KNCT vs. SOXQ

Last updated Jun 4, 2026

KNCT (Invesco Next Gen Connectivity ETF) and SOXQ (Invesco PHLX Semiconductor ETF) are both exchange-traded funds - KNCT is a Technology Equities fund tracking the STOXX World AC NexGen Connectivity Index, while SOXQ is a Semiconductors fund tracking the PHLX Semiconductor Sector Index. Both are passively managed. Over the past 3 years, KNCT returned 43.36%/yr vs 59.40%/yr for SOXQ. Their correlation of 0.81 suggests significant overlap in exposure. KNCT charges 0.40%/yr vs 0.19%/yr for SOXQ.

Performance

KNCT vs. SOXQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Next Gen Connectivity ETF (KNCT) and Invesco PHLX Semiconductor ETF (SOXQ). 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 lower than SOXQ's 96.72% return.

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%

SOXQ

• 1D: 1.42%
• 1M: 32.12%
• YTD: 96.72%
• 6M: 91.61%
• 1Y: 181.76%
• 3Y*: 59.40%
• 5Y*: —
• 10Y*: —

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

KNCT vs. SOXQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
KNCT Invesco Next Gen Connectivity ETF	63.41%	28.65%	19.41%	27.39%	-29.54%	15.46%
SOXQ Invesco PHLX Semiconductor ETF	96.72%	43.11%	20.16%	66.74%	-35.59%	24.82%

Correlation

The correlation between KNCT and SOXQ is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (All Time) Calculated using the full available price history since Jun 14, 2021	0.81

The correlation between KNCT and SOXQ has been stable across timeframes, ranging from 0.80 to 0.82 - a consistent structural relationship.

KNCT vs. SOXQ - Sectors Allocation Comparison

Sectors	KNCT	SOXQ
Technology	80.8%	100.0%
Communication Services	14.0%	-
Real Estate	4.1%	-
Industrials	1.1%	-
Financial Services	0.2%	0.0%
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Utilities	-	-

Return for Risk

KNCT vs. SOXQ — 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

SOXQ

SOXQ Risk / Return Rank: 96
SOXQ Sharpe Ratio Rank: 98
SOXQ Sortino Ratio Rank: 95
SOXQ Omega Ratio Rank: 95
SOXQ Calmar Ratio Rank: 97
SOXQ 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. SOXQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Next Gen Connectivity ETF (KNCT) and Invesco PHLX Semiconductor ETF (SOXQ). 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	SOXQ	Difference
Sharpe ratio Return per unit of total volatility	4.70	5.43	-0.73
Sortino ratio Return per unit of downside risk	5.72	5.22	+0.50
Omega ratio Gain probability vs. loss probability	1.76	1.72	+0.03
Calmar ratio Return relative to maximum drawdown	10.00	11.73	-1.73
Martin ratio Return relative to average drawdown	44.01	45.01	-1.00
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. SOXQ - Sharpe Ratio Comparison

The current KNCT Sharpe Ratio is 4.70, which is comparable to the SOXQ Sharpe Ratio of 5.43. The chart below compares the historical Sharpe Ratios of KNCT and SOXQ, 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	SOXQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.70	5.43	-0.73
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.94	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.94	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.58	0.98	-0.40

Drawdowns

KNCT vs. SOXQ - Drawdown Comparison

The maximum KNCT drawdown since its inception was -57.18%, which is greater than SOXQ's maximum drawdown of -46.01%. Use the drawdown chart below to compare losses from any high point for KNCT and SOXQ.

Drawdown Indicators

	KNCT	SOXQ	Difference
Max Drawdown Largest peak-to-trough decline	-57.18%	-46.01%	-11.17%
Max Drawdown (1Y) Largest decline over 1 year	-9.99%	-15.59%	+5.60%
Max Drawdown (3Y) Largest decline over 3 years	-21.40%	-39.36%	+17.96%
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	-0.63%	0.00%	-0.63%
Average Drawdown Average peak-to-trough decline	-10.74%	-12.96%	+2.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.27%	4.06%	-1.79%

Volatility

KNCT vs. SOXQ - Volatility Comparison

The current volatility for Invesco Next Gen Connectivity ETF (KNCT) is 9.19%, while Invesco PHLX Semiconductor ETF (SOXQ) has a volatility of 13.44%. This indicates that KNCT experiences smaller price fluctuations and is considered to be less risky than SOXQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KNCT	SOXQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.19%	13.44%	-4.25%
Volatility (6M) Calculated over the trailing 6-month period	17.12%	26.70%	-9.58%
Volatility (1Y) Calculated over the trailing 1-year period	21.28%	33.78%	-12.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.19%	36.38%	-13.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.97%	36.38%	-13.41%

KNCT vs. SOXQ - Expense Ratio Comparison

KNCT has a 0.40% expense ratio, which is higher than SOXQ's 0.19% expense ratio.

Dividends

KNCT vs. SOXQ - Dividend Comparison

KNCT's dividend yield for the trailing twelve months is around 0.57%, more than SOXQ's 0.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
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%
SOXQ Invesco PHLX Semiconductor ETF	0.26%	0.50%	0.68%	0.87%	1.36%	0.72%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both KNCT and SOXQ in my portfolio?

KNCT and SOXQ have a correlation of 0.80, 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 SOXQ?

SOXQ has higher volatility (13.44%) compared to KNCT (9.19%). In terms of maximum drawdown, KNCT dropped -57.18% vs SOXQ's -46.01%.

Which ETF is better, KNCT or SOXQ?

On 3-year performance, SOXQ leads with 59.40% vs 43.36% for KNCT. On fees, SOXQ is cheaper at 0.19% per year. On volatility, KNCT has been the lower-risk option at 9.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KNCT or SOXQ?

Over the 3-year period, SOXQ has performed better with a 59.40% return vs 43.36%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KNCT or SOXQ?

SOXQ is cheaper with a 0.19% expense ratio, compared with 0.40% for KNCT.

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

KNCT has the higher dividend yield at 0.57%, compared with 0.26% for SOXQ.

What is the main difference between KNCT and SOXQ?

KNCT is categorized as Technology Equities, while SOXQ is Semiconductors. KNCT tracks STOXX World AC NexGen Connectivity Index, while SOXQ tracks PHLX Semiconductor Sector Index. Their fees differ too: 0.40% for KNCT and 0.19% for SOXQ.

Which has better risk-adjusted returns?

SOXQ currently has the higher Sharpe Ratio (5.43 vs 4.70), 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.