These two Cathie Wood ETFs can give you exposure to some of the hottest tech trends. Here are the key differences.

Cathie Wood's Ark Invest offers investors several exchange-traded funds (ETFs), generally focused on the latest technology trends -- artificial intelligence (AI), robotics, and cloud computing, among others. All are unique in the sense that they are not index funds. Unlike most ETFs, these are actively managed funds with a common goal of beating a benchmark index over time.

Two of the most popular are the Ark Innovation ETF (ARKK 1.73%) and Ark Next Generation Internet ETF (ARKW 1.19%). While both are tech-focused and even have significant overlap in their top holdings, there are some key differences to know before deciding.

Before we get into what makes these funds different, let's discuss what they have in common.

With the similarities out of the way, let's talk about the differences between these two ETFs.

The most significant difference is the investment objectives of each ETF. On the one hand, the Ark Innovation ETF has the broader focus of the two, aiming to invest in companies engaged in "disruptive innovation." On the other hand, the Ark Next Generation Internet ETF also focuses on disruptors, but those with an internet focus. This includes cloud infrastructure, mobile internet, online and mobile payments, AI, the Internet of Things, and more.

This explains the overlap among the top holdings. After all, anything I just described as an internet disruptor also falls under the realm of disruptive innovation. But we can also look at the top holdings they don't have in common to get a better feel for the differences.

The Ark Next Generation Internet ETF's top holding is a Bitcoin ETF (internet-based payments). It also owns shares of Meta Platforms (social media), which is a clear internet-focused disruptor.

Alternatively, the Ark Innovation ETF has genetics company CRISPR Therapeutics in its top 10, as it is a disruptive healthcare innovator that obviously isn't an internet technology play. Shopify is the other top 10 holding that appears only on Ark Innovation's list. Beyond the top 10, however, we find significant exposure to non-internet fields:

There's also a difference in cost. The Ark Innovation ETF has a 0.75% expense ratio, which means that for every $1,000 in assets, there will be $7.50 in management fees annually. (Note: An expense ratio isn't a fee you physically have to pay; it will just be reflected in the performance of your shares.)

On the other hand, the Ark Next Generation Internet ETF has a 0.88% expense ratio. To be fair, this makes sense. In general, the more specialized an ETF is, the higher its costs. But be aware of the difference and that this seemingly small cost discrepancy can make a significant difference in your returns over time.

There's no clear winner here. If you simply believe in Cathie Wood's ability to find disruptive winners, the Ark Innovation ETF, with its lower cost and broader pool of companies to choose from, could be the better choice for you. However, if you want to invest in the next phase of internet innovation specifically, the Ark Next Generation Internet ETF could be a smart addition to your portfolio.