KBWY vs VYM
Invesco KBW Premium Yield Equity REIT ETF vs Vanguard High Dividend Yield ETF
Which is better, KBWY or VYM?
Small Cap Value against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | KBWY | VYM |
|---|---|---|
| Expense Ratio | 0.35% | 0.04%Best |
| AUM | $300M | $83.1B |
| Dividend Yield | 8.31% | 2.22% |
| Holdings | 32 | 608 |
| YTD Return | +13.34%Best | +10.00% |
| 1Y Return | +13.17% | +13.75%Best |
| 3Y Return (annualized) | +9.18% | +18.81%Best |
| 5Y Return (annualized) | +1.00% | +11.63%Best |
| Volatility (annualized) | 22.2% | 12.9%Best |
| Max Drawdown | -64.3% | -35.7%Best |
| $10,000 over 5 years | $10,510 | $17,334Best |
| Top 10 Weight | 46.5% | 26.1%Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | Large Cap Value |
| Inception | Dec 2, 2010 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Dec 2, 2010 to Oct 2, 2026 (15.8 years).
KBWY vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 15.8 years both funds cover.
KBWY vs VYM Performance
Invesco KBW Premium Yield Equity REIT ETF (KBWY) is an ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year KBWY returned +13.17% while VYM returned +13.75%. Year to date, KBWY is up 13.34% versus a gain of 10.00% for VYM.
Over three years, KBWY compounded at +9.18% per year against +18.81% for VYM; over five years the annualized figures are +1.00% and +11.63% respectively. Across the full 16-year window we track, VYM has the edge at +9.91% annualized vs +0.22%.
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 12.9% 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 8.31% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 28 holdings in KBWY and 557 in VYM, totalling 100.0% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 46 days apart, KBWY as of Sep 15, 2026 and VYM as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 28 positions we hold weights for in KBWY and 557 in VYM, against full books of 32 and 608.
What only one of them owns
Our book lists 528 positions for VYM that do not appear in our book for KBWY (97.1% of the fund), and 28 for KBWY that do not appear in VYM (100.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of KBWY and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $31 a year on a $10,000 investment.
Which performed better, KBWY or VYM?
Over the past year KBWY returned +13.17% vs +13.75% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (16 years), KBWY annualized +0.22% vs +9.91% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, KBWY or VYM?
KBWY has been the more volatile fund at 22.2% annualized versus 12.9% for VYM. Worst drawdown: KBWY -64.3% vs VYM -35.7%.
Should I hold both KBWY and VYM?
KBWY and VYM have a monthly-return correlation of 0.74, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, KBWY or VYM?
KBWY yields 8.31% while VYM yields 2.22%, so KBWY currently pays the higher dividend yield.
Is VYM better than KBWY?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.