Up over 135%, This Financials ETF Is Still Scoring Big April 5, 2021
Financial services stocks are among the best-performing groups in the U.S. this year. The tricky part of that is their relatively low yields.
Investors can enhance the financial services income proposition with the
“The Fund generally will invest at least 90% of its total assets in the securities of publicly listed financial companies with competitive dividend yields, in the United States and that comprise the Underlying Index,” according to Invesco.
KBWD’s dividend yield of 8.21% is obviously eye-catching, but the fund offers other benefits. That yield is high because KBWD’s lineup is diverse relative to traditional, lower yielding financial services ETFs. Rather than relying solely on banks and brokers, KBWD also features insurance providers, asset managers, mortgage real estate investment trusts (mREITs), and business development companies (BDCs).
Rising Rates Not a Bad Thing for the Invesco KBWD ETF March 8, 2021
With safe haven Treasury notes on the rise, fixed income investors are starting to explore some more options. One promising route is debt within the financial sector, attainable via the
“Like all investing strategies, high-yield ETFs are a bit of a balancing act,” a Kiplinger article explained. “On one hand, stocks that deliver tremendous yield can be enticing because of ‘guaranteed’ paydays that are two times, three times or even five times the typical dividend stock in the S&P 500.”
“But the truth is there are no guarantees on Wall Street,” the article explained further. “Firms that were very generous last quarter sometimes wind up cutting their dividends this quarter or seeing their shares tumble as a result of poor performance.”