At a glance
KBWY charges 0.35% a year, below the 0.48% average of the 3 funds most like it (the cheapest of 4). It has $315.2M in assets, the largest of that group; it paid 9.15% of its price in distributions over the past 12 months, monthly. Over the past year it returned +15.2% with distributions reinvested (S&P 500: +11.5%), the best of those 4 funds; over three years it returned +9.9% a year. At its worst it fell 56.2% in the 2020 crash (S&P 500: 33.7%) and 27.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 75 months and 23 months after the lows. Its ten largest positions make up 46.1% of the fund, out of 28 in all.
The short version
Invesco KBW Premium Yield Equity REIT ETF (KBWY) tracks the KBW Nasdaq Premium Yield Equity REIT Index. The index holds small- and mid-sized US real estate investment trusts and weights them by dividend yield, so the highest payers get the biggest slices. The fund pays monthly, with a trailing yield of 9.15% as of October 27, 2026. It costs 0.35% a year, below the 0.48% average of similar funds. The trade-off has been deep losses that were slow to recover.
Price history
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KBWY +15.2% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| KBWY official prospectus, to Dec 31, 2024 | — | -3.45% | — | -3.00% | +0.69% | — |
| KBWY price data to Oct 27, 2026 | +13.5% | +15.2% | +9.9% | +0.4% | +0.8% | +4.4% |
- Over the year to Oct 27, 2026, KBWY returned +15.2%, 1st of 4 among similar funds.
- Its 5-year annualized return was +0.4% and its 10-year +0.8%.
- In the 2020 COVID crash it fell 56.2% and regained its old high 75.3 months after the low.
- Its worst full calendar year was 2020 (-25.8%); its best was 2016 (+33.1%).
- The deepest fall in its price history was 57.6% (Jul 6, 2018 to Mar 18, 2020), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +13.5% | — |
| 2025 | -5.0% | — |
| 2024 | -3.5% | -3.45% |
| 2023 | +13.0% | +12.75% |
| 2022 | -19.0% | -18.90% |
| 2021 | +31.2% | +31.14% |
| 2020 | -25.8% | -25.82% |
| 2019 | +23.2% | +23.44% |
| 2018 | -18.0% | -18.04% |
| 2017 | +0.8% | +0.86% |
| 2016 | +33.1% | +33.05% |
| 2015 | -8.2% | -8.18% |
| 2014 | +23.8% | — |
| 2013 | +10.7% | — |
| 2012 | +28.8% | — |
| 2011 | -5.1% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 53.4% over that stretch · deepest drop along the way 56.2%, back to its old high 75.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 25.1% over that stretch · deepest drop along the way 27.1%, back to its old high 23.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.2300 | |
| 2025 | $1.5600 | 0.0% |
| 2024 | $1.5600 | -3.1% |
| 2023 | $1.6100 | +11.8% |
| 2022 | $1.4400 | +11.6% |
| 2021 | $1.2900 | -40.0% |
| 2020 | $2.1500 | +10.8% |
| 2019 | $1.9400 | -16.7% |
| 2018 | $2.3300 | -8.6% |
| 2017 | $2.5500 | +3.2% |
| 2016 | $2.4700 | +42.8% |
| 2015 | $1.7300 | +8.1% |
| 2014 | $1.6000 | +11.9% |
| 2013 | $1.4300 | +0.7% |
| 2012 | $1.4200 | -7.2% |
| 2011 | $1.5300 |
What's inside
As of Aug 31, 2026, the fund held 28 securities; the ten largest made up 46.13% of assets. It also reported 28.98% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| Innovative Industrial Properties, Inc. | 6.29% | |
| Millrose Properties, Inc. | 5.68% | |
| Park Hotels & Resorts Inc. | 5.09% | |
| Gladstone Commercial Corp. | 4.79% | |
| Community Healthcare Trust Inc. | 4.66% | |
| Highwoods Properties, Inc. | 4.39% | |
| Global Net Lease, Inc. | 3.89% | |
| AH Realty Trust, Inc. | 3.83% | |
| CTO Realty Growth, Inc. | 3.76% | |
| Easterly Government Properties, Inc. | 3.76% | |
| Apple Hospitality REIT, Inc. | 3.47% | |
| RLJ Lodging Trust | 3.42% | |
| Healthpeak Properties, Inc. | 3.39% | |
| EPR Properties | 3.28% | |
| SL Green Realty Corp. | 3.28% |
By country
United States 99.93%By asset type
Stocks 99.93%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $20.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +7.02%, -0.39%, -2.08%.
How it works
KBWY is an index fund. It generally puts at least 90% of its assets into the stocks in the KBW Nasdaq Premium Yield Equity REIT Index, which Keefe, Bruyette & Woods and Nasdaq compile and maintain. A REIT (real estate investment trust) is a company that owns income-producing property and pays out most of its income as dividends. The index looks for small- and mid-sized US equity REITs, meaning REITs that own property rather than mortgages, that pay competitive dividends. As of October 31, 2025, it held 27 stocks worth between $410.6 million and $12.6 billion each.
Most real estate funds give the biggest companies the most weight. This index uses a modified dividend-yield weighting instead, so higher-yielding REITs get larger weights, with adjustments set by the index provider. The fund owns every stock in proportion to the index. As of August 31, 2026, the largest holdings were Innovative Industrial Properties (6.3%), Millrose Properties (5.7%), Park Hotels & Resorts (5.1%), Gladstone Commercial (4.8%) and Community Healthcare Trust (4.7%). The top ten made up 46% of the fund.
The fund sells a stock only when the index drops it, even if the stock is lagging. Turnover was 77%, which is high for an index fund, and trading costs are not part of the expense ratio. The fund uses no leverage, options or derivatives. Cash equal to about 29% of assets in the August 2026 report appears to be collateral from lending shares to other investors, not money waiting to be invested.
What it really costs
- KBWY charges 0.35% a year, versus an average of 0.48% for the similar funds below (1st of 4, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $444 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| KBWY | $36 | $113 | $197 | $444 |
In a retirement portfolio
It pays high monthly income, but its deep losses and long recoveries suit a small slice of a portfolio better than a central one.
KBWY could add monthly income. Its trailing 12-month yield was 9.15% ($1.49 a share) as of October 27, 2026. On the SEC's standard $10,000 example, its 0.35% expense ratio comes to $36 in the first year. Price swings are the catch. The fund launched in 2010, so it has no 2008 record. In the 2020 COVID crash it fell 56.2% in under a month and took about 75 months, until June 2026, to get back to where it started. In 2022 it fell 27.1% and took about 23 months to recover. Its worst calendar year was 2020, at -25.8%. Its deepest drop, 57.6% from July 2018 to March 2020, had still not been made up as of October 27, 2026. Anyone who has to sell during a slump like that locks in the loss, and REITs can cut their dividends. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers who want monthly payouts from US property owners; the trailing yield was 9.15% as of October 27, 2026.
- Investors who want small and mid-sized REITs weighted by yield, rather than the large companies that lead most real estate funds.
- Cost-conscious investors: its 0.35% expense ratio is the lowest of the four similar funds compared, against a 0.48% average.
Look elsewhere if
- Anyone who may need to sell in a downturn: it fell 56.2% in early 2020 and took about 75 months to recover.
- Investors seeking long-term growth: its average annual return over 10 years through December 31, 2024 was 0.69%.
- Those who want broad diversification: it held 28 stocks from one sector, with the top ten at 46% as of August 31, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| KBWY this fund | — | 0.35% | $315.2M | +15.2% | +9.9% |
| RDOG ALPS REIT Dividend Dogs ETF · different strategy | 54% | 0.35% | $11.1M | +12.8% | +14.3% |
| RIET Hoya Capital High Dividend Yield ETF · different strategy | 31% | 0.5% | $109.1M | -2.1% | +9.4% |
| NETL NETLease Corporate Real Estate ETF · different strategy | 29% | 0.6% | $54.9M | +1.1% | +10.8% |
Questions investors ask
Does KBWY pay monthly dividends?
Yes. KBWY pays distributions every month. Over the 12 months to October 27, 2026, it paid $1.49 a share, a trailing yield of 9.15%. The money comes from dividends paid by the REITs it owns. Those payouts can change, because REITs can cut or suspend dividends when rents fall or money gets tight. The prospectus lists changes in the holdings' dividend policies as a principal risk.
Is KBWY good for retirement income?
It can provide high monthly income, but its price has swung sharply. The yield was 9.15% as of October 27, 2026. Yet the fund lost 56.2% in the 2020 crash and took about 75 months to recover. Its average annual return over 10 years through December 31, 2024 was 0.69%, so price declines have eaten up much of the income. It may suit retirees as a small part of a broader mix.
Why is KBWY's yield so high?
The yield is high because the index picks REITs with competitive dividends and gives the highest payers the largest weights. It also holds small and mid-sized REITs, which often pay more than larger ones. A high yield can also mean a stock's price has fallen or that investors doubt the payout will last. That helps explain why the fund's price has lagged over long periods while paying generous income.
What's the difference between KBWY and RDOG?
Both charge 0.35% and hold about 54% of the same stocks, but the ALPS REIT Dividend Dogs ETF (RDOG) uses a different selection strategy. As of October 27, 2026, KBWY returned 15.2% over one year against RDOG's 12.8%. Over three years, KBWY averaged 9.9% a year and RDOG 14.3%. KBWY is much larger, with $315 million in net assets against RDOG's $11.1 million as of August 31, 2026.
What are KBWY's long-term returns?
Long-term returns have been weak. In the prospectus, as of December 31, 2024, KBWY's average annual return was -3.45% over one year, -3.00% over five years and 0.69% over ten years. Price-based figures as of October 27, 2026 were stronger in the short run, with 15.2% over one year, but only 0.4% a year over five years and 0.8% a year over ten. Its worst quarter was a 45.57% loss in early 2020.