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Invesco KBW High Dividend Yield Financial ETF (KBWD) Sharpe Ratio: 0.11

ETF · Currency in USD · Last updated Jun 24, 2026

Invesco KBW High Dividend Yield Financial ETF tracks the KBW Nasdaq Financial Sector Dividend Yield Index, providing exposure to high-dividend-yield U.S. financial companies, including banks, insurers, mortgage REITs, and other financial firms.

KBWD's Sharpe Ratio of 0.11 indicates that for each unit of volatility, it generates 0.11 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 24, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets. For how to read this number and when it can mislead, see Sharpe Ratio Explained.

KBWD Sharpe Ratio Rank

KBWD Sharpe Ratio Rank: 10.010
Concerning

KBWD ranks above 10.0% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating weak returns relative to total risk taken. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Weak risk-adjusted returns relative to category peers
  • Evaluate whether this holding aligns with your risk-return objectives
  • Consider reducing exposure or re-evaluating position size
  • Review higher-ranked alternatives in the same category

KBWD Sharpe Ratio Market Positioning

The chart shows KBWD's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.84 or lower
  • Yellow zone (middle 50%): 0.84 to 2.15
  • Green zone (top 25%): 2.15 or higher
  • Top 1%: 7.01+
  • Median: 1.57 — half of all investments score higher

How it compares to other similar ETFs

The table compares Invesco KBW High Dividend Yield Financial ETF's Sharpe Ratio with other ETFs in the Financials Equities, Dividend category across multiple time periods, showing how KBWD's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 24, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
LVHIFranklin International Low Volatility High Dividend Index ETF3.34
HSBHHSBC Holdings plc ADRhedged ETF3.02
INCEFranklin Income Equity Focus ETF2.85
GSIBThemes Global Systemically Important Banks ETF2.80
DEWWisdomTree Global High Dividend Fund2.64
ALTYGlobal X Alternative Income ETF2.55
DVYAiShares Asia/Pacific Dividend ETF2.50
XUDVFranklin U.S. Dividend Booster Index ETF2.48
DJDInvesco Dow Jones Industrial Average Dividend ETF2.42
DLNWisdomTree U.S. LargeCap Dividend Fund2.39
KBWDInvesco KBW High Dividend Yield Financial ETF0.11

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows KBWD's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when KBWD consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does KBWD fit in your portfolio?

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