KBWD vs VTI
Invesco KBW High Dividend Yield Financial ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, KBWD or VTI?
Small Cap Value against Large Cap Blend.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. VTI is less concentrated, with 33.5% of the fund in its ten largest positions against 37.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | KBWD | VTI |
|---|---|---|
| Expense Ratio | 5.39% | 0.03%Best |
| AUM | $346M | $689.2B |
| Dividend Yield | 15.52% | 1.06% |
| Holdings | 80 | 3,524 |
| YTD Return | -16.69% | +13.02%Best |
| 1Y Return | -12.55% | +16.63%Best |
| 3Y Return (annualized) | +1.06% | +21.97%Best |
| 5Y Return (annualized) | -2.41% | +11.99%Best |
| Volatility (annualized) | 21.1% | 14.5%Best |
| Max Drawdown | -65.2% | -35.0%Best |
| $10,000 over 5 years | $8,852 | $17,616Best |
| Top 10 Weight | 37.7% | 33.5%Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | Large Cap Blend |
| Inception | Dec 2, 2010 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: Dec 2, 2010 to Oct 14, 2026 (15.9 years).
KBWD vs VTI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
KBWD vs VTI Performance
Invesco KBW High Dividend Yield Financial ETF (KBWD) is an ETF from Invesco (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year KBWD returned -12.55% while VTI returned +16.63%. Year to date, KBWD is down 16.69% versus a gain of 13.02% for VTI.
Over three years, KBWD compounded at +1.06% per year against +21.97% for VTI; over five years the annualized figures are -2.41% and +11.99% respectively. Across the full 16-year window we track, VTI has the edge at +12.48% annualized vs -1.24%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KBWD has been the more volatile fund, with annualized monthly volatility of 21.1% compared with 14.5% for VTI. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -65.2% for KBWD and -35.0% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KBWD charges 5.39% per year while VTI charges 0.03%. On a $10,000 position that is $539 vs $3 annually, a gap of $536 per year that compounds over a long holding period. On income, KBWD currently yields 15.52% against 1.06% for VTI.
Holdings Overlap
54.8% of KBWD's money is in holdings VTI also owns. 0.1% of VTI's money is in holdings KBWD also owns.
The two portfolios partly overlap.
21 positions in common, counted across the 37 positions we hold weights for in KBWD and 3,441 in VTI, against full books of 80 and 3,524.
What only one of them owns
Our book lists 1,151 positions for VTI that do not appear in our book for KBWD (97.5% of the fund), and 16 for KBWD that do not appear in VTI (43.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in KBWD | Weight in VTI | Difference |
|---|---|---|---|
| IVRInvesco Mortgage Capital Inc Reit | 4.33% | 0.00% | 4.33% |
| ARRArmour Residential Reit Inc | 4.11% | 0.00% | 4.11% |
| ORCOrchid Isla | 3.97% | 0.00% | 3.97% |
| PMTPennyMac Mortgage Investment Trust | 3.97% | 0.00% | 3.97% |
| MFAMfa Financial Inc | 3.93% | 0.00% | 3.93% |
| DXDynex Capital, Inc. | 3.76% | 0.00% | 3.76% |
| RWTRedwood Trust Inc Reit Usd.01 | 3.35% | 0.00% | 3.35% |
| AGNCAgnc Investment Corp. | 3.13% | 0.02% | 3.11% |
| NLYAnnaly Capital Management Inc | 3.09% | 0.02% | 3.07% |
| WUWestern Union Co. | 3.09% | 0.00% | 3.09% |
54.8% of KBWD is already inside VTI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, KBWD or VTI?
KBWD has an expense ratio of 5.39% while VTI charges 0.03%. VTI is the cheaper option, by $536 a year on a $10,000 investment.
Which performed better, KBWD or VTI?
Over the past year KBWD returned -12.55% vs +16.63% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (16 years), KBWD annualized -1.24% vs +12.48% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, KBWD or VTI?
KBWD has been the more volatile fund at 21.1% annualized versus 14.5% for VTI. Worst drawdown: KBWD -65.2% vs VTI -35.0%.
Should I hold both KBWD and VTI?
KBWD and VTI have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between KBWD and VTI?
54.8% of KBWD's money is in holdings VTI also owns. 0.1% of VTI's is in holdings KBWD also owns. They hold 21 positions in common, counted across the 37 positions we hold weights for in KBWD and 3,441 in VTI.
Which pays a higher dividend, KBWD or VTI?
KBWD yields 15.52% while VTI yields 1.06%, so KBWD currently pays the higher dividend yield.
Is VTI better than KBWD?
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. VTI is less concentrated, with 33.5% of the fund in its ten largest positions against 37.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.