DRGN vs. KNCT

Last updated Jul 16, 2026

DRGN (Themes China Generative Artificial Intelligence ETF) and KNCT (Invesco Next Gen Connectivity ETF) are both exchange-traded funds - DRGN is a China Equities fund tracking the BITA China Generative AI Select Index, while KNCT is a Technology Equities fund tracking the STOXX World AC NexGen Connectivity Index. Both are passively managed. Over the past year, DRGN returned 44.44% vs 69.44% for KNCT. At a 0.47 correlation, their price movements are largely independent. DRGN charges 0.39%/yr vs 0.40%/yr for KNCT.

Performance

DRGN vs. KNCT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Themes China Generative Artificial Intelligence ETF (DRGN) and Invesco Next Gen Connectivity ETF (KNCT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DRGN achieves a 14.26% return, which is significantly lower than KNCT's 45.73% return.

DRGN

• 1D: -0.54%
• 1M: 1.83%
• 6M: -0.75%
• YTD: 14.26%
• 1Y: 44.44%
• 3Y*: —
• 5Y*: —
• 10Y*: —

KNCT

• 1D: -2.08%
• 1M: -7.73%
• 6M: 41.07%
• YTD: 45.73%
• 1Y: 69.44%
• 3Y*: 36.10%
• 5Y*: 18.33%
• 10Y*: 19.84%

*Multi-year figures are annualized to reflect compound growth (CAGR)

DRGN vs. KNCT - Yearly Performance Comparison

	2026 (YTD)	2025
DRGN Themes China Generative Artificial Intelligence ETF	14.26%	26.96%
KNCT Invesco Next Gen Connectivity ETF	45.73%	16.24%

Correlation

The correlation between DRGN and KNCT is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (All Time) Calculated using the full available price history since Jul 15, 2025	0.47

Return for Risk

DRGN vs. KNCT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DRGN

DRGN Risk / Return Rank: 42
DRGN Sharpe Ratio Rank: 42
DRGN Sortino Ratio Rank: 43
DRGN Omega Ratio Rank: 39
DRGN Calmar Ratio Rank: 52
DRGN Martin Ratio Rank: 36

KNCT

KNCT Risk / Return Rank: 91
KNCT Sharpe Ratio Rank: 93
KNCT Sortino Ratio Rank: 87
KNCT Omega Ratio Rank: 89
KNCT Calmar Ratio Rank: 94
KNCT Martin Ratio Rank: 94

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DRGN vs. KNCT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Themes China Generative Artificial Intelligence ETF (DRGN) and Invesco Next Gen Connectivity ETF (KNCT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	DRGN	KNCT	Difference
Sharpe ratio: Return per unit of total volatility	1.25	2.65	-1.40
Sortino ratio: Return per unit of downside risk	1.84	3.16	-1.32
Omega ratio: Gain probability vs. loss probability	1.22	1.44	-0.22
Calmar ratio: Return relative to maximum drawdown	2.14	5.68	-3.54
Martin ratio: Return relative to average drawdown	4.45	20.00	-15.55

DRGN vs. KNCT - Sharpe Ratio Comparison

The current DRGN Sharpe Ratio is 1.25, which is lower than the KNCT Sharpe Ratio of 2.65. The chart below compares the historical Sharpe Ratios of DRGN and KNCT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

DRGN vs. KNCT - Drawdown Comparison

The maximum DRGN drawdown since its inception was -20.86%, smaller than the maximum KNCT drawdown of -57.18%. Use the drawdown chart below to compare losses from any high point for DRGN and KNCT.

Drawdown Indicators

	DRGN	KNCT	Difference
Max Drawdown Largest peak-to-trough decline	-20.86%	-57.18%	+36.32%
Max Drawdown (1Y) Largest decline over 1 year	-20.86%	-12.30%	-8.56%
Max Drawdown (3Y) Largest decline over 3 years	—	-21.40%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-34.55%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-34.55%	—
Current Drawdown Current decline from peak	-8.88%	-11.39%	+2.51%
Average Drawdown Average peak-to-trough decline	-8.16%	-10.72%	+2.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.02%	3.48%	+6.54%

Volatility

DRGN vs. KNCT - Volatility Comparison

Themes China Generative Artificial Intelligence ETF (DRGN) and Invesco Next Gen Connectivity ETF (KNCT) have volatilities of 13.08% and 12.65%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DRGN	KNCT	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.08%	12.65%	+0.43%
Volatility (6M) Calculated over the trailing 6-month period	25.46%	23.52%	+1.94%
Volatility (1Y) Calculated over the trailing 1-year period	35.74%	26.38%	+9.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.74%	24.27%	+11.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	35.74%	23.42%	+12.32%

DRGN vs. KNCT - Expense Ratio Comparison

DRGN has a 0.39% expense ratio, which is lower than KNCT's 0.40% expense ratio.

Dividends

DRGN vs. KNCT - Dividend Comparison

DRGN's dividend yield for the trailing twelve months is around 1.06%, more than KNCT's 0.66% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
DRGN Themes China Generative Artificial Intelligence ETF	1.06%	1.22%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
KNCT Invesco Next Gen Connectivity ETF	0.66%	0.86%	1.38%	0.60%	2.24%	0.55%	0.18%	0.44%	1.22%	0.66%	0.44%

Frequently Asked Questions

Can I hold both DRGN and KNCT in my portfolio?

DRGN and KNCT have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DRGN or KNCT?

DRGN has higher volatility (13.08%) compared to KNCT (12.65%). In terms of maximum drawdown, DRGN dropped -20.86% vs KNCT's -57.18%.

Which ETF is better, DRGN or KNCT?

On 1-year performance, KNCT leads with 69.44% vs 44.44% for DRGN. On fees, DRGN is cheaper at 0.39% per year. On volatility, KNCT has been the lower-risk option at 12.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DRGN or KNCT?

Over the 1-year period, KNCT has performed better with a 69.44% return vs 44.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DRGN or KNCT?

DRGN is cheaper with a 0.39% expense ratio, compared with 0.40% for KNCT.

Which ETF pays a higher dividend yield, DRGN or KNCT?

DRGN has the higher dividend yield at 1.06%, compared with 0.66% for KNCT.

What is the main difference between DRGN and KNCT?

DRGN is categorized as China Equities, while KNCT is Technology Equities. DRGN tracks BITA China Generative AI Select Index, while KNCT tracks STOXX World AC NexGen Connectivity Index. They also come from different issuers: Themes and Invesco. Their fees differ too: 0.39% for DRGN and 0.40% for KNCT.

Which has better risk-adjusted returns?

KNCT currently has the higher Sharpe Ratio (2.65 vs 1.25), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.