KNCT vs QQQ
KNCT vs QQQ
Invesco Next Gen Connectivity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. KNCT delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | KNCT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.18% | |
| AUM | $155M | $455.8B | |
| Dividend Yield | 0.60% | 0.41% | |
| Holdings | 112 | 108 | |
| YTD Return | +45.23% | +18.34% | |
| 1Y Return | +71.40% | +28.94% | |
| 3Y Return (annualized) | +38.04% | +25.28% | |
| 5Y Return (annualized) | +17.08% | +15.22% | |
| Volatility (annualized) | 22.3% | 30.6% | |
| Max Drawdown | -57.2% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 23, 2005 | Mar 10, 1999 |
KNCT vs QQQ Performance
Invesco Next Gen Connectivity ETF (KNCT) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KNCT returned +71.40% while QQQ returned +28.94%. Year to date, KNCT is up 45.23% versus a gain of 18.34% for QQQ.
Over three years, KNCT compounded at +38.04% per year against +25.28% for QQQ; over five years the annualized figures are +17.08% and +15.22% respectively. Across the full 21-year window we track, KNCT has the edge at +13.27% annualized vs +13.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 22.3% for KNCT. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -57.2% for KNCT and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KNCT charges 0.40% per year while QQQ charges 0.18%. On a $10,000 position that is $40 vs $18 annually, a gap of $22 per year that compounds over a long holding period. On income, KNCT currently yields 0.60% against 0.41% for QQQ.
Holdings Overlap
KNCT and QQQ share 21 holdings out of 180 unique holdings combined, representing a 27.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in KNCT | Weight in QQQ | Difference |
|---|---|---|---|
| AAPL | 7.34% | 7.46% | 0.12% |
| MU | 8.86% | 4.67% | 4.19% |
| AVGO | 7.45% | 2.91% | 4.54% |
| INTC | Pro | Pro | Pro |
| CSCO | Pro | Pro | Pro |
| PANW | Pro | Pro | Pro |
| MRVL | Pro | Pro | Pro |
| CRWD | Pro | Pro | Pro |
| QCOM | Pro | Pro | Pro |
| TMUS | Pro | Pro | Pro |
See all 10 holdings KNCT shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, KNCT or QQQ?
KNCT has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, KNCT or QQQ?
Over the past year KNCT returned +71.40% vs +28.94% for QQQ, so KNCT leads on 1-year performance. Over the longest common window we track (21 years), KNCT annualized +13.27% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, KNCT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 22.3% for KNCT. Worst drawdown: KNCT -57.2% vs QQQ -83.0%.
Should I hold both KNCT and QQQ?
KNCT and QQQ have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KNCT and QQQ?
KNCT and QQQ share 21 common holdings with a 27.6% weight overlap. Combined, they hold 180 unique securities.
Which pays a higher dividend, KNCT or QQQ?
KNCT yields 0.60% while QQQ yields 0.41%, so KNCT currently pays the higher dividend yield.
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