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VGT vs. ARKG

Vanguard Information Technology ETF

VGT
$--
vs

ARK Genomic Revolution ETF

ARKG
$--

Correlation

0.70
VGTVanguard Information Technology ETF
ARKGARK Genomic Revolution ETF

What is VGT?

Seeks to track the performance of a benchmark index that measures the investment return of stocks in the information technology sector. Passively managed using a full-replication strategy when possible and a sampling strategy if regulatory constraints dictate. Includes stocks of companies that serve the electronics and computer industries or that manufacture products based on the latest applied science.

Snapshot
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VGT Vanguard Information Technology ETF
ARKG ARK Genomic Revolution ETF
Inception date
Jan 26 2004
Oct 31 2014
Expense ratio
0.10%
0.75%
VGT has a lower expense ratio than ARKG by 0.65%. This can indicate that it’s cheaper to invest in VGT than ARKG.
Type
US Equities
Global Equities
VGT targets investing in US Equities, while ARKG targets investing in Global Equities.
Fund owner
Vanguard
ARK Funds
VGT is managed by Vanguard, while ARKG is managed by ARK Funds.
Volume (1m avg. daily)
$206,920,148
$36,384,198
Both VGT and ARKG are considered high-volume assets. They’re less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets.
AUM
$50,021,727,974
$1,743,388,571
VGT has more assets under management than ARKG by $48,278,339,403. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
MSCI US Investable Market Information Technology 25/50 Transition Index
None
VGT is based off of the MSCI US Investable Market Information Technology 25/50 Transition Index, while ARKG is based off of the undefined
Inverse/Leveraged
No
No
VGT and ARKG use the same leverage ratio. Inverse and leveraged ETFs can be used to either take an opposite position or amplify returns of a given index.
Passive/Active
Passive
Active
VGT uses a Passive investing strategy, while ARKG uses a Active investing strategy.
Dividend
No
No
VGT and ARKG may offer dividends. The frequency and yield of the dividend may not be the same.
Prospectus
Neither VGT nor ARKG require a K1.
VGT and ARKG’s Correlation
When ETFs are correlated, there are 3 main topics to analyze that will help you build your automated trading strategy: liquidity, expense, and risk.
  • Liquidity: In an active trading strategy (trading multiple time per week), it’s important to consider the liquidity of the ETF you’re using. Lower liquidity can mean more money lost in slippage. AUM and average daily volume are both indicators of liquidity.
  • Expense: Some ETFs are more expensive to use than others. For strategies that are focused on longer holding periods, it’s important to factor in how expensive it is to hold this ETF. Expense ratio is the main indicator of how expensive an ETF is.
  • Risk: Some ETFs will be highly correlated, but have varying degrees of returns, due to leverage. It’s important to consider if an ETF is using leverage or not. The main indicators of a riskier ETF will be the use of leverage and higher standard deviation or max drawdown in a backtest.

Automated Strategies
Related toVGT

#PTS

Pick the Trending Sector

Category

Grow Your Portfolio, Ride the Momentum

Risk Rating

Aggressive

Automated Strategies
Related toARKG

#GLOBE

Follow the Global Trend

Category

Momentum, Lever Up, Go Global, Diversification

Risk Rating

Moderate

Create your own algorithmic
trading strategy

Disclaimers

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We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.

**

We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.