KBWD: Stay Away From This High Yield Trap

2026-02-09 19:58:44 ET

Overview

If you're a follower of mine, you know that I love a high dividend yield. However, all high yields aren't the same and some can be harmful to your long-term returns. Invesco KBW High Dividend Yield Financial ETF ( KBWD ) is one of those funds that is a bit tricky. On one end, it offers a high yield while maintaining diversity across different asset classes. However, the fund simultaneously offers exposure to high yield assets without a clear structure to mitigate downside risks. When I previously covered KBWD, I issued a sell rating due to the fund's declining NAV and poor payout history. Now that we've crossed into the new year and the macro environment has shifted a bit, I wanted to revisit the fund's value proposition....

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