ARKK VS FINX: A Comprehensive Comparison of ETFs
This blog article aims to provide an in-depth analysis of ARKK and FINX ETFs. We cover the sectors they focus on, their capitalization strategies, and how they track and provide exposure to innovative technology companies.
ARKK Vs FINX Overview
When it comes to investing in disruptive technology sectors, ARKK and FINX are often the go-to exchange-traded funds (ETFs) for many investors. Managed by ARK Invest, ARKK focuses on companies that are poised to benefit from disruptive innovations like artificial intelligence, genomic sequencing, and autonomous vehicles. On the other hand, the Global X FinTech ETF (FINX) focuses exclusively on financial technology companies that are reshaping every aspect of financial services.
ARKK Vs FINX Sectors and Top Holdings
One of the major differences between ARKK and FINX lies in the sectors they target. While ARKK provides broad exposure to multiple disruptive technology sectors, FINX is solely focused on the FinTech industry. ARKK's top holdings often include companies like Tesla, Square, and Roku, which cover a multitude of sectors ranging from automotive to streaming services. FINX, however, has its top holdings in companies such as Adyen, Square, and Shopify, which are reshaping the way we handle payments, process transactions, and conduct business online.
ARKK overlap ARKK VS FINX: A Comprehensive Comparison of ETFs
ARKK Vs FINX Capitalization Strategy
Both ARKK and FINX aim to give investors exposure to fast-growing, disruptive companies, but their capitalization strategies differ. ARKK is relatively agnostic when it comes to capitalization, featuring a mix of large-cap, mid-cap, and small-cap stocks. FINX, on the other hand, predominantly focuses on mid to large-capitalization companies within the FinTech sector. This is because the FinTech industry often requires firms to reach a certain scale to be able to disrupt traditional financial services effectively.
ARKK Vs FINX Tracking and Exposure
In terms of tracking and exposure, ARKK uses an active management strategy, meaning the fund’s managers pick and choose the stocks themselves. This approach aims to outperform the broader market and the sectors they focus on. FINX, on the other hand, employs an indexing investment approach, designed to track the performance of the Indxx Global FinTech Thematic Index. This offers investors a more passive investment strategy that replicates the performance of selected FinTech companies.
Conclusion:
In summary, both ARKK and FINX offer investors unique opportunities to gain exposure to disruptive technologies but in different manners. While ARKK provides a broad spectrum of investment opportunities across various disruptive sectors, FINX narrows its focus to the FinTech industry. Additionally, the difference in capitalization strategy and tracking approaches between the two ETFs could make one more suitable for your investment goals than the other. As with any investment decision, it's crucial to understand your risk tolerance and investment objectives when choosing between these two dynamic ETFs.
ARKK ETF issuer
ARKK ETF official page
FINX quote and analysis
Discover the top holdings, correlations, and overlaps of ETFs using our visualization tool.
Our app allows you to build and track your portfolio.
To learn more about the FINX Global X FinTech ETF, access our dedicated page now.