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.
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.
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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. The fund invests at least 90% of its total assets in the common stocks that comprise the Index. KNCT provides investors with targeted exposure to companies expected to benefit from the growth in next-generation connectivity, such as Taiwan Semiconductor and Samsung Electronics.
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. Investors should carefully consider these factors and conduct their own due diligence before investing. Past performance does not guarantee future results.
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. Investors should compare KNCT's holdings, sector allocations, and performance to those of other ETFs to determine which fund best aligns with their investment objectives. Past performance does not guarantee future results.
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.