ARKQ vs. QQQ: Which Tech Stock ETF is the Better Buy?
Written by Ben Gran for The Motley Fool -> The ARK Autonomous Technology & Robotics ETF has delivered almost 12 years of 19.1% annualized returns. The Invesco QQQ ETF has outperformed the ARK fund since its inception in September 2014. A low-cost index fund that tracks the Nas
The ARK Autonomous Technology & Robotics ETF has delivered almost 12 years of 19.1% annualized returns.
The Invesco QQQ ETF has outperformed the ARK fund since its inception in September 2014.
A low-cost index fund that tracks the Nasdaq-100 might outperform any robotics-focused ETF in the future.
Part of the conversation around the artificial intelligence (AI) boom is focused on physical AI -- robots and automation that can use AI for productivity breakthroughs in the real world. If you're optimistic that robots, self-driving cars, and other advanced AI and automation technologies are coming soon and you want to invest in those companies, the ARK Autonomous Technology & Robotics ETF (NYSEMKT: ARKQ) could be a good choice.
But is buying a robot-focused exchange-traded fund (ETF) the best way to profit from the future of robots and physical AI? You might be better off buying the more diversified Invesco QQQ ETF (NASDAQ: QQQ) . This popular tech ETF, also called "the Q's," tracks the tech-heavy Nasdaq-100 index and has delivered powerful wealth-building returns to its investors for the past 15 years.
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Over the past year, as of May 30, the ARK fund delivered a return of 79.99% (by net asset value), strongly outperforming the Invesco fund's one-year return of 42.71%. But in the long run, over the past almost 12 years since the ARK fund's inception in September 2014, the Invesco QQQ ETF Trust has outperformed it.
It's tough for tech investors to beat the Q's. Let's look closer at these two technology ETFs and see which one might be a better buy.

