The YouTuber recommends KBWD as an alternative to individual high-dividend financial stocks, offering diversification across many companies like mortgage REITs and BDCs. This diversification helps smooth out cash flow and returns, mitigating the risk associated with any single company's performance.
“I love this fund it's an alternative to investing individually across those higher dividend stocks because it gets that diversification across so many companies yes the share price is going to get hit when the entire mortgage rate industry tumbles or when bdc's Falls but it's not going to get hit with problems from any one single company and that's going to help smooth out your cash flow and your returns”