KNCT vs. RACK

Last updated Jun 24, 2026

KNCT (Invesco Next Gen Connectivity ETF) and RACK (VanEck Data Center Supply Chain ETF) are both Technology Equities funds - KNCT tracks the STOXX World AC NexGen Connectivity Index while RACK tracks the MarketVector Data Center Supply Chain Index. Both are passively managed. With a 0.95 correlation, they move nearly in lockstep. KNCT charges 0.40%/yr vs 0.50%/yr for RACK.

Performance

KNCT vs. RACK - Performance Comparison

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

Returns By Period

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%

RACK

• 1D: -5.31%
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

KNCT vs. RACK - Yearly Performance Comparison

	2026 (YTD)
KNCT Invesco Next Gen Connectivity ETF	-4.19%
RACK VanEck Data Center Supply Chain ETF	-1.86%

Correlation

The correlation between KNCT and RACK is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 2, 2026	0.95

Return for Risk

KNCT vs. RACK — 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

RACK

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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. RACK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Next Gen Connectivity ETF (KNCT) and VanEck Data Center Supply Chain ETF (RACK). 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	RACK	Difference
Sharpe ratio: Return per unit of total volatility	3.42	—	—
Sortino ratio: Return per unit of downside risk	3.96	—	—
Omega ratio: Gain probability vs. loss probability	1.57	—	—
Calmar ratio: Return relative to maximum drawdown	6.94	—	—
Martin ratio: Return relative to average drawdown	30.00	—	—

Drawdowns

KNCT vs. RACK - Drawdown Comparison

The maximum KNCT drawdown since its inception was -57.18%, which is greater than RACK's maximum drawdown of -12.62%. Use the drawdown chart below to compare losses from any high point for KNCT and RACK.

Drawdown Indicators

	KNCT	RACK	Difference
Max Drawdown Largest peak-to-trough decline	-57.18%	-12.62%	-44.56%
Max Drawdown (1Y) Largest decline over 1 year	-12.30%	—	—
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 Drawdown Current decline from peak	-6.27%	-5.31%	-0.96%
Average Drawdown Average peak-to-trough decline	-10.73%	-4.44%	-6.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.84%	—	—

Volatility

Volatility by Period

	KNCT	RACK	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.64%	—	—
Volatility (6M) Calculated over the trailing 6-month period	21.75%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	25.15%	58.92%	-33.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.96%	58.92%	-34.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.33%	58.92%	-35.59%

KNCT vs. RACK - Expense Ratio Comparison

KNCT has a 0.40% expense ratio, which is lower than RACK's 0.50% expense ratio.

Dividends

KNCT vs. RACK - Dividend Comparison

KNCT's dividend yield for the trailing twelve months is around 0.62%, while RACK has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
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%
RACK VanEck Data Center Supply Chain ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both KNCT and RACK in my portfolio?

With a correlation of 0.95, KNCT and RACK move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which ETF is better, KNCT or RACK?

On fees, KNCT is cheaper at 0.40% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, KNCT or RACK?

KNCT is cheaper with a 0.40% expense ratio, compared with 0.50% for RACK.

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

KNCT has the higher dividend yield at 0.62%, compared with 0.00% for RACK.

What is the main difference between KNCT and RACK?

KNCT tracks STOXX World AC NexGen Connectivity Index, while RACK tracks MarketVector Data Center Supply Chain Index. They also come from different issuers: Invesco and VanEck. Their fees differ too: 0.40% for KNCT and 0.50% for RACK.