What are innovation ETFs?
Innovation ETFs own companies built on new technology: chipmakers, software firms, online retailers, gene-editing biotechs and electric-car makers. Of the 15 largest funds, nine hold Nvidia and nine hold Amazon. Eight hold Alphabet, and seven each hold AMD, Microsoft and Crispr Therapeutics. Micron, Shopify and Broadcom appear in six, and Tesla in five.
The funds reach that theme in different ways. ARKK, from ARK Invest, is run by managers who hold 46 positions. Tesla is the largest at 9.74%, and the fund has a 4.87% stake in SpaceX. FWD, ILDR and FDTX also rely on managers' picks. XT, KOMP and GINN track indexes instead. KOMP follows the S&P Kensho New Economies Composite Index across 504 holdings, with only 9.9% in its top 10. MINV focuses on Asian companies, led by Samsung Electronics.
Some funds change how returns arrive. QDTE runs a covered-call strategy. It writes options that expire the same day (0DTE means zero days to expiration) and pays out the premiums as income, giving up gains above a set price. FEPI also writes options for income. TMAT aims to beat the MSCI ACWI Index in rising markets while limiting losses in falls. Four products are leveraged or inverse. TARK aims for 2x a day's move and SARK for the opposite. BULZ and BERZ are exchange-traded notes, which are debt of their issuer, aiming for 3x and -3x of a Solactive FANG & Innovation index.
Costs vary widely. The median expense ratio, the yearly fee taken from fund assets, is 0.55%. KOMP is the cheapest at 0.20% and XT charges 0.46%. ARKK charges 0.75%, and the costliest fund charges 1.48%. The money is concentrated too: the five largest funds, ARKK, XT, FWD, KOMP and QDTE, hold 84.9% of the roughly $19.3 billion invested across the group.
Innovation ETF holdings: the stocks most funds own
The stocks that show up most often among the largest positions of the 15 biggest innovation ETFs with holdings reports, from their latest N-PORT filings.
| Stock | Funds holding it | Typical weight |
|---|---|---|
| Nvidia Corporation | 9 of 15 | 4.68% |
| Amazon.com Inc | 9 of 15 | 3.8% |
| Alphabet Inc. | 8 of 15 | 3.16% |
| Advanced Micro Devices Inc | 7 of 15 | 4.33% |
| Microsoft Corporation | 7 of 15 | 4.02% |
| Crispr Therapeutics AG | 7 of 15 | 2.36% |
| Micron Technology, Inc. | 6 of 15 | 4.53% |
| Shopify Inc | 6 of 15 | 3.4% |
| Broadcom Inc. | 6 of 15 | 2.84% |
| Tesla Inc | 5 of 15 | 3.08% |
| Meta Platforms, Inc. | 4 of 15 | 1.87% |
| Taiwan Semiconductor Mfg Co Ltd | 3 of 15 | 5.77% |
Typical weight is the median share of each fund’s assets in the stock, among the funds that hold it in their 25 largest positions.
The largest innovation ETFs, side by side
Swipe the table to see all 5 funds.
| ARKK | XT | FWD | KOMP | QDTE | |
|---|---|---|---|---|---|
| Net assets | $5.56B | $3.82B | $3.20B | $2.85B | $937.3M |
| Expense ratio | 0.75% | 0.46% | 0.65% | 0.2% | 0.96% |
| Holdings | 46 | 214 | 118 | 504 | 1 |
| In the 10 largest | 47.59% | 33.54% | 22.29% | 9.9% | 5.12% |
| Biggest holding | Tesla Inc (9.74%) | Eli Lilly and Company (4.05%) | NVIDIA Corp (4.17%) | Ouster Inc (1.33%) | Roundhill Weekly T-Bill ETF (5.12%) |
| Yield | 0% | 6.69% | 0.09% | 1.59% | 43.88% |
| 1-year return | -6.1% | +21.9% | +15.2% | -0.3% | +16.4% |
| 3 years, a year | +35.5% | +24.5% | +36.7% | +22.4% | — |
| 5 years, a year | -6.2% | +8.0% | — | +1.8% | — |
| Worst drop, past year | -29.6% | -10.4% | -20.5% | -17.5% | -10.2% |
| Launched | 2014 | 2015 | 2023 | 2018 | 2024 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Oct 27, 2026.
Head to head
ARKK vs XT
ARKK is actively managed. It has 46 holdings, 47.59% in its top 10, and Tesla is the biggest at 9.74%. XT tracks an index and holds 214 developed and emerging market stocks, with 33.54% in its top 10, led by Eli Lilly at 4.05%. Only 14.2% of their assets overlap. XT costs 0.46%, ARKK 0.75%. In the year to October 27, 2026, XT gained 21.9% and ARKK lost 6.1%. Over three years ARKK led, 35.5% to 24.5%. ARKK's deepest fall in that year was 29.6%, XT's 10.4%. ARKK may suit investors at ease with big swings, and XT those wanting a wider spread.
XT vs FWD
Of the largest funds, these two overlap most: 32% of their assets, across 41 shared holdings. XT follows an index, while AllianceBernstein's managers pick FWD's 118 holdings. FWD has 22.29% in its top 10, led by Nvidia at 4.17%. XT has 33.54%, led by Eli Lilly at 4.05%. FWD costs 0.65%, XT 0.46%. In the year to October 27, 2026, XT returned 21.9% and FWD 15.2%, but FWD led over three years, 36.7% to 24.5%. FWD's deepest fall that year was 20.5%, XT's 10.4%. FWD may suit those wanting active management, and XT those preferring index rules.
ARKK vs KOMP
ARKK and KOMP share 26 holdings, yet only 5.8% of assets overlap. KOMP tracks the S&P Kensho New Economies Composite Index across 504 holdings, so its top 10 hold 9.9% and its largest, Ouster, 1.33%. ARKK puts 47.59% in its top 10, led by Tesla at 9.74%. KOMP costs 0.20%, ARKK 0.75%. As of October 27, 2026, KOMP returned -0.3%, 22.4% and 1.8% over one, three and five years. ARKK returned -6.1%, 35.5% and -6.2%. Within that year ARKK fell as much as 29.6%, KOMP 17.5%. KOMP may suit those wanting a broad, low-cost index, and ARKK those wanting concentrated picks.
How much do the largest innovation ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
| Funds | Assets in common | Shared holdings | |
|---|---|---|---|
| XT and FWD | 32% | 41 | |
| ARKK and FWD | 15% | 14 | |
| ARKK and XT | 14.2% | 15 | |
| FWD and KOMP | 10% | 40 | |
| XT and KOMP | 9.9% | 50 | |
| ARKK and KOMP | 5.8% | 26 | |
| ARKK and QDTE | 0% | 0 | |
| XT and QDTE | 0% | 0 | |
| FWD and QDTE | 0% | 0 | |
| KOMP and QDTE | 0% | 0 |
From each fund’s full holdings in its latest N-PORT report.
How have innovation ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
Best-performing innovation ETFs over the past year
| # | Fund | Net assets | Cost | 1 mo | YTD | 1 yr | 3 yr |
|---|---|---|---|---|---|---|---|
| 1 | FDTX Fidelity Disruptive Technology ETF | $287.9M | 0.5% | -6.1% | +35.5% | +29.0% | +35.0% |
| 2 | XT iShares Exponential Technologies ETF | $3.82B | 0.46% | +1.2% | +22.4% | +21.9% | +24.5% |
| 3 | MINV Matthews Asia Innovators Active ETF | $185.9M | 0.79% | -11.5% | +23.6% | +17.1% | +27.5% |
| 4 | QDTE Roundhill Innovation-100 0DTE Covered Call Strate… | $937.3M | 0.96% | -2.1% | +15.4% | +16.4% | — |
| 5 | FWD AB Disruptors ETF | $3.20B | 0.65% | -6.3% | +19.3% | +15.2% | +36.7% |
| 6 | ILDR First Trust Innovation Leaders ETF | $324.2M | 0.75% | -4.2% | +16.1% | +11.0% | +33.7% |
| 7 | AOTG AOT Growth and Innovation ETF | $104.8M | 0.75% | -7.6% | +13.0% | +7.8% | +32.2% |
| 8 | FEPI REX FANG & Innovation Equity Premium Income ETF | $647.2M | 0.65% | -2.9% | +9.3% | +7.6% | +20.6% |
| 9 | GINN Innovate Equity ETF | $198.0M | 0.5% | -1.6% | +10.5% | +6.5% | +24.4% |
| 10 | LCLG Logan Capital Broad Innovative Growth ETF | $107.7M | 0.85% | -4.3% | +8.3% | +5.7% | +27.7% |
Funds with at least $25 million in net assets; leveraged and inverse funds left out. Past returns don’t predict future returns.
How innovation ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| ARKK | not yet launched | -36.5% | -62.8% |
| XT | not yet launched | -32.2% | -33.5% |
| FWD | not yet launched | not yet launched | not yet launched |
| KOMP | not yet launched | -37.9% | -35.4% |
| QDTE | not yet launched | not yet launched | not yet launched |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives innovation ETFs?
Many companies in these funds are valued on profits expected years from now rather than on present earnings. That makes their share prices sensitive to interest rates. When rates rise, money promised far in the future is worth less in present terms, so investors pay less for it. Chipmakers such as Nvidia, AMD and Micron also ride demand cycles, swinging between shortages and gluts. Biotechs like Crispr Therapeutics move on trial results and regulatory decisions. Younger, cash-hungry companies depend on investors' willingness to fund them, which fades when markets turn fearful.
That sensitivity has shown up in downturns. In the 2020 COVID crash the S&P 500 fell 33.7%, and the older funds landed close by: XT fell 32.2%, ARKK 36.5% and KOMP 37.9%. The 2022 bear market, a long slide during a year of rising interest rates, was far harsher on them. The S&P 500 fell 24.5%, while XT dropped 33.5%, KOMP 35.4% and ARKK 62.8%. None of the five largest funds existed in the 2008 financial crisis, when the S&P 500 fell 55.2%, and FWD and QDTE launched after 2022.
Innovation ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | KOMP SPDR S&P Kensho New Economies Composite ETF | 0.2% | $20 a year | $2.85B |
| 2 | XITK SPDR FactSet Innovative Technology ETF | 0.45% | $45 a year | $68.5M |
| 3 | BFIX Build Bond Innovation ETF | 0.45% | $45 a year | $11.9M |
| 4 | XT iShares Exponential Technologies ETF | 0.46% | $46 a year | $3.82B |
| 5 | BULD Pacer BlueStar Engineering the Future ETF | 0.49% | $49 a year | $14.9M |
Ordinary funds with at least $10 million in net assets. The median ordinary innovation ETF charges 0.55% a year; leveraged and inverse funds usually charge more.
Do innovation ETFs pay dividends?
20 of the 30 ordinary innovation ETFs with a page here paid distributions over the last 12 months, with a median yield of 0.48%.
| Highest yields | Yield | Net assets |
|---|---|---|
| XT iShares Exponential Technologies ETF | 6.69% | $3.82B |
| KOMP SPDR S&P Kensho New Economies Composite ETF | 1.59% | $2.85B |
| MINV Matthews Asia Innovators Active ETF | 1.21% | $185.9M |
| GINN Innovate Equity ETF | 1.14% | $198.0M |
| NBDS Neuberger Berman Disrupters ETF | 0.33% | $184.1M |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets.
How to choose a innovation ETF
- Fees differ widely for similar themes. KOMP charges 0.20% a year and XT 0.46%. ARKK and ILDR charge 0.75%, TMAT 0.82% and QDTE 0.96%, against a median of 0.55%. Over decades, even small gaps in fees add up.
- Index rules or a manager's judgment. KOMP, XT and GINN track indexes. GINN's largest holdings, Microsoft, Apple and Nvidia, are each about 2%. ARKK, FWD and FDTX rely on managers' picks, so results hinge on their judgment.
- A few big bets or hundreds. AOTG keeps 64.52% in its top 10, with AMD alone at 12.32%. FDTX has 51.24% in its top 10 and ARKK 47.59%. KOMP spreads across 504 holdings with 9.9% in its top 10, and GINN has 15.68%.
- How far beyond the US they reach. XT holds developed and emerging market companies, and GINN tracks a global index. MINV focuses on Asia, led by Samsung Electronics and SK Hynix. FWD, FDTX and AOTG also hold Taiwan Semiconductor.
- Fund size ranges from billions to millions. ARKK holds about $5.6 billion and XT about $3.8 billion. XITK has about $68 million and BFIX about $12 million. Smaller funds can cost more to trade and are more likely to close.
- Income and leveraged versions behave differently. QDTE, FEPI and TMAT use options to raise income or limit losses, usually giving up some upside. TARK, BULZ, SARK and BERZ multiply or reverse daily moves and are built for short-term trading, not long holding.
What are the risks of innovation ETFs?
- Sharp swings, even over one year. In the year to October 27, 2026, ARKK fell as much as 29.6% from a peak, MINV 27.8% and NBDS 24%. ARKK's volatility, a gauge of how much prices bounce around, was 37%, against 17.3% for XT.
- Heavy bets on the same few stocks. AOTG keeps 64.52% in its top 10, and ARKK has 9.74% in Tesla alone. Nvidia and Amazon each appear in 9 of the 15 largest funds, so owning several innovation ETFs can repeat the same bets.
- Deep losses that can take years to recover. In the 2022 bear market, ARKK fell 62.8%, KOMP 35.4% and XT 33.5%, against 24.5% for the S&P 500. ARKK's five-year return was still -6.2% as of October 27, 2026.
- Option income caps the upside. QDTE and FEPI collect fees by writing call options, which hand over gains above a set price. That brings income, but these funds lag when stocks jump, and losses in a fall are only partly cushioned.
- Leveraged and inverse products reset daily. TARK (2x), BULZ (3x), SARK (-1x) and BERZ (-3x) target multiples of a single day's move, so results over months can drift. TARK lost 30.1% in the year to October 27, 2026. BULZ and BERZ are notes backed by their issuer's credit.
Leveraged and inverse innovation ETFs (2x and 3x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
List of all innovation ETFs, by size
| # | Fund | Net assets | Cost | Yield | YTD | 1 yr | 5 yr |
|---|---|---|---|---|---|---|---|
| 1 | ARKK ARK Innovation ETF | $5.56B | 0.75% | 0% | +10.2% | -6.1% | -6.2% |
| 2 | XT iShares Exponential Technologies ETF | $3.82B | 0.46% | 6.69% | +22.4% | +21.9% | +8.0% |
| 3 | FWD AB Disruptors ETF | $3.20B | 0.65% | 0.09% | +19.3% | +15.2% | — |
| 4 | KOMP SPDR S&P Kensho New Economies Composite ETF | $2.85B | 0.2% | 1.59% | +8.2% | -0.3% | +1.8% |
| 5 | QDTE Roundhill Innovation-100 0DTE Covered Call Strate… | $937.3M | 0.96% | 43.88% | +15.4% | +16.4% | — |
| 6 | FEPI REX FANG & Innovation Equity Premium Income ETF | $647.2M | 0.65% | 27.04% | +9.3% | +7.6% | — |
| 7 | ILDR First Trust Innovation Leaders ETF | $324.2M | 0.75% | 0% | +16.1% | +11.0% | +11.3% |
| 8 | FDTX Fidelity Disruptive Technology ETF | $287.9M | 0.5% | 0% | +35.5% | +29.0% | — |
| 9 | TMAT Main Thematic Innovation ETF | $237.4M | 0.82% | 0.03% | +14.8% | +0.9% | +4.6% |
| 10 | LOUP Innovator Deepwater Frontier Tech ETF | $200.3M | 0.7% | — | +5.5% | -0.2% | +8.2% |
Questions investors ask about innovation ETFs
What is the largest innovation ETF?
ARKK, the ARK Innovation ETF, is the largest, with about $5.6 billion in net assets. Next come iShares' XT at about $3.8 billion, AllianceBernstein's FWD at about $3.2 billion and State Street's KOMP at about $2.8 billion. With QDTE, these five hold 84.9% of the money in innovation ETFs. ARKK launched on October 31, 2014, earlier than any of the other large funds.
What is the cheapest innovation ETF?
KOMP, the SPDR S&P Kensho New Economies Composite ETF, is the cheapest at 0.20% a year. Next are XITK and BFIX at 0.45%, XT at 0.46% and BULD at 0.49%. The median fund charges 0.55%, and ARKK charges 0.75%. KOMP is also very broad. It has 504 holdings, and none is above 1.33%.
ARKK vs XT: what is the difference?
ARKK is a concentrated, manager-run fund, while XT tracks a broader index. ARKK has 46 holdings, with Tesla at 9.74%. XT has 214, led by Eli Lilly at 4.05%, and includes emerging markets. XT costs 0.46% a year, ARKK 0.75%. In the year to October 27, 2026, XT returned 21.9% and ARKK -6.1%, though ARKK led over three years, 35.5% to 24.5%. Only 14.2% of their assets overlap.
Do innovation ETFs pay dividends?
Most pay a little. Of the 30 funds with a yield on record, 20 paid distributions, and the median yield was 0.48%. ARKK's yield was 0%. XT's was 6.69%, KOMP's 1.59%, MINV's 1.21% and GINN's 1.14%. QDTE's 43.88% comes from its options strategy, not company dividends, and a payout that size does not protect the share price. Many growth companies reinvest profits rather than pay them out.
Do innovation ETFs hold Nvidia?
Many do. Nvidia appears in 9 of the 15 largest innovation ETFs, at a median weight of 4.68%. It makes up 10.94% of AOTG, 9.85% of ILDR, 7.43% of NBDS, 6.68% of FEPI, 4.17% of FWD and 3.89% of XT. It is not among ARKK's five largest holdings, which Tesla leads. Amazon also appears in nine of the 15 funds, and Alphabet in eight.
How many innovation ETFs are there?
There are 34 US-listed innovation funds. Four of them are leveraged or inverse products, and two of those are exchange-traded notes. The money is lopsided: ARKK, XT, FWD, KOMP and QDTE hold 84.9% of the roughly $19.3 billion invested across the group. Many of the rest are small. XITK has about $68 million and BFIX about $12 million.
What are leveraged and inverse innovation ETFs?
They are short-term trading tools. TARK aims for 2x a day's move, BULZ for 3x, SARK for the opposite and BERZ for -3x. BULZ and BERZ are exchange-traded notes, which are unsecured debt of their issuer. Because they reset daily, results over months can differ sharply from the stated multiple. In the year to October 27, 2026, TARK lost 30.1%, SARK 6.6% and BERZ 64.8%, while BULZ gained 12.3%.
How has ARKK done against the S&P 500?
ARKK has fallen harder in downturns. In the 2020 COVID crash it dropped 36.5%, against 33.7% for the S&P 500. In the 2022 bear market it fell 62.8%, against 24.5%. As of October 27, 2026, ARKK's three-year return was 35.5% but its five-year return was -6.2%. It holds just 46 positions, with 47.59% in its top 10 and 9.74% in Tesla.
Is there a Vanguard, Fidelity or Schwab innovation ETF?
Yes. Fidelity offers one: FDTX (Fidelity Disruptive Technology ETF). Vanguard and Schwab don’t have a innovation ETF.
