KBWD - KBWD: High Yield High Fee Low Valuation With 'Less Bad' Momentum
2024-06-26 05:20:14 ET
Summary
- Regional banks and REITs have underperformed the S&P 500 in the past 18 months.
- KBWD ETF, focused on high dividend yield financials, is now upgraded from sell to hold due to low valuations and technical improvements.
- KBWD is concentrated in financials and real estate, with potential for a rebound but not recommended for long-term holding due to the high expense ratio.
- I outline key price levels on the chart to monitor.
Two of the worst-performing areas of the US stock market in the past 18 months have been regional banks and the REIT space. Small-cap value writ large has underperformed the S&P 500 with the high-dividend-yield factor providing lackluster returns despite strength in the underlying economy....
KBWD: High Yield, High Fee, Low Valuation With 'Less Bad' Momentum