FAI vs. KNCT
FAI (First Trust Bloomberg Artificial Intelligence ETF) and KNCT (Invesco Next Gen Connectivity ETF) are both Technology Equities funds - FAI tracks the Bloomberg Artificial Intelligence Index while KNCT tracks the STOXX World AC NexGen Connectivity Index. Both are passively managed. Over the past year, FAI returned 72.81% vs 92.28% for KNCT. Their correlation of 0.84 suggests significant overlap in exposure. FAI charges 0.65%/yr vs 0.40%/yr for KNCT.
Performance
FAI vs. KNCT - Performance Comparison
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Returns By Period
In the year-to-date period, FAI achieves a 36.77% return, which is significantly lower than KNCT's 58.43% return.
FAI
- 1D
- -1.66%
- 1M
- 17.27%
- YTD
- 36.77%
- 6M
- 35.51%
- 1Y
- 72.81%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
KNCT
- 1D
- -3.05%
- 1M
- 18.64%
- YTD
- 58.43%
- 6M
- 58.28%
- 1Y
- 92.28%
- 3Y*
- 42.20%
- 5Y*
- 20.98%
- 10Y*
- 20.97%
FAI vs. KNCT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
FAI First Trust Bloomberg Artificial Intelligence ETF | 36.77% | 33.37% | 2.06% |
KNCT Invesco Next Gen Connectivity ETF | 58.43% | 28.65% | 1.53% |
Correlation
The correlation between FAI and KNCT is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.84 |
Correlation (All Time) Calculated using the full available price history since Nov 22, 2024 | 0.84 |
The correlation between FAI and KNCT has been stable across timeframes, ranging from 0.84 to 0.84 - a consistent structural relationship.
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Return for Risk
FAI vs. KNCT — Risk / Return Rank
FAI
KNCT
FAI vs. KNCT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Bloomberg Artificial Intelligence ETF (FAI) 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.
| FAI | KNCT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.32 | ||
| Sortino ratioReturn per unit of downside risk | -1.69 | ||
| Omega ratioGain probability vs. loss probability | 1.47 | 1.70 | -0.23 |
| Calmar ratioReturn relative to maximum drawdown | 3.88 | 9.29 | -5.40 |
| Martin ratioReturn relative to average drawdown | 12.65 | 40.65 | -28.00 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FAI | KNCT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.99 | 4.31 | -1.32 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.91 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.92 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.70 | 0.57 | +1.13 |
Drawdowns
FAI vs. KNCT - Drawdown Comparison
The maximum FAI drawdown since its inception was -27.82%, smaller than the maximum KNCT drawdown of -57.18%. Use the drawdown chart below to compare losses from any high point for FAI and KNCT.
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Drawdown Indicators
| FAI | KNCT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -27.82% | -57.18% | +29.36% |
Max Drawdown (1Y)Largest decline over 1 year | -18.84% | -9.99% | -8.85% |
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 DrawdownCurrent decline from peak | -2.85% | -3.67% | +0.82% |
Average DrawdownAverage peak-to-trough decline | -5.30% | -10.74% | +5.44% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.77% | 2.28% | +3.49% |
Volatility
FAI vs. KNCT - Volatility Comparison
The current volatility for First Trust Bloomberg Artificial Intelligence ETF (FAI) is 8.57%, while Invesco Next Gen Connectivity ETF (KNCT) has a volatility of 9.83%. This indicates that FAI experiences smaller price fluctuations and is considered to be less risky than KNCT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAI | KNCT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.57% | 9.83% | -1.26% |
Volatility (6M)Calculated over the trailing 6-month period | 19.40% | 17.46% | +1.94% |
Volatility (1Y)Calculated over the trailing 1-year period | 24.47% | 21.53% | +2.94% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 29.89% | 23.22% | +6.67% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 29.89% | 22.98% | +6.91% |
FAI vs. KNCT - Expense Ratio Comparison
FAI has a 0.65% expense ratio, which is higher than KNCT's 0.40% expense ratio.
Dividends
FAI vs. KNCT - Dividend Comparison
FAI has not paid dividends to shareholders, while KNCT's dividend yield for the trailing twelve months is around 0.59%.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
FAI First Trust Bloomberg Artificial Intelligence ETF | 0.00% | 0.00% | 0.04% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
KNCT Invesco Next Gen Connectivity ETF | 0.59% | 0.86% | 1.38% | 0.60% | 2.24% | 0.55% | 0.18% | 0.44% | 1.22% | 0.66% | 0.44% |
Frequently Asked Questions
FAI and KNCT have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
KNCT has higher volatility (9.83%) compared to FAI (8.57%). In terms of maximum drawdown, FAI dropped -27.82% vs KNCT's -57.18%.
On 1-year performance, KNCT leads with 92.28% vs 72.81% for FAI. On fees, KNCT is cheaper at 0.40% per year. On volatility, FAI has been the lower-risk option at 8.57%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, KNCT has performed better with a 92.28% return vs 72.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
KNCT is cheaper with a 0.40% expense ratio, compared with 0.65% for FAI.
KNCT has the higher dividend yield at 0.59%, compared with 0.00% for FAI.
FAI tracks Bloomberg Artificial Intelligence Index, while KNCT tracks STOXX World AC NexGen Connectivity Index. They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.65% for FAI and 0.40% for KNCT.
KNCT currently has the higher Sharpe Ratio (4.31 vs 2.99), 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.
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