KBWY vs VYM
Invesco KBW Premium Yield Equity REIT ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. KBWY delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | KBWY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $312M | $81.6B | |
| Dividend Yield | 8.03% | 2.24% | |
| Holdings | 32 | 616 | |
| YTD Return | +23.57% | +15.34% | |
| 1Y Return | +26.47% | +23.24% | |
| 3Y Return (annualized) | +9.69% | +19.22% | |
| 5Y Return (annualized) | +2.93% | +12.21% | |
| Volatility (annualized) | 22.2% | 14.6% | |
| Max Drawdown | -64.3% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 2, 2010 | Nov 10, 2006 |
KBWY vs VYM Performance
Invesco KBW Premium Yield Equity REIT ETF (KBWY) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year KBWY returned +26.47% while VYM returned +23.24%. Year to date, KBWY is up 23.57% versus a gain of 15.34% for VYM.
Over three years, KBWY compounded at +9.69% per year against +19.22% for VYM; over five years the annualized figures are +2.93% and +12.21% respectively. Across the full 16-year window we track, VYM has the edge at +7.04% annualized vs +0.77%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KBWY has been the more volatile fund, with annualized monthly volatility of 22.2% 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 -64.3% for KBWY 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KBWY 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, KBWY currently yields 8.03% against 2.24% for VYM.
Holdings Overlap
KBWY and VYM share 0 holdings out of 633 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KBWY or VYM?
KBWY 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, KBWY or VYM?
Over the past year KBWY returned +26.47% vs +23.24% for VYM, so KBWY leads on 1-year performance. Over the longest common window we track (16 years), KBWY annualized +0.77% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, KBWY or VYM?
KBWY has been the more volatile fund at 22.2% annualized versus 14.6% for VYM. Worst drawdown: KBWY -64.3% vs VYM -58.8%.
Should I hold both KBWY and VYM?
KBWY and VYM have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KBWY and VYM?
KBWY and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 633 unique securities.
Which pays a higher dividend, KBWY or VYM?
KBWY yields 8.03% while VYM yields 2.24%, so KBWY currently pays the higher dividend yield.
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