KNCT vs. QQQ

Last updated Jun 4, 2026

KNCT (Invesco Next Gen Connectivity ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - KNCT is a Technology Equities fund tracking the STOXX World AC NexGen Connectivity Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, KNCT returned 21.42%/yr vs 21.94%/yr for QQQ. A 0.79 correlation means they provide meaningful diversification when combined. KNCT charges 0.40%/yr vs 0.18%/yr for QQQ.

Performance

KNCT vs. QQQ - Performance Comparison

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

Returns By Period

In the year-to-date period, KNCT achieves a 63.41% return, which is significantly higher than QQQ's 21.30% return. Both investments have delivered pretty close results over the past 10 years, with KNCT having a 21.42% annualized return and QQQ not far ahead at 21.94%.

KNCT

• 1D: -0.63%
• 1M: 26.38%
• YTD: 63.41%
• 6M: 62.53%
• 1Y: 99.38%
• 3Y*: 43.36%
• 5Y*: 21.73%
• 10Y*: 21.42%

QQQ

• 1D: -0.26%
• 1M: 10.60%
• YTD: 21.30%
• 6M: 19.66%
• 1Y: 41.82%
• 3Y*: 28.78%
• 5Y*: 17.97%
• 10Y*: 21.94%

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

KNCT vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KNCT Invesco Next Gen Connectivity ETF	63.41%	28.65%	19.41%	27.39%	-29.54%	21.83%	39.14%	26.35%	5.78%	15.41%
QQQ Invesco QQQ ETF	21.30%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between KNCT and QQQ is 0.85, 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	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since Jun 24, 2005	0.79

The correlation between KNCT and QQQ has been stable across timeframes, ranging from 0.79 to 0.85 - a consistent structural relationship.

KNCT vs. QQQ - Sectors Allocation Comparison

Sectors	KNCT	QQQ
Technology	80.8%	53.8%
Communication Services	14.0%	15.8%
Real Estate	4.1%	0.1%
Industrials	1.1%	2.8%
Financial Services	0.2%	0.2%
Basic Materials	-	1.1%
Consumer Cyclical	-	12.3%
Consumer Defensive	-	7.7%
Energy	-	0.6%
Healthcare	-	4.2%
Utilities	-	1.4%

Return for Risk

KNCT vs. QQQ — 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: 96
KNCT Omega Ratio Rank: 95
KNCT Calmar Ratio Rank: 96
KNCT Martin Ratio Rank: 97

QQQ

QQQ Risk / Return Rank: 73
QQQ Sharpe Ratio Rank: 79
QQQ Sortino Ratio Rank: 75
QQQ Omega Ratio Rank: 74
QQQ Calmar Ratio Rank: 69
QQQ Martin Ratio Rank: 71

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. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Next Gen Connectivity ETF (KNCT) and Invesco QQQ ETF (QQQ). 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.

	KNCT	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	4.70	2.64	+2.06
Sortino ratio: Return per unit of downside risk	5.72	3.45	+2.27
Omega ratio: Gain probability vs. loss probability	1.76	1.45	+0.30
Calmar ratio: Return relative to maximum drawdown	10.00	3.51	+6.49
Martin ratio: Return relative to average drawdown	44.01	13.49	+30.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KNCT vs. QQQ - Sharpe Ratio Comparison

The current KNCT Sharpe Ratio is 4.70, which is higher than the QQQ Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of KNCT and QQQ, 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

	KNCT	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.70	2.64	+2.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.94	0.81	+0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.94	0.99	-0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.58	0.41	+0.17

Drawdowns

KNCT vs. QQQ - Drawdown Comparison

The maximum KNCT drawdown since its inception was -57.18%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for KNCT and QQQ.

Drawdown Indicators

	KNCT	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-57.18%	-82.97%	+25.79%
Max Drawdown (1Y) Largest decline over 1 year	-9.99%	-11.96%	+1.97%
Max Drawdown (3Y) Largest decline over 3 years	-21.40%	-22.77%	+1.37%
Max Drawdown (5Y) Largest decline over 5 years	-34.55%	-35.12%	+0.57%
Max Drawdown (10Y) Largest decline over 10 years	-34.55%	-35.12%	+0.57%
Current Drawdown Current decline from peak	-0.63%	-0.26%	-0.37%
Average Drawdown Average peak-to-trough decline	-10.74%	-32.79%	+22.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.27%	3.11%	-0.84%

Volatility

KNCT vs. QQQ - Volatility Comparison

Invesco Next Gen Connectivity ETF (KNCT) has a higher volatility of 9.19% compared to Invesco QQQ ETF (QQQ) at 4.49%. This indicates that KNCT's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KNCT	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.19%	4.49%	+4.70%
Volatility (6M) Calculated over the trailing 6-month period	17.12%	12.10%	+5.02%
Volatility (1Y) Calculated over the trailing 1-year period	21.28%	15.94%	+5.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.19%	22.38%	+0.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.97%	22.29%	+0.68%

KNCT vs. QQQ - Expense Ratio Comparison

KNCT has a 0.40% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

KNCT vs. QQQ - Dividend Comparison

KNCT's dividend yield for the trailing twelve months is around 0.57%, more than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KNCT Invesco Next Gen Connectivity ETF	0.57%	0.86%	1.38%	0.60%	2.24%	0.55%	0.18%	0.44%	1.22%	0.66%	0.44%	0.00%
QQQ Invesco QQQ ETF	0.38%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both KNCT and QQQ in my portfolio?

KNCT and QQQ have a correlation of 0.85, 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 QQQ?

KNCT has higher volatility (9.19%) compared to QQQ (4.49%). In terms of maximum drawdown, KNCT dropped -57.18% vs QQQ's -82.97%.

Which ETF is better, KNCT or QQQ?

On 10-year performance, QQQ leads with 21.94% vs 21.42% for KNCT. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 4.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KNCT or QQQ?

Over the 10-year period, QQQ has performed better with a 21.94% return vs 21.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KNCT or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.40% for KNCT.

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

KNCT has the higher dividend yield at 0.57%, compared with 0.38% for QQQ.

What is the main difference between KNCT and QQQ?

KNCT is categorized as Technology Equities, while QQQ is Nasdaq-100. KNCT tracks STOXX World AC NexGen Connectivity Index, while QQQ tracks NASDAQ-100 Index. Their fees differ too: 0.40% for KNCT and 0.18% for QQQ.

Which has better risk-adjusted returns?

KNCT currently has the higher Sharpe Ratio (4.70 vs 2.64), 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.