KNCT ETF — Holdings & Analysis

With an expense ratio of 0.40%, KNCT offers targeted exposure to the next generation connectivity sector, differentiating itself through its specific index-tracking approach and concentration in technology and communication services. Past performance does not guarantee future results.

Invesco Next Gen Connectivity ETF (KNCT) ETF — Price, Holdings & Analysis

The Invesco Next Gen Connectivity ETF (KNCT) is an equity ETF with $0.11 billion in assets under management. It seeks to track the STOXX World AC NexGen Connectivity Index, focusing on companies involved in technologies that enable future connectivity. With an expense ratio of 0.40%, KNCT offers targeted exposure to the next generation connectivity sector, differentiating itself through its specific index-tracking approach and concentration in technology and communication services. Past performance does not guarantee future results.

ETF Overview

The Invesco Next Gen Connectivity ETF (Fund) is based on the STOXX World AC NexGen Connectivity Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is comprised of companies with significant exposure to technologies or products that contribute to future connectivity through direct revenue. The Fund and the Index are rebalanced after the close of trading on the second Friday of March, June, September and December.

KNCT aims to provide investors with exposure to companies that are expected to benefit from the growth in next-generation connectivity technologies. The fund achieves this by tracking the STOXX World AC NexGen Connectivity Index, which includes companies with significant exposure to technologies or products contributing to future connectivity through direct revenue. The fund invests at least 90% of its total assets in the common stocks that comprise the Index. The ETF's top holdings include significant allocations to Taiwan Semiconductor Manufacturing Co Ltd (9.78%), Samsung Electronics Co Ltd (7.88%), and Apple Inc (7.00%), reflecting a focus on key players in the technology sector. Sector allocation is heavily weighted towards Technology (77.5%) and Communication Services (16.7%). This targeted approach makes KNCT suitable for investors seeking concentrated exposure to the connectivity technology space, but it also means the fund's performance is closely tied to the success of these specific sectors. Past performance does not guarantee future results.

Risk Metrics

KNCT's concentrated investment strategy presents specific risks. The fund's heavy allocation to the Technology sector (77.5%) means it is susceptible to sector-specific downturns and volatility. Furthermore, its top 10 holdings constitute a significant portion of the portfolio, increasing concentration risk; for example, Taiwan Semiconductor Manufacturing accounts for 9.78% of the fund. With a beta of 1.01, KNCT exhibits market-average volatility compared to the broader market. The expense ratio of 0.40% will create a slight drag on performance over time. Investors should be aware of these factors when considering KNCT. Past performance does not guarantee future results.

Expense Ratio

0.40%

What does KNCT hold?

Holding	Weight
Taiwan Semiconductor Manufacturing Co Ltd (2330.TW)	9.78%
Samsung Electronics Co Ltd (005930.KS)	7.88%
Apple Inc (AAPL)	7.00%
Broadcom Inc (AVGO)	5.79%
Micron Technology Inc (MU)	5.69%
Cisco Systems Inc (CSCO)	4.37%
SK Hynix Inc (000660.KS)	4.10%
Verizon Communications Inc (VZ)	3.18%
Intel Corp (INTC)	3.10%
AT&T Inc (T)	2.95%

How Is the Fund Allocated?

Sector	Weight
Technology	77.5%
Communication Services	16.7%
Real Estate	4.4%
Industrials	1.0%
Cash & Others	0.3%
Financial Services	0.1%

Country	Weight
United States	65.2%
Taiwan	10.7%
South Korea	10.2%
Japan	3.6%
Ireland	2.0%
Germany	1.3%
India	1.0%
China	0.8%
United Kingdom	0.8%
Sweden	0.8%

Dividend Yield

0.93%

Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) — 0.16% expense ratio
iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
State Street Financial Select Sector SPDR ETF (XLF) — 0.08% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
State Street SPDR S&P 500 ETF (SPY) — 0.09% expense ratio

Invesco QQQ Trust, Series 1 (QQQ) (Equity) — 0.18% expense ratio
Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) (Equity) — 0.47% expense ratio
Invesco ESG S&P 500 Equal Weight ETF (RSPE) (Equity) — 0.20% expense ratio
Invesco Taxable Municipal Bond ETF (BAB) (Fixed Income) — 0.28% expense ratio
Invesco Dividend Achievers ETF (PFM) (Equity) — 0.52% expense ratio
Invesco Russell 2000 Dynamic Multifactor ETF (OMFS) (Equity) — 0.39% expense ratio

Risk Metrics

Beta: 1.01

Questions & Answers

What is KNCT and what does it track?

The Invesco Next Gen Connectivity ETF (KNCT) is an exchange-traded fund that seeks to replicate the performance of the STOXX World AC NexGen Connectivity Index.

This index is composed of companies that are significantly involved in technologies and products that contribute to future connectivity.

What is the expense ratio for KNCT?

The expense ratio for KNCT is 0.40%. This means that for every $10,000 invested in the fund, $40 is deducted annually to cover operating expenses.

While 0.40% is not excessively high, it is important to consider this cost when evaluating the fund's potential returns. The expense ratio should be factored into the overall investment strategy and compared to similar ETFs in the equity category to determine its competitiveness.

What are the top holdings in KNCT?

The top holdings in KNCT reflect its focus on next-generation connectivity technologies. As of 2026-03-15, the top three holdings are Taiwan Semiconductor Manufacturing Co Ltd (9.78%), Samsung Electronics Co Ltd (7.88%), and Apple Inc (7.00%).

These companies are leaders in the semiconductor, electronics, and telecommunications industries, respectively. Other significant holdings include Broadcom Inc (5.79%) and Micron Technology Inc (5.69%), further illustrating the fund's concentration in the technology sector.

Is KNCT a good long-term investment?

Whether KNCT is a suitable long-term investment depends on an individual's investment goals, risk tolerance, and belief in the future of next-generation connectivity technologies.

The fund offers targeted exposure to this sector, but it also carries concentration risk, with a significant portion of its assets invested in a relatively small number of companies and sectors.

How does KNCT compare to similar ETFs?

KNCT differentiates itself through its specific focus on next-generation connectivity. Many broad-based technology ETFs may have lower expense ratios, but they lack KNCT's targeted exposure. With AUM of $0.11B, KNCT is smaller than some of the more established technology ETFs.

Does KNCT pay dividends?

Yes, KNCT does pay dividends. The current dividend yield for KNCT is 0.93%. This means that for every $100 invested in the fund, investors can expect to receive $0.93 in dividend payments annually.

It is important to note that dividend yields can fluctuate over time and are not guaranteed. Past performance does not guarantee future results.