HTGC vs. KBWY

Last updated Jun 23, 2026

HTGC (Hercules Capital, Inc.) is a stock, while KBWY (Invesco KBW Premium Yield Equity REIT ETF) is REIT fund tracking the KBW Nasdaq Premium Yield Equity REIT Index. Over the past 10 years, HTGC returned 13.51%/yr vs 1.34%/yr for KBWY. At a 0.42 correlation, their price movements are largely independent.

Performance

HTGC vs. KBWY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Hercules Capital, Inc. (HTGC) and Invesco KBW Premium Yield Equity REIT ETF (KBWY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HTGC achieves a -14.31% return, which is significantly lower than KBWY's 21.05% return. Over the past 10 years, HTGC has outperformed KBWY with an annualized return of 13.51%, while KBWY has yielded a comparatively lower 1.34% annualized return.

HTGC

• 1D: -1.68%
• 1M: -0.72%
• YTD: -14.31%
• 6M: -12.31%
• 1Y: -5.78%
• 3Y*: 14.02%
• 5Y*: 8.78%
• 10Y*: 13.51%

KBWY

• 1D: 0.06%
• 1M: 3.43%
• YTD: 21.05%
• 6M: 22.09%
• 1Y: 24.91%
• 3Y*: 11.51%
• 5Y*: 2.89%
• 10Y*: 1.34%

*Multi-year figures are annualized to reflect compound growth (CAGR)

HTGC vs. KBWY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HTGC Hercules Capital, Inc.	-14.31%	3.54%	33.33%	42.91%	-10.42%	26.50%	14.49%	39.86%	-6.86%	1.86%
KBWY Invesco KBW Premium Yield Equity REIT ETF	21.05%	-5.30%	-3.49%	12.88%	-19.00%	31.22%	-25.83%	23.36%	-18.20%	0.81%

Correlation

The correlation between HTGC and KBWY is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.47
Correlation (10Y) Calculated over the trailing 10-year period	0.43
Correlation (All Time) Calculated using the full available price history since Dec 2, 2010	0.42

Return for Risk

HTGC vs. KBWY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HTGC

HTGC Risk / Return Rank: 31
HTGC Sharpe Ratio Rank: 32
HTGC Sortino Ratio Rank: 27
HTGC Omega Ratio Rank: 27
HTGC Calmar Ratio Rank: 34
HTGC Martin Ratio Rank: 33

KBWY

KBWY Risk / Return Rank: 45
KBWY Sharpe Ratio Rank: 44
KBWY Sortino Ratio Rank: 44
KBWY Omega Ratio Rank: 39
KBWY Calmar Ratio Rank: 56
KBWY Martin Ratio Rank: 41

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HTGC vs. KBWY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Hercules Capital, Inc. (HTGC) and Invesco KBW Premium Yield Equity REIT ETF (KBWY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	HTGC	KBWY	Difference
Sharpe ratio: Return per unit of total volatility	-0.25	1.49	-1.74
Sortino ratio: Return per unit of downside risk	-0.18	2.15	-2.34
Omega ratio: Gain probability vs. loss probability	0.98	1.25	-0.28
Calmar ratio: Return relative to maximum drawdown	-0.23	2.71	-2.94
Martin ratio: Return relative to average drawdown	-0.52	6.43	-6.95

HTGC vs. KBWY - Sharpe Ratio Comparison

The current HTGC Sharpe Ratio is -0.25, which is lower than the KBWY Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of HTGC and KBWY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

HTGC vs. KBWY - Drawdown Comparison

The maximum HTGC drawdown since its inception was -68.21%, which is greater than KBWY's maximum drawdown of -57.68%. Use the drawdown chart below to compare losses from any high point for HTGC and KBWY.

Drawdown Indicators

	HTGC	KBWY	Difference
Max Drawdown Largest peak-to-trough decline	-68.21%	-57.68%	-10.53%
Max Drawdown (1Y) Largest decline over 1 year	-24.74%	-9.24%	-15.50%
Max Drawdown (3Y) Largest decline over 3 years	-27.97%	-29.93%	+1.96%
Max Drawdown (5Y) Largest decline over 5 years	-36.11%	-32.29%	-3.82%
Max Drawdown (10Y) Largest decline over 10 years	-57.54%	-57.68%	+0.14%
Current Drawdown Current decline from peak	-18.98%	-7.79%	-11.19%
Average Drawdown Average peak-to-trough decline	-10.87%	-14.15%	+3.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.15%	3.88%	+7.27%

Volatility

HTGC vs. KBWY - Volatility Comparison

Hercules Capital, Inc. (HTGC) has a higher volatility of 5.98% compared to Invesco KBW Premium Yield Equity REIT ETF (KBWY) at 4.76%. This indicates that HTGC's price experiences larger fluctuations and is considered to be riskier than KBWY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HTGC	KBWY	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.98%	4.76%	+1.22%
Volatility (6M) Calculated over the trailing 6-month period	20.17%	12.12%	+8.05%
Volatility (1Y) Calculated over the trailing 1-year period	23.43%	16.78%	+6.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.77%	21.61%	+4.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.87%	27.08%	+0.79%

Dividends

HTGC vs. KBWY - Dividend Comparison

HTGC's dividend yield for the trailing twelve months is around 11.88%, more than KBWY's 9.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HTGC Hercules Capital, Inc.	11.88%	9.99%	9.56%	11.40%	13.77%	9.76%	9.02%	9.49%	11.40%	9.45%	8.79%	10.17%
KBWY Invesco KBW Premium Yield Equity REIT ETF	8.38%	9.79%	8.74%	7.90%	7.41%	5.05%	10.35%	6.19%	8.64%	7.25%	6.55%	5.72%

Frequently Asked Questions

Can I hold both HTGC and KBWY in my portfolio?

HTGC and KBWY have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HTGC or KBWY?

HTGC has higher volatility (5.98%) compared to KBWY (4.76%). In terms of maximum drawdown, HTGC dropped -68.21% vs KBWY's -57.68%.

Which has better risk-adjusted returns?

KBWY currently has the higher Sharpe Ratio (1.49 vs -0.25), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.