PSJ VS ARKK
3 min read
By Ron Koren, ETF Insider

PSJ VS ARKK

Exchange-Traded Funds (ETFs) have transformed the landscape of investment, providing investors with diversified exposure to a wide array of sectors and asset classes. In this article, we will undertake a comprehensive comparison between two notable ETFs: PSJ (Invesco Dynamic Software ETF) and ARKK (ARK Innovation ETF). We will delve into a range of critical aspects, encompassing ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

PSJ Vs ARKK: Overview

The PSJ and ARKK ETFs represent distinct investment strategies within the technology and innovation sectors. While PSJ focuses on software companies, ARKK seeks exposure to disruptive and innovative businesses across various industries. This divergence in focus translates to different risk profiles and potential returns, factors that we will explore in the ensuing sections.

PSJ Vs ARKK: Sectors and Top Holdings

PSJ predominantly targets software companies, with top holdings like Adobe, Salesforce, and Microsoft. On the other hand, ARKK invests in a diverse range of disruptive companies, including Tesla, Square, and Teladoc. Understanding the sectors and top holdings is paramount for investors, as it aids in choosing the ETF that aligns with their investment objectives and risk appetite.

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PSJ Vs ARKK: Capitalization and Strategy

With substantial assets under management, PSJ reflects its popularity among investors interested in the software sector. ARKK, with its focus on innovative companies, carries a distinctive strategy that aims to capture substantial growth potential. The difference in capitalization and strategy between the two ETFs underscores the importance of selecting an ETF that aligns with your investment goals.

PSJ Vs ARKK: Tracking and Exposure

PSJ's primary goal is to provide investors with exposure to the software industry's performance, while ARKK focuses on innovative companies that have the potential to drive disruptive technological advancements. The tracking methodologies differ: PSJ tracks an index of software companies, while ARKK actively selects innovative stocks. An understanding of these tracking and exposure strategies assists investors in making informed decisions based on their risk preferences.

Conclusion

PSJ and ARKK are distinctive ETFs, each offering a specialized approach to investing in the technology and innovation sectors. For those who desire in-depth insights into holdings, correlations, overlaps, and other critical factors, ETF Insider presents an indispensable tool. With its user-friendly app, this resource provides extensive information on these ETFs and other financial instruments.

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

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FAQ

  • Why is PSJ better than ARKK?

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

  • Does ARKK beat PSJ?

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

  • Should I invest in PSJ or ARKK?

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

  • Are PSJ and ARKK good investments?

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

  • What is the correlation between PSJ and ARKK?

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