relative to maximum drawdown	0.66	0.51	+0.16
Martin ratio: Return relative to average drawdown	2.44	1.09	+1.35

TMFE vs. ARKK - Sharpe Ratio Comparison

The current TMFE Sharpe Ratio is 0.60, which is higher than the ARKK Sharpe Ratio of 0.44. The chart below compares the historical Sharpe Ratios of TMFE 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.

Drawdowns

TMFE vs. ARKK - Drawdown Comparison

The maximum TMFE drawdown since its inception was -31.21%, smaller than the maximum ARKK drawdown of -80.97%. Use the drawdown chart below to compare losses from any high point for TMFE and ARKK.

Drawdown Indicators

	TMFE	ARKK	Difference
Max Drawdown Largest peak-to-trough decline	-31.21%	-80.97%	+49.76%
Max Drawdown (1Y) Largest decline over 1 year	-11.30%	-31.35%	+20.05%
Max Drawdown (3Y) Largest decline over 3 years	-18.81%	-39.56%	+20.75%
Max Drawdown (5Y) Largest decline over 5 years	—	-77.23%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-80.97%	—
Current Drawdown Current decline from peak	-3.91%	-49.21%	+45.30%
Average Drawdown Average peak-to-trough decline	-8.28%	-30.19%	+21.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.07%	14.53%	-11.46%

Volatility

TMFE vs. ARKK - Volatility Comparison

The current volatility for The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF (TMFE) is 4.31%, while ARK Innovation ETF (ARKK) has a volatility of 12.34%. This indicates that TMFE 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

	TMFE	ARKK	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.31%	12.34%	-8.03%
Volatility (6M) Calculated over the trailing 6-month period	9.85%	26.65%	-16.80%
Volatility (1Y) Calculated over the trailing 1-year period	12.58%	36.20%	-23.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.24%	46.46%	-27.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.24%	40.41%	-21.17%

TMFE vs. ARKK - Expense Ratio Comparison

TMFE has a 0.50% expense ratio, which is lower than ARKK's 0.75% expense ratio.

Dividends

TMFE vs. ARKK - Dividend Comparison

TMFE's dividend yield for the trailing twelve months is around 0.32%, while ARKK has not 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%
TMFE The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF	0.32%	0.32%	0.44%	0.45%	0.40%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TMFE and ARKK in my portfolio?

TMFE and ARKK have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TMFE or ARKK?

ARKK has higher volatility (12.34%) compared to TMFE (4.31%). In terms of maximum drawdown, TMFE dropped -31.21% vs ARKK's -80.97%.

Which ETF is better, TMFE or ARKK?

On 3-year performance, ARKK leads with 23.35% vs 17.10% for TMFE. On fees, TMFE is cheaper at 0.50% per year. On volatility, TMFE has been the lower-risk option at 4.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TMFE or ARKK?

Over the 3-year period, ARKK has performed better with a 23.35% return vs 17.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TMFE or ARKK?

TMFE is cheaper with a 0.50% expense ratio, compared with 0.75% for ARKK.

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

TMFE has the higher dividend yield at 0.32%, compared with 0.00% for ARKK.

What is the main difference between TMFE and ARKK?

TMFE is categorized as Large Cap Blend Equities, while ARKK is Technology Equities. They also come from different issuers: RBB Fund and ARK. Their fees differ too: 0.50% for TMFE and 0.75% for ARKK.

Which has better risk-adjusted returns?

TMFE currently has the higher Sharpe Ratio (0.60 vs 0.44), 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.