ARK Innovation ETF lags 5-year returns vs. VanEck MOAT ETF, with higher volatility and deeper drawdowns.

Over the past five years, the ARK Innovation ETF (ARKK), known for its focus on disruptive tech like electric vehicles and AI, lost 33%, while the VanEck Morningstar Wide Moat ETF (MOAT) gained 45%, offering steadier returns with less volatility. ARKK’s concentrated, high-risk portfolio leads to large swings and deep drawdowns, making it challenging for long-term holders. MOAT, based on Warren Buffett’s economic moat philosophy, invests in quality companies at reasonable prices, providing a smoother ride and more consistent growth. Investors might consider holding ARKK as a smaller innovation play while using MOAT as a core holding for durability and valuation discipline.