ARKG vs BBP

ARKGDARK Genomic Revolution ETF

BBPAVirtus Biotech ETF

In short

ARKG Most genomics exposure comes prepackaged in an index. ARKG is the active version: ARK's team hand-picks a global slate of companies tied to the genomics revolution, and has since 2014.

BBP Biotech, minus the coin flips. BBP tracks an index of US-listed biotech companies that already have at least one FDA-approved therapy, so the basket leans commercial-stage instead of clinical-trial hopefuls.

Stated mandate

ARKG The Fund seeks long-term growth of capital through active investment, primarily in domestic and foreign equity securities of companies relevant to the genomics revolution theme.

BBP The fund seeks to track the LifeSci Biotechnology Products Index, which consists of U.S.-listed biotechnology stocks with at least one FDA-approved drug therapy.

Why people hold it

• ARKG Active by design. ARK's managers choose the names instead of tracking a genomics index, so the portfolio can move as the science does.
• Global mandate. The prospectus puts both domestic and foreign equities in bounds, so the hunt for genomics names isn't fenced in at the US border.
• Live since 2014 and now a multibillion-dollar fund that trades actively, which makes getting in and out one of the easier parts of owning it.

• BBP The screen does the heavy lifting: index membership requires at least one FDA-approved drug therapy, which filters out pre-approval story stocks.
• 0.34% a year undercuts the biotech cohort median of 0.50% and sits below IBB's 0.44%.
• Running since 2014 and spread across roughly 200 US-listed names, so one approval or rejection does not decide the whole basket.
• One of the stronger builds in its biotech and genomics peer group, with a portfolio that stays close to the index it promises.

Worth knowing

• ARKG The stock picking costs you: 0.75% a year, above the category median, while index rivals like IBB (0.44%) and XBI (0.35%) charge less for broad biotech.
• It sits at the more volatile end of its peer group. Concentrated bets on young science companies swing hard in both directions.
• Long-term growth of capital is the stated job. Income isn't part of the mandate, so there's no dividend cushioning the ride.

• BBP Thinly traded and modest in size next to the category's household names. Spreads can widen, which makes limit orders the safer habit.
• Income is not the point here. The fund has not been paying distributions, so the return story is price.
• An approved drug filters risk, it does not erase it. This is a single-sector biotech basket, and sector drawdowns hit everything in it.

Full ARKG profile⁠

Full BBP profile⁠