The Invesco KBW Premium Yield Equity REIT ETF (KBWY) is an exchange-traded fund designed to track the performance of U.S. equity REITs focused on dividend income generation. The ETF is managed by Invesco Ltd. and trades under the ticker KBWY on Nasdaq.

Classified as an equity ETF focused on U.S. equity REITs and dividend income generation, KBWY seeks to reflect, before fees and expenses, the performance of the companies included in its benchmark index.

The fund follows a passive management strategy, replicating the KBW Nasdaq Premium Yield Equity REIT Index, which consists of REITs selected according to dividend yield, liquidity, and representativeness criteria within the U.S. real estate market.

The methodology places significant emphasis on small- and mid-cap REITs, focusing on companies with relatively higher dividend distribution levels.

Diversification and sector exposure

KBWY provides exposure to the U.S. real estate market through multiple REIT segments, including:

• Residential and multifamily properties
• Industrial and logistics facilities
• Commercial real estate
• Specialized REITs
• Distribution centers and logistics assets

This composition reflects multiple segments of the U.S. real estate sector tied to dividend income generation.

Structure and costs

KBWY 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. KBWY may distribute income derived from dividends paid by REITs held in the portfolio.

History and evolution of the ETF

The Invesco KBW Premium Yield Equity REIT ETF was launched in 2010, during a period of expansion in income-oriented ETFs tied to the U.S. real estate market.

Since inception, the fund has been used by investors seeking exposure to higher-yield REITs within the U.S. real estate sector.

In recent years, KBWY has reflected Federal Reserve monetary policy cycles, movements in real estate interest rates, credit market conditions, and volatility associated with higher-yield REITs.

Additional Information

Invesco KBW Premium Yield Equity REIT ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $315.30 million.

Over the past 12 months, Invesco KBW Premium Yield Equity REIT ETF recorded a return of 15.05%, with its price trading between $14.97 and $19.19 during the same period.

The ETF is traded under the ticker KBWY.