What is the core difference in investment strategy between these two funds?

The first fund is actively managed by ARK and targets disruptive innovation, allowing it to deviate from market-cap weighting benchmarks and potentially hold highly concentrated positions. The second fund is passively managed by Vanguard to track the S&P 500, replicating a large-cap US equity index. These differing strategies shape their risk profiles and potential for alpha.

How do active and passive fund management styles affect a portfolio?

An active strategy aims to beat the market by selecting specific stocks and timing trades, requiring a skilled manager to adjust positions. Passive management, as used in index-tracking funds, accepts current market performance. The first fund deviates from traditional indices to target disruptive innovation. The second fund mirrors the S&P 500, aiming to deliver market returns rather than attempt to outperform it.

What does 'net assets' mean and why does fund size matter here?

Net assets represent the fund's total market value. The first fund has $8.0 billion, sufficient for institutional trading. The second fund holds $1.08 trillion. Large size provides deep liquidity and very tight bid-ask spreads, lowering transaction costs for all investors. However, funds with trillions of assets may occasionally face market impact costs during large trading episodes.

How do the expense ratios of these two funds compare?

The expense ratio is the annual fee charged to manage the fund. The first fund costs 0.75% per year, which is standard for an actively managed ETF targeting a specific theme. The second fund costs only 0.03%, the low fee expected from a passive index tracker. A higher fee lowers the net return over time but pays for active stock selection.

Are there any dividends provided by these two funds?

Yes, but the amounts vary widely. The second fund provides a dividend yield of 1.03%, distributing regular income to investors. In contrast, the first fund currently pays a dividend yield of 0.00%. This means total returns depend entirely on capital appreciation. Income-focused investors typically seek regular yield, whereas growth investors reinvest profits rather than taking periodic cash distributions.

Do the two funds share any common holdings?

Yes, Tesla (TSLA) is a shared top-10 holding for both funds. However, the context differs considerably. For the first fund, TSLA represents 9.38% of total assets, highlighting a very concentrated portfolio. For the second fund, TSLA represents 1.57% of assets. Both funds hold other large-cap technology stocks in their respective top ten.

How do these funds perform across different economic cycles?

The first fund was launched in October 2014, providing a modern historical track record focused on a shorter timeframe of market data. The second fund has existed since September 2010, giving it a longer history that spans multiple economic cycles, including periods of high inflation, rising interest rates, and severe market downturns. This extended history helps investors gauge resilience.

How do sector weights affect the risk profile of these ETFs?

Sector weights are not available for either fund in the provided context. However, the concentration of top holdings indicates the underlying risk. The first fund is heavily concentrated in high-growth and disruptive sectors, creating idiosyncratic risk. The second fund broadly tracks a diversified large-cap index. Investors must weigh the opportunity for outsized returns against the volatility inherent in concentrated sector bets.

How should a beginner interpret these metrics before investing?

Beginners should consider their specific goals, such as capital growth versus broad market participation. Compare active fees (0.75%) to passive costs (0.03%) to see how expenses could erode your returns over a decade. Analyse the portfolio concentration versus diversification. Always consult official fund documentation for sector weights and risk metrics, and remember that this content is strictly educational and does not constitute financial advice.

ARKK vs VOO

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

This page compares ARK Innovation ETF and S&P 500 Vanguard ETF, examining their expenses of 0.75% and 0.03%, respective holdings, dividends, and how each fund tracks its market. It highlights differences in asset size and investment strategy without making predictions. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

ARKK

Metric

VOO

0.75%

Expense Ratio

0.03%

0.00%

Dividend Yield

1.03%

$7.98B

Net Assets

$1.08T

Holdings

516

Oct 31, 2014

Inception Date

Sep 7, 2010

–

Index Tracked

–

Mid-Cap Growth

Fund Category

Large Blend

VOO costs about $72.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	ARKK	VOO
TSLATesla, Inc.	9.38%	1.57%

Discover More Comparisons

ARKK vs ARKW

Compare ARKK and ARKW ETFs. Review 0.75% and 0.76% fees, 0.00% and 1.42% yields, holdings, and tracking data to distinguish these mid-cap growth funds.

ARKK vs ARKQ

ARKK vs ARKQ compared: both ARK active funds charge 0.75%, so the difference is theme and holdings. See overlap, concentration, size and what each fund owns.

ARKK vs QQQ

Compare ARKK and QQQ: 0.75% vs 0.18% expense ratio, 46 active innovation picks vs the 104-stock Nasdaq-100, no dividend vs 0.41% yield, and only TSLA shared.

Investment Analysis

ARKK

Pros

Net assets of $8.0 billion provide sufficient scale for reasonable institutional liquidity.
The active management approach allows the portfolio to deviate significantly from traditional market-cap weighting benchmarks.
Recent inception date offers a shorter historical track record, allowing analysis of performance across specific modern market cycles.

Considerations

The 0.75% expense ratio is substantially higher than the 0.03% charged by core market-tracking ETFs like Fund B.
A dividend yield of 0.00% means total returns rely entirely on capital appreciation without periodic income distributions.
Top holdings exhibit high concentration, with the top position representing 9.38% of the fund's total assets, elevating idiosyncratic risk.

VOO

Pros

The expense ratio of 0.03% is minimal, allowing nearly all investment returns to accrue to the investor.
Net assets of $1.08 trillion ensure deep liquidity, resulting in tight bid-ask spreads for active traders and institutional investors.
Track record since 2010 provides extensive historical data demonstrating resilience across multiple long-term economic cycles and market regimes.

Considerations

A dividend yield of 1.03% may not meet income-focused investors' expectations for high-yield fixed-income or real estate assets.
The fund's large size of $1.08 trillion can lead to market impact costs during very large rebalancing or creation/redemption episodes.
Tracking a broad market index means the fund's performance is entirely tethered to the aggregate strength of that underlying index.

Related Market Insights

When Greed Rules: Riding the Bull Market's Most Aggressive Plays

Invest in high-growth stocks for amplified returns during market euphoria. Explore Nemo's 'Market Greed' Neme with Tesla, Coinbase, MicroStrategy.

Aimee Silverwood | Financial Analyst

25 July 2025

Read Insight

Related Market Insights

When Greed Rules: Riding the Bull Market's Most Aggressive Plays

Invest in high-growth stocks for amplified returns during market euphoria. Explore Nemo's 'Market Greed' Neme with Tesla, Coinbase, MicroStrategy.

Aimee Silverwood | Financial Analyst

25 July 2025

Read Insight

About ARKK and VOO

ARKK (ARKK)

ARK Innovation ETF (ARKK) is an actively managed exchange‑traded fund run by ARK Invest that targets companies believed to be developing disruptive innovation. It typically concentrates on areas such as genomics, automation and robotics, artificial intelligence, fintech, blockchain and energy storage. Unlike broad passive ETFs, ARKK holds a relatively small number of higher‑conviction positions and can show significant sector and stock concentration. That approach can deliver strong gains in favourable market regimes but also adds volatility and drawdown risk. ARKK charges a management fee and tends to have higher turnover than passive funds. Market cap is not applicable for this fund; investors should check assets under management and current holdings before deciding. This summary is for educational purposes only and not investment advice. Values can rise and fall, past performance is not a reliable guide, and this fund may not be suitable for all investors — consider your risk tolerance and consult a qualified adviser.

VOO (VOO)

VOO is Vanguard’s exchange-traded fund designed to track the S&P 500 Index, offering broad exposure to about 500 of the largest publicly traded US companies. It aims to replicate the index’s performance minus fees by holding the same stocks in similar proportions, making it a straightforward, passive way to access large‑cap US equities. Investors commonly use VOO as a core holding for long‑term growth or as a simple building block in a diversified portfolio. It typically offers high liquidity and regular dividend distributions from underlying companies. As with any equity investment, VOO’s value can rise or fall with the market, and past performance is not a guide to future returns. Fees, trading costs and potential tracking error reduce returns slightly. This information is general and educational only and not personalised financial advice — consider your own circumstances or speak to a qualified adviser before investing.

Which Baskets Do They Appear In?

Market Greed

Ride the wave of investor optimism with this carefully selected group of high-growth companies. Our professional analysts have identified businesses positioned to deliver amplified returns when market sentiment is bullish and risk appetite is high.

Published: 18 June 2025

Explore Basket

Which Baskets Do They Appear In?

Market Greed

Published: 18 June 2025

Explore Basket

Buy ARKK or VOO in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

ARKK vs VOO

Fund Snapshot