TEC vs. KNCT

Last updated Aug 2, 2026

TEC (Harbor Transformative Technologies ETF) and KNCT (Invesco Next Gen Connectivity ETF) are both Technology Equities funds. TEC is actively managed, while KNCT is passively managed. Over the past year, TEC returned 27.03% vs 63.92% for KNCT. Their correlation of 0.84 means they have usually moved in the same direction. TEC charges 0.69%/yr vs 0.40%/yr for KNCT.

Performance

TEC vs. KNCT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Harbor Transformative Technologies ETF (TEC) and Invesco Next Gen Connectivity ETF (KNCT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TEC achieves a 12.93% return, which is significantly lower than KNCT's 40.12% return.

TEC

• 1D: 1.31%
• 1M: -1.99%
• 6M: 14.71%
• YTD: 12.93%
• 1Y: 27.03%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 46.08%

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%

*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
TEC Harbor Transformative Technologies ETF	$6.58K	$8.72K	$15.46K

TEC vs. KNCT - Yearly Performance Comparison

	2026 (YTD)	2025
TEC Harbor Transformative Technologies ETF	12.93%	44.21%
KNCT Invesco Next Gen Connectivity ETF	40.12%	41.09%

Correlation

The correlation between TEC and KNCT is 0.86, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.86
Correlation (All Time) Calculated using the full available price history since Apr 17, 2025	0.84

The correlation between TEC and KNCT has been stable across timeframes, ranging from 0.84 to 0.86 - a consistent structural relationship.

TEC vs. KNCT - Sectors Allocation Comparison

Sectors	TEC	KNCT
Technology	72.0%	86.3%
Communication Services	11.3%	10.0%
Consumer Cyclical	8.6%	-
Healthcare	3.8%	-
Industrials	2.3%	0.7%
Utilities	1.1%	-
Financial Services	0.9%	0.2%
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	3.0%

Return for Risk

TEC vs. KNCT — Risk / Return Rank

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

TEC

TEC Risk / Return Rank: 39
TEC Sharpe Ratio Rank: 42
TEC Sortino Ratio Rank: 41
TEC Omega Ratio Rank: 39
TEC Calmar Ratio Rank: 39
TEC Martin Ratio Rank: 37

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

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.

TEC vs. KNCT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Harbor Transformative Technologies ETF (TEC) and Invesco Next Gen Connectivity ETF (KNCT). 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.

	TEC	KNCT	Difference
Sharpe ratio: Return per unit of total volatility	1.04	2.27	-1.22
Sortino ratio: Return per unit of downside risk	1.53	2.82	-1.29
Omega ratio: Gain probability vs. loss probability	1.19	1.38	-0.19
Calmar ratio: Return relative to maximum drawdown	1.38	3.31	-1.93
Martin ratio: Return relative to average drawdown	3.92	13.33	-9.42

TEC vs. KNCT - Sharpe Ratio Comparison

The current TEC Sharpe Ratio is 1.04, which is lower than the KNCT Sharpe Ratio of 2.27. The chart below compares the historical Sharpe Ratios of TEC and KNCT, 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

TEC vs. KNCT - Drawdown Comparison

The maximum TEC drawdown since its inception was -17.50%, smaller than the maximum KNCT drawdown of -57.18%. Use the drawdown chart below to compare losses from any high point for TEC and KNCT.

Drawdown Indicators

	TEC	KNCT	Difference
Max Drawdown Largest peak-to-trough decline	-17.50%	-57.18%	+39.68%
Max Drawdown (1Y) Largest decline over 1 year	-17.50%	-18.91%	+1.41%
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	-7.37%	-14.80%	+7.43%
Average Drawdown Average peak-to-trough decline	-3.76%	-10.73%	+6.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.16%	4.68%	+1.48%

Volatility

TEC vs. KNCT - Volatility Comparison

The current volatility for Harbor Transformative Technologies ETF (TEC) is 8.16%, while Invesco Next Gen Connectivity ETF (KNCT) has a volatility of 11.26%. This indicates that TEC experiences smaller price fluctuations and is considered to be less risky than KNCT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TEC	KNCT	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.16%	11.26%	-3.10%
Volatility (6M) Calculated over the trailing 6-month period	18.75%	24.68%	-5.93%
Volatility (1Y) Calculated over the trailing 1-year period	23.16%	27.67%	-4.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.53%	24.48%	-1.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.53%	23.55%	-1.02%

TEC vs. KNCT - Expense Ratio Comparison

TEC has a 0.69% expense ratio, which is higher than KNCT's 0.40% expense ratio.

Dividends

TEC vs. KNCT - Dividend Comparison

TEC has not paid dividends to shareholders, while KNCT's dividend yield for the trailing twelve months is around 0.68%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
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%
TEC Harbor Transformative Technologies 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 TEC and KNCT in my portfolio?

TEC and KNCT 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, TEC or KNCT?

KNCT has higher volatility (11.26%) compared to TEC (8.16%). In terms of maximum drawdown, TEC dropped -17.50% vs KNCT's -57.18%.

Which ETF is better, TEC or KNCT?

On 1-year performance, KNCT leads with 63.92% vs 27.03% for TEC. On fees, KNCT is cheaper at 0.40% per year. On volatility, TEC has been the lower-risk option at 8.16%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TEC or KNCT?

Over the 1-year period, KNCT has performed better with a 63.92% return vs 27.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TEC or KNCT?

KNCT is cheaper with a 0.40% expense ratio, compared with 0.69% for TEC.

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

KNCT has the higher dividend yield at 0.68%, compared with 0.00% for TEC.

What is the main difference between TEC and KNCT?

They also come from different issuers: Harbor and Invesco. Their fees differ too: 0.69% for TEC and 0.40% for KNCT.

Which has better risk-adjusted returns?

KNCT currently has the higher Sharpe Ratio (2.27 vs 1.04), 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.