ETF Comparison: Fundstrat Granny Shots US Large Cap ETF (GRNY) Versus ARK Innovation ETF (ARKK)

GRNY vs. ARKK: Total Cost of Ownership

Both funds charge the same 0.75% expense ratio, which is on the higher side but has become the accepted standard for actively managed equity ETFs. This fee level is common among boutique managers converting mutual funds to ETFs or using white-label platforms. Put simply, investors pay about $75 annually for every $10,000 invested.

However, management fees aren’t the only cost of investing in ETFs. Trading also matters, since the gap between the bid and ask price—the spread—eats into returns. On this front, ARKK has the edge, with a 30-day median bid-ask spread of 0.019% compared with 0.046% for GRNY.

Verdict: When you combine expense ratios with spreads, ARKK comes out slightly cheaper to trade. But for buy-and-hold investors, the difference is negligible unless one of the funds decides to cut fees, which seems unlikely.

GRNY vs. ARKK: Methodology and Holdings

Neither fund follows an index with rigid, rules-based criteria. Both are actively managed in the truest sense, relying on discretionary stock picking by a lead manager supported by analyst teams, guided only by broad principles.

GRNY is built on Tom Lee’s “granny shot” philosophy, a basketball metaphor. In practice, the portfolio is divided into long-term and short-term themes that Fundstrat believes will outperform, with stock selection done from the bottom up within each bucket. While not marketed explicitly this way, the approach resembles a growth-at-a-reasonable-price (GARP) style, blending growth potential with some attention to valuations.

ARKK, in contrast, is less interested in established large caps and instead seeks out disruptive mid- and small-cap companies. Its portfolio spans themes such as intelligent devices, autonomous mobility, precision therapies, neural networks, next-gen cloud, digital wallets, digital assets, smart contracts, and genomics. This results in a very different composition than GRNY, with a heavier emphasis on speculative innovation.

Both ETFs are U.S.-heavy, but sector exposure diverges. GRNY tilts toward technology, financials, and industrials with a blue-chip flavor. ARKK allocates more to consumer discretionary and healthcare in addition to technology, with greater granularity in emerging sub-sectors.

Portfolio concentration also differs. GRNY’s top 15 holdings make up 45.41% of assets, while ARKK’s top 15 account for 74.95%, reflecting Cathie Wood’s willingness to double down on her highest-conviction names, for better or worse.

Looking at the end of July holdings, GRNY features many S&P 500 and Nasdaq 100 constituents, but without market-cap weighting, allowing smaller positions meaningful impact. ARKK holds some big names like Tesla and Coinbase, but it also includes far more speculative bets like CRISPR Therapeutics, 10x Genomics, and Archer Aviation. Many of these companies are pre-profit or even pre-revenue, making them true boom-or-bust plays.

Verdict: For investors new to active management, GRNY

offers a more measured entry point that remains differentiated from the broad market. ARKK

ARKK

+0.25%

is better suited for those comfortable with concentrated, high-volatility bets on disruptive innovation.

GRNY vs. ARKK: Risk and Return

The data is limited by GRNY’s recent inception in November 2024, but we can still draw some early comparisons. Year to date, ARKK has strongly outperformed GRNY, which isn’t surprising given the resurgence of small-cap growth stocks and a broader risk-on sentiment.

That said, GRNY has hardly been weak. It has managed to outperform both the Nasdaq 100 and the S&P 500 over the same stretch, which is notable for such a new entrant. Both funds have also seen net inflows in the billions, though measured as a percentage of assets under management, GRNY has grown faster.

On the risk side, ARKK

has been significantly more volatile over the past three months, with deeper and more prolonged drawdowns. This is in line with its concentrated exposure to speculative, often pre-profit companies. GRNY

GRNY

+0.04%

has been steadier, reflecting its tilt toward large-cap names and more diversified sector exposure.

Verdict: ARKK is positioned to shine when risk appetite is high and innovation themes are in favor, but that comes with higher volatility and bigger drawdowns. GRNY offers a smoother ride with strong relative performance against major benchmarks, making it a more balanced choice for investors who want active management without embracing the full boom-or-bust profile of disruptive innovation.

Please note that this article reflects the author’s personal views and does not represent the opinions of the publication or its affiliates. It is for informational purposes only and does not constitute investment advice. It is essential to seek guidance from a registered financial professional before making any investment decisions.