What does the expense ratio represent when comparing KBWD and KBWY?

The expense ratio is an annual fee, deducted from fund assets, covering management and administrative costs. It directly reduces investor returns. KBWD carries a 5.39% expense ratio, while KBWY's is 0.35%. This difference of 5.04 percentage points means KBWY retains more of its gross returns for investors. For example, on a $10,000 investment, KBWD's fees would reduce assets by approximately $539 per year, compared to just $35 for KBWY.

How do ETF distributions work regarding the dividend yields listed?

ETFs like KBWD and KBWY pass on income from holdings to investors via distributions, often called dividends. The yield shown is a trailing measure based on recent distributions divided by the current price. A high yield, such as KBWD's 14.79%, does not guarantee future payments, which fluctuate based on the underlying assets' performance. Investors should review distribution histories and understand that yield is an annualised metric derived from current payments, not a fixed interest rate.

What are the main cost differences between KBWD and KBWY?

The primary cost difference lies in their expense ratios. KBWD's expense ratio is 5.39%, which is significantly higher than KBWY's 0.35%. Over time, this fee drag can impact net returns. A 5.39% fee implies that before any investment performance, more than five percent of the fund's asset base is consumed by costs annually. In contrast, KBWY's 0.35% fee means less capital is deducted, potentially allowing more of the underlying market performance to remain for investors.

How do the top holdings of KBWD and KBWY differ?

Analysis of the provided fund data indicates no overlap in the top ten holdings of KBWD and KBWY. KBWD's largest position is FSK at 4.23%, while KBWY's largest is IIPR at 6.45%. This complete lack of shared top holdings highlights how differently the two funds are constructed. KBWD provides exposure to the financial sector via entities like banks and insurers, whereas KBWY focuses on specific real estate investment trusts.

What level of concentration is present in the portfolios?

Concentration is assessed by the weight of the largest holdings. In KBWD, the top holding, FSK, represents 4.23% of assets, and the fund exhibits moderate concentration. For KBWY, the top holding, IIPR, accounts for 6.45% of assets, indicating a higher level of concentration. A more concentrated portfolio, like KBWY, may be more susceptible to the performance of its largest positions, whereas a more evenly weighted portfolio can mitigate single-stock risk.

What distinct market exposures do KBWD and KBWY provide?

The funds target different market sectors. KBWD is categorised under Financial, offering exposure to banks, insurers, and investment companies through its high-yield financial securities. Conversely, KBWY is categorised under Real Estate, providing diversified exposure to various real estate investment trusts across different property types and geographic areas. These differing sector bases mean the funds react to distinct economic drivers and interest rate environments.

How do sector weights affect understanding the funds?

The provided data notes that specific sector weights for both KBWD and KBWY are not available. Sector weights typically show the percentage allocation across various industries, which helps investors understand diversification and concentration risks within those industries. Without this breakdown, investors relying on this data must infer diversification from the listed top holdings. KBWD appears to hold varied financials, while KBWY holds numerous REITs, but exact sub-sector distributions remain undisclosed in the dataset.

Which fund might suit an income-focused investor?

Both funds offer dividends, but they do so from different sources and at varying costs. KBWD lists a 14.79% yield, sourced from its financial holdings, while KBWY lists an 8.61% yield, generated by its REIT holdings. An income-focused investor might evaluate the high yield of KBWD, though they must also account for its significantly higher expense ratio. KBWY provides a more moderate yield with a lower expense ratio.

How does fund size relate to trading stability?

Fund size, measured by net assets, can influence stability and liquidity. KBWD holds $386 million in net assets, compared to KBWY's $328 million. While both are substantial, KBWD is slightly larger. A larger asset base can contribute to more stable management costs and potentially tighter bid-ask spreads due to greater trading volume. However, the provided data does not confirm trading liquidity differences, and both funds maintain asset bases generally considered reasonable for ETFs.

KBWD vs KBWY

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare KBWD and KBWY. We examine fees, holdings, and dividends for these Invesco funds, noting their financial and real estate focus. This guide explains how each ETF tracks its respective market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

KBWD

Metric

KBWY

5.39%

Expense Ratio

0.35%

14.79%

Dividend Yield

8.61%

$386.01M

Net Assets

$328.38M

Holdings

Dec 2, 2010

Inception Date

Dec 2, 2010

–

Index Tracked

–

Financial

Fund Category

Real Estate

KBWY costs about $504.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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KBWD vs SCHD

Compare KBWD and SCHD on expense ratios, net assets, dividend yields and holdings. Review sector focus and fund data to assess tracking characteristics.

Investment Analysis

KBWD

Pros

KBWD offers a high dividend yield of 14.79%, potentially attractive for income-focused investors seeking substantial distributions.
The fund's net assets stand at $386 million, indicating a reasonable level of size and stability for an ETF.
KBWD provides diversification across various financial sub-sectors, including banks, insurance, and investment companies.

Considerations

KBWD charges a very high expense ratio of 5.39%, significantly eroding potential returns for investors.
The fund's sector weights are not available, limiting transparency and investor understanding of concentration risks.
The fund's top holdings are moderately concentrated, with the largest holding at only 4.23%, potentially limiting upside from any single company.

KBWY

Pros

KBWY has a much lower expense ratio of 0.35%, making it more cost-effective for investors compared to KBWD.
The fund provides a strong dividend yield of 8.61%, appealing to income-oriented investors.
KBWY offers exposure to a variety of real estate investment trusts, diversifying across property types and geographic regions.

Considerations

The fund's net assets are $328 million, which is slightly less than KBWD's, potentially affecting trading liquidity.
KBWY's top holdings are more concentrated, with IIPR holding 6.45%, which could increase risk if that company underperforms.
The fund's sector weights are not available, which may limit investor insights into its specific real estate sub-sector exposures.

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About KBWD and KBWY

KBWD (KBWD)

Invesco KBW High Dividend Yield Financial ETF (KBWD) is an exchange-traded fund that concentrates on financial-sector companies that offer relatively high dividend yields. It can include banks, insurance firms, asset managers and other finance-related issuers, and is typically used by investors seeking income exposure within a single sector. Because the fund is sector‑focused, performance tends to track financial-sector dynamics — for example, sensitivity to interest rates, credit conditions and regulatory change — and can be more volatile than broadly diversified ETFs. Dividends and yield are not guaranteed and can rise or fall with company payouts and market conditions. KBWD may suit investors prioritising income and comfortable with concentrated sector risk, but it is not a substitute for personalised financial advice. Consider your time horizon, risk tolerance and the potential for capital loss before investing. This description is educational and not investment advice.

KBWY (KBWY)

The Invesco KBW Premium Yield Equity REIT ETF offers investors exposure to US equity real estate investment trusts (REITs) selected for their potential to deliver higher yields. As an exchange-traded fund (ETF), it aims to track the performance of a specific index composed of these high-yielding REITs. With a net asset size of USD 328 million and a current dividend yield of 8.61%, the fund provides a stream of income, though this comes with inherent risks. Investors should note that REITs can be sensitive to interest rate changes and economic cycles, meaning their values can fall as well as rise. The fund holds 30 companies and has an expense ratio of 0.35%. Since inception in 2010, it has served as a vehicle for those seeking income from the property sector, but past yields are not a guide to future returns.

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KBWD vs KBWY

Fund Snapshot

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KBWD vs SCHD

Investment Analysis

KBWD

Pros

Considerations

KBWY

Pros

Considerations

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About KBWD and KBWY

Which Baskets Do They Appear In?

Fortress Dividends

Which Baskets Do They Appear In?

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Buy KBWD or KBWY in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What does the expense ratio represent when comparing KBWD and KBWY?

How do ETF distributions work regarding the dividend yields listed?

What are the main cost differences between KBWD and KBWY?

How do the top holdings of KBWD and KBWY differ?

What level of concentration is present in the portfolios?

What distinct market exposures do KBWD and KBWY provide?

How do sector weights affect understanding the funds?

Which fund might suit an income-focused investor?

How does fund size relate to trading stability?

Fund Snapshot

About KBWD and KBWY

Which Baskets Do They Appear In?

Fortress Dividends

Which Baskets Do They Appear In?

Fortress Dividends

Related Market Insights

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KBWD vs SCHD