KBWD is up 4.2% over the past year while some mREIT ETFs are down about 20%. The ETF tracks the KBW Financial Sector Dividend Yield Index, which also allows for the inclusion of high-yielding business development companies (BDCs).
Investors poured over $4 billion into publicly traded BDC’s last year, betting on an expanding economy, which will support earnings for companies that are most vulnerable to default, while generating some attractive yields. [BDC ETFs Rise as Investors Hunt for Yield]
KBWD has attracted almost $33.2 million in new investments over the 12-month period ending Jan. 21, according to PowerShares data.
PowerShares KBW High Dividend Yield Financial Portfolio