KNCT vs VYM
KNCT vs VYM
Invesco Next Gen Connectivity ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. KNCT delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | KNCT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.04% | |
| AUM | $155M | $79.0B | |
| Dividend Yield | 0.60% | 2.86% | |
| Holdings | 112 | 568 | |
| YTD Return | +44.35% | +15.80% | |
| 1Y Return | +69.02% | +26.12% | |
| 3Y Return (annualized) | +37.95% | +18.25% | |
| 5Y Return (annualized) | +17.13% | +12.51% | |
| Volatility (annualized) | 22.3% | 14.6% | |
| Max Drawdown | -57.2% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 23, 2005 | Nov 10, 2006 |
KNCT vs VYM Performance
Invesco Next Gen Connectivity ETF (KNCT) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year KNCT returned +69.02% while VYM returned +26.12%. Year to date, KNCT is up 44.35% versus a gain of 15.80% for VYM.
Over three years, KNCT compounded at +37.95% per year against +18.25% for VYM; over five years the annualized figures are +17.13% and +12.51% respectively. Across the full 20-year window we track, KNCT has the edge at +13.23% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KNCT has been the more volatile fund, with annualized monthly volatility of 22.3% compared with 14.6% for VYM. 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 -58.8% for VYM. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KNCT charges 0.40% per year while VYM charges 0.04%. On a $10,000 position that is $40 vs $4 annually, a gap of $36 per year that compounds over a long holding period. On income, KNCT currently yields 0.60% against 2.86% for VYM.
Holdings Overlap
KNCT and VYM share 11 holdings out of 646 unique holdings combined, representing a 12.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in KNCT | Weight in VYM | Difference |
|---|---|---|---|
| AVGO | 7.45% | 6.47% | 0.98% |
| CSCO | 4.19% | 1.39% | 2.80% |
| VZ | 1.85% | 0.93% | 0.92% |
| IBM | Pro | Pro | Pro |
| QCOM | Pro | Pro | Pro |
| T | Pro | Pro | Pro |
| ACN | Pro | Pro | Pro |
| CMCSA | Pro | Pro | Pro |
| TEL | Pro | Pro | Pro |
| MCHP | Pro | Pro | Pro |
See all 10 holdings KNCT shares with VYM 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 VYM?
KNCT has an expense ratio of 0.40% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, KNCT or VYM?
Over the past year KNCT returned +69.02% vs +26.12% for VYM, so KNCT leads on 1-year performance. Over the longest common window we track (20 years), KNCT annualized +13.23% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, KNCT or VYM?
KNCT has been the more volatile fund at 22.3% annualized versus 14.6% for VYM. Worst drawdown: KNCT -57.2% vs VYM -58.8%.
Should I hold both KNCT and VYM?
KNCT and VYM have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KNCT and VYM?
KNCT and VYM share 11 common holdings with a 12.8% weight overlap. Combined, they hold 646 unique securities.
Which pays a higher dividend, KNCT or VYM?
KNCT yields 0.60% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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