KBWY

KBWY is an outsider in the US real estate space. The fund rejects the traditional cap-weighted methodology in favor of dividend-yield-weighting. KBWY also intentionally nixes large cap REITs in favor of smaller capitalization alternatives. This produces a basket that tilts very small—around 70% small- and microcaps—and also underweights residential REITs in favor of commercial REITs. Still, KBWY's dividend-focused strategy makes some sense—the reliable dividends of REITs are a big draw for real estate investors. KBWY may have some yield advantage, but this can be unstable, in part because the fund's long-term returns are more variable due to its small-cap bias. The index is rebalanced and reconstituted on a quarterly basis.