KNCT vs. SPUU

Last updated Jun 14, 2026

KNCT (Invesco Next Gen Connectivity ETF) and SPUU (Direxion Daily S&P 500 Bull 2X ETF) are both exchange-traded funds - KNCT is a Technology Equities fund tracking the STOXX World AC NexGen Connectivity Index, while SPUU is a Leveraged Equities fund tracking the S&P 500 Index (200% Daily). Both are passively managed. Over the past 10 years, KNCT returned 20.79%/yr vs 24.69%/yr for SPUU. A 0.75 correlation means they provide meaningful diversification when combined. KNCT charges 0.40%/yr vs 0.60%/yr for SPUU.

Performance

KNCT vs. SPUU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Next Gen Connectivity ETF (KNCT) and Direxion Daily S&P 500 Bull 2X ETF (SPUU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KNCT achieves a 52.62% return, which is significantly higher than SPUU's 15.56% return. Over the past 10 years, KNCT has underperformed SPUU with an annualized return of 20.79%, while SPUU has yielded a comparatively higher 24.69% annualized return.

KNCT

• 1D: 0.65%
• 1M: 6.07%
• YTD: 52.62%
• 6M: 54.67%
• 1Y: 85.43%
• 3Y*: 39.08%
• 5Y*: 19.43%
• 10Y*: 20.79%

SPUU

• 1D: 1.20%
• 1M: -2.20%
• YTD: 15.56%
• 6M: 15.85%
• 1Y: 47.93%
• 3Y*: 34.75%
• 5Y*: 19.14%
• 10Y*: 24.69%

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

KNCT vs. SPUU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KNCT Invesco Next Gen Connectivity ETF	52.62%	28.65%	19.41%	27.39%	-29.54%	21.83%	39.14%	26.35%	5.78%	15.41%
SPUU Direxion Daily S&P 500 Bull 2X ETF	15.56%	26.55%	44.25%	47.28%	-38.72%	61.27%	21.85%	66.84%	-14.59%	44.33%

Correlation

The correlation between KNCT and SPUU 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 (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Jun 6, 2014	0.75

The correlation between KNCT and SPUU has been stable across timeframes, ranging from 0.75 to 0.83 - a consistent structural relationship.

KNCT vs. SPUU - Sectors Allocation Comparison

Sectors	KNCT	SPUU
Technology	84.4%	39.0%
Communication Services	11.4%	10.6%
Real Estate	3.3%	1.8%
Industrials	0.8%	7.8%
Financial Services	0.2%	11.1%
Basic Materials	-	1.7%
Consumer Cyclical	-	9.9%
Consumer Defensive	-	4.5%
Energy	-	3.1%
Healthcare	-	8.3%
Utilities	-	2.1%

Return for Risk

KNCT vs. SPUU — Risk / Return Rank

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

KNCT

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

SPUU

SPUU Risk / Return Rank: 60
SPUU Sharpe Ratio Rank: 63
SPUU Sortino Ratio Rank: 56
SPUU Omega Ratio Rank: 58
SPUU Calmar Ratio Rank: 56
SPUU Martin Ratio Rank: 66

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. SPUU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Next Gen Connectivity ETF (KNCT) and Direxion Daily S&P 500 Bull 2X ETF (SPUU). 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	SPUU	Difference
Sharpe ratio: Return per unit of total volatility	3.47	1.81	+1.66
Sortino ratio: Return per unit of downside risk	4.09	2.35	+1.74
Omega ratio: Gain probability vs. loss probability	1.58	1.31	+0.27
Calmar ratio: Return relative to maximum drawdown	6.77	2.47	+4.30
Martin ratio: Return relative to average drawdown	30.27	10.61	+19.66

KNCT vs. SPUU - Sharpe Ratio Comparison

The current KNCT Sharpe Ratio is 3.47, which is higher than the SPUU Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of KNCT and SPUU, 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. SPUU - Drawdown Comparison

The maximum KNCT drawdown since its inception was -57.18%, roughly equal to the maximum SPUU drawdown of -59.35%. Use the drawdown chart below to compare losses from any high point for KNCT and SPUU.

Drawdown Indicators

	KNCT	SPUU	Difference
Max Drawdown Largest peak-to-trough decline	-57.18%	-59.35%	+2.17%
Max Drawdown (1Y) Largest decline over 1 year	-12.30%	-18.19%	+5.89%
Max Drawdown (3Y) Largest decline over 3 years	-21.40%	-35.18%	+13.78%
Max Drawdown (5Y) Largest decline over 5 years	-34.55%	-46.59%	+12.04%
Max Drawdown (10Y) Largest decline over 10 years	-34.55%	-59.35%	+24.80%
Current Drawdown Current decline from peak	-7.20%	-4.78%	-2.42%
Average Drawdown Average peak-to-trough decline	-10.73%	-9.49%	-1.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.75%	4.23%	-1.48%

Volatility

KNCT vs. SPUU - Volatility Comparison

Invesco Next Gen Connectivity ETF (KNCT) has a higher volatility of 13.73% compared to Direxion Daily S&P 500 Bull 2X ETF (SPUU) at 8.72%. This indicates that KNCT's price experiences larger fluctuations and is considered to be riskier than SPUU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KNCT	SPUU	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.73%	8.72%	+5.01%
Volatility (6M) Calculated over the trailing 6-month period	20.56%	19.45%	+1.11%
Volatility (1Y) Calculated over the trailing 1-year period	24.00%	24.81%	-0.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.67%	33.59%	-9.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.22%	35.83%	-12.61%

KNCT vs. SPUU - Expense Ratio Comparison

KNCT has a 0.40% expense ratio, which is lower than SPUU's 0.60% expense ratio.

Dividends

KNCT vs. SPUU - Dividend Comparison

KNCT's dividend yield for the trailing twelve months is around 0.61%, less than SPUU's 1.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KNCT Invesco Next Gen Connectivity ETF	0.61%	0.86%	1.38%	0.60%	2.24%	0.55%	0.18%	0.44%	1.22%	0.66%	0.44%	0.00%
SPUU Direxion Daily S&P 500 Bull 2X ETF	1.39%	1.63%	0.55%	0.83%	0.88%	3.04%	8.03%	1.80%	5.50%	6.96%	8.08%	4.42%

Frequently Asked Questions

Can I hold both KNCT and SPUU in my portfolio?

KNCT and SPUU 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 SPUU?

KNCT has higher volatility (13.73%) compared to SPUU (8.72%). In terms of maximum drawdown, KNCT dropped -57.18% vs SPUU's -59.35%.

Which ETF is better, KNCT or SPUU?

On 10-year performance, SPUU leads with 24.69% vs 20.79% for KNCT. On fees, KNCT is cheaper at 0.40% per year. On volatility, SPUU has been the lower-risk option at 8.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KNCT or SPUU?

Over the 10-year period, SPUU has performed better with a 24.69% return vs 20.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KNCT or SPUU?

KNCT is cheaper with a 0.40% expense ratio, compared with 0.60% for SPUU.

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

SPUU has the higher dividend yield at 1.39%, compared with 0.61% for KNCT.

What is the main difference between KNCT and SPUU?

KNCT is categorized as Technology Equities, while SPUU is Leveraged Equities. KNCT tracks STOXX World AC NexGen Connectivity Index, while SPUU tracks S&P 500 Index (200% Daily). They also come from different issuers: Invesco and Direxion. Their fees differ too: 0.40% for KNCT and 0.60% for SPUU.

Which has better risk-adjusted returns?

KNCT currently has the higher Sharpe Ratio (3.47 vs 1.81), 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.