ARKW vs BAI
ARK Next Generation Technology ETF vs iShares AI Innovation and Tech Active ETF
Which is better, ARKW or BAI?
Each has led over a different period.
BAI has a lower expense ratio. ARKW led over the full window, BAI over 1Y. BAI is less concentrated, with 42.0% of the fund in its ten largest positions against 44.6%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | ARKW | BAI |
|---|---|---|
| Expense Ratio | 0.76% | 0.55%Best |
| AUM | $2.0B | $14.2B |
| Dividend Yield | 1.47% | 1.26% |
| Holdings | 88 | 55 |
| YTD Return | +7.08% | +30.13%Best |
| 1Y Return | -5.81% | +30.79%Best |
| 3Y Return (annualized) | +44.31% | - |
| 5Y Return (annualized) | +2.38% | - |
| Volatility (annualized) | 37.8% | 37.4%Best |
| Max Drawdown | -36.2% | -34.1%Best |
| $10,000 over 2 years | $18,687Best | $18,007 |
| Top 10 Weight | 44.6% | 42.0%Best |
| Fund Family | Ark Invest | iShares by BlackRock (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Sep 30, 2014 | Oct 21, 2024 |
Volatility and max drawdown, and the $10,000 over 2 years row, are measured over the window both funds cover: Oct 22, 2024 to Oct 14, 2026 (2 years).
ARKW vs BAI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2 years both funds cover.
ARKW vs BAI Performance
ARK Next Generation Technology ETF (ARKW) is an ETF from Ark Invest and iShares AI Innovation and Tech Active ETF (BAI) is an ETF from iShares by BlackRock (US). Over the past year ARKW returned -5.81% while BAI returned +30.79%. Year to date, ARKW is up 7.08% versus a gain of 30.13% for BAI.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ARKW has been the more volatile fund, with annualized monthly volatility of 37.8% compared with 37.4% for BAI. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -36.2% for ARKW and -34.1% for BAI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.69. They move together some of the time, and apart the rest.
Fees and Cost Over Time
ARKW charges 0.76% per year while BAI charges 0.55%. On a $10,000 position that is $76 vs $55 annually, a gap of $21 per year that compounds over a long holding period. On income, ARKW currently yields 1.47% against 1.26% for BAI.
Holdings Overlap
37.2% of ARKW's money is in holdings BAI also owns. 32.8% of BAI's money is in holdings ARKW also owns.
The two portfolios partly overlap.
11 positions in common, counted across the 40 positions we hold weights for in ARKW and 50 in BAI, against full books of 88 and 55.
What only one of them owns
Our book lists 26 positions for BAI that do not appear in our book for ARKW (46.0% of the fund), and 26 for ARKW that do not appear in BAI (54.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in ARKW | Weight in BAI | Difference |
|---|---|---|---|
| NVDANvidia Corp | 4.34% | 5.30% | 0.96% |
| TSLATesla Inc | 7.27% | 0.94% | 6.33% |
| AMDAdvanced Micro Devices Inc | 3.11% | 4.87% | 1.76% |
| SPCXSpace Exploration Technologies | 4.50% | 3.06% | 1.44% |
| AVGOBroadcom Inc | 2.59% | 4.75% | 2.16% |
| 2330:TWTaiwan Semiconductor Manufacturing Co Ltd | 2.26% | 4.74% | 2.48% |
| CRWVCoreweave, Inc. | 3.96% | 1.81% | 2.15% |
| AMZNAmazon.Com Inc | 3.62% | 2.05% | 1.57% |
| CRWDCrowdstrike Holdings Inc | 2.27% | 1.82% | 0.45% |
| SNOWSnowflake Inc | 0.99% | 2.99% | 2.00% |
37.2% of ARKW is already inside BAI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, ARKW or BAI?
ARKW has an expense ratio of 0.76% while BAI charges 0.55%. BAI is the cheaper option, by $21 a year on a $10,000 investment.
Which performed better, ARKW or BAI?
Over the past year ARKW returned -5.81% vs +30.79% for BAI, so BAI leads on 1-year performance. Over the longest common window we track (2 years), ARKW annualized +36.70% vs +34.19% for BAI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ARKW or BAI?
ARKW has been the more volatile fund at 37.8% annualized versus 37.4% for BAI. Worst drawdown: ARKW -36.2% vs BAI -34.1%.
Should I hold both ARKW and BAI?
ARKW and BAI have a monthly-return correlation of 0.69, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between ARKW and BAI?
37.2% of ARKW's money is in holdings BAI also owns. 32.8% of BAI's is in holdings ARKW also owns. They hold 11 positions in common, counted across the 40 positions we hold weights for in ARKW and 50 in BAI.
Which pays a higher dividend, ARKW or BAI?
ARKW yields 1.47% while BAI yields 1.26%, so ARKW currently pays the higher dividend yield.
Is BAI better than ARKW?
BAI has a lower expense ratio. ARKW led over the full window, BAI over 1Y. BAI is less concentrated, with 42.0% of the fund in its ten largest positions against 44.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.