IGPT vs. KNCT

Last updated Jun 5, 2026

IGPT (Invesco AI and Next Gen Software ETF) and KNCT (Invesco Next Gen Connectivity ETF) are both Technology Equities funds from Invesco - IGPT tracks the STOXX World AC NexGen Software Development Index while KNCT tracks the STOXX World AC NexGen Connectivity Index. Both are passively managed. Over the past 10 years, IGPT returned 21.98%/yr vs 20.97%/yr for KNCT. Their correlation of 0.82 suggests significant overlap in exposure. IGPT charges 0.60%/yr vs 0.40%/yr for KNCT.

Performance

IGPT vs. KNCT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco AI and Next Gen Software ETF (IGPT) 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, IGPT achieves a 69.04% return, which is significantly higher than KNCT's 58.43% return. Both investments have delivered pretty close results over the past 10 years, with IGPT having a 21.98% annualized return and KNCT not far behind at 20.97%.

IGPT

• 1D: -2.00%
• 1M: 20.32%
• YTD: 69.04%
• 6M: 72.88%
• 1Y: 117.06%
• 3Y*: 42.12%
• 5Y*: 15.43%
• 10Y*: 21.98%

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%

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

IGPT vs. KNCT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IGPT Invesco AI and Next Gen Software ETF	69.04%	31.55%	17.15%	27.29%	-27.73%	-11.79%	54.31%	35.06%	16.38%	34.60%
KNCT Invesco Next Gen Connectivity ETF	58.43%	28.65%	19.41%	27.39%	-29.54%	21.83%	39.14%	26.35%	5.78%	15.41%

Correlation

The correlation between IGPT and KNCT is 0.86, 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	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.84
Correlation (All Time) Calculated using the full available price history since Jun 24, 2005	0.82

The correlation between IGPT and KNCT has been stable across timeframes, ranging from 0.82 to 0.86 - a consistent structural relationship.

IGPT vs. KNCT - Sectors Allocation Comparison

Sectors	IGPT	KNCT
Technology	73.9%	80.8%
Communication Services	15.6%	14.0%
Real Estate	3.9%	4.1%
Healthcare	3.6%	-
Industrials	3.1%	1.1%
Financial Services	1.3%	0.2%
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Utilities	-	-

Return for Risk

IGPT vs. KNCT — Risk / Return Rank

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

IGPT

IGPT Risk / Return Rank: 94
IGPT Sharpe Ratio Rank: 96
IGPT Sortino Ratio Rank: 94
IGPT Omega Ratio Rank: 93
IGPT Calmar Ratio Rank: 94
IGPT Martin Ratio Rank: 94

KNCT

KNCT Risk / Return Rank: 96
KNCT Sharpe Ratio Rank: 96
KNCT Sortino Ratio Rank: 95
KNCT Omega Ratio Rank: 94
KNCT Calmar Ratio Rank: 96
KNCT Martin Ratio Rank: 97

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.

IGPT vs. KNCT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco AI and Next Gen Software ETF (IGPT) 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.

	IGPT	KNCT	Difference
Sharpe ratio: Return per unit of total volatility	4.13	4.31	-0.18
Sortino ratio: Return per unit of downside risk	4.74	5.27	-0.53
Omega ratio: Gain probability vs. loss probability	1.63	1.70	-0.07
Calmar ratio: Return relative to maximum drawdown	7.06	9.29	-2.23
Martin ratio: Return relative to average drawdown	27.52	40.65	-13.13
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IGPT vs. KNCT - Sharpe Ratio Comparison

The current IGPT Sharpe Ratio is 4.13, which is comparable to the KNCT Sharpe Ratio of 4.31. The chart below compares the historical Sharpe Ratios of IGPT 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.

Sharpe Ratios by Period

	IGPT	KNCT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.13	4.31	-0.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.56	0.91	-0.35
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.84	0.92	-0.08
Sharpe Ratio (All Time) Calculated using the full available price history	0.63	0.57	+0.06

Drawdowns

IGPT vs. KNCT - Drawdown Comparison

The maximum IGPT drawdown since its inception was -50.14%, smaller than the maximum KNCT drawdown of -57.18%. Use the drawdown chart below to compare losses from any high point for IGPT and KNCT.

Drawdown Indicators

	IGPT	KNCT	Difference
Max Drawdown Largest peak-to-trough decline	-50.14%	-57.18%	+7.04%
Max Drawdown (1Y) Largest decline over 1 year	-16.68%	-9.99%	-6.69%
Max Drawdown (3Y) Largest decline over 3 years	-29.30%	-21.40%	-7.90%
Max Drawdown (5Y) Largest decline over 5 years	-44.87%	-34.55%	-10.32%
Max Drawdown (10Y) Largest decline over 10 years	-50.14%	-34.55%	-15.59%
Current Drawdown Current decline from peak	-2.00%	-3.67%	+1.67%
Average Drawdown Average peak-to-trough decline	-11.96%	-10.74%	-1.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.27%	2.28%	+1.99%

Volatility

IGPT vs. KNCT - Volatility Comparison

Invesco AI and Next Gen Software ETF (IGPT) has a higher volatility of 12.41% compared to Invesco Next Gen Connectivity ETF (KNCT) at 9.83%. This indicates that IGPT's price experiences larger fluctuations and is considered to be riskier than KNCT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IGPT	KNCT	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.41%	9.83%	+2.58%
Volatility (6M) Calculated over the trailing 6-month period	23.63%	17.46%	+6.17%
Volatility (1Y) Calculated over the trailing 1-year period	28.50%	21.53%	+6.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.67%	23.22%	+4.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.33%	22.98%	+3.35%

IGPT vs. KNCT - Expense Ratio Comparison

IGPT has a 0.60% expense ratio, which is higher than KNCT's 0.40% expense ratio.

Dividends

IGPT vs. KNCT - Dividend Comparison

IGPT's dividend yield for the trailing twelve months is around 0.03%, less than KNCT's 0.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IGPT Invesco AI and Next Gen Software ETF	0.03%	0.04%	0.00%	0.00%	1.41%	6.21%	0.04%	0.05%	0.00%	0.00%	0.03%	0.15%
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%	0.00%

Frequently Asked Questions

Can I hold both IGPT and KNCT in my portfolio?

IGPT and KNCT have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IGPT or KNCT?

IGPT has higher volatility (12.41%) compared to KNCT (9.83%). In terms of maximum drawdown, IGPT dropped -50.14% vs KNCT's -57.18%.

Which ETF is better, IGPT or KNCT?

On 10-year performance, IGPT leads with 21.98% vs 20.97% for KNCT. On fees, KNCT is cheaper at 0.40% per year. On volatility, KNCT has been the lower-risk option at 9.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IGPT or KNCT?

Over the 10-year period, IGPT has performed better with a 21.98% return vs 20.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IGPT or KNCT?

KNCT is cheaper with a 0.40% expense ratio, compared with 0.60% for IGPT.

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

KNCT has the higher dividend yield at 0.59%, compared with 0.03% for IGPT.

What is the main difference between IGPT and KNCT?

IGPT tracks STOXX World AC NexGen Software Development Index, while KNCT tracks STOXX World AC NexGen Connectivity Index. Their fees differ too: 0.60% for IGPT and 0.40% for KNCT.

Which has better risk-adjusted returns?

KNCT currently has the higher Sharpe Ratio (4.31 vs 4.13), 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.