ARKG vs IHI

Key Takeaways

• ARKG is an actively managed thematic ETF targeting the genomics revolution with a focus on innovative biotechnology and life sciences companies, while IHI is a passive ETF tracking an index of U.S. medical device and equipment manufacturers.
• ARK Genomic Revolution ETF (ARKG) typically holds 35-40 securities with high concentration in genomics-focused names such as 10x Genomics Inc. (TXG) and CRISPR Therapeutics AG (CRSP), whereas iShares U.S. Medical Devices ETF (IHI) maintains approximately 46 holdings diversified across established medical equipment firms including Abbott Laboratories (ABT) and Intuitive Surgical Inc. (ISRG).
• The expense ratio for ARK Genomic Revolution ETF (ARKG) stands at 0.75%, reflecting its active management approach, compared to the lower 0.38% expense ratio for iShares U.S. Medical Devices ETF (IHI) as a passive index tracker.
• Sector exposure differs markedly: ARK Genomic Revolution ETF (ARKG) emphasizes healthcare innovation in genomics and multi-omics technologies, while iShares U.S. Medical Devices ETF (IHI) provides targeted exposure to health care equipment and supplies.
• Both ETFs operate within the broader healthcare sector but serve distinct investor objectives—ARKG for high-conviction thematic growth and IHI for more stable, diversified medical device sector representation.
• Liquidity profiles favor iShares U.S. Medical Devices ETF (IHI) due to its larger asset base and established index methodology, supporting tighter spreads and consistent trading volume.

Introduction

ARK Genomic Revolution ETF (ARKG) and iShares U.S. Medical Devices ETF (IHI) offer investors distinct pathways into healthcare innovation. These ETFs do not compete directly but provide alternative exposure within the health care sector: ARK Genomic Revolution ETF (ARKG) pursues active, thematic bets on genomic technologies, while iShares U.S. Medical Devices ETF (IHI) delivers passive, rules-based access to medical equipment companies. In the current environment of advancing biotechnology, aging demographics, and regulatory scrutiny on healthcare costs, the comparison helps investors evaluate risk tolerance, cost efficiency, and strategic fit for sector allocation.

ARK Genomic Revolution ETF (ARKG) Overview

ARK Genomic Revolution ETF (ARKG) is an actively managed thematic ETF launched in 2014 by ARK Investment Management LLC. It seeks long-term capital growth by investing primarily in domestic and foreign equity securities of companies involved in the genomics revolution, spanning healthcare, information technology, and related sectors. The fund typically holds 35-40 securities, with top positions including 10x Genomics Inc. (TXG), Twist Bioscience Corp. (TWST), Tempus AI Inc. (TEM), CRISPR Therapeutics AG (CRSP), and Personalis Inc. (PSNL). Allocations concentrate heavily in healthcare, particularly biotechnology and life sciences tools. The expense ratio is 0.75%. As an active strategy, it employs bottom-up fundamental analysis combined with thematic research, resulting in higher turnover and concentrated bets on disruptive genomics advancements such as gene editing and molecular diagnostics.

iShares U.S. Medical Devices ETF (IHI) Overview

iShares U.S. Medical Devices ETF (IHI) is a passively managed ETF launched in 2006 by BlackRock that seeks to track the Dow Jones U.S. Select Medical Equipment Index. The fund provides exposure to U.S. companies engaged in the manufacture and distribution of medical devices, including imaging equipment, prosthetics, and surgical tools. It holds approximately 46 securities, with top holdings such as Abbott Laboratories (ABT), Intuitive Surgical Inc. (ISRG), Stryker Corp. (SYK), Edwards Lifesciences Corp. (EW), and Becton Dickinson and Co. (BDX). Nearly all assets reside in health care equipment. The expense ratio is 0.38%. The strategy uses representative sampling to replicate the index, emphasizing broad diversification within the medical devices subsector and lower operational costs typical of passive management.

Industry and Thematic Backdrop

The healthcare sector continues to benefit from technological integration, demographic shifts toward older populations, and demand for precision medicine. Regulatory developments around drug pricing and device approvals, alongside macroeconomic factors such as interest rate expectations and capital flows into innovation, influence both ETFs. Genomics advancements drive ARK Genomic Revolution ETF (ARKG)'s thematic focus, while medical device innovation in robotics and diagnostics supports iShares U.S. Medical Devices ETF (IHI). Sector risks include reimbursement pressures, supply chain disruptions, and evolving compliance requirements that affect capital allocation across healthcare sub-industries.

Performance and Positioning Comparison

In recent market cycles, ARK Genomic Revolution ETF (ARKG) has exhibited higher volatility consistent with its concentrated active bets on emerging genomics companies, often amplifying sector rotation effects during innovation-driven rallies or corrections. iShares U.S. Medical Devices ETF (IHI) has demonstrated more stable relative positioning due to its diversified holdings in established medical equipment firms, with performance tied more closely to broader healthcare utilization trends and earnings consistency. Over broader timeframes, the passive structure of iShares U.S. Medical Devices ETF (IHI) has supported lower tracking error and cost drag, while ARK Genomic Revolution ETF (ARKG) positions for potential outperformance in genomics-specific momentum but carries elevated drawdown risk during periods of biotech sector rotation.

AI Screener

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Tickeron AI Verdict

Based on observable structural factors including lower expense ratio, broader diversification within a stable subsector, and consistent index-tracking methodology, Tickeron’s AI would currently assign a higher probability of favorable positioning to iShares U.S. Medical Devices ETF (IHI) for investors seeking efficient healthcare equipment exposure with moderated risk. ARK Genomic Revolution ETF (ARKG) may appeal in scenarios prioritizing thematic genomics momentum despite its higher costs and concentration.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

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