Is Invesco KBW High Dividend Yield Financial ETF (KBWD) a Strong ETF Right Now?

Core Insights - The Invesco KBW High Dividend Yield Financial ETF (KBWD) is a smart beta ETF launched on December 2, 2010, providing broad exposure to the Financials sector [1] - KBWD aims to match the performance of the KBW Nasdaq Financial Sector Dividend Yield Index, which includes 24 to 40 publicly listed financial companies in the US [5][6] - The ETF has an annual operating expense of 2.02% and a 12-month trailing dividend yield of 12.28% [7] Fund Overview - Managed by Invesco, KBWD has assets exceeding $430.92 million, categorizing it as an average-sized ETF in the Financials sector [5] - The fund's portfolio is entirely allocated to the Financials sector, with top holdings including Orchid Island Capital Inc (4.77%), Invesco Mortgage Capital Inc, and Dynex Capital Inc [8][9] Performance Metrics - As of September 10, 2025, KBWD has returned approximately 5.07% year-to-date and 5.82% over the past year, with a trading range between $12.37 and $15.76 in the last 52 weeks [11] - The fund has a beta of 1.15 and a standard deviation of 20.69% over the trailing three-year period, indicating medium risk [11] Alternatives - Other ETFs in the Financials sector include Vanguard Financials ETF (VFH) with $12.89 billion in assets and Financial Select Sector SPDR ETF (XLF) with $54.53 billion [13] - VFH has an expense ratio of 0.09% and XLF has 0.08%, presenting lower-cost options for investors [13]