Cathie Wood’s flagship Ark Innovation Fund (ARKK) is one of the best-performing ETFs in 2023. Up by over 70%, the fund has outperformed the blue-chip Invesco QQQ fund, which is up by 52.52%. QQQ tracks the Nasdaq 100 index. Why ARKK ETF jumpedThe Ark Innovation Fund has done well in 2022, helped by the ongoing technology rally. It has jumped by more than 70% in its best year since 2021 when technology stocks surged to record highs.Many of its holdings did well, with Coinbase shares surging by 357% YTD, making it the biggest holding. Coinbase shares jumped as cryptocurrencies like Bitcoin and Ethereum roared back. It also rose after the launch of Base, its layer-2 network that has accumulated over $397 million in total value locked (TVL).Roku, its second-biggest holding, has also risen by more than 100%. Other huge holdings like Tesla, UiPath, Roblox, and Crispr Therapeutics have done extremely well. Crispr has been helped by the approval of its technology by the FDA and UK regulators.There is a likelihood that the fund will continue doing well in 2024 if the Federal Reserve implements its pivot. In its final decision of the year, the bank hinted that it will deliver three rate hikes in 2024.Fed rate cuts will be a much-welcomed move since the bank has hiked by more than 500 basis points in the past two years. If this happens, technology stocks, which are seen as being risky assets will likely do well in 2024. Another tech boom will be a good thing for the Ark Innovation Fund, which is made up of some of the best-known technology companies in the world. Cathie Wood and her team are also well-known for their conviction and long-term experience.I prefer QQQ than ARKKThere are a few reasons why I would not invest in ARKK ETF and why I prefer a passive fund like Invesco QQQ. First, ARKK is not a cheap ETF with its total expense ratio being 0.75%. QQQ has an expense ratio of 0.20% while its smaller twin, QQQM has a ratio of 0.15%. An expense ratio of 0.75% is quite high. For example, if you invested $100,000 in ARKK and it went nowhere in a year, you would part with $750 in fees alone. A similar amount invested in QQQ would cost just $200. Over time, that difference can mean thousands of dollars.Second, for my ETF investments, I prefer funds that I can Sleep Well at Night (SWAN). I’d be more comfortable at night with QQQ instead of ARKK, whose portfolio changes regularly. News of Cathie Wood adding or selling stakes often makes headlines. QQQ has a long track record of generating returns for its shareholders. 
ARKK vs QQQ ETFsFinally, QQQ tends to do well in periods of huge drawdowns. In 2022, the fund dropped by just 14% while ARKK crashed by over 60%. In 2021, ARKK dropped by 23% while QQQ rose by 27%. As shown above, the five-year return of QQQ has been 159% compared to ARKK’s 33.26%.More By This Author:Fund Manager Says Enphase Energy Stock Is A ‘Market Share Leader’ This Permian Producer Has Reportedly Attracted Takeover Interest EUR/USD Forecast: Signal As A Double Top Pattern Forms
