KBWD vs. VNQ
Compare and contrast key facts about Invesco KBW High Dividend Yield Financial ETF (KBWD) and Vanguard Real Estate ETF (VNQ).
KBWD and VNQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. KBWD is a passively managed fund by Invesco that tracks the performance of the KBW Nasdaq Financial Sector Dividend Yield Index. It was launched on Dec 2, 2010. VNQ is a passively managed fund by Vanguard that tracks the performance of the MSCI US REIT Index. It was launched on Sep 23, 2004. Both KBWD and VNQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: KBWD or VNQ.
Key characteristics
| KBWD | VNQ | |
|---|---|---|
| YTD Return | 3.08% | -3.03% |
| 1Y Return | 27.46% | 10.94% |
| 3Y Return (Ann) | 1.20% | -0.75% |
| 5Y Return (Ann) | 3.98% | 3.11% |
| 10Y Return (Ann) | 4.78% | 5.45% |
| Sharpe Ratio | 1.37 | 0.43 |
| Daily Std Dev | 19.08% | 18.89% |
| Max Drawdown | -58.63% | -73.07% |
| Current Drawdown | -4.40% | -20.01% |
Correlation
The correlation between KBWD and VNQ is 0.61, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
KBWD vs. VNQ - Performance Comparison
In the year-to-date period, KBWD achieves a 3.08% return, which is significantly higher than VNQ's -3.03% return. Over the past 10 years, KBWD has underperformed VNQ with an annualized return of 4.78%, while VNQ has yielded a comparatively higher 5.45% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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KBWD vs. VNQ - Expense Ratio Comparison
KBWD has a 1.24% expense ratio, which is higher than VNQ's 0.12% expense ratio.
Risk-Adjusted Performance
KBWD vs. VNQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco KBW High Dividend Yield Financial ETF (KBWD) and Vanguard Real Estate ETF (VNQ). 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.
Dividends
KBWD vs. VNQ - Dividend Comparison
KBWD's dividend yield for the trailing twelve months is around 11.51%, more than VNQ's 4.07% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
KBWD Invesco KBW High Dividend Yield Financial ETF | 11.51% | 11.45% | 11.32% | 7.26% | 9.68% | 8.63% | 9.47% | 8.77% | 8.68% | 8.89% | 8.31% | 7.68% |
VNQ Vanguard Real Estate ETF | 4.07% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% | 3.60% | 4.32% |
Drawdowns
KBWD vs. VNQ - Drawdown Comparison
The maximum KBWD drawdown since its inception was -58.63%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for KBWD and VNQ. For additional features, visit the drawdowns tool.
Volatility
KBWD vs. VNQ - Volatility Comparison
Invesco KBW High Dividend Yield Financial ETF (KBWD) and Vanguard Real Estate ETF (VNQ) have volatilities of 3.85% and 3.98%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.