ETF Evaluator: Invesco KBW High Dividend Yld Fincl ETF (KBWD) Follow This ETF

Invesco KBW High Dividend Yld Fincl ETF Overview

Invesco KBW High Dividend Yld Fincl ETF (KBWD) is a passively managed Sector Equity Financial exchange-traded fund (ETF). Invesco launched the ETF in 2010.

The investment seeks to track the investment results (before fees and expenses) of the KBW Nasdaq Financial Sector Dividend Yield IndexTM (the "underlying index"). The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. The underlying index is a modified-dividend yield-weighted index of companies principally engaged in the business of providing financial services and products, as determined by the index provider. The underlying index is designed to track the performance of financial companies with competitive dividend yields that are publicly-traded in the U.S.

About Invesco KBW High Dividend Yld Fincl ETF (KBWD)

There are 3 members of the management team with an average tenure of 12.57 years: Peter Hubbard (2010), Michael Jeanette (2010) and Pratik Doshi (2019). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and KBW Nasdaq Fin Sector Divi Yield TR USD index with a weighting of 100%. Invesco KBW High Dividend Yld Fincl ETF has 40 securities in its portfolio. The top 10 holdings constitute 37.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Invesco KBW High Dividend Yld Fincl ETF is part of the Equity global asset class and is within the Sector Equity ETF group. Invesco KBW High Dividend Yld Fincl ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 100.1% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Invesco KBW High Dividend Yld Fincl ETF has -0.1% of the portfolio in cash.

Assets Under Management

The fund has $423 million in total assets, which is below the $2 billion average for the Financial category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

KBWD Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Invesco KBW High Dividend Yld Fincl ETF expense ratio is high compared to funds in the Financial category. Invesco KBW High Dividend Yld Fincl ETF has an expense ratio of 5.39%, which is 255% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Invesco KBW High Dividend Yld Fincl ETF has a portfolio turnover rate of 60%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 29% for the Financial category.

Recently, in the month of June 2026, Invesco KBW High Dividend Yld Fincl ETF returned 0.2%, which earned it a grade of D, as the Financial category had an average return of 2.7%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Invesco KBW High Dividend Yld Fincl ETF has a trailing yield of 14.09%, which is above the 4.29% category average. The fund normally distributes its income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Invesco KBW High Dividend Yld Fincl ETF Grades

Year to date, the ETF has returned -2.7%, 3.0 percentage points worse than the category, which translates into a grade of D. The fund has returned 2.3% over the past year (grade of D), 4.9% over the past three years (grade of F) and 1.3% per year over the past five years (grade of F) and 5.2% per year over the past 10 years (grade of F).

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