ARKG VS XBI: A Comprehensive Comparison of ETFs
3 min read
By Beqa Bumbeishvili, ETF Insider

ARKG VS XBI: A Comprehensive Comparison of ETFs

Exchange-Traded Funds (ETFs) have transformed the investment landscape, offering diversified exposure to various sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs: ARKG (ARK Genomic Revolution ETF) and XBI (SPDR S&P Biotech ETF). We'll explore key aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.

ARKG VS XBI: Overview

ARKG and XBI represent two distinct approaches within the biotechnology sector. ARKG, managed by ARK Invest, focuses on companies driving advancements in genomics and biotechnology. XBI, managed by State Street Global Advisors, tracks an index of biotechnology stocks. These differences in focus lead to varying risk and return profiles, which we'll delve into further.

ARKG VS XBI: Sectors and Top Holdings

ARKG's emphasis is on innovative genomics companies such as CRISPR Therapeutics, Teladoc Health, and Pacific Biosciences of California. On the other hand, XBI provides exposure to a broader range of biotech firms, including emerging and established players like Moderna, Regeneron Pharmaceuticals, and Vertex Pharmaceuticals. Understanding the sectors and top holdings is crucial for investors seeking specific exposure within the biotech field.

ARKG overlap ARKG VS XBI: A Comprehensive Comparison of ETFsARKG overlap ARKG VS XBI: A Comprehensive Comparison of ETFs

ARKG VS XBI: Capitalization and Investment Strategy

ARKG has gained significant popularity, reflected in its substantial assets under management (AUM). Its strategy involves identifying companies at the forefront of genetic research and healthcare innovation. XBI's strategy is geared towards capturing the performance of biotech stocks. The difference in capitalization and investment approach underscores the distinct risk-return dynamics between these ETFs.

ARKG VS XBI: Tracking Methods and Exposure

ARKG employs an actively managed approach, allowing its portfolio managers to make dynamic allocation decisions based on research and innovation trends. XBI, being passively managed, tracks an established biotech index. ARKG's dynamic approach potentially offers exposure to cutting-edge developments, while XBI's passive approach seeks to replicate the broader biotech market's performance. Understanding the tracking methods and exposure strategies aids investors in aligning their investment goals.

Conclusion

ARKG and XBI are two compelling ETFs catering to different segments of the biotechnology sector. Investors looking for insights into holdings, correlations, overlaps, and other valuable information can benefit from using ETF Insider, an intuitive application that provides extensive details about these financial instruments.

Disclaimer: This article is intended solely for informational purposes and does not offer investment advisory services.

Sources:
ARK Invest (ark-invest.com)
State Street Global Advisors (ssga.com)

ARKG ETF issuer
ARKG ETF official page

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