KBWY vs. VNQ
Compare and contrast key facts about Invesco KBW Premium Yield Equity REIT ETF (KBWY) and Vanguard Real Estate ETF (VNQ).
KBWY and VNQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. KBWY is a passively managed fund by Invesco that tracks the performance of the KBW Premium Yield Equity REIT 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 KBWY 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: KBWY or VNQ.
Key characteristics
| KBWY | VNQ | |
|---|---|---|
| YTD Return | -9.23% | -7.82% |
| 1Y Return | 15.58% | 4.00% |
| 3Y Return (Ann) | -1.57% | -3.01% |
| 5Y Return (Ann) | -3.29% | 2.11% |
| 10Y Return (Ann) | 1.25% | 5.09% |
| Sharpe Ratio | 0.62 | 0.19 |
| Daily Std Dev | 26.17% | 18.82% |
| Max Drawdown | -57.68% | -73.07% |
| Current Drawdown | -24.31% | -23.96% |
Correlation
The correlation between KBWY and VNQ is 0.84, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
KBWY vs. VNQ - Performance Comparison
In the year-to-date period, KBWY achieves a -9.23% return, which is significantly lower than VNQ's -7.82% return. Over the past 10 years, KBWY has underperformed VNQ with an annualized return of 1.25%, while VNQ has yielded a comparatively higher 5.09% 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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KBWY vs. VNQ - Expense Ratio Comparison
KBWY has a 0.35% expense ratio, which is higher than VNQ's 0.12% expense ratio.
Risk-Adjusted Performance
KBWY vs. VNQ - Risk-Adjusted Performance 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.
Dividends
KBWY vs. VNQ - Dividend Comparison
KBWY's dividend yield for the trailing twelve months is around 8.81%, more than VNQ's 4.28% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
KBWY Invesco KBW Premium Yield Equity REIT ETF | 8.81% | 7.90% | 7.41% | 5.05% | 10.35% | 6.19% | 8.64% | 7.25% | 6.55% | 5.72% | 4.57% | 4.85% |
VNQ Vanguard Real Estate ETF | 4.28% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% | 3.60% | 4.32% |
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. For additional features, visit the drawdowns tool.
Volatility
KBWY vs. VNQ - Volatility Comparison
Invesco KBW Premium Yield Equity REIT ETF (KBWY) has a higher volatility of 6.75% compared to Vanguard Real Estate ETF (VNQ) at 6.13%. This indicates that KBWY's price experiences larger fluctuations and is considered to be riskier than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.