Comparing ARKQ and QQQ: Which Tech ETF Offers More Value?

Key Points

• The ARK Autonomous Technology & Robotics ETF has delivered 19.1% annualized returns since its inception in September 2014.

• The Invesco QQQ ETF has a 21.8% annualized return over the past 10 years and has outperformed the ARK fund since inception.

• As of May 30, the ARK fund’s one-year return was 79.99%, while the Invesco QQQ’s return was 42.71%.

The ARK Autonomous Technology & Robotics ETF (NYSEMKT: ARKQ), focusing on robotics and automation, has achieved nearly 12 years of 19.1% annualized returns. However, the Invesco QQQ ETF (NASDAQ: QQQ), tracking the Nasdaq-100 index, has delivered a higher return of 21.8% over the past decade, reinforcing its status as a popular choice among tech investors. As of June 9, 2023, the ARK fund holds 40 stocks with the top five making up 37% of its assets, whereas the Invesco fund contains 102 stocks with a 32% concentration in its top holdings.

Despite ARKQ’s impressive one-year return of 79.99% compared to QQQ’s 42.71%, the overall long-term performance favors Invesco QQQ, which enhances diversification and has lower fees (0.18% compared to ARKQ’s 0.75%). A $10,000 investment in QQQ would be worth approximately $64,240 today, while the same amount in ARKQ would amount to around $65,520, highlighting QQQ’s consistent track record.