ARK Innovation ETF

ARKK

Market cap $7.44B

The Vanguard Growth ETF and Invesco QQQ Trust are great growth index ETFs. The Global X Artificial Intelligence & Technology ETF is a nice AI-focused fund that also gives investors exposure to International AI stocks.

Artificial intelligence still has plenty of growth left, and these AI ETFs are poised to benefit. Many of the top AI ETFs focus on chipmakers and software companies.

ARK Innovation ETF is now subject to more market risk, and this has significant implications for owners. The ETF should offer returns that are well above those of the equity market, but that's still not the case. With equity valuations at nose-bleeding levels and risk for the economy mounting, the downside risk in 2026 is significant.

This article dissects the fundamental distinction between QQQ and ARKK, revealing the core strategies that set these two funds apart. The comparison boils down to "Equity Duration": QQQ relies on current cash flows, while ARKK relies on long-term future discounting. In a falling rate environment, ARKK has high beta potential, but QQQ offers better risk-adjusted returns through quality holdings.

The ARKK ETF stock has done well this year, and is beating other funds like those tracking the Nasdaq 100 and S&P 500 indices. Its total return this year was ~40%, much higher than QQQ and VOO's 20% and 17.7%.

Cathie Wood's ARK Invest is back on top this year — in a resounding way. The dominance is hard to ignore, but most investors are.

The ARK Innovation ETF is highly concentrated in 10 companies. It has made some bets on some poorly performing and unprofitable companies.

Many growth-heavy investors might have felt it when the Nasdaq 100 slipped close to 8% as part of a tech-driven correction.

I am a huge fan of Cathie Wood. I am also an ardent critic. Why? She does not use any type of risk management.

Markets move fast, and in the ETF corner of the world, sometimes it feels like it's practically impossible to keep up. Product development and proliferation have been so intense in recent months.