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KBWD's 14% Yield Hides Capital Erosion Risk Amid Fed Rate Cuts

24/7 Wall St. Read original source (opens in a new tab)
The Story

News Summary

  • KBWD ETF's 14% yield relies partly on return of capital, not just earnings, due to a 139% payout ratio.
  • Fed rate cuts and a steepening yield curve slightly favor financials like mortgage REITs and banks.
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