KNCT vs. XLG

Last updated Aug 2, 2026

KNCT (Invesco Next Gen Connectivity ETF) and XLG (Invesco S&P 500 Top 50 ETF) are both exchange-traded funds - KNCT is a Technology Equities fund tracking the STOXX World AC NexGen Connectivity Index, while XLG is a S&P 500 fund tracking the S&P 500 Top 50 Index. Both are passively managed. Over the past 10 years, KNCT returned 18.83%/yr vs 16.35%/yr for XLG. Their 0.71 correlation means they have sometimes moved together and sometimes differently. KNCT charges 0.40%/yr vs 0.20%/yr for XLG.

Performance

KNCT vs. XLG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Next Gen Connectivity ETF (KNCT) and Invesco S&P 500 Top 50 ETF (XLG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KNCT achieves a 40.12% return, which is significantly higher than XLG's 2.89% return. Over the past 10 years, KNCT has outperformed XLG with an annualized return of 18.83%, while XLG has yielded a comparatively lower 16.35% annualized return.

KNCT

• 1D: 0.08%
• 1M: -4.96%
• 6M: 31.73%
• YTD: 40.12%
• 1Y: 63.92%
• 3Y*: 33.13%
• 5Y*: 16.31%
• 10Y*: 18.83%
• ALL TIME*: 13.22%

XLG

• 1D: 1.06%
• 1M: 0.07%
• 6M: 3.36%
• YTD: 2.89%
• 1Y: 15.84%
• 3Y*: 20.00%
• 5Y*: 13.72%
• 10Y*: 16.35%
• ALL TIME*: 11.32%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
KNCT Invesco Next Gen Connectivity ETF	$741.37K	$822.66K	$837.91K
XLG Invesco S&P 500 Top 50 ETF	$61.04M	$60.71M	$102.52M

KNCT vs. XLG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KNCT Invesco Next Gen Connectivity ETF	40.12%	28.65%	19.41%	27.39%	-29.54%	21.83%	39.14%	26.35%	5.78%	15.41%
XLG Invesco S&P 500 Top 50 ETF	2.89%	19.51%	33.49%	38.16%	-24.29%	30.77%	24.15%	32.04%	-3.59%	23.04%

Correlation

The correlation between KNCT and XLG is 0.73, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.73
Correlation (3Y) Balances recent behavior with more history.	0.77
Correlation (5Y) Shows whether the relationship held over a longer period.	0.80
Correlation (10Y) Provides a long-term view across more market conditions.	0.75
Correlation (All Time) Calculated using the full available price history since Jun 23, 2005	0.71

The correlation between KNCT and XLG has been stable across timeframes, ranging from 0.71 to 0.80 - a consistent structural relationship.

KNCT vs. XLG - Sectors Allocation Comparison

Sectors	KNCT	XLG
Technology	86.3%	49.8%
Communication Services	10.0%	13.0%
Real Estate	3.0%	-
Industrials	0.7%	1.9%
Financial Services	0.2%	10.3%
Basic Materials	-	0.6%
Consumer Cyclical	-	9.3%
Consumer Defensive	-	5.1%
Energy	-	2.5%
Healthcare	-	6.8%
Utilities	-	0.7%

Return for Risk

KNCT vs. XLG — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

KNCT

KNCT Risk / Return Rank: 87
KNCT Sharpe Ratio Rank: 90
KNCT Sortino Ratio Rank: 85
KNCT Omega Ratio Rank: 86
KNCT Calmar Ratio Rank: 85
KNCT Martin Ratio Rank: 88

XLG

XLG Risk / Return Rank: 35
XLG Sharpe Ratio Rank: 37
XLG Sortino Ratio Rank: 36
XLG Omega Ratio Rank: 35
XLG Calmar Ratio Rank: 33
XLG Martin Ratio Rank: 35

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

KNCT vs. XLG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Next Gen Connectivity ETF (KNCT) and Invesco S&P 500 Top 50 ETF (XLG). 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	XLG	Difference
Sharpe ratio: Return per unit of total volatility	2.27	0.92	+1.34
Sortino ratio: Return per unit of downside risk	2.82	1.35	+1.47
Omega ratio: Gain probability vs. loss probability	1.38	1.17	+0.21
Calmar ratio: Return relative to maximum drawdown	3.31	1.10	+2.21
Martin ratio: Return relative to average drawdown	13.33	3.41	+9.92

KNCT vs. XLG - Sharpe Ratio Comparison

The current KNCT Sharpe Ratio is 2.27, which is higher than the XLG Sharpe Ratio of 0.92. The chart below compares the historical Sharpe Ratios of KNCT and XLG, 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. XLG - Drawdown Comparison

The maximum KNCT drawdown since its inception was -57.18%, which is greater than XLG's maximum drawdown of -52.39%. Use the drawdown chart below to compare losses from any high point for KNCT and XLG.

Drawdown Indicators

	KNCT	XLG	Difference
Max Drawdown Largest peak-to-trough decline	-57.18%	-52.39%	-4.79%
Max Drawdown (1Y) Largest decline over 1 year	-18.91%	-12.41%	-6.50%
Max Drawdown (3Y) Largest decline over 3 years	-21.40%	-20.70%	-0.70%
Max Drawdown (5Y) Largest decline over 5 years	-34.55%	-28.02%	-6.53%
Max Drawdown (10Y) Largest decline over 10 years	-34.55%	-30.46%	-4.09%
Current Drawdown Current decline from peak	-14.80%	-5.74%	-9.06%
Average Drawdown Average peak-to-trough decline	-10.73%	-7.62%	-3.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.68%	3.98%	+0.70%

Volatility

KNCT vs. XLG - Volatility Comparison

Invesco Next Gen Connectivity ETF (KNCT) has a higher volatility of 11.26% compared to Invesco S&P 500 Top 50 ETF (XLG) at 5.03%. This indicates that KNCT's price experiences larger fluctuations and is considered to be riskier than XLG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KNCT	XLG	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.26%	5.03%	+6.23%
Volatility (6M) Calculated over the trailing 6-month period	24.68%	11.54%	+13.14%
Volatility (1Y) Calculated over the trailing 1-year period	27.67%	14.75%	+12.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.48%	18.89%	+5.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.55%	18.92%	+4.63%

KNCT vs. XLG - Expense Ratio Comparison

KNCT has a 0.40% expense ratio, which is higher than XLG's 0.20% expense ratio.

Dividends

KNCT vs. XLG - Dividend Comparison

KNCT's dividend yield for the trailing twelve months is around 0.68%, more than XLG's 0.65% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KNCT Invesco Next Gen Connectivity ETF	0.68%	0.86%	1.38%	0.60%	2.24%	0.55%	0.18%	0.44%	1.22%	0.66%	0.44%	0.00%
XLG Invesco S&P 500 Top 50 ETF	0.65%	0.64%	0.72%	0.97%	1.34%	0.94%	1.25%	1.58%	2.00%	1.85%	2.00%	2.09%

Frequently Asked Questions

Can I hold both KNCT and XLG in my portfolio?

KNCT and XLG have a correlation of 0.73, 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 XLG?

KNCT has higher volatility (11.26%) compared to XLG (5.03%). In terms of maximum drawdown, KNCT dropped -57.18% vs XLG's -52.39%.

Which ETF is better, KNCT or XLG?

On 10-year performance, KNCT leads with 18.83% vs 16.35% for XLG. On fees, XLG is cheaper at 0.20% per year. On volatility, XLG has been the lower-risk option at 5.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KNCT or XLG?

Over the 10-year period, KNCT has performed better with a 18.83% return vs 16.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KNCT or XLG?

XLG is cheaper with a 0.20% expense ratio, compared with 0.40% for KNCT.

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

KNCT has the higher dividend yield at 0.68%, compared with 0.65% for XLG.

What is the main difference between KNCT and XLG?

KNCT is categorized as Technology Equities, while XLG is S&P 500. KNCT tracks STOXX World AC NexGen Connectivity Index, while XLG tracks S&P 500 Top 50 Index. Their fees differ too: 0.40% for KNCT and 0.20% for XLG.

Which has better risk-adjusted returns?

KNCT currently has the higher Sharpe Ratio (2.27 vs 0.92), 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.