KNCT vs. ARTY

Last updated Jun 23, 2026

KNCT (Invesco Next Gen Connectivity ETF) and ARTY (iShares Future AI & Tech ETF) are both Technology Equities funds - KNCT tracks the STOXX World AC NexGen Connectivity Index while ARTY tracks the Morningstar Global Artificial Intelligence Select Index (Net). Both are passively managed. Over the past 5 years, KNCT returned 20.88%/yr vs 13.47%/yr for ARTY. Their correlation of 0.84 suggests significant overlap in exposure. KNCT charges 0.40%/yr vs 0.47%/yr for ARTY.

Performance

KNCT vs. ARTY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Next Gen Connectivity ETF (KNCT) and iShares Future AI & Tech ETF (ARTY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with KNCT having a 62.92% return and ARTY slightly higher at 64.94%.

KNCT

• 1D: 1.16%
• 1M: 11.48%
• YTD: 62.92%
• 6M: 64.99%
• 1Y: 101.94%
• 3Y*: 43.56%
• 5Y*: 20.88%
• 10Y*: 21.78%

ARTY

• 1D: 0.66%
• 1M: 15.54%
• YTD: 64.94%
• 6M: 64.94%
• 1Y: 106.73%
• 3Y*: 35.95%
• 5Y*: 13.47%
• 10Y*: —

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

KNCT vs. ARTY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
KNCT Invesco Next Gen Connectivity ETF	62.92%	28.65%	19.41%	27.39%	-29.54%	21.83%	39.14%	26.35%	-5.71%
ARTY iShares Future AI & Tech ETF	64.94%	29.97%	8.02%	36.37%	-37.89%	6.32%	48.85%	34.47%	-13.76%

Correlation

The correlation between KNCT and ARTY is 0.87, 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	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (All Time) Calculated using the full available price history since Jun 28, 2018	0.84

The correlation between KNCT and ARTY has been stable across timeframes, ranging from 0.84 to 0.87 - a consistent structural relationship.

KNCT vs. ARTY - Sectors Allocation Comparison

Sectors	KNCT	ARTY
Technology	84.4%	89.8%
Communication Services	11.4%	3.1%
Real Estate	3.3%	1.0%
Industrials	0.8%	4.3%
Financial Services	0.2%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	0.5%
Utilities	-	1.3%

Return for Risk

KNCT vs. ARTY — Risk / Return Rank

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

KNCT

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

ARTY

ARTY Risk / Return Rank: 88
ARTY Sharpe Ratio Rank: 93
ARTY Sortino Ratio Rank: 82
ARTY Omega Ratio Rank: 83
ARTY Calmar Ratio Rank: 91
ARTY Martin Ratio Rank: 89

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.

KNCT vs. ARTY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Next Gen Connectivity ETF (KNCT) and iShares Future AI & Tech ETF (ARTY). 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.

	KNCT	ARTY	Difference
Sharpe ratio: Return per unit of total volatility	4.18	3.20	+0.99
Sortino ratio: Return per unit of downside risk	4.76	3.48	+1.28
Omega ratio: Gain probability vs. loss probability	1.68	1.48	+0.21
Calmar ratio: Return relative to maximum drawdown	8.34	5.71	+2.63
Martin ratio: Return relative to average drawdown	36.40	18.73	+17.67

KNCT vs. ARTY - Sharpe Ratio Comparison

The current KNCT Sharpe Ratio is 4.18, which is higher than the ARTY Sharpe Ratio of 3.20. The chart below compares the historical Sharpe Ratios of KNCT and ARTY, 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

KNCT vs. ARTY - Drawdown Comparison

The maximum KNCT drawdown since its inception was -57.18%, roughly equal to the maximum ARTY drawdown of -54.50%. Use the drawdown chart below to compare losses from any high point for KNCT and ARTY.

Drawdown Indicators

	KNCT	ARTY	Difference
Max Drawdown Largest peak-to-trough decline	-57.18%	-54.50%	-2.68%
Max Drawdown (1Y) Largest decline over 1 year	-12.30%	-18.81%	+6.51%
Max Drawdown (3Y) Largest decline over 3 years	-21.40%	-32.44%	+11.04%
Max Drawdown (5Y) Largest decline over 5 years	-34.55%	-50.53%	+15.98%
Max Drawdown (10Y) Largest decline over 10 years	-34.55%	—	—
Current Drawdown Current decline from peak	-0.93%	-1.59%	+0.66%
Average Drawdown Average peak-to-trough decline	-10.73%	-19.77%	+9.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.81%	5.72%	-2.91%

Volatility

KNCT vs. ARTY - Volatility Comparison

The current volatility for Invesco Next Gen Connectivity ETF (KNCT) is 14.46%, while iShares Future AI & Tech ETF (ARTY) has a volatility of 17.99%. This indicates that KNCT experiences smaller price fluctuations and is considered to be less risky than ARTY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KNCT	ARTY	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.46%	17.99%	-3.53%
Volatility (6M) Calculated over the trailing 6-month period	20.94%	29.22%	-8.28%
Volatility (1Y) Calculated over the trailing 1-year period	24.55%	33.64%	-9.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.84%	29.43%	-5.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.30%	28.21%	-4.91%

KNCT vs. ARTY - Expense Ratio Comparison

KNCT has a 0.40% expense ratio, which is lower than ARTY's 0.47% expense ratio.

Dividends

KNCT vs. ARTY - Dividend Comparison

KNCT's dividend yield for the trailing twelve months is around 0.75%, more than ARTY's 0.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
ARTY iShares Future AI & Tech ETF	0.05%	0.00%	0.50%	0.88%	0.75%	2.41%	0.53%	0.69%	0.34%	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

Can I hold both KNCT and ARTY in my portfolio?

KNCT and ARTY have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KNCT or ARTY?

ARTY has higher volatility (17.99%) compared to KNCT (14.46%). In terms of maximum drawdown, KNCT dropped -57.18% vs ARTY's -54.50%.

Which ETF is better, KNCT or ARTY?

On 5-year performance, KNCT leads with 20.88% vs 13.47% for ARTY. On fees, KNCT is cheaper at 0.40% per year. On volatility, KNCT has been the lower-risk option at 14.46%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KNCT or ARTY?

Over the 5-year period, KNCT has performed better with a 20.88% return vs 13.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KNCT or ARTY?

KNCT is cheaper with a 0.40% expense ratio, compared with 0.47% for ARTY.

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

KNCT has the higher dividend yield at 0.75%, compared with 0.05% for ARTY.

What is the main difference between KNCT and ARTY?

KNCT tracks STOXX World AC NexGen Connectivity Index, while ARTY tracks Morningstar Global Artificial Intelligence Select Index (Net). They also come from different issuers: Invesco and iShares. Their fees differ too: 0.40% for KNCT and 0.47% for ARTY.

Which has better risk-adjusted returns?

KNCT currently has the higher Sharpe Ratio (4.18 vs 3.20), 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.