Technology is the best-performing sector in the S&P 500 year-to-date, rallying more than 16 percent, but funds focused on companies at the cutting edge of technology are really reaping gains.
Consider two competing strategies at the center of technology innovation: the ARK Industrial Innovation ETF (ARKQ), with $45 million in assets under management, and the ROBO Global Robotics and Automation Index ETF (ROBO), with nearly $550 million in AUM.
They are each designed to capture the benefits of technological advancements across various industries. They aren't purely tech ETFs as much as they are niche ETFs that focus on new technologies impacting various industries.
These funds are delivering different results relative to each other, and relative to the Technology Select Sector SPDR Fund (XLK) — which captures all tech stocks in the S&P 500. Here's their year-to-date performance:
There are three differences between the two funds.