KBWY vs. HTGC

Last updated Jun 25, 2026

KBWY (Invesco KBW Premium Yield Equity REIT ETF) is REIT fund tracking the KBW Nasdaq Premium Yield Equity REIT Index, while HTGC (Hercules Capital, Inc.) is a stock. Over the past 10 years, KBWY returned 1.51%/yr vs 13.45%/yr for HTGC. At a 0.42 correlation, their price movements are largely independent.

Performance

KBWY vs. HTGC - Performance Comparison

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

Returns By Period

In the year-to-date period, KBWY achieves a 23.12% return, which is significantly higher than HTGC's -14.76% return. Over the past 10 years, KBWY has underperformed HTGC with an annualized return of 1.51%, while HTGC has yielded a comparatively higher 13.45% annualized return.

KBWY

• 1D: 0.46%
• 1M: 5.21%
• YTD: 23.12%
• 6M: 23.78%
• 1Y: 26.05%
• 3Y*: 12.15%
• 5Y*: 2.95%
• 10Y*: 1.51%

HTGC

• 1D: -0.20%
• 1M: -1.24%
• YTD: -14.76%
• 6M: -13.24%
• 1Y: -6.63%
• 3Y*: 13.82%
• 5Y*: 8.78%
• 10Y*: 13.45%

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

KBWY vs. HTGC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KBWY Invesco KBW Premium Yield Equity REIT ETF	23.12%	-5.30%	-3.49%	12.88%	-19.00%	31.22%	-25.83%	23.36%	-18.20%	0.81%
HTGC Hercules Capital, Inc.	-14.76%	3.54%	33.33%	42.91%	-10.42%	26.50%	14.49%	39.86%	-6.86%	1.86%

Correlation

The correlation between KBWY and HTGC is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.40
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

KBWY vs. HTGC — Risk / Return Rank

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

KBWY

KBWY Risk / Return Rank: 51
KBWY Sharpe Ratio Rank: 50
KBWY Sortino Ratio Rank: 50
KBWY Omega Ratio Rank: 45
KBWY Calmar Ratio Rank: 64
KBWY Martin Ratio Rank: 45

HTGC

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

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.

KBWY vs. HTGC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco KBW Premium Yield Equity REIT ETF (KBWY) and Hercules Capital, Inc. (HTGC). 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.

	KBWY	HTGC	Difference
Sharpe ratio: Return per unit of total volatility	1.56	-0.29	+1.85
Sortino ratio: Return per unit of downside risk	2.24	-0.24	+2.47
Omega ratio: Gain probability vs. loss probability	1.26	0.97	+0.29
Calmar ratio: Return relative to maximum drawdown	2.83	-0.27	+3.10
Martin ratio: Return relative to average drawdown	6.73	-0.59	+7.32

KBWY vs. HTGC - Sharpe Ratio Comparison

The current KBWY Sharpe Ratio is 1.56, which is higher than the HTGC Sharpe Ratio of -0.29. The chart below compares the historical Sharpe Ratios of KBWY and HTGC, 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

KBWY vs. HTGC - Drawdown Comparison

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

Drawdown Indicators

	KBWY	HTGC	Difference
Max Drawdown Largest peak-to-trough decline	-57.68%	-68.21%	+10.53%
Max Drawdown (1Y) Largest decline over 1 year	-9.24%	-24.74%	+15.50%
Max Drawdown (3Y) Largest decline over 3 years	-29.93%	-27.97%	-1.96%
Max Drawdown (5Y) Largest decline over 5 years	-32.29%	-36.11%	+3.82%
Max Drawdown (10Y) Largest decline over 10 years	-57.68%	-57.54%	-0.14%
Current Drawdown Current decline from peak	-6.21%	-19.41%	+13.20%
Average Drawdown Average peak-to-trough decline	-14.15%	-10.88%	-3.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.88%	11.24%	-7.36%

Volatility

KBWY vs. HTGC - Volatility Comparison

The current volatility for Invesco KBW Premium Yield Equity REIT ETF (KBWY) is 4.86%, while Hercules Capital, Inc. (HTGC) has a volatility of 5.85%. This indicates that KBWY experiences smaller price fluctuations and is considered to be less risky than HTGC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KBWY	HTGC	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.86%	5.85%	-0.99%
Volatility (6M) Calculated over the trailing 6-month period	12.07%	20.14%	-8.07%
Volatility (1Y) Calculated over the trailing 1-year period	16.76%	23.35%	-6.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.61%	25.77%	-4.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.07%	27.86%	-0.79%

Dividends

KBWY vs. HTGC - Dividend Comparison

KBWY's dividend yield for the trailing twelve months is around 8.24%, less than HTGC's 11.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HTGC Hercules Capital, Inc.	11.95%	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	8.24%	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 KBWY and HTGC in my portfolio?

KBWY and HTGC have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KBWY or HTGC?

HTGC has higher volatility (5.85%) compared to KBWY (4.86%). In terms of maximum drawdown, KBWY dropped -57.68% vs HTGC's -68.21%.

Which has better risk-adjusted returns?

KBWY currently has the higher Sharpe Ratio (1.56 vs -0.29), 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.