KBWD

KBWD seeks to provide exposure to the financial sector in the US. Aside from selecting stocks with competitive dividend yields, the fund also follows a modified dividend-weighting methodology. This focus on high-dividend stocks tilts KBWD's portfolio materially away from the broad financials market. It also excludes industry giants, in favor of smaller companies offering bigger yields. It follows that KBWD tilts small. The fund's dividend-centric strategy also leads to massive sector bets, as it underweights insurance companies and loads up on REITs and private equity. The index and is reconstituted and rebalanced on a quarterly basis.