KNCT vs. TECL

Last updated Jun 5, 2026

KNCT (Invesco Next Gen Connectivity ETF) and TECL (Direxion Daily Technology Bull 3X Shares) are both exchange-traded funds - KNCT is a Technology Equities fund tracking the STOXX World AC NexGen Connectivity Index, while TECL is a Leveraged Equities fund tracking the Technology Select Sector Index (300%). Both are passively managed. Over the past 10 years, KNCT returned 20.97%/yr vs 53.62%/yr for TECL. A 0.80 correlation means they provide meaningful diversification when combined. KNCT charges 0.40%/yr vs 0.91%/yr for TECL.

Performance

KNCT vs. TECL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Next Gen Connectivity ETF (KNCT) and Direxion Daily Technology Bull 3X Shares (TECL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KNCT achieves a 58.43% return, which is significantly lower than TECL's 115.57% return. Over the past 10 years, KNCT has underperformed TECL with an annualized return of 20.97%, while TECL has yielded a comparatively higher 53.62% annualized return.

KNCT

• 1D: -3.05%
• 1M: 18.64%
• YTD: 58.43%
• 6M: 58.28%
• 1Y: 92.28%
• 3Y*: 42.20%
• 5Y*: 20.98%
• 10Y*: 20.97%

TECL

• 1D: -4.56%
• 1M: 55.10%
• YTD: 115.57%
• 6M: 106.65%
• 1Y: 249.35%
• 3Y*: 78.93%
• 5Y*: 42.11%
• 10Y*: 53.62%

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

KNCT vs. TECL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KNCT Invesco Next Gen Connectivity ETF	58.43%	28.65%	19.41%	27.39%	-29.54%	21.83%	39.14%	26.35%	5.78%	15.41%
TECL Direxion Daily Technology Bull 3X Shares	115.57%	38.60%	36.15%	203.14%	-74.32%	112.80%	69.46%	185.58%	-24.03%	124.82%

Correlation

The correlation between KNCT and TECL is 0.86, 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	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since Dec 31, 2008	0.80

The correlation between KNCT and TECL has been stable across timeframes, ranging from 0.80 to 0.86 - a consistent structural relationship.

KNCT vs. TECL - Sectors Allocation Comparison

Sectors	KNCT	TECL
Technology	80.8%	20.4%
Communication Services	14.0%	-
Real Estate	4.1%	-
Industrials	1.1%	0.0%
Financial Services	0.2%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.0%
Healthcare	-	-
Utilities	-	-

Return for Risk

KNCT vs. TECL — 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: 96
KNCT Sortino Ratio Rank: 95
KNCT Omega Ratio Rank: 94
KNCT Calmar Ratio Rank: 96
KNCT Martin Ratio Rank: 97

TECL

TECL Risk / Return Rank: 84
TECL Sharpe Ratio Rank: 96
TECL Sortino Ratio Rank: 79
TECL Omega Ratio Rank: 78
TECL Calmar Ratio Rank: 89
TECL Martin Ratio Rank: 80

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. TECL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Next Gen Connectivity ETF (KNCT) and Direxion Daily Technology Bull 3X Shares (TECL). 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	TECL	Difference
Sharpe ratio: Return per unit of total volatility	4.31	4.03	+0.28
Sortino ratio: Return per unit of downside risk	5.27	3.52	+1.76
Omega ratio: Gain probability vs. loss probability	1.70	1.46	+0.24
Calmar ratio: Return relative to maximum drawdown	9.29	5.39	+3.90
Martin ratio: Return relative to average drawdown	40.65	15.48	+25.18
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. TECL - Sharpe Ratio Comparison

The current KNCT Sharpe Ratio is 4.31, which is comparable to the TECL Sharpe Ratio of 4.03. The chart below compares the historical Sharpe Ratios of KNCT and TECL, 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	TECL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.31	4.03	+0.28
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.91	0.57	+0.34
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.92	0.74	+0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.76	-0.19

Drawdowns

KNCT vs. TECL - Drawdown Comparison

The maximum KNCT drawdown since its inception was -57.18%, smaller than the maximum TECL drawdown of -77.96%. Use the drawdown chart below to compare losses from any high point for KNCT and TECL.

Drawdown Indicators

	KNCT	TECL	Difference
Max Drawdown Largest peak-to-trough decline	-57.18%	-77.96%	+20.78%
Max Drawdown (1Y) Largest decline over 1 year	-9.99%	-46.58%	+36.59%
Max Drawdown (3Y) Largest decline over 3 years	-21.40%	-66.58%	+45.18%
Max Drawdown (5Y) Largest decline over 5 years	-34.55%	-77.96%	+43.41%
Max Drawdown (10Y) Largest decline over 10 years	-34.55%	-77.96%	+43.41%
Current Drawdown Current decline from peak	-3.67%	-7.42%	+3.75%
Average Drawdown Average peak-to-trough decline	-10.74%	-18.38%	+7.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.28%	16.19%	-13.91%

Volatility

KNCT vs. TECL - Volatility Comparison

The current volatility for Invesco Next Gen Connectivity ETF (KNCT) is 9.83%, while Direxion Daily Technology Bull 3X Shares (TECL) has a volatility of 21.53%. This indicates that KNCT experiences smaller price fluctuations and is considered to be less risky than TECL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KNCT	TECL	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.83%	21.53%	-11.70%
Volatility (6M) Calculated over the trailing 6-month period	17.46%	50.05%	-32.59%
Volatility (1Y) Calculated over the trailing 1-year period	21.53%	62.27%	-40.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.22%	74.08%	-50.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.98%	72.35%	-49.37%

KNCT vs. TECL - Expense Ratio Comparison

KNCT has a 0.40% expense ratio, which is lower than TECL's 0.91% expense ratio.

Dividends

KNCT vs. TECL - Dividend Comparison

KNCT's dividend yield for the trailing twelve months is around 0.59%, less than TECL's 3.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
KNCT Invesco Next Gen Connectivity ETF	0.59%	0.86%	1.38%	0.60%	2.24%	0.55%	0.18%	0.44%	1.22%	0.66%	0.44%
TECL Direxion Daily Technology Bull 3X Shares	3.30%	7.19%	0.29%	0.28%	0.22%	0.32%	0.52%	0.25%	0.47%	0.10%	0.00%

Frequently Asked Questions

Can I hold both KNCT and TECL in my portfolio?

KNCT and TECL have a correlation of 0.86, 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 TECL?

TECL has higher volatility (21.53%) compared to KNCT (9.83%). In terms of maximum drawdown, KNCT dropped -57.18% vs TECL's -77.96%.

Which ETF is better, KNCT or TECL?

On 10-year performance, TECL leads with 53.62% vs 20.97% for KNCT. On fees, KNCT is cheaper at 0.40% per year. On volatility, KNCT has been the lower-risk option at 9.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KNCT or TECL?

Over the 10-year period, TECL has performed better with a 53.62% return vs 20.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KNCT or TECL?

KNCT is cheaper with a 0.40% expense ratio, compared with 0.91% for TECL.

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

TECL has the higher dividend yield at 3.30%, compared with 0.59% for KNCT.

What is the main difference between KNCT and TECL?

KNCT is categorized as Technology Equities, while TECL is Leveraged Equities. KNCT tracks STOXX World AC NexGen Connectivity Index, while TECL tracks Technology Select Sector Index (300%). They also come from different issuers: Invesco and Direxion. Their fees differ too: 0.40% for KNCT and 0.91% for TECL.

Which has better risk-adjusted returns?

KNCT currently has the higher Sharpe Ratio (4.31 vs 4.03), 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.