PowerShares KBW Capital Markets Portfolio ETF (NYSEARCA:KBWC)
This ETF follows KBW Capital Markets Index, which measures the performance of the companies that do business as broker dealers, asset managers, trust and custody banks or exchanges. It has amassed about $4.9 million in its asset base while volume is very light, probably increasing the total cost for this unpopular fund beyond the expense ratio of 0.35%.
Holding 24 stocks in the basket, the product is largely concentrated on the top five firms, accounting for over 41% of the total assets. MS, BlackRock (BLK) and SCHW are the top three holdings. The ETF has added about 1.6% in the same period and has a decent annual dividend yield of 1.37%. It currently has a Zacks ETF Rank of 4 or ‘Sell’ rating with a Medium risk outlook.
PowerShares KBW High Dividend Yield Financial Portfolio (NYSEARCA:KBWD)
This fund provides exposure to the highest dividend-yielding stocks of the broad U.S. financial space, including banking, insurance, and diversified financial services. It tracks the KBW Financial Sector Dividend Yield Index and holds 38 securities. Unlike the other two, the ETF is pretty spread out across each component as each security holds less than 5% of assets (read: 4 Overlooked ETFs with Double-digit Yield).
KBWD has good $262.1 million in AUM and charges a higher annual fee of 1.55%. The cost of overall trading could rise as the fund trades in low volume of around 54,000 shares a day. The ETF added 0.7% in the past month and has an impressive dividend yield of 8.22%. These returns are much more than the total cost. The fund has a Zacks ETF Rank of 4 with a Medium risk outlook.
This article is brought to you courtesy of Sweta Killa from Zacks.