ARKK VS SMH
4 min read
By Ron Koren, ETF Insider

ARKK VS SMH

Exchange-Traded Funds (ETFs) have revolutionized the investment world, offering diversified exposure across various sectors and asset classes. In this article, we will delve into a comprehensive comparison between two popular ETFs: ARKK (ARK Innovation ETF) and SMH (VanEck Vectors Semiconductor ETF). We'll explore the key aspects of these ETFs, including their tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

ARKK Vs SMH: Overview

ARKK and SMH are distinct ETFs with unique investment objectives. ARKK, managed by ARK Invest, aims to capture long-term growth opportunities in innovative sectors like technology, biotech, and fintech. In contrast, SMH focuses on the semiconductor industry, targeting companies involved in the design and manufacturing of semiconductor chips. These different focuses lead to varying risk and return profiles, which we will dissect in the upcoming sections.

ARKK Vs SMH: Sectors and Top Holdings

The ARKK ETF covers a diverse range of sectors, from genomics to artificial intelligence. Its top holdings include companies like Tesla, Square, and Teladoc Health. On the other hand, SMH centers on semiconductor companies like NVIDIA, Taiwan Semiconductor, and Intel. Analyzing the sectors and top holdings can assist investors in understanding the industries these ETFs are exposed to and the potential impacts of sector-specific trends.

ARKK  overlap ARKK VS SMHARKK overlap ARKK VS SMH

ARKK Vs SMH: Capitalization and Strategy

ARKK has attracted substantial assets under management due to its emphasis on disruptive technologies and innovation. Its active management approach involves identifying companies with transformational potential. SMH's strategy involves investing in semiconductor firms with established market positions. The difference in capitalization and strategy contributes to their distinct performance dynamics, and investors should consider these factors based on their risk appetite and investment objectives.

ARKK Vs SMH: Tracking and Exposure

ARKK's goal is to provide exposure to companies that are expected to drive future growth and innovation. The ETF's managers actively select securities based on their potential for disruptive innovation. SMH, as a sector-specific ETF, tracks an index of semiconductor companies, providing investors with targeted exposure to this industry's performance. Understanding the tracking and exposure strategies helps investors align their portfolios with their desired investment themes.

Conclusion

ARKK and SMH are unique ETFs, each catering to different investment strategies and themes. To gain deeper insights into the holdings, correlations, overlaps, and other essential details of these and other financial instruments, investors can turn to ETF insider—a user-friendly app that offers comprehensive information and analysis. Whether you're looking to capitalize on technological disruption or invest in the semiconductor sector's growth, ETF insider can be a valuable tool in your investment journey.

Disclaimer: This article does not provide any investment advisory services.

Sources:

https://finance.yahoo.com/ ARKK ETF issuer
https://finance.yahoo.com/quote/ARKK/ ARKK ETF official page

Get started

FAQ

  • Why is ARKK better than SMH?

    ARKK may be considered better than SMH for some investors due to its specific focus, offering diversification.

  • Does SMH beat ARKK?

    SMH's performance relative to ARKK will vary over time, depending on market conditions.

  • Should I invest in ARKK or SMH?

    The choice between ARKK and SMH should align with your investment goals, risk tolerance, and desired exposure.

  • Are ARKK and SMH good investments?

    Both ARKK and SMH can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between ARKK and SMH?

    The correlation between ARKK and SMH can vary over time, reflecting differences in performance.