ARKG vs IBBQ

ARKGDARK Genomic Revolution ETF

IBBQAInvesco Nasdaq Biotechnology 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.

IBBQ The broad Nasdaq biotech benchmark, bought cheap. IBBQ tracks the whole listed biotech and pharma field, roughly 300 names, for 0.19% a year, well under half the typical fee in its category.

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.

IBBQ The Fund tracks the Nasdaq Biotechnology Index and normally invests at least 90% of its assets in index constituents. The index covers Nasdaq-listed companies classified as biotechnology or pharmaceutical companies.

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.

• IBBQ At 0.19% a year, the lowest fee among its closest biotech rivals and less than half the category median.
• Holds roughly 300 Nasdaq-listed biotech and pharma companies, so one failed trial or one blockbuster is a slice of the fund, not the whole story.invesco.com
• Rules first: normally at least 90% of assets sit in Nasdaq Biotechnology Index constituents. No manager guessing which pipeline pays off.invesco.com
• Stands in the top quartile of the biotech and genomics funds we grade, keeping company with far larger rivals like XBI and IBB.

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.

• IBBQ Thinly traded next to the category's giants, so bid-ask spreads can widen. Limit orders matter more here than in a heavily traded fund.
• One sector, and a jumpy one: biotech and pharma prices move on trial data and regulatory decisions, a rougher ride than a broad-market fund.invesco.com
• Launched in 2021, so a shorter live record and a smaller asset base than the category's long-standing funds.

Full ARKG profile⁠

Full IBBQ profile⁠