ARKG vs XBI

ARKGDARK Genomic Revolution ETF

XBIAState Street SPDR S&P 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.

XBI Biotech's great leveler. Its index weights roughly 160 US biotechs near-equally, so a clinical-stage minnow carries about as much as a megacap. Live since 2006 and one of the most heavily traded funds in the sector.

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.

XBI The fund seeks to track, before fees and expenses, the total return performance of the S&P Biotechnology Select Industry Index.

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.

• XBI Modified equal weighting spreads exposure across roughly 160 biotechs instead of a handful of giants, so small drug developers actually move the fund.ssga.com
• 0.35% a year sits below the typical fee in its biotech peer group, which is unusual for a specialist sleeve this narrow.
• Among the most heavily traded funds in biotech and multi-billion-dollar in size, so getting in and out is rarely the hard part.
• A 2006 launch from State Street's SPDR line, meaning it has traded through several biotech booms and busts rather than one hot cycle. Pays quarterly.

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.

• XBI Equal weighting leans hard on smaller, clinical-stage names where a single trial readout moves a stock, so swings run deeper than cap-weighted rivals like IBB.ssga.comnasdaqomx.com
• Not the cheapest ticket on the shelf: Invesco's IBBQ charges 0.19% against XBI's 0.35%.
• One US industry only, drawn from the biotechnology segment of the S&P Total Market Index, so it can drift a long way from the broad market either direction.ssga.com

Full ARKG profile⁠

Full XBI profile⁠