KBWD - ETF AI Analysis
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Invesco KBW High Dividend Yield Financial ETF (KBWD)
KBWD’s rating suggests it is a reasonably solid but somewhat risky income-focused ETF, driven largely by financial companies with high dividend yields. Strong contributors like Western Union and New Mountain Finance support the fund with attractive valuations, positive technical or strategic trends, and appealing income, while weaker holdings such as FS KKR Capital and PennyMac Mortgage face operational and leverage challenges that limit upside. The main risk factor is the fund’s heavy concentration in leveraged financial and mortgage-related businesses, which can make returns more volatile and sensitive to economic and interest rate conditions.
KBWD vs. SPDR S&P 500 ETF (SPY)
- AUM
- 335.08M
- Region
- North America
- Expense Ratio
- 5.39%
- Beta
- 0.67
- Issuer
- Invesco
- Inception Date
- Dec 02, 2010
- Dividend Yield
- 16.13%
- Asset Class
- Equity
- Index Tracked
- KBW Nasdaq Financial Sector Dividend Yield Index
KBWD Summary
KBWD is the Invesco KBW High Dividend Yield Financial ETF, which follows the KBW Nasdaq Financial Sector Dividend Yield Index. It focuses on U.S. financial and real estate companies that pay high dividends, including names like Western Union and Invesco Mortgage. Investors might consider KBWD if they want regular income from a mix of banks, lenders, and real estate investment trusts instead of picking individual stocks. However, this fund is heavily tied to the financial and real estate sectors, so its price and dividends can go up or down sharply when interest rates or the broader market change.
How much will it cost me?
KBWD has an expense ratio of 5.39%, which means you’ll pay about $53.90 per year for every $1,000 invested. This cost is much higher than the average ETF because it’s a specialized, actively managed fund focused on high-dividend financial stocks.
What would affect this ETF?
This ETF is heavily invested in U.S. financial and real estate companies, especially mortgage REITs and lenders, so it could benefit if interest rates fall, the housing and credit markets stay healthy, and demand for high dividend income remains strong. On the other hand, rising interest rates, stress in the real estate or banking sectors, tighter lending rules, or a weaker U.S. economy could hurt profits and make it harder for these high-yield holdings to maintain their payouts.
KBWD Top 10 Holdings
KBWD is essentially a high-yield financial and mortgage REIT play, and lately its income engine has been sputtering. Heavyweights like Invesco Mortgage, Orchid Island Capital, ARMOUR Residential REIT, and PennyMac Mortgage have been lagging, weighed down by rate-sensitive balance sheets and choppy cash flows. On the brighter side, MidCap Financial Investment and FS KKR Capital have been steadier, helping cushion the blows with more resilient profitability. With a U.S.-only focus and a big tilt toward real estate–linked financials, the fund is tightly tied to the fortunes of the credit and housing cycle.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 IVR | Invesco Mortgage | 4.05% | $13.55M | $582.61M | -29.58% | 60Neutral |
 PMT | PennyMac Mortgage | 4.18% | $13.98M | $700.23M | -34.47% | 58Neutral |
 MFIC | MidCap Financial Investment Corporation | 3.83% | $12.81M | $847.61M | -15.50% | 69Neutral |
 ARR | ARMOUR Residential REIT | 3.84% | $12.83M | $1.84B | -25.76% | 58Neutral |
 ORC | Orchid Island Capital | 3.77% | $12.59M | $932.15M | -34.02% | 65Neutral |
 DX | Dynex Capital | 3.69% | $12.34M | $2.75B | -21.69% | 60Neutral |
 FSK | FS KKR Capital | 3.74% | $12.50M | $3.16B | -26.34% | 58Neutral |
 PFLT | Pennantpark | 3.55% | $11.86M | $687.58M | -26.20% | 63Neutral |
 MFA | MFA Financial | 3.56% | $11.90M | $685.38M | -26.55% | 62Neutral |
 NMFC | New Mountain Finance | 3.51% | $11.75M | $671.56M | -27.66% | 66Neutral |
KBWD Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For KBWD, the sentiment is Negative. The current price of 10.55 is above the 20-day moving average (MA) of 10.46, below the 50-day MA of 11.13, and below the 200-day MA of 11.78, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 45.82 is Neutral, neither overbought nor oversold. The STOCH value of 71.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KBWD.
KBWD Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| KBWD | $10.55 | $11.50(9.03% Upside) | $335.08M | 5.39% | 64Neutral |
 IAT | $60.24 | $69.32(15.07% Upside) | $646.16M | 0.37% | 74Outperform |
 KIE | $64.37 | $69.14(7.40% Upside) | $569.91M | 0.35% | 71Outperform |
 IAK | $149.68 | $154.44(3.18% Upside) | $482.95M | 0.37% | 74Outperform |
 REM | $17.06 | $21.70(27.22% Upside) | $454.17M | 0.48% | 62Neutral |
 RSPF | $83.34 | $92.90(11.47% Upside) | $329.53M | 0.40% | 73Outperform |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| KBWD | Invesco KBW High Dividend Yield Financial ETF | 10.55 | -1.28 | -10.84% | |
| IAT | iShares U.S. Regional Banks ETF | 60.24 | 11.91 | 24.65% | |
| KIE | SPDR S&P Insurance ETF | 64.37 | 7.93 | 14.04% | |
| IAK | iShares U.S. Insurance ETF | 149.68 | 24.66 | 19.72% | |
| REM | iShares Mortgage Real Estate ETF | 17.06 | -3.22 | -15.89% | |
| RSPF | Invesco S&P 500 Equal Weight Financials ETF | 83.34 | 9.60 | 13.02% |
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.