At a glance
KNCT charges 0.4% a year, above the 0.34% average of the 8 funds most like it (the 5th cheapest of 9). It has $153.9M in assets, the 8th largest of that group; it paid 0.85% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +44.7% with distributions reinvested (S&P 500: +11.5%), the best of those 9 funds; over three years it returned +39.4% a year. Its ten largest positions make up 57.7% of the fund, out of 100 in all.
The short version
Invesco Next Gen Connectivity ETF (KNCT) tracks the STOXX World AC NexGen Connectivity Index. The index holds up to 100 global companies that earn at least half their revenue from areas such as network equipment, wireless infrastructure and cybersecurity. Each company's weight reflects both its size and its connectivity revenue, and about a third of the fund was outside the US as of July 31, 2026. Its 0.40% expense ratio is far above broad tech funds such as XLK (0.08%).
Price history
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KNCT +44.7% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| KNCT official prospectus, to Dec 31, 2025 | — | +28.63% | — | +10.99% | +15.59% | — |
| KNCT price data to Oct 27, 2026 | +46.3% | +44.7% | +39.4% | — | — | +35.0% |
- Over the year to Oct 27, 2026, KNCT returned +44.7%, 1st of 9 among similar funds.
- Its worst full calendar year was 2024 (+19.4%); its best was 2025 (+28.6%).
- The deepest fall in its price history was 21.4% (Feb 18, 2025 to Apr 8, 2025), recovered by Jun 10, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +46.3% | — |
| 2025 | +28.6% | +28.63% |
| 2024 | +19.4% | +19.56% |
| 2023 | — | +27.59% |
| 2022 | — | -29.54% |
| 2021 | — | +21.85% |
| 2020 | — | +38.99% |
| 2019 | — | +26.31% |
| 2018 | — | +6.36% |
| 2017 | — | +14.90% |
| 2016 | — | +17.82% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Not in the price data, which starts Aug 28, 2023 |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Aug 28, 2023 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Not in the price data, which starts Aug 28, 2023 |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.4300 | |
| 2025 | $1.1600 | -20.0% |
| 2024 | $1.4500 |
What's inside
As of Jul 31, 2026, the fund held 100 securities; the ten largest made up 57.73% of assets.
| Holding | Weight | |
|---|---|---|
| Apple Inc. | 8.90% | |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 8.87% | |
| Broadcom Inc. | 8.60% | |
| Micron Technology, Inc. | 7.04% | |
| Samsung Electronics Co., Ltd. | 6.83% | |
| Cisco Systems, Inc. | 4.56% | |
| SK hynix Inc. | 3.96% | |
| Intel Corp. | 3.70% | |
| Palo Alto Networks, Inc. | 2.99% | |
| Arista Networks, Inc. | 2.27% | |
| Verizon Communications Inc. | 2.17% | |
| CrowdStrike Holdings, Inc. | 2.16% | |
| Marvell Technology, Inc. | 1.82% | |
| AT&T Inc. | 1.77% | |
| QUALCOMM Inc. | 1.57% |
By country
United States 67.73%South Korea 10.79%Taiwan 10.71%Japan 2.91%Ireland 1.12%By asset type
Stocks 99.83%By sector
Sectors of the companies held, for the 59.9% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $6.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +22.72%, +1.96%, -11.17%.
How it works
KNCT is an index fund. STOXX Ltd. builds the STOXX World AC NexGen Connectivity Index, and Invesco tries to match its results before fees. Stocks are picked from the STOXX World AC Universal All Cap Index, a broad index of large, mid and small companies in developed and emerging markets. To qualify, a stock needs a free-float market value of at least €500 million. Free float means the shares available to the public. It also needs a three-month median daily trading volume of at least €1 million. Finally, at least 50% of its revenue must come from business lines that STOXX links to future connectivity, sorted using FactSet's revenue classification system. If more than 100 stocks qualify, the 100 largest are chosen.
Each stock's weight is its free-float market value multiplied by the share of revenue it earns from connectivity. A giant company that earns only part of its sales this way can carry less weight than its size alone would suggest. No single company can exceed 8%. Companies above 4.5% can total no more than 45%, and any extra weight goes to the other holdings.
The fund uses full replication, which means it generally owns every stock in the index at its index weight. It held only stocks and no derivatives as of July 31, 2026. It is "non-diversified," so it can put more money into a few companies than a diversified fund can.
What it really costs
- KNCT charges 0.4% a year, versus an average of 0.34% for the similar funds below (5th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $41 in the first year and $505 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| KNCT | $41 | $128 | $224 | $505 |
In a retirement portfolio
KNCT is a concentrated, non-diversified bet on global tech and connectivity stocks that has swung far more than the broad market.
KNCT adds focused exposure to global chip, networking and cybersecurity companies. It behaves like a concentrated tech fund. Its prospectus shows a 29.54% loss in 2022, including a 21.2% drop in that year's second quarter alone. In 2020 it gained 38.99%. The figures available here don't cover 2008. Price data only starts in August 2023, and over that period its deepest drop was 21.4%, from February 18 to April 8, 2025. It recovered by June 10, 2025, about two months later. Its one-year beta was 1.73 as of October 27, 2026. Beta measures how much a fund moves compared with the market, and 1.73 means about 1.7 times the market's swings. Anyone who had to sell in a year like 2022 would have locked in steep losses. Income is small: the yield was 0.85% as of October 27, 2026, paid quarterly. On $10,000, costs come to $41 after one year and $505 over 10 years in the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a small global slice of chip and networking firms, including TSMC, Samsung and SK hynix alongside Apple and Broadcom.
- Long-term holders who can sit through deep drops, like the fund's 29.54% loss in 2022, without needing to sell.
- Those who prefer weights based on companies' connectivity revenue over a plain market-value tech sector fund.
Look elsewhere if
- Cost-focused investors: XLK (0.08%), FTEC (0.084%) and VGT (0.09%) charge far less than KNCT's 0.40% expense ratio.
- Income seekers: the yield was just 0.85% as of October 27, 2026, paid quarterly.
- Anyone wanting broad diversification: the fund is non-diversified, and its top 10 holdings were 57.7% of assets as of July 31, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| KNCT this fund | — | 0.4% | $153.9M | +44.7% | +39.4% |
| IXN iShares Global Tech ETF | 45% | 0.41% | $9.46B | +30.4% | +36.5% |
| TRFK Pacer Data and Digital Revolution ETF | 41% | 0.6% | $954.5M | +26.8% | +46.8% |
| XLK Technology Select Sector SPDR Fund | 40% | 0.08% | $123.91B | +20.1% | +4.0% |
| IGM iShares Expanded Tech Sector ETF | 39% | 0.41% | $10.71B | +21.3% | +38.6% |
| FTEC Fidelity MSCI Information Technology Index … | 33% | 0.084% | $19.85B | +15.4% | +30.0% |
| VGT Vanguard Information Technology ETF | 33% | 0.09% | $170.66B | +19.7% | +33.3% |
| XPND First Trust Expanded Technology ETF | 30% | 0.65% | $39.4M | +1.8% | +25.7% |
Questions investors ask
What stocks are in the KNCT ETF?
KNCT holds about 100 global connectivity and tech stocks. As of July 31, 2026, its largest holdings were Apple (8.9%), Taiwan Semiconductor Manufacturing (8.9%), Broadcom (8.6%), Micron Technology (7.0%), Samsung Electronics (6.8%) and Cisco Systems (4.6%). The top 10 made up 57.7% of assets. US companies were 67.7% of the fund, followed by South Korea (10.8%), Taiwan (10.7%) and Japan (2.9%).
What is the KNCT expense ratio?
KNCT's expense ratio is 0.40% a year, according to its prospectus filed August 27, 2026. That is above the 0.34% average for similar funds and ranks 5th cheapest of 9. Broad tech index funds such as XLK (0.08%), FTEC (0.084%) and VGT (0.09%) cost much less. In the SEC's standard example, $10,000 invested would cost $41 in fees after one year and $505 after 10 years.
Does KNCT pay dividends?
Yes, KNCT pays dividends quarterly, but the income is small. Over the 12 months to October 27, 2026, it paid $1.65 per share, a yield of 0.85%. The fund mostly owns large tech and chip companies, many of which pay small dividends or none. That makes KNCT a growth-oriented holding rather than an income fund.
KNCT vs IXN: what's the difference?
Both are global tech funds with similar costs, but KNCT is far smaller and more targeted. They share about 45% of their holdings. KNCT charges 0.40% and IXN (iShares Global Tech ETF) charges 0.41%. KNCT picks and weights stocks by how much revenue they earn from connectivity. KNCT had $153.9 million in net assets as of July 31, 2026, while IXN had $9.46 billion as of June 30, 2026. Over the year to October 27, 2026, KNCT returned 44.7% and IXN returned 30.4%.
How has KNCT performed long term?
KNCT returned 15.59% a year over 10 years and 10.99% a year over five years through December 31, 2025, according to its prospectus. The path was bumpy. It gained 38.99% in 2020 and lost 29.54% in 2022. Its price return was 39.4% a year over the three years to October 27, 2026. Its one-year volatility was 29% at that date, high for a stock fund.