KBWY vs REM: Real Estate ETF Showdown
Institutional side-by-side analysis of fees, dividend cash flows, and underlying holdings overlap.
Key Fundamental Specifications
| Metric | KBWY | REM |
|---|---|---|
| Annual Expense Ratio | 0.35% Lowest Fee | 0.48% |
| Annual Dividend Yield | 7.80% | 10.45% Higher Yield |
| Assets Under Management (AUM) | $0.2 Billion | $0.7 Billion |
| Number of Holdings | 32 Constituents | 35 Constituents |
| Fund Issuer | Invesco | BlackRock |
| Benchmark Index | KBW Nasdaq Premium Yield Equity REIT Index | FTSE Nareit All Mortgage Capped Index |
Top Holdings & Weight Overlap
Constituent weights across both funds:
| REIT Constituent | KBWY Weight | REM Weight |
|---|---|---|
| AGNC AGNC Investment Corp. | 0.0% | 14.5% |
| NLY Annaly Capital Management | 0.0% | 13.8% |
| STWD Starwood Property Trust | 0.0% | 8.2% |
| BXMT Blackstone Mortgage Trust | 0.0% | 5.4% |
| RITM Rithm Capital Corp. | 0.0% | 5.1% |
Institutional Verdict: KBWY or REM?
Fee Advantage: KBWY offers the lower expense ratio at 0.35% vs 0.48%. Over a 20-year holding period, lower expense drag preserves thousands of dollars in cumulative returns.
Yield Generation: For income-focused investors, REM provides the higher current dividend yield at 10.45%, making it more attractive for living off dividend cash flow.
Conclusion: If your priority is low-cost passive index tracking, choose KBWY. If your mandate is maximum immediate dividend yield, choose REM.
Frequently Asked Questions
What is the difference between KBWY and REM?
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 Mortgage Real Estate ETF (REM) is issued by BlackRock charging 0.48% with a yield of 10.45%.
Which REIT ETF has lower fees: KBWY or REM?
KBWY has the lower annual expense ratio (0.35% vs 0.48%), saving long-term investors money on compounding fee drag.
Which ETF pays a higher dividend yield: KBWY or REM?
REM currently pays the higher annualized dividend yield (10.45% vs 7.80%).
Can I hold both KBWY and REM in a portfolio?
While you can hold both, KBWY and REM share significant constituent overlap in top REITs like Prologis, American Tower, and Equinix. Holding both may cause redundant portfolio exposure.