The Invesco KBW High Dividend Yield Financial ETF (KBWD) invests in smaller companies in the financial industry that pay high dividends. The fund currently boasts a very high yield of 9.7% which makes it one of the highest yielding ETFs on the market today.
In theory, I love this ETF. It has cheap stocks with high dividends that should make it a long-run outperformer. That said, most of its holdings are mortgage REITs, business development companies, boutique investment banks, and insurers, all of which carry significantly higher-than-normal liquidity and credit risk. Thus, investors