Invest in the Insurance Sector with Insurance ETFs
List of Insurance ETFs
One of my favorite things about ETFs is the fact you can target a specific sector without having to corner the market in industry stocks or fight the battle of filling your index basket at a certain price. With ETFs, you can get instant exposure to an industry with one transaction.
So for example, if you wanted to target the insurance sector, there are a few ETF choices for your portfolio. And that brings us to today's topic - Insurance ETFs.
As of today, there are four different funds to select if you are looking for an opportunity in the insurance industry. There used to be five, but PIC, the Power Shares Dynamic Insurance ETF is no longer trading. However, Power Shares does have two other insurance funds on the market.
And on top of the two Power Shares Insurance funds, there are two other insurance ETFs as well. One is an SPDR and the other from iShares.
And as more funds come to market or if any are delisted, I'll be sure to update this list. So be sure to check back. In the meantime, here is a current...
List of Insurance ETFs
IAK - iShares Dow Jones US Insurance ETF
This insurance fund from iShares tracks a benchmark composed of U.S. equities in the insurance sector. Some of those equities include AIG, MetLife, Prudential, and Travelers. Most of the equities are focused on the property and casualty sector of the insurance industry, but also includes Life Insurance and Full Line insurance.
IAK has been trading since May of 2006 and you can get the full details on the iShares website.
KIE - SPDR KBW Insurance ETF
The next fund on the list is an SPDR and correlates with the S&P Insurance Select Industry Index. Some of the holdings in both the fund and the benchmark include Hanover Insurance Group, First American Financial Group, Chubb Corporation, and Travelers.
The fund has been trading since November of 2005 and you can get full details on the KIE fact sheet.
KBWP - Power Shares KBW Property & Casualty Insurance Portfolio
The next two funds on our list of insurance ETFs are both from Power Shares. First up is KBWP, which tracks the KBW Property & Casualty Index, which holds company stocks such as AllState, Travelers, Chubb Corporation and Progressive. The ETF and benchmark hold two dozen stocks in all and if you want to see the full list, then check out the KBWP fact sheet.
KBWI - Power Shares Insurance Portfolio - This fund is now closed
The second Power Shares Insurance ETF on the list is KBWI, which tracks the KBW Insurance Index. Like its counterpart, KBWP, it holds 24 company stocks, but the top holdings in this fund and benchmark are Marsh & McLennan, Ameriprise, Principal Financial Group, and Aflac. This fund has been trading since November of 2011 and you can get the full details on the KBWI fact sheet.
So there is the current list of insurance funds and as I said above, I will update this list as more funds are created or if any or any are closed.
And while I like the fact that these funds give you access to the insurance sector, they come with other advantages as well.
Including the tax benefits.
But ETFs are not without risk either. So be sure to research each fund thoroughly before making any trades. Watch how they react to different market conditions, understand what is in the fund, etc. And if you have any questions or concerns, be sure to consult a financial professional such as an advisor or your broker.
But once you have conducted your due diligence and have made your decision, then good luck with all of your trades and specifically the insurance industry.
Disclaimer: At the time of publication of this article, I do not have any open positions in any of the above insurance exchange traded funds. - Mark Kennedy