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The Invesco KBW Premium Yield Equity REIT ETF (NASDAQ:KBWY) directs at least 90% of the AuM into small- and mid-cap US equity REITs with a focus on above-average dividend yields.
The exposure towards high dividend yields stems mainly
KBWY: Bad Choice During Times Of Distress
Summary
- KBWY's factor exposures are skewed towards small- and mid-cap US equity REITs, high dividend yields and struggling sectors such as office and retail.
- Major constituencies in KBWY's portfolio are heavily indebted and facing serious difficulties with access to sound financing.
- Investing in KBWY implies an opportunity cost, where other better capitalized US equity REITs offer similar level of yield.
- KBWY is not an optimal investment for investors, who expect above average current income with relative stability in the future.
Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.
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