Should You Invest in the Invesco KBW High Dividend Yield Financial ETF (KBWD)?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 30 2024
0mins
Source: NASDAQ.COM
Invesco KBW High Dividend Yield Financial ETF (KBWD): This ETF, launched in 2010, offers investors exposure to the financial sector with a focus on high dividend yields, currently holding assets over $391 million and an annual operating expense of 2.02%. It has a trailing dividend yield of 11.95% and is considered a medium-risk investment.
Comparison with Other ETFs: KBWD has a Zacks ETF Rank of 3 (Hold) and competes with other financial ETFs like Vanguard Financials ETF (VFH) and Financial Select Sector SPDR ETF (XLF), which have significantly lower expense ratios of 0.10% and 0.09%, respectively, making them potentially more cost-effective options for investors.
Analyst Views on TWO
Wall Street analysts forecast TWO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TWO is 10.88 USD with a low forecast of 10.00 USD and a high forecast of 12.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
1 Buy
4 Hold
0 Sell
Hold
Current: 13.410
Low
10.00
Averages
10.88
High
12.50
Current: 13.410
Low
10.00
Averages
10.88
High
12.50
About TWO
Two Harbors Investment Corp. is a real estate investment trust (REIT) that invests in mortgage servicing rights (MSR), residential mortgage-backed securities and other financial assets. The Company, through its operational platform, RoundPoint Mortgage Servicing LLC, is a servicer of conventional loans. The Company, through its subsidiary, TH MSR Holdings LLC, holds the requisite approvals from Fannie Mae and Freddie Mac to own and manage MSR. Its Agency residential mortgage-backed securities portfolio is comprised of fixed rate mortgage-backed securities backed by single-family and multi-family mortgage loans. Its other assets may include financial and mortgage-related assets other than its target assets, including non-Agency securities (securities that are not issued or guaranteed by Ginnie Mae, Fannie Mae or Freddie Mac), other Agency securities and certain non-hedging transactions that may produce non-qualifying income for purposes of REIT gross income tests.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
