KNCT - ETF AI Analysis

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Invesco Next Gen Connectivity Etf (KNCT)

Rating:61Neutral

Price Target:

$140.00

The ETF KNCT’s overall rating reflects a balanced mix of strengths and risks among its holdings. Apple and Broadcom stand out as key contributors due to their strong financial performance, strategic focus on AI, and positive growth prospects. However, weaker holdings like Intel, which faces profitability challenges despite technical momentum, may have slightly held back the fund’s rating. Investors should note the ETF’s concentration in technology-related sectors, which could pose risks during periods of market volatility.

Positive Factors

Strong Year-to-Date Performance

The ETF has delivered solid year-to-date returns, indicating strong overall performance.

Focus on High-Growth Sectors

The fund is heavily weighted in technology and communication services, sectors with significant growth potential.

Reasonable Expense Ratio

The ETF has a relatively low expense ratio, making it cost-effective for investors.

Negative Factors

High Geographic Concentration in the USA

Over 73% of the ETF's exposure is in U.S. companies, limiting diversification across global markets.

Mixed Performance Among Top Holdings

While some top holdings like Broadcom and Micron have performed strongly, others like Verizon and AT&T have lagged.

Sector Concentration Risk

Nearly 60% of the portfolio is allocated to technology, making the fund vulnerable to downturns in this sector.

KNCT vs. SPDR S&P 500 ETF (SPY)

AUM38.44M

RegionGlobal

Expense Ratio0.40%

Beta1.21

IssuerInvesco

Inception DateJun 23, 2005

Dividend Yield1.02%

Asset ClassEquity

Index TrackedSTOXX World AC NexGen Connectivity (USD)(GR)

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume1,241

30 Day Avg. Volume1,116

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

146.03

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering100

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

KNCT Summary

The Invesco Next Gen Connectivity ETF (Ticker: KNCT) is an investment fund that focuses on companies driving advancements in connectivity technologies like 5G, cloud computing, and the Internet of Things (IoT). It follows the STOXX World AC NexGen Connectivity Index and includes well-known companies such as Apple and Broadcom. This ETF is a great option for investors looking to benefit from the growth of innovative technologies that are shaping the future of communication and digital infrastructure. However, since it is heavily focused on the technology sector, its performance can be significantly impacted by market fluctuations in tech stocks.

How much will it cost me?The Invesco Next Gen Connectivity ETF (KNCT) has an expense ratio of 0.40%, meaning you’ll pay $4 per year for every $1,000 invested. This is slightly higher than average because the fund is actively managed to focus on a specialized niche in connectivity technologies, requiring more research and oversight. It’s designed for investors seeking targeted exposure to innovative sectors like 5G and IoT.

What would affect this ETF?The Invesco Next Gen Connectivity ETF (KNCT) could benefit from continued advancements in 5G, IoT, and cloud computing, as well as increasing global demand for faster and more efficient communication technologies. However, it may face challenges from rising interest rates, which can pressure technology companies, and potential regulatory changes affecting major holdings like Apple and Broadcom. Global economic uncertainty could also impact the ETF’s performance due to its broad geographic exposure.

KNCT Top 10 Holdings

The Invesco Next Gen Connectivity ETF is heavily tilted toward the technology sector, with standout performers like Micron and Intel driving recent gains thanks to their strong momentum in advanced technologies and strategic restructuring. Broadcom and Cisco have also been steady contributors, benefiting from growth in AI infrastructure and semiconductors. However, telecom giants like AT&T and Verizon are lagging, weighed down by bearish technical trends and debt concerns. With a global focus and a clear emphasis on connectivity innovation, this fund is riding the wave of transformative tech while navigating mixed results in communication services.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
AAPL	Apple	8.92%	$3.35M	$3.95T	17.15%	80 Outperform
AVGO	Broadcom	7.26%	$2.72M	$1.62T	105.93%	76 Outperform
CSCO	Cisco Systems	4.78%	$1.79M	$307.48B	35.71%	77 Outperform
MU	Micron	3.53%	$1.32M	$271.58B	133.81%	74 Outperform
IBM	International Business Machines	3.33%	$1.25M	$277.78B	37.91%	77 Outperform
T	AT&T	3.05%	$1.15M	$180.57B	12.63%	72 Outperform
QCOM	Qualcomm	3.01%	$1.13M	$178.59B	0.21%	80 Outperform
VZ	Verizon	2.96%	$1.11M	$172.92B	-1.07%	72 Outperform
INTC	Intel	2.40%	$900.89K	$165.57B	41.86%	56 Neutral
PANW	Palo Alto Networks	2.27%	$851.24K	$138.78B	3.59%	78 Outperform

KNCT Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

130.16

Negative

100DMA

123.85

Positive

200DMA

114.35

Positive

Market Momentum

MACD

0.40

Positive

RSI

41.69

Neutral

STOCH

20.08

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For KNCT, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 133.92, equal to the 50-day MA of 130.16, and equal to the 200-day MA of 114.35, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 41.69 is Neutral, neither overbought nor oversold. The STOCH value of 20.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KNCT.

KNCT Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
KNCT	―	―	$38.44M	0.40%	61 Neutral
TTEQ	―	―	$87.74M	0.63%	76 Outperform
SPTE	―	―	$80.94M	0.55%	71 Outperform
TEK	―	―	$31.88M	0.75%	74 Outperform
CHPX	―	―	$9.63M	0.50%	70 Neutral
WQTM	―	―	$8.24M	0.45%	60 Neutral

Performance Comparison

KNCT

Invesco Next Gen Connectivity Etf

129.29

26.56

25.85%

TTEQ

T. Rowe Price Technology ETF

―

SPTE

SP Funds S&P Global Technology ETF

―

TEK

iShares Technology Opportunities Active ETF

―

CHPX

Global X AI Semiconductor & Quantum ETF

―

WQTM

WisdomTree Quantum Computing Fund

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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