Which Space and Defense ETF Is the Better Buy: ARK's ARKX or First Trust's MISL?
ARKX delivered 28% returns over one year but endured a 25% maximum drawdown, while MISL's steadier 23% gain came with half the volatility.
Overview
The ARK Space & Defense Innovation ETF (NYSEMKT:ARKX) provides more aggressive thematic exposure with higher volatility, whereas the First Trust Indxx Aerospace & Defense ETF (NYSEMKT:MISL) offers a lower-cost, passive approach to domestic aerospace.
Investors looking to navigate the expanding aerospace and defense landscape often compare niche thematic funds against broader industry benchmarks. The choice between these two funds involves weighing an actively managed innovation focus against a passive index-tracking strategy, each of which responds differently to geopolitical shifts and technological breakthroughs.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.