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Is Invesco KBW Premium Yield Equity REIT ETF (KBWY) a Strong ETF Right Now?
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The Invesco KBW Premium Yield Equity REIT ETF (KBWY - Free Report) made its debut on 12/02/2010, and is a smart beta exchange traded fund that provides broad exposure to the Real Estate ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Invesco, and has been able to amass over $260.53 million, which makes it one of the average sized ETFs in the Real Estate ETFs. This particular fund, before fees and expenses, seeks to match the performance of the KBW Nasdaq Premium Yield Equity REIT Index.
The KBW Nasdaq Premium Yield Equity REIT Index is a dividend weighted index seeking to reflect the performance of approximately 24 to 40 small- and mid-cap equity REITs in the US.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.35%.
It has a 12-month trailing dividend yield of 9.46%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
This ETF has heaviest allocation in the Real Estate sector - about 100% of the portfolio.
Taking into account individual holdings, Innovative Industrial Properties Inc (IIPR) accounts for about 6.61% of the fund's total assets, followed by Community Healthcare Trust Inc (CHCT) and Gladstone Commercial Corp (GOOD).
KBWY's top 10 holdings account for about 44.45% of its total assets under management.
Performance and Risk
The ETF has gained about 4.3% and is down about -0.96% so far this year and in the past one year (as of 02/02/2026), respectively. KBWY has traded between $14.41 and $17.65 during this last 52-week period.
The fund has a beta of 1.01 and standard deviation of 21.84% for the trailing three-year period, which makes KBWY a medium risk choice in this particular space. With about 32 holdings, it has more concentrated exposure than peers .
Alternatives
Invesco KBW Premium Yield Equity REIT ETF is not a suitable option for investors seeking to outperform the Real Estate ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
State Street Real Estate Select Sector SPDR ETF (XLRE) tracks Real Estate Select Sector Index and the Schwab U.S. REIT ETF (SCHH) tracks Dow Jones U.S. Select REIT Index. State Street Real Estate Select Sector SPDR ETF has $7.11 billion in assets, Schwab U.S. REIT ETF has $9.06 billion. XLRE has an expense ratio of 0.08% and SCHH changes 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Real Estate ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Invesco KBW Premium Yield Equity REIT ETF (KBWY) a Strong ETF Right Now?
The Invesco KBW Premium Yield Equity REIT ETF (KBWY - Free Report) made its debut on 12/02/2010, and is a smart beta exchange traded fund that provides broad exposure to the Real Estate ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Invesco, and has been able to amass over $260.53 million, which makes it one of the average sized ETFs in the Real Estate ETFs. This particular fund, before fees and expenses, seeks to match the performance of the KBW Nasdaq Premium Yield Equity REIT Index.
The KBW Nasdaq Premium Yield Equity REIT Index is a dividend weighted index seeking to reflect the performance of approximately 24 to 40 small- and mid-cap equity REITs in the US.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.35%.
It has a 12-month trailing dividend yield of 9.46%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
This ETF has heaviest allocation in the Real Estate sector - about 100% of the portfolio.
Taking into account individual holdings, Innovative Industrial Properties Inc (IIPR) accounts for about 6.61% of the fund's total assets, followed by Community Healthcare Trust Inc (CHCT) and Gladstone Commercial Corp (GOOD).
KBWY's top 10 holdings account for about 44.45% of its total assets under management.
Performance and Risk
The ETF has gained about 4.3% and is down about -0.96% so far this year and in the past one year (as of 02/02/2026), respectively. KBWY has traded between $14.41 and $17.65 during this last 52-week period.
The fund has a beta of 1.01 and standard deviation of 21.84% for the trailing three-year period, which makes KBWY a medium risk choice in this particular space. With about 32 holdings, it has more concentrated exposure than peers .
Alternatives
Invesco KBW Premium Yield Equity REIT ETF is not a suitable option for investors seeking to outperform the Real Estate ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
State Street Real Estate Select Sector SPDR ETF (XLRE) tracks Real Estate Select Sector Index and the Schwab U.S. REIT ETF (SCHH) tracks Dow Jones U.S. Select REIT Index. State Street Real Estate Select Sector SPDR ETF has $7.11 billion in assets, Schwab U.S. REIT ETF has $9.06 billion. XLRE has an expense ratio of 0.08% and SCHH changes 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Real Estate ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.