KBWY vs REET: Real Estate ETF Showdown
Institutional side-by-side analysis of fees, dividend cash flows, and underlying holdings overlap.
Key Fundamental Specifications
| Metric | KBWY | REET |
|---|---|---|
| Annual Expense Ratio | 0.35% | 0.14% Lowest Fee |
| Annual Dividend Yield | 7.80% Higher Yield | 3.82% |
| Assets Under Management (AUM) | $0.2 Billion | $3.1 Billion |
| Number of Holdings | 32 Constituents | 358 Constituents |
| Fund Issuer | Invesco | BlackRock |
| Benchmark Index | KBW Nasdaq Premium Yield Equity REIT Index | FTSE EPRA Nareit Global REITS Index |
Top Holdings & Weight Overlap
Constituent weights across both funds:
| REIT Constituent | KBWY Weight | REET Weight |
|---|
Institutional Verdict: KBWY or REET?
Fee Advantage: REET offers the lower expense ratio at 0.14% vs 0.35%. Over a 20-year holding period, lower expense drag preserves thousands of dollars in cumulative returns.
Yield Generation: For income-focused investors, KBWY provides the higher current dividend yield at 7.80%, making it more attractive for living off dividend cash flow.
Conclusion: If your priority is low-cost passive index tracking, choose REET. If your mandate is maximum immediate dividend yield, choose KBWY.
Frequently Asked Questions
What is the difference between KBWY and REET?
Invesco KBW Premium Yield Equity REIT ETF (KBWY) is issued by Invesco with an expense ratio of 0.35% and dividend yield of 7.80%. In comparison, iShares Global REIT ETF (REET) is issued by BlackRock charging 0.14% with a yield of 3.82%.
Which REIT ETF has lower fees: KBWY or REET?
REET has the lower annual expense ratio (0.14% vs 0.35%), saving long-term investors money on compounding fee drag.
Which ETF pays a higher dividend yield: KBWY or REET?
KBWY currently pays the higher annualized dividend yield (7.80% vs 3.82%).
Can I hold both KBWY and REET in a portfolio?
While you can hold both, KBWY and REET share significant constituent overlap in top REITs like Prologis, American Tower, and Equinix. Holding both may cause redundant portfolio exposure.