ARKK vs SPLG : Visionary Conviction vs Quiet Compounding
πππCathie Wood's ARKK $ARK Innovation ETF(ARKK)$
Let's explore what each stands for and why I invest in SPLG.
What Cathie Wood Stands for in ARKK:
ARKK is Cathie Wood's flagship ETF, designed to capture disruptive innovation. It is a curated portfolio of companies aiming to reshape the future - for example AI, genomics, Robotics and blockchain.
Conviction Led: ARKK concentrates in high growth names like Tesla, Roku, Coinbase and CRISPR. It is not diversified for comfort. ARKK is focused on impact.
Active management : Cathie Wood adjusts positions frequently, responding to market shifts and new data. ARKK is hands on and unapologetically volatile.
Expense ratio: 0.75%
Philosophy: Innovation is misunderstood in the short term but transformative in the long run.
What SPLG stands for:
SPLG is a passive low cost way to own the largest 500 companies in the US. SPLG is not flashy but it is foundational.
Broad Exposure: SPLG holds the Magnificent 7 as well as Warren Buffett's Berkshire Hathaway.
Passive Management : No sudden moves, no surprise trades. SPLG tracks the S&P500 Index with quiet efficiency.
Expense ratio : just 0.02%. It is the lowest Expense ratio among competing ETFs.
Philisophy: The market rewards discipline and diversification. SPLG is built for steady long term growth.
5 Year Performance Comparison:
Even though ARKK is up 46% year todate compared to SPLG's rise of just 13% year todate, if we look back to 5 years ago, ARKK is down 8.4% over 5 years compared to SPLG's jump of 101%.
ARKK's performance reflects its volatility. ARKK soared in 2020, but plunged over 80% in 2022 but has just recently recovered slightly. In contrast, SPLG has compounded steadily, reflecting the resilience of the broader US market.
Why I Choose SPLG over ARKK:
I am not here to gamble on moonshots. I am here to build a legacy for my kids in future. SPLG is my quiet powerhouse. It does not promise to reinvent the world but it does deliver compounding returns with grace. SPLG is the ETF equivalent of gifting Laopu Gold : timeless, dignified and symbolic.
ARKK may dazzle in the short term but SPLG has proven that it delivers great returns in the long run.
Concluding Thoughts
While Cathie Wood's ARKK maybe thrilling but I prefer the slow and steady pace of SPLG. ARKK chases transformation. SPLG is rich with the power of compounding.
So if you ask me which ETF I prefer ARKK vs SPLG? It would unequivocally be SPLG because sometimes the most powerful move is not chasing the future but owning the present with conviction.
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Modify on 2025-09-30 08:22
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