AIQ vs ARKK: Which ETF Is Better in 2026?
A metric-by-metric comparison of Global X Artificial Intelligence & Technology ETF (AIQ) and ARK Innovation ETF (ARKK) — both Thematic funds — using ETFValuer's daily-updated rankings.
Educational content — not financial advice. Data as of July 25, 2026. ~5 minute read.
The Verdict
AIQ and ARKK compete directly — both are Thematic funds chasing the same job in a portfolio. That makes this a genuine either/or: the index each tracks, what it costs, and how it has handled drawdowns are what separate them, not the broad exposure they give you.
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — AIQ scores higher: 61.4 (Grade C) versus 33.8 for ARKK. That doesn't make ARKK a bad fund; it means AIQ currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Head-to-Head: Every Metric
| AIQ | ARKK | |
|---|---|---|
| Category | Thematic | Thematic |
| Expense ratio | 0.68% | 0.75% |
| Fund size (AUM) | $10.4B | $6.5B |
| Dividend yield | 0.07% | 0.00% |
| 1-year return | +29.62% | -7.05% |
| 3-year return | +96.48% | +43.69% |
| Volatility | 28.02% | 36.71% |
| Max drawdown | -26.35% | -39.56% |
| Sharpe ratio | 0.88 | -0.33 |
| ETFValuer score | 61.4 | 33.8 |
| Grade | C | F |
| Overall rank | #219 | #438 |
Bold marks the better value in each row. "Better" is directional only (e.g. lower cost, higher return) — it isn't a recommendation by itself. See the full methodology.
Cost
AIQ is the cheaper fund, charging 0.68% a year versus 0.75% for ARKK — a gap of 0.07 percentage points (about $7.00/year on a $10,000 position) that compounds meaningfully over a multi-decade holding period. See the ETF Fee Calculator for the exact dollar impact at your investment size and horizon.
What ARKK's Fees Cost You
ARKK charges an expense ratio of 0.75% a year, deducted automatically from the fund's value. Small percentages compound into real money — adjust the figures below to see the impact on your own numbers.
Assumes a constant gross return and no additional contributions — a simplification, but it isolates exactly what the expense ratio costs. Try the full fee calculator to model contributions and compare any two funds.
Performance & Risk
Over the trailing 3 years, AIQ returned +96.48% versus +43.69% for ARKK — a gap of about 52.8 percentage points. On risk, AIQ has held up better historically, with a shallower max drawdown (-26.35% vs. -39.56%). AIQ currently has the better risk-adjusted return (Sharpe ratio of 0.88 vs. -0.33), meaning it delivered more return per unit of volatility taken on.
How Closely Do They Track Each Other?
Over the last 3.0 years of daily returns (752 shared trading days), AIQ and ARKK show a strong correlation of 0.785 — clearly related, with room to diverge. There is some genuine differentiation here, but not enough to call these complementary holdings. Pairing them mostly concentrates risk rather than spreading it.
| Measure | Value | What it means |
|---|---|---|
| Daily return correlation | 0.785 | Strong — clearly related, with room to diverge |
| R-squared | 61.7% | 61.7% of AIQ's daily moves are explained by ARKK's |
| Tracking error (annualised) | 25.35% | Typical yearly spread between the two funds' returns |
| Annualised return over 3.0y | AIQ +26.43% · ARKK +15.40% | AIQ ahead by 11.03 points a year |
Correlation alone understates how far these can drift. Across every rolling 12-month window in the period, AIQ finished as much as +43.1 points ahead of ARKK at the best extreme and -62.4 points at the worst — a 105.5-point spread between the best and worst year of relative performance. Two funds can correlate tightly day to day and still deliver very different outcomes over any single year you happen to hold them.
Calculated from daily total returns over the trailing 3-year window, recomputed every day this site refreshes. Correlation of 1.00 means the two funds moved in lockstep; 0.00 means their daily moves were unrelated.
Holdings Overlap
AIQ and ARKK share no companies among their top 10 reported holdings. That points to genuinely different exposure, so holding both is more likely to diversify than to duplicate. Full portfolios may still overlap further down the list.
Based on the top 10 holdings in each fund's most recent SEC N-PORT-P filing.
Which One Should You Pick?
Lean AIQ if…
- You want the lower running cost — 0.68% vs 0.75%, about $7 a year less on a $10,000 position
- Current income matters to you — it yields 0.07% against 0.00%
- It has been the calmer ride (28.0% volatility vs 36.7%) with a shallower worst-case fall (-26.4% vs -39.6%)
- You care about return per unit of risk — its Sharpe ratio of 0.88 beats -0.33
Lean ARKK if…
- You prefer to keep holdings under one roof at ARK ETF Trust
Whichever you pick, holding both at full weight is usually the wrong answer — see the overlap and correlation sections above.
Frequently Asked Questions
Is AIQ or ARKK better?
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — AIQ scores higher: 61.4 (Grade C) versus 33.8 for ARKK. That doesn't make ARKK a bad fund; it means AIQ currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Which has the lower expense ratio, AIQ or ARKK?
AIQ currently has the lower expense ratio (0.68% vs. 0.75%).
Can I hold both AIQ and ARKK?
Yes, and it may be worth doing. AIQ and ARKK correlate at only 0.79 over the past 3.0 years, so they behave differently enough that holding both is a genuine diversification decision rather than a redundant one. Size each to the role you want it to play.
Go deeper on either fund
Full daily-updated metrics, holdings context, and category peers.