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Invesco KBW High Dividend Yield Financial ETF (KBWD)

Rating:60Neutral

Price Target:

$14.00

The overall rating of KBWD suggests it has a balanced mix of strengths and weaknesses. MFA Financial stands out as a strong contributor due to its solid valuation and appealing dividend yield, which make it attractive for income-focused investors. However, holdings like ARMOUR Residential REIT and PennyMac Mortgage face significant financial challenges, including declining revenues and high leverage, which may weigh on the ETF’s performance. A key risk factor is the ETF's concentration in the financial sector, which could expose it to market volatility in that industry.

Positive Factors

High Dividend Focus

The ETF targets high-yield financial and real estate companies, appealing to income-focused investors.

Sector Diversification

The fund balances exposure between financial and real estate sectors, reducing reliance on a single industry.

Consistent U.S. Exposure

With nearly all holdings based in the U.S., the ETF benefits from stability in a developed market.

Negative Factors

High Expense Ratio

The ETF charges a significantly higher fee than most funds, which can erode investor returns over time.

Underperforming Holdings

Several top holdings have shown weak year-to-date performance, dragging down the fund’s overall returns.

Over-Concentration in Financials

More than half of the portfolio is concentrated in the financial sector, increasing vulnerability to sector-specific risks.

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

AUM419.18M

RegionNorth America

Expense Ratio4.93%

Beta0.72

IssuerInvesco

Inception DateDec 02, 2010

Dividend Yield12.95%

Asset ClassEquity

Index TrackedKBW Nasdaq Financial Sector Dividend Yield Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume168,254

30 Day Avg. Volume249,155

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

14.43

Price Target Upside― Downside

Rating ConsensusHold

Number of Analyst Covering41

KBWD Summary

The Invesco KBW High Dividend Yield Financial ETF (KBWD) is a fund that focuses on financial companies known for paying high dividends. It includes banks, insurance firms, and real estate investment trusts (REITs), offering exposure to companies like Orchid Island Capital and AGNC Investment. This ETF is designed for investors who want steady income through dividends while diversifying within the financial sector. However, new investors should be aware that KBWD is heavily tied to the financial industry, meaning its performance can be impacted by changes in interest rates or economic conditions.

How much will it cost me?The expense ratio for KBWD is 4.93%, which means you’ll pay $49.30 per year for every $1,000 invested. This is significantly higher than average because KBWD is actively managed and focuses on a niche sector, requiring more specialized management and research.

What would affect this ETF?KBWD's focus on high-dividend financial stocks, including REITs and mortgage companies, could benefit from stable interest rates or a strong U.S. economy, as these factors often support dividend-paying firms. However, rising interest rates or regulatory changes in the financial and real estate sectors could negatively impact the ETF's holdings and dividend payouts. Its heavy exposure to U.S.-based financial and real estate companies makes it sensitive to domestic economic conditions and sector-specific trends.

KBWD Top 10 Holdings

The Invesco KBW High Dividend Yield Financial ETF (KBWD) leans heavily into financials and real estate, with a focus on high-dividend payers like REITs and mortgage companies. Recent performance has been a mixed bag, with AGNC Investment providing a steady lift thanks to its strong liquidity and bullish momentum, while Annaly Capital has also shown resilience with solid capital management. On the flip side, Two Harbors and FS KKR Capital have struggled, weighed down by declining revenues and operational challenges. This fund’s U.S.-centric portfolio offers income-focused investors exposure to financials, but volatility in the real estate sector may temper returns.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
ORC	Orchid Island Capital	5.30%	$22.18M	$1.15B	-4.43%	65 Neutral
ARR	ARMOUR Residential REIT	4.86%	$20.35M	$1.82B	-14.31%	58 Neutral
DX	Dynex Capital	4.19%	$17.56M	$1.98B	9.06%	60 Neutral
IVR	Invesco Mortgage	3.98%	$16.67M	$488.69M	-10.45%	50 Neutral
AGNC	AGNC Investment	3.74%	$15.66M	$10.73B	6.81%	59 Neutral
TWO	Two Harbors	3.24%	$13.58M	$1.02B	-17.96%	54 Neutral
PMT	PennyMac Mortgage	3.23%	$13.53M	$1.10B	-8.16%	58 Neutral
NLY	Annaly Capital	3.19%	$13.36M	$13.52B	9.80%	63 Neutral
FSK	FS KKR Capital	3.14%	$13.14M	$4.30B	-24.57%	58 Neutral
MFA	MFA Financial	3.05%	$12.78M	$932.23M	-27.24%	62 Neutral

KBWD Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

13.58

Negative

100DMA

13.49

Positive

200DMA

13.36

Positive

Market Momentum

MACD

0.02

Negative

RSI

51.49

Neutral

STOCH

82.96

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For KBWD, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 13.40, equal to the 50-day MA of 13.58, and equal to the 200-day MA of 13.36, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.49 is Neutral, neither overbought nor oversold. The STOCH value of 82.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KBWD.

KBWD Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
KBWD	―	―	$419.18M	4.93%	60 Neutral
KIE	―	―	$679.55M	0.35%	70 Outperform
IAK	―	―	$628.46M	0.38%	73 Outperform
KCE	―	―	$619.78M	0.35%	69 Neutral
REM	―	―	$605.96M	0.48%	59 Neutral
RSPF	―	―	$316.59M	0.40%	72 Outperform

Performance Comparison

KBWD

Invesco KBW High Dividend Yield Financial ETF

13.51

0.34

2.58%

KIE

SPDR S&P Insurance ETF

―

IAK

iShares U.S. Insurance ETF

―

KCE

SPDR S&P Capital Markets ETF

―

REM

iShares Mortgage Real Estate ETF

―

RSPF

Invesco S&P 500 Equal Weight Financials ETF

―

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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