Launched on 12/02/2010, the Invesco KBW High Dividend Yield Financial ETF (KBWD) is a smart beta exchange traded fund offering broad exposure to the Financials ETFs category of the market.What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.Fund Sponsor & IndexBecause the fund has amassed over $478.49 million, this makes it one of the average sized ETFs in the Financials ETFs. KBWD is managed by Invesco. Before fees and expenses, this particular fund seeks to match the performance of the KBW Nasdaq Financial Sector Dividend Yield Index.The KBW Nasdaq Financial Sector Dividend Yield Index is a dividend yield weighted index seeking to reflect the performance of approximately 24 to 40 publicly listed financial companies engaged in the business of providing financial services and products, including banking, insurance and diversified financial services, in the US.Cost & Other ExpensesFor ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.With one of the most expensive products in the space, this ETF has annual operating expenses of 1.24%.It's 12-month trailing dividend yield comes in at 7.62%.Sector Exposure and Top HoldingsMost ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.For KBWD, it has heaviest allocation in the Financials sector --about 98.30% of the portfolio.Looking at individual holdings, Orchid Island Capital Inc (ORC) accounts for about 5.75% of total assets, followed by Newtek Business Services Corp (NEWT) and Armour Residential Reit Inc (ARR).The top 10 holdings account for about 35.88% of total assets under management.Performance and RiskYear-to-date, the Invesco KBW High Dividend Yield Financial ETF has lost about -4.12% so far, and is up roughly 21.49% over the last 12 months (as of 01/25/2022). KBWD has traded between $16.70 and $21.58 in this past 52-week period.KBWD has a beta of 1.39 and standard deviation of 32.75% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 40 holdings, it has more concentrated exposure than peers.AlternativesInvesco KBW High Dividend Yield Financial ETF is an excellent option for investors seeking to outperform the Financials ETFs segment of the market. There are other ETFs in the space which investors could consider as well.Vanguard Financials ETF (VFH) tracks MSCI US Investable Market Financials 25/50 Index and the Financial Select Sector SPDR ETF (XLF) tracks Financial Select Sector Index. Vanguard Financials ETF has $11.38 billion in assets, Financial Select Sector SPDR ETF has $45.83 billion. VFH has an expense ratio of 0.10% and XLF charges 0.12%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Financials ETFs.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco KBW High Dividend Yield Financial ETF (KBWD): ETF Research Reports ARMOUR Residential REIT, Inc. (ARR): Free Stock Analysis Report Financial Select Sector SPDR ETF (XLF): ETF Research Reports Orchid Island Capital, Inc. (ORC): Free Stock Analysis Report Newtek Business Services Corp. (NEWT): Free Stock Analysis Report Vanguard Financials ETF (VFH): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research