KBWY vs. VNQ
KBWY (Invesco KBW Premium Yield Equity REIT ETF) and VNQ (Vanguard Real Estate ETF) are both REIT funds - KBWY tracks the KBW Premium Yield Equity REIT Index while VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 10 years, KBWY returned 1.75%/yr vs 5.65%/yr for VNQ. Their correlation of 0.84 suggests significant overlap in exposure. KBWY charges 0.35%/yr vs 0.13%/yr for VNQ.
Performance
KBWY vs. VNQ - Performance Comparison
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Returns By Period
In the year-to-date period, KBWY achieves a 23.67% return, which is significantly higher than VNQ's 12.51% return. Over the past 10 years, KBWY has underperformed VNQ with an annualized return of 1.75%, while VNQ has yielded a comparatively higher 5.65% annualized return.
KBWY
- 1D
- 0.10%
- 1M
- 8.53%
- YTD
- 23.67%
- 6M
- 23.18%
- 1Y
- 29.34%
- 3Y*
- 9.53%
- 5Y*
- 2.59%
- 10Y*
- 1.75%
VNQ
- 1D
- 0.92%
- 1M
- 3.35%
- YTD
- 12.51%
- 6M
- 12.32%
- 1Y
- 14.02%
- 3Y*
- 10.14%
- 5Y*
- 2.55%
- 10Y*
- 5.65%
KBWY vs. VNQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
KBWY Invesco KBW Premium Yield Equity REIT ETF | 23.67% | -5.30% | -3.49% | 12.88% | -19.00% | 31.22% | -25.83% | 23.36% | -18.20% | 0.81% |
VNQ Vanguard Real Estate ETF | 12.51% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
Correlation
The correlation between KBWY and VNQ is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.79 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.84 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.84 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.83 |
Correlation (All Time) Calculated using the full available price history since Dec 2, 2010 | 0.84 |
The correlation between KBWY and VNQ has been stable across timeframes, ranging from 0.79 to 0.84 - a consistent structural relationship.
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Return for Risk
KBWY vs. VNQ — Risk / Return Rank
KBWY
VNQ
KBWY vs. VNQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco KBW Premium Yield Equity REIT ETF (KBWY) 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.
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 | VNQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.69 | ||
| Sortino ratioReturn per unit of downside risk | +0.97 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.17 | +0.10 |
| Calmar ratioReturn relative to maximum drawdown | 2.96 | 1.56 | +1.40 |
| Martin ratioReturn relative to average drawdown | 7.05 | 4.90 | +2.15 |
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Drawdowns
KBWY vs. VNQ - Drawdown Comparison
The maximum KBWY drawdown since its inception was -57.68%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for KBWY and VNQ.
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Drawdown Indicators
| KBWY | VNQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -57.68% | -73.07% | +15.39% |
Max Drawdown (1Y)Largest decline over 1 year | -9.24% | -8.34% | -0.90% |
Max Drawdown (3Y)Largest decline over 3 years | -29.93% | -17.46% | -12.47% |
Max Drawdown (5Y)Largest decline over 5 years | -32.29% | -34.48% | +2.19% |
Max Drawdown (10Y)Largest decline over 10 years | -57.68% | -42.40% | -15.28% |
Current DrawdownCurrent decline from peak | -5.79% | 0.00% | -5.79% |
Average DrawdownAverage peak-to-trough decline | -14.16% | -13.61% | -0.55% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.88% | 2.65% | +1.23% |
Volatility
KBWY vs. VNQ - Volatility Comparison
Invesco KBW Premium Yield Equity REIT ETF (KBWY) and Vanguard Real Estate ETF (VNQ) have volatilities of 4.68% and 4.72%, 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.
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Volatility by Period
| KBWY | VNQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.68% | 4.72% | -0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 11.82% | 9.77% | +2.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.64% | 13.54% | +3.10% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.63% | 18.84% | +2.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.05% | 20.72% | +6.33% |
KBWY vs. VNQ - Expense Ratio Comparison
KBWY has a 0.35% expense ratio, which is higher than VNQ's 0.13% expense ratio.
Dividends
KBWY vs. VNQ - Dividend Comparison
KBWY's dividend yield for the trailing twelve months is around 8.18%, more than VNQ's 3.54% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
KBWY Invesco KBW Premium Yield Equity REIT ETF | 8.18% | 9.79% | 8.74% | 7.90% | 7.41% | 5.05% | 10.35% | 6.19% | 8.64% | 7.25% | 6.55% | 5.72% |
VNQ Vanguard Real Estate ETF | 3.54% | 3.92% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% |
Frequently Asked Questions
KBWY and VNQ have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VNQ has higher volatility (4.72%) compared to KBWY (4.68%). In terms of maximum drawdown, KBWY dropped -57.68% vs VNQ's -73.07%.
On 10-year performance, VNQ leads with 5.65% vs 1.75% for KBWY. On fees, VNQ is cheaper at 0.13% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VNQ has performed better with a 5.65% return vs 1.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VNQ is cheaper with a 0.13% expense ratio, compared with 0.35% for KBWY.
KBWY has the higher dividend yield at 8.18%, compared with 3.54% for VNQ.
KBWY tracks KBW Premium Yield Equity REIT Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.35% for KBWY and 0.13% for VNQ.
KBWY currently has the higher Sharpe Ratio (1.64 vs 0.96), 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.
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