KBWD vs. IYF

Last updated Aug 2, 2026

KBWD (Invesco KBW High Dividend Yield Financial ETF) and IYF (iShares U.S. Financials ETF) are both Financials Equities funds - KBWD tracks the KBW Nasdaq Financial Sector Dividend Yield Index while IYF tracks the Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index. Both are passively managed. Over the past 10 years, KBWD returned 4.42%/yr vs 13.70%/yr for IYF. Their 0.76 correlation means they have sometimes moved together and sometimes differently. KBWD charges 5.39%/yr vs 0.38%/yr for IYF.

Performance

KBWD vs. IYF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco KBW High Dividend Yield Financial ETF (KBWD) and iShares U.S. Financials ETF (IYF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KBWD achieves a -5.22% return, which is significantly lower than IYF's 5.27% return. Over the past 10 years, KBWD has underperformed IYF with an annualized return of 4.42%, while IYF has yielded a comparatively higher 13.70% annualized return.

KBWD

• 1D: -0.75%
• 1M: -2.41%
• 6M: -7.83%
• YTD: -5.22%
• 1Y: 0.00%
• 3Y*: 1.98%
• 5Y*: 0.90%
• 10Y*: 4.42%
• ALL TIME*: 5.57%

IYF

• 1D: -0.09%
• 1M: 2.09%
• 6M: 6.28%
• YTD: 5.27%
• 1Y: 14.06%
• 3Y*: 21.23%
• 5Y*: 12.16%
• 10Y*: 13.70%
• ALL TIME*: 6.14%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
IYF iShares U.S. Financials ETF	$64.39M	$58.62M	$40.71M
KBWD Invesco KBW High Dividend Yield Financial ETF	$5.79M	$4.78M	$4.61M

KBWD vs. IYF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KBWD Invesco KBW High Dividend Yield Financial ETF	-5.22%	5.59%	4.30%	20.21%	-19.14%	31.89%	-15.58%	20.72%	-8.70%	12.06%
IYF iShares U.S. Financials ETF	5.27%	18.25%	31.30%	15.32%	-11.33%	31.60%	-1.00%	31.86%	-9.39%	19.58%

Correlation

The correlation between KBWD and IYF is 0.59, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.59
Correlation (3Y) Balances recent behavior with more history.	0.69
Correlation (5Y) Shows whether the relationship held over a longer period.	0.75
Correlation (10Y) Provides a long-term view across more market conditions.	0.75
Correlation (All Time) Calculated using the full available price history since Dec 2, 2010	0.76

The correlation between KBWD and IYF shifts across timeframes, from 0.59 (1 year) to 0.76 (all time), reflecting how their relationship changes across market environments.

KBWD vs. IYF - Sectors Allocation Comparison

Sectors	KBWD	IYF
Financial Services	57.3%	99.0%
Real Estate	42.7%	0.7%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Technology	-	0.3%
Utilities	-	-

Return for Risk

KBWD vs. IYF — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

KBWD

KBWD Risk / Return Rank: 10
KBWD Sharpe Ratio Rank: 10
KBWD Sortino Ratio Rank: 10
KBWD Omega Ratio Rank: 10
KBWD Calmar Ratio Rank: 10
KBWD Martin Ratio Rank: 10

IYF

IYF Risk / Return Rank: 30
IYF Sharpe Ratio Rank: 34
IYF Sortino Ratio Rank: 32
IYF Omega Ratio Rank: 31
IYF Calmar Ratio Rank: 27
IYF Martin Ratio Rank: 28

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

KBWD vs. IYF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco KBW High Dividend Yield Financial ETF (KBWD) and iShares U.S. Financials ETF (IYF). 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.

	KBWD	IYF	Difference
Sharpe ratio: Return per unit of total volatility	-0.04	0.82	-0.86
Sortino ratio: Return per unit of downside risk	0.06	1.19	-1.13
Omega ratio: Gain probability vs. loss probability	1.01	1.15	-0.14
Calmar ratio: Return relative to maximum drawdown	-0.04	0.86	-0.90
Martin ratio: Return relative to average drawdown	-0.08	2.33	-2.41

KBWD vs. IYF - Sharpe Ratio Comparison

The current KBWD Sharpe Ratio is -0.04, which is lower than the IYF Sharpe Ratio of 0.82. The chart below compares the historical Sharpe Ratios of KBWD and IYF, 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

KBWD vs. IYF - Drawdown Comparison

The maximum KBWD drawdown since its inception was -58.63%, smaller than the maximum IYF drawdown of -79.09%. Use the drawdown chart below to compare losses from any high point for KBWD and IYF.

Drawdown Indicators

	KBWD	IYF	Difference
Max Drawdown Largest peak-to-trough decline	-58.63%	-79.09%	+20.46%
Max Drawdown (1Y) Largest decline over 1 year	-15.05%	-13.88%	-1.17%
Max Drawdown (3Y) Largest decline over 3 years	-19.65%	-16.60%	-3.05%
Max Drawdown (5Y) Largest decline over 5 years	-30.74%	-25.06%	-5.68%
Max Drawdown (10Y) Largest decline over 10 years	-58.63%	-42.57%	-16.06%
Current Drawdown Current decline from peak	-11.95%	-1.51%	-10.44%
Average Drawdown Average peak-to-trough decline	-7.44%	-17.51%	+10.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.19%	5.14%	+2.05%

Volatility

KBWD vs. IYF - Volatility Comparison

Invesco KBW High Dividend Yield Financial ETF (KBWD) has a higher volatility of 4.54% compared to iShares U.S. Financials ETF (IYF) at 3.97%. This indicates that KBWD's price experiences larger fluctuations and is considered to be riskier than IYF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KBWD	IYF	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.54%	3.97%	+0.57%
Volatility (6M) Calculated over the trailing 6-month period	12.49%	11.05%	+1.44%
Volatility (1Y) Calculated over the trailing 1-year period	15.87%	14.67%	+1.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.78%	18.94%	+0.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.26%	20.82%	+2.44%

KBWD vs. IYF - Expense Ratio Comparison

KBWD has a 5.39% expense ratio, which is higher than IYF's 0.38% expense ratio.

Dividends

KBWD vs. IYF - Dividend Comparison

KBWD's dividend yield for the trailing twelve months is around 14.50%, more than IYF's 1.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYF iShares U.S. Financials ETF	1.42%	1.32%	1.29%	1.67%	1.86%	1.27%	1.72%	1.64%	1.90%	1.46%	1.67%	1.66%
KBWD Invesco KBW High Dividend Yield Financial ETF	14.50%	12.83%	12.45%	11.45%	11.32%	7.26%	9.68%	8.63%	9.47%	8.77%	8.68%	8.89%

Frequently Asked Questions

Can I hold both KBWD and IYF in my portfolio?

KBWD and IYF have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KBWD or IYF?

KBWD has higher volatility (4.54%) compared to IYF (3.97%). In terms of maximum drawdown, KBWD dropped -58.63% vs IYF's -79.09%.

Which ETF is better, KBWD or IYF?

On 10-year performance, IYF leads with 13.70% vs 4.42% for KBWD. On fees, IYF is cheaper at 0.38% per year. On volatility, IYF has been the lower-risk option at 3.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KBWD or IYF?

Over the 10-year period, IYF has performed better with a 13.70% return vs 4.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KBWD or IYF?

IYF is cheaper with a 0.38% expense ratio, compared with 5.39% for KBWD.

Which ETF pays a higher dividend yield, KBWD or IYF?

KBWD has the higher dividend yield at 14.50%, compared with 1.42% for IYF.

What is the main difference between KBWD and IYF?

KBWD tracks KBW Nasdaq Financial Sector Dividend Yield Index, while IYF tracks Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 5.39% for KBWD and 0.38% for IYF.

Which has better risk-adjusted returns?

IYF currently has the higher Sharpe Ratio (0.82 vs -0.04), 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.