KNCT vs. PSI

Last updated Jun 24, 2026

KNCT (Invesco Next Gen Connectivity ETF) and PSI (Invesco Semiconductors ETF) are both exchange-traded funds - KNCT is a Technology Equities fund tracking the STOXX World AC NexGen Connectivity Index, while PSI is a Semiconductors fund tracking the Dynamic Semiconductors Intellidex Index. Both are passively managed. Over the past 10 years, KNCT returned 21.11%/yr vs 35.27%/yr for PSI. A 0.76 correlation means they provide meaningful diversification when combined. KNCT charges 0.40%/yr vs 0.56%/yr for PSI.

Performance

KNCT vs. PSI - Performance Comparison

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

Returns By Period

In the year-to-date period, KNCT achieves a 54.15% return, which is significantly lower than PSI's 116.16% return. Over the past 10 years, KNCT has underperformed PSI with an annualized return of 21.11%, while PSI has yielded a comparatively higher 35.27% annualized return.

KNCT

• 1D: -5.38%
• 1M: 5.48%
• YTD: 54.15%
• 6M: 54.94%
• 1Y: 84.85%
• 3Y*: 40.93%
• 5Y*: 19.32%
• 10Y*: 21.11%

PSI

• 1D: -7.60%
• 1M: 10.87%
• YTD: 116.16%
• 6M: 110.97%
• 1Y: 200.81%
• 3Y*: 58.76%
• 5Y*: 32.86%
• 10Y*: 35.27%

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

KNCT vs. PSI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KNCT Invesco Next Gen Connectivity ETF	54.15%	28.65%	19.41%	27.39%	-29.54%	21.83%	39.14%	26.35%	5.78%	15.41%
PSI Invesco Semiconductors ETF	116.16%	36.32%	17.17%	49.06%	-34.43%	46.55%	56.75%	52.49%	-11.55%	40.16%

Correlation

The correlation between KNCT and PSI is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.80
Correlation (5Y) Calculated over the trailing 5-year period	0.81
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Jun 23, 2005	0.76

The correlation between KNCT and PSI has been stable across timeframes, ranging from 0.76 to 0.81 - a consistent structural relationship.

KNCT vs. PSI - Sectors Allocation Comparison

Sectors	KNCT	PSI
Technology	84.4%	98.4%
Communication Services	11.4%	-
Real Estate	3.3%	-
Industrials	0.8%	1.6%
Financial Services	0.2%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Utilities	-	-

Return for Risk

KNCT vs. PSI — Risk / Return Rank

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

KNCT

KNCT Risk / Return Rank: 93
KNCT Sharpe Ratio Rank: 95
KNCT Sortino Ratio Rank: 90
KNCT Omega Ratio Rank: 92
KNCT Calmar Ratio Rank: 94
KNCT Martin Ratio Rank: 96

PSI

PSI Risk / Return Rank: 96
PSI Sharpe Ratio Rank: 98
PSI Sortino Ratio Rank: 93
PSI Omega Ratio Rank: 93
PSI Calmar Ratio Rank: 98
PSI 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.

KNCT vs. PSI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Next Gen Connectivity ETF (KNCT) and Invesco Semiconductors ETF (PSI). 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	PSI	Difference
Sharpe ratio: Return per unit of total volatility	3.42	4.79	-1.37
Sortino ratio: Return per unit of downside risk	3.96	4.40	-0.44
Omega ratio: Gain probability vs. loss probability	1.57	1.61	-0.04
Calmar ratio: Return relative to maximum drawdown	6.94	13.06	-6.12
Martin ratio: Return relative to average drawdown	30.00	45.36	-15.36

KNCT vs. PSI - Sharpe Ratio Comparison

The current KNCT Sharpe Ratio is 3.42, which is comparable to the PSI Sharpe Ratio of 4.79. The chart below compares the historical Sharpe Ratios of KNCT and PSI, 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. PSI - Drawdown Comparison

The maximum KNCT drawdown since its inception was -57.18%, smaller than the maximum PSI drawdown of -62.96%. Use the drawdown chart below to compare losses from any high point for KNCT and PSI.

Drawdown Indicators

	KNCT	PSI	Difference
Max Drawdown Largest peak-to-trough decline	-57.18%	-62.96%	+5.78%
Max Drawdown (1Y) Largest decline over 1 year	-12.30%	-15.48%	+3.18%
Max Drawdown (3Y) Largest decline over 3 years	-21.40%	-41.07%	+19.67%
Max Drawdown (5Y) Largest decline over 5 years	-34.55%	-44.85%	+10.30%
Max Drawdown (10Y) Largest decline over 10 years	-34.55%	-44.85%	+10.30%
Current Drawdown Current decline from peak	-6.27%	-7.60%	+1.33%
Average Drawdown Average peak-to-trough decline	-10.73%	-15.90%	+5.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.84%	4.45%	-1.61%

Volatility

KNCT vs. PSI - Volatility Comparison

The current volatility for Invesco Next Gen Connectivity ETF (KNCT) is 15.64%, while Invesco Semiconductors ETF (PSI) has a volatility of 21.88%. This indicates that KNCT experiences smaller price fluctuations and is considered to be less risky than PSI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KNCT	PSI	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.64%	21.88%	-6.24%
Volatility (6M) Calculated over the trailing 6-month period	21.75%	35.15%	-13.40%
Volatility (1Y) Calculated over the trailing 1-year period	25.15%	42.19%	-17.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.96%	38.84%	-14.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.33%	35.61%	-12.28%

KNCT vs. PSI - Expense Ratio Comparison

KNCT has a 0.40% expense ratio, which is lower than PSI's 0.56% expense ratio.

Dividends

KNCT vs. PSI - Dividend Comparison

KNCT's dividend yield for the trailing twelve months is around 0.62%, more than PSI's 0.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KNCT Invesco Next Gen Connectivity ETF	0.62%	0.86%	1.38%	0.60%	2.24%	0.55%	0.18%	0.44%	1.22%	0.66%	0.44%	0.00%
PSI Invesco Semiconductors ETF	0.03%	0.10%	0.15%	0.40%	0.61%	0.14%	0.21%	0.52%	0.83%	0.21%	0.68%	0.16%

Frequently Asked Questions

Can I hold both KNCT and PSI in my portfolio?

KNCT and PSI have a correlation of 0.78, 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 PSI?

PSI has higher volatility (21.88%) compared to KNCT (15.64%). In terms of maximum drawdown, KNCT dropped -57.18% vs PSI's -62.96%.

Which ETF is better, KNCT or PSI?

On 10-year performance, PSI leads with 35.27% vs 21.11% for KNCT. On fees, KNCT is cheaper at 0.40% per year. On volatility, KNCT has been the lower-risk option at 15.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KNCT or PSI?

Over the 10-year period, PSI has performed better with a 35.27% return vs 21.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KNCT or PSI?

KNCT is cheaper with a 0.40% expense ratio, compared with 0.56% for PSI.

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

KNCT has the higher dividend yield at 0.62%, compared with 0.03% for PSI.

What is the main difference between KNCT and PSI?

KNCT is categorized as Technology Equities, while PSI is Semiconductors. KNCT tracks STOXX World AC NexGen Connectivity Index, while PSI tracks Dynamic Semiconductors Intellidex Index. Their fees differ too: 0.40% for KNCT and 0.56% for PSI.

Which has better risk-adjusted returns?

PSI currently has the higher Sharpe Ratio (4.79 vs 3.42), 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.