VDE vs. ARKK

Last updated Jun 13, 2026

VDE (Vanguard Energy ETF) and ARKK (ARK Innovation ETF) are both exchange-traded funds - VDE is a Energy Equities fund tracking the MSCI US Investable Market Energy 25/50 Index, while ARKK is a Technology Equities fund actively managed by ARK. VDE is passively managed, while ARKK is actively managed. Over the past 10 years, VDE returned 9.39%/yr vs 15.57%/yr for ARKK. At a 0.26 correlation, their price movements are largely independent. VDE charges 0.09%/yr vs 0.75%/yr for ARKK.

Performance

VDE vs. ARKK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Energy ETF (VDE) 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, VDE achieves a 29.66% return, which is significantly higher than ARKK's -1.65% return. Over the past 10 years, VDE has underperformed ARKK with an annualized return of 9.39%, while ARKK has yielded a comparatively higher 15.57% annualized return.

VDE

• 1D: 0.77%
• 1M: -1.49%
• YTD: 29.66%
• 6M: 28.33%
• 1Y: 35.15%
• 3Y*: 16.71%
• 5Y*: 20.05%
• 10Y*: 9.39%

ARKK

• 1D: 0.25%
• 1M: -3.01%
• YTD: -1.65%
• 6M: -5.90%
• 1Y: 21.64%
• 3Y*: 19.87%
• 5Y*: -7.96%
• 10Y*: 15.57%

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

VDE vs. ARKK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VDE Vanguard Energy ETF	29.66%	7.11%	6.75%	0.03%	62.89%	56.31%	-33.02%	9.28%	-19.95%	-2.50%
ARKK ARK Innovation ETF	-1.65%	35.49%	8.40%	69.04%	-66.97%	-23.60%	152.71%	35.08%	3.52%	87.33%

Correlation

The correlation between VDE and ARKK is -0.04, 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	-0.04
Correlation (3Y) Calculated over the trailing 3-year period	0.15
Correlation (5Y) Calculated over the trailing 5-year period	0.18
Correlation (10Y) Calculated over the trailing 10-year period	0.25
Correlation (All Time) Calculated using the full available price history since Oct 31, 2014	0.26

The correlation between VDE and ARKK shifts across timeframes, from -0.04 (1 year) to 0.26 (all time), reflecting how their relationship changes across market environments.

VDE vs. ARKK - Sectors Allocation Comparison

Sectors	VDE	ARKK
Energy	99.5%	-
Basic Materials	0.4%	-
Industrials	0.1%	6.3%
Communication Services	-	10.9%
Consumer Cyclical	-	13.7%
Consumer Defensive	-	-
Financial Services	-	15.4%
Healthcare	-	27.4%
Real Estate	-	-
Technology	-	26.4%
Utilities	-	-

Return for Risk

VDE vs. ARKK — Risk / Return Rank

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

VDE

VDE Risk / Return Rank: 62
VDE Sharpe Ratio Rank: 65
VDE Sortino Ratio Rank: 59
VDE Omega Ratio Rank: 55
VDE Calmar Ratio Rank: 73
VDE Martin Ratio Rank: 58

ARKK

ARKK Risk / Return Rank: 20
ARKK Sharpe Ratio Rank: 21
ARKK Sortino Ratio Rank: 22
ARKK Omega Ratio Rank: 20
ARKK Calmar Ratio Rank: 19
ARKK Martin Ratio Rank: 17

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.

VDE vs. ARKK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Energy ETF (VDE) 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.

	VDE	ARKK	Difference
Sharpe ratio: Return per unit of total volatility	1.85	0.61	+1.24
Sortino ratio: Return per unit of downside risk	2.43	1.06	+1.37
Omega ratio: Gain probability vs. loss probability	1.30	1.12	+0.18
Calmar ratio: Return relative to maximum drawdown	3.20	0.70	+2.49
Martin ratio: Return relative to average drawdown	8.95	1.53	+7.42

VDE vs. ARKK - Sharpe Ratio Comparison

The current VDE Sharpe Ratio is 1.85, which is higher than the ARKK Sharpe Ratio of 0.61. The chart below compares the historical Sharpe Ratios of VDE 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

VDE vs. ARKK - Drawdown Comparison

The maximum VDE drawdown since its inception was -74.20%, smaller than the maximum ARKK drawdown of -80.97%. Use the drawdown chart below to compare losses from any high point for VDE and ARKK.

Drawdown Indicators

	VDE	ARKK	Difference
Max Drawdown Largest peak-to-trough decline	-74.20%	-80.97%	+6.77%
Max Drawdown (1Y) Largest decline over 1 year	-11.80%	-31.35%	+19.55%
Max Drawdown (3Y) Largest decline over 3 years	-21.41%	-39.56%	+18.15%
Max Drawdown (5Y) Largest decline over 5 years	-26.58%	-77.23%	+50.65%
Max Drawdown (10Y) Largest decline over 10 years	-69.29%	-80.97%	+11.68%
Current Drawdown Current decline from peak	-8.26%	-51.01%	+42.75%
Average Drawdown Average peak-to-trough decline	-19.95%	-30.16%	+10.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.21%	14.39%	-10.18%

Volatility

VDE vs. ARKK - Volatility Comparison

The current volatility for Vanguard Energy ETF (VDE) is 7.15%, while ARK Innovation ETF (ARKK) has a volatility of 11.81%. This indicates that VDE 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

	VDE	ARKK	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.15%	11.81%	-4.66%
Volatility (6M) Calculated over the trailing 6-month period	16.59%	26.30%	-9.71%
Volatility (1Y) Calculated over the trailing 1-year period	20.46%	36.28%	-15.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.45%	46.40%	-19.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.93%	40.34%	-10.41%

VDE vs. ARKK - Expense Ratio Comparison

VDE has a 0.09% expense ratio, which is lower than ARKK's 0.75% expense ratio.

Dividends

VDE vs. ARKK - Dividend Comparison

VDE's dividend yield for the trailing twelve months is around 2.42%, 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%
VDE Vanguard Energy ETF	2.42%	3.11%	3.23%	3.34%	3.65%	4.13%	4.76%	3.42%	3.35%	2.90%	2.31%	3.17%

Frequently Asked Questions

Can I hold both VDE and ARKK in my portfolio?

VDE and ARKK have a correlation of -0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VDE or ARKK?

ARKK has higher volatility (11.81%) compared to VDE (7.15%). In terms of maximum drawdown, VDE dropped -74.20% vs ARKK's -80.97%.

Which ETF is better, VDE or ARKK?

On 10-year performance, ARKK leads with 15.57% vs 9.39% for VDE. On fees, VDE is cheaper at 0.09% per year. On volatility, VDE has been the lower-risk option at 7.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VDE or ARKK?

Over the 10-year period, ARKK has performed better with a 15.57% return vs 9.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VDE or ARKK?

VDE is cheaper with a 0.09% expense ratio, compared with 0.75% for ARKK.

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

VDE has the higher dividend yield at 2.42%, compared with 0.00% for ARKK.

What is the main difference between VDE and ARKK?

VDE is categorized as Energy Equities, while ARKK is Technology Equities. They also come from different issuers: Vanguard and ARK. Their fees differ too: 0.09% for VDE and 0.75% for ARKK.

Which has better risk-adjusted returns?

VDE currently has the higher Sharpe Ratio (1.85 vs 0.61), 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.