KBWD vs VFH: Grades, Fees and Holdings Compared

Invesco KBW High Dividend Yield Financial ETF

KBWDFNasdaq

Vanguard Financials ETF

VFHBNYSE Arca

Overlap

1.3%by weight

Expense ratio

VFH −5.30pt a year

KBWD5.39%VFH0.09%

Avg volume · 30D

VFH 1.01×the volume

KBWD574KVFH579K

10Y return · a year

VFH +9.6pt

KBWD+3.3%VFH+12.9%

KBWD vs VFH Performance

Oct 29, 2021 – Oct 30, 2026

−9.7%KBWD+52.3%VFH

Expense ratio: KBWD 5.39%; VFH 0.09%, better
Fund size: KBWD $332M; VFH $13.9B
1Y total return: KBWD −10.2%; VFH +9.6%, better
Yield (12M): KBWD 16.12%, better; VFH 1.71%
Holdings: KBWD 38; VFH 426
Avg volume (30D): KBWD 574K sh; VFH 579K sh, better
NAV per share: KBWD $10.56; VFH $137.29
52W range

ETF.net Grade

Pillar letters and Scores for KBWD, VFH, with each pillar’s weight
Pillar	KBWD	VFH
Cost30% weight	F0	A88Higher
Mission25% weight	Not scored	Not scored
Risk15% weight	F13	C53Higher
Tradability15% weight	D34	B56Higher
Holdings10% weight	A70Higher	C53
Durability5% weight	C50	A84Higher

Rank among Financials (Broad) funds

How we build Categories ›

Same Category. KBWD and VFH are both graded against the same 18 Financials (Broad) funds, so their Grades compare head to head.

Financials (Broad)⁠

Category · 18 funds

See all 18 ›

VFH ranks 4th and KBWD 17th of 18 funds in the Financials (Broad) Category.

Rank 1AXLFState Street Financial Select Sector SPDR ETFScore 82
Rank 2AFNCLFidelity MSCI Financials Index ETFScore 76
Rank 3AKIEState Street SPDR S&P Insurance ETFScore 72
Rank 4BVFHVanguard Financials ETFScore 69
Rank 5BIXGiShares Global Financials ETFScore 66
Rank 16DPFIInvesco Dorsey Wright Financial Momentum ETFScore 34
Rank 17FKBWDInvesco KBW High Dividend Yield Financial ETFScore 22
Rank 18FBCFNBaron Financials ETFScore 14

Our read on each fund

ETF.net Research

KBWDFInvesco KBW High Dividend Yield Financial ETF

VFHBVanguard Financials ETF

In short

KBWD Most financials ETFs are a bet on big banks. KBWD flips the screen and picks financial companies on dividend yield instead, packing about 40 of them into a monthly-paying portfolio. It has run that playbook since 2010.

VFH Financials without the size filter. VFH holds roughly 400 US financial stocks, from the megabanks down to small regional lenders and insurers, for 0.09% a year.

Stated mandate

KBWD The Fund generally invests at least 90% of its assets in publicly listed financial companies selected for competitive dividend yields.

VFH VFH seeks to track the MSCI US Investable Market Index (IMI)/Financials 25/50, providing passively managed, multicapitalization exposure to U.S. financial-sector equities.

Why people hold it

KBWD Yield is the entire selection rule: the KBW Nasdaq Financial Sector Dividend Yield Index screens listed financial companies for competitive dividend yields, not size.invesco.com
Distributions land monthly, not quarterly.
About 40 holdings, so the income-heavy corners of finance actually drive the fund instead of getting buried under mega-cap banks.
Live since 2010 and moderately traded, with assets in the hundreds of millions. This is a long-running strategy, not a launch-week experiment.

VFH Owns the whole sector, not just the giants: roughly 400 US financial names through MSCI's US IMI Financials 25/50 index, megabanks through small regional lenders and insurers.vanguard.com
Costs 0.09% a year, a fraction of what the typical broad financials fund charges.vanguard.com
Running since 2004, now a multi-billion-dollar fund that trades actively, and it has stayed close to its index. One of the strongest implementations in the financials group.
Pays out quarterly, passively managed, no manager stock-picking inside the sector.

Worth knowing

KBWD Cost is the headline trade-off: a 5.39% total expense ratio against a 0.44% median for broad financials funds. That is a wide gap for the yield to cover.
Plain financials exposure is far cheaper. XLF runs 0.08% and VFH 0.09%, but both lean toward the big banks rather than the highest payers.
Screening for the fattest yields in finance concentrates you in roughly 40 rate-sensitive names inside one sector.

VFH One sector, one storyline: banks, insurers and brokers tend to move together with interest rates and the credit cycle.
The multicap reach cuts both ways. Small regional banks and niche insurers ride along with the megacaps, and they can swing harder.
Cost isn't the edge here: XLF and FNCL sit at essentially the same fee. Breadth of coverage is the real differentiator.

Full KBWD profile⁠

Full VFH profile⁠

KBWD vs VFH Holdings

How KBWD and VFH differ

Overlap by weight

1.3%

Shared holdings make up 58.1% of KBWD and 1.3% of VFH.

Level by level

Holdings23 in both1.3%
Sector7 Sectors58.3%
Asset classEquity100%
Countryby domicile100%

Sector

Sector weights in KBWD and VFH, widest gap first
Sector	More in KBWDMore in VFH	KBWD	VFH
Real Estate	KBWD +41.7 points	42.3%	0.6%
Financials	VFH +39.6 points	57.7%	97.3%
Technology	VFH +1.9 points	0.0%	1.9%
Health Care	VFH +0.1 points	0.0%	0.1%
Industrials	VFH +0.1 points	0.0%	0.1%
Consumer Discretionary	Same weight	0.0%	0.0%
Communication	Same weight	0.0%	0.0%

Country, concentration and asset class

Country by domicile

Country weights in KBWD and VFH, widest gap first
Country	More in KBWDMore in VFH	KBWD	VFH
United States	Same weight	100.0%	100.0%

Concentration

Weight in the 10 largest Holdings

KBWD37.4%
VFH48.5%

Securities held

KBWD37
VFH424

Asset class

KBWD: Equity
VFH: Equity

Holdings

Only in KBWD14
In both23
Only in VFH401

Only in KBWD

14 securities, 41.3% of KBWD by weight

MidCap Financial Investment Corp3.83%
FS KKR Capital Corp3.61%
PennantPark Floating Rate Capital Ltd3.52%
New Mountain Finance Corp3.44%
Goldman Sachs BDC Inc3.17%
Carlyle Secured Lending Inc3.03%
Nuveen Churchill Direct Lending Corp2.93%
Trinity Capital Inc2.93%
Blue Owl Capital Corp2.83%
BlackRock TCP Capital Corp2.77%
CION Investment Corp2.69%
Crescent Capital BDC Inc2.55%
AllianceBernstein Holding LP2.51%
PennantPark Investment Corp1.52%

Only in VFH

401 securities, 98.2% of VFH by weight

JPMorgan Chase & Co10.46%
Berkshire Hathaway Inc8.36%
Visa Inc7.10%
Mastercard Inc5.32%
Bank of America Corp4.20%
Goldman Sachs Group Inc/The2.96%
Wells Fargo & Co2.88%
Morgan Stanley2.64%
Citigroup Inc2.61%
Charles Schwab Corp/The1.92%
American Express Co1.91%
Blackrock Inc1.85%
Progressive Corp/The1.44%
S&P Global Inc1.42%
Chubb Ltd1.35%
Capital One Financial Corp1.34%
Bank of New York Mellon Corp/The1.17%
CME Group Inc1.13%
US Bancorp1.07%
PNC Financial Services Group Inc/The1.06%
Intercontinental Exchange Inc1.02%
Robinhood Markets Inc1.01%
Blackstone Inc0.99%
Marsh & McLennan Cos Inc0.98%
Travelers Cos Inc/The0.88%
Moody's Corp0.80%
Arthur J Gallagher & Co0.70%
KKR & Co Inc0.68%
Allstate Corp/The0.68%
Truist Financial Corp0.67%
Aon PLC0.67%
MetLife Inc0.61%
Aflac Inc0.61%
Apollo Global Management Inc0.58%
State Street Corp0.57%
Fifth Third Bancorp0.55%
Ameriprise Financial Inc0.53%
Nasdaq Inc0.50%
American International Group Inc0.47%
Coinbase Global Inc0.47%
MSCI Inc0.46%
Block Inc0.45%
Interactive Brokers Group Inc0.43%
Hartford Insurance Group Inc/The0.40%
M&T Bank Corp0.38%
Arch Capital Group Ltd0.37%
Huntington Bancshares Inc/OH0.37%
Northern Trust Corp0.35%
Cboe Global Markets Inc0.34%
PayPal Holdings Inc0.33%

Weight gaps

All 23 Holdings in both funds, largest gap first.

Holding weights in KBWD and VFH, widest gap first
Holding	More in KBWDMore in VFH	KBWD	VFH
Invesco Mortgage Capital IncIVR	KBWD +4.07 points	4.08%	<0.01%
ARMOUR Residential REIT IncARR	KBWD +3.89 points	3.91%	0.02%
Orchid Island Capital IncORC	KBWD +3.87 points	3.88%	0.01%
PennyMac Mortgage Investment TrustPMT	KBWD +3.79 points	3.80%	<0.01%
Dynex Capital IncDX	KBWD +3.73 points	3.76%	0.03%
MFA Financial IncMFA	KBWD +3.52 points	3.53%	<0.01%
Western Union Co/TheWU	KBWD +3.21 points	3.23%	0.02%
Redwood Trust IncRWT	KBWD +3.09 points	3.10%	<0.01%
AGNC Investment CorpAGNC	KBWD +3.06 points	3.18%	0.12%
Annaly Capital Management IncNLY	KBWD +2.84 points	3.00%	0.16%
Adamas Trust IncADAM	KBWD +2.59 points	2.60%	<0.01%
Arbor Realty Trust IncABR	KBWD +2.31 points	2.32%	<0.01%
Franklin BSP Realty Trust IncFBRT	KBWD +2.05 points	2.06%	<0.01%
Artisan Partners Asset Management IncAPAM	KBWD +1.91 points	1.94%	0.03%
Blue Owl Capital IncOWL	KBWD +1.87 points	1.94%	0.07%
Washington Trust Bancorp IncWASH	KBWD +1.75 points	1.76%	<0.01%
First Interstate BancSystem IncFIBK	KBWD +1.60 points	1.64%	0.04%
Northwest Bancshares IncNWBI	KBWD +1.61 points	1.63%	0.02%
Peoples Bancorp Inc/OHPEBO	KBWD +1.33 points	1.35%	0.02%
Kearny Financial Corp/MDKRNY	KBWD +1.32 points	1.33%	<0.01%
Lincoln National CorpLNC	KBWD +1.24 points	1.32%	0.08%
Franklin Templeton IncBEN	KBWD +1.10 points	1.21%	0.11%
Prudential Financial IncPRU	KBWD +1.02 points	1.49%	0.47%

All 37 KBWD holdings⁠All 404 VFH holdings⁠

How we measure overlap

Each holding counts at its smaller weight in the two funds, summed over the full Holdings. Sector, country and asset class use the same rule on each fund’s split. Cash, FX and derivative lines stay out of the counts. Two bond funds get no overlap figure.

KBWD vs VFH Cost

Overpaying KBWD vs VFH

$58,077

On $10,000 over 30 years. 7% growth a year before fees, expense ratio only.

KBWD 5.39%
$59,975
VFH 0.09%
$1,898

Amount$10,000

Years30 years

Cost over time

KBWD 5.39%
VFH 0.09%
Overpaying

Year by year

Year	KBWD	VFH	Overpaying
10	$7,940	$165	$7,775
20	$24,933	$646	$24,287
30	$59,975	$1,898	$58,077

Expense ratio

5.39%KBWD
0.09%VFH, cheaper

VFH0.09%KBWD5.39%

0.08%5.39%

Middle half of Financials (Broad) funds
Median 0.37%

VFH 3rd cheapest of 18 funds

KBWD 18th cheapest of 18 funds

KBWD vs VFH Dividends

Last 12 months to Oct 30, 2026

Yield (12M): KBWD 16.12%, better; VFH 1.71%
Payout (12M): KBWD $1.70; VFH $2.35
Last payment: KBWD $0.13; VFH $0.45
Ex-dividend: KBWD Oct 19, 2026; VFH Sep 23, 2026
Paid on: KBWD Oct 23, 2026; VFH Sep 25, 2026
Frequency: KBWD Monthly; VFH Quarterly

Distribution history

Per share, 2023 to 2026, same scale for both

KBWDMonthly · 46 paymentsAll KBWD payments⁠

VFHQuarterly · 15 paymentsAll VFH payments⁠

KBWD vs VFH Risk

Fall from peak · 5 years

KBWD
VFH

Risk facts

VolatilityStd dev, 3 years: KBWD 16.2%VFH 15.9%, better
Return per unit of riskSharpe ratio, 3 years: KBWD 0.08VFH 1.11, better
Worst fallMax drawdown, 5 years: KBWD −30.7%VFH −25.7%, better
Market sensitivityBeta, 5 years: KBWD 0.80VFH 0.82; Market = 1

KBWD and VFH in the news

All news⁠

Deep Dive
Bank earnings week will miss most of what a financials fund owns
Oct 12, 2026VFH

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KBWD vs VFH

In short

Stated mandate

Why people hold it

Worth knowing

How KBWD and VFH differ

Level by level

Sector

Country, concentration and asset class

Country by domicile

Concentration

Asset class

Holdings

Only in KBWD

Only in VFH

Weight gaps

Cost over time

Year by year

Distribution history

Fall from peak · 5 years

Risk facts

Bank earnings week will miss most of what a financials fund owns

How KBWD and VFH differ

Level by level

Sector

Country, concentration and asset class

Country by domicile

Concentration

Asset class

Holdings

Only in KBWD

Only in VFH

Weight gaps