KBWR vs VYM
Invesco KBW Regional Banking ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | KBWR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $52M | $81.6B | |
| Dividend Yield | 2.65% | 2.24% | |
| Holdings | 52 | 616 | |
| YTD Return | +11.45% | +14.66% | |
| 1Y Return | +13.84% | +22.16% | |
| 3Y Return (annualized) | +8.55% | +18.72% | |
| 5Y Return (annualized) | +6.18% | +12.18% | |
| Volatility (annualized) | 27.1% | 14.6% | |
| Max Drawdown | -52.9% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 1, 2011 | Nov 10, 2006 |
KBWR vs VYM Performance
Invesco KBW Regional Banking ETF (KBWR) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year KBWR returned +13.84% while VYM returned +22.16%. Year to date, KBWR is up 11.45% versus a gain of 14.66% for VYM.
Over three years, KBWR compounded at +8.55% per year against +18.72% for VYM; over five years the annualized figures are +6.18% and +12.18% respectively. Across the full 14-year window we track, KBWR has the edge at +10.69% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KBWR has been the more volatile fund, with annualized monthly volatility of 27.1% compared with 14.6% for VYM. 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 -52.9% for KBWR and -58.8% for VYM. 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KBWR charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, KBWR currently yields 2.65% against 2.24% for VYM.
Holdings Overlap
KBWR and VYM share 43 holdings out of 611 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KBWR or VYM?
KBWR has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, KBWR or VYM?
Over the past year KBWR returned +13.84% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), KBWR annualized +10.69% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, KBWR or VYM?
KBWR has been the more volatile fund at 27.1% annualized versus 14.6% for VYM. Worst drawdown: KBWR -52.9% vs VYM -58.8%.
Should I hold both KBWR and VYM?
KBWR and VYM have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KBWR and VYM?
KBWR and VYM share 43 common holdings with a 1.0% weight overlap. Combined, they hold 611 unique securities.
Which pays a higher dividend, KBWR or VYM?
KBWR yields 2.65% while VYM yields 2.24%, so KBWR currently pays the higher dividend yield.
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