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KBWD - Invesco KBW High Dividend Yld Fincl ETF

KBWD - Invesco KBW High Dividend Yld Fincl ETF

KBWD focus on high-dividend stocks tilts its portfolio materially away from the broad financials market. It excludes industry giants like Berkshire Hathaway, Wells Fargo, and JPMorgan, which make up sizable portions of our segment benchmark, in favor of smaller companies offering bigger yields. It follows that KBWD tilts much, much smaller than our segment benchmark. Its dividend-centric strategy also leads to massive sector bets, as it underweights insurance companies and loads up on REITs and private equity. KBWD has sufficient liquidity to meet retail investor needs, although daily volumes can be sporadic, and bid/ask spreads are workable. Investors may find it more difficult to trade KBWD in size. The fund's eye-popping fee is a regulatory illusion—it's required to report the operating expenses of its private equity holdings as part of its expense ratio. Real-world holding costs have been consistently in line with KBWD's very reasonable management fee.

The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. The underlying index is composed of a subset of securities from the S&P SmallCap 600® Index that exhibit strong value characteristics.