The Invesco KBW High Dividend Yield Financial ETF (KBWD) is an exchange-traded fund that seeks to provide exposure to U.S. financial sector equities, with an emphasis on companies that pay high dividends. The ETF is managed by Invesco Ltd. and trades under the ticker KBWD on Nasdaq.

Classified as a U.S.-focused equity ETF with exclusive exposure to the financial sector and a dividend income focus, KBWD aims to reflect, before fees and expenses, the performance of the securities included in its benchmark index.

The fund follows a passive management strategy, replicating the Nasdaq KBW Financial Sector Dividend Yield Index, which selects U.S. financial companies based on dividend yield, liquidity, and market capitalization criteria.

The index  consists of U.S. financial institutions, including commercial banks, insurers, and other financial services firms with elevated dividend yields.

Diversification and sector exposure

KBWD provides exposure to the U.S. financial sector, focusing on companies with historically higher dividend distributions, including:

• Commercial and investment banking.

• Insurance.

• Diversified financial services.

• Specialized financial institutions.

This composition reflects multiple segments of the U.S. financial industry with an emphasis on income generation.

Structure and costs

KBWD shares trade on the secondary market on Nasdaq during regular trading hours. Creation and redemption occur through authorized participants, helping maintain alignment between market price and net asset value.

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. KBWD trades exclusively under the ticker KBWD.

History and evolution of the ETF

The Invesco KBW High Dividend Yield Financial ETF was launched in 2010, during a period of increased investor demand for income-oriented strategies within the financial sector following the restructuring of the U.S. banking market.

Since inception, the fund has attracted both institutional and individual investors seeking exposure to financial companies with strong dividend distributions. In recent years, KBWD has reflected Federal Reserve rate cycles, banking sector volatility, and shifts in dividend distribution policies across financial institutions.

Additional Information

Invesco KBW High Dividend Yield Financial ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $388.04 million.

Over the past 12 months, Invesco KBW High Dividend Yield Financial ETF recorded a return of -4.39%, with its price trading between $11.73 and $14.71 during the same period.

The ETF is traded under the ticker KBWD.