KBWD vs VTI
Invesco KBW High Dividend Yield Financial ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | KBWD | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 5.39% | 0.03% | |
| AUM | $425M | $666.9B | |
| Dividend Yield | 14.38% | 1.07% | |
| Holdings | 41 | 3,543 | |
| YTD Return | -1.48% | +13.14% | |
| 1Y Return | +3.22% | +22.35% | |
| 3Y Return (annualized) | +5.98% | +21.83% | |
| 5Y Return (annualized) | +1.66% | +12.01% | |
| Volatility (annualized) | 21.0% | 15.3% | |
| Max Drawdown | -65.2% | -56.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 2, 2010 | May 24, 2001 |
KBWD vs VTI Performance
Invesco KBW High Dividend Yield Financial ETF (KBWD) is a ETF from Invesco (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year KBWD returned +3.22% while VTI returned +22.35%. Year to date, KBWD is down 1.48% versus a gain of 13.14% for VTI.
Over three years, KBWD compounded at +5.98% per year against +21.83% for VTI; over five years the annualized figures are +1.66% and +12.01% respectively. Across the full 16-year window we track, VTI has the edge at +8.09% annualized vs -0.19%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KBWD has been the more volatile fund, with annualized monthly volatility of 21.0% compared with 15.3% for VTI. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -65.2% for KBWD and -56.6% for VTI. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KBWD charges 5.39% per year while VTI charges 0.03%. On a $10,000 position that is $539 vs $3 annually, a gap of $536 per year that compounds over a long holding period. On income, KBWD currently yields 14.38% against 1.07% for VTI.
Holdings Overlap
KBWD and VTI share 19 holdings out of 2807 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KBWD or VTI?
KBWD has an expense ratio of 5.39% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $536 per year of difference.
Which performed better, KBWD or VTI?
Over the past year KBWD returned +3.22% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (16 years), KBWD annualized -0.19% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, KBWD or VTI?
KBWD has been the more volatile fund at 21.0% annualized versus 15.3% for VTI. Worst drawdown: KBWD -65.2% vs VTI -56.6%.
Should I hold both KBWD and VTI?
KBWD and VTI have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KBWD and VTI?
KBWD and VTI share 19 common holdings with a 0.1% weight overlap. Combined, they hold 2807 unique securities.
Which pays a higher dividend, KBWD or VTI?
KBWD yields 14.38% while VTI yields 1.07%, so KBWD currently pays the higher dividend yield.
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