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Should You Invest in the Invesco KBW Property & Casualty Insurance ETF (KBWP)?
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Looking for broad exposure to the Financials - Insurance segment of the equity market? You should consider the Invesco KBW Property & Casualty Insurance ETF (KBWP - Free Report) , a passively managed exchange traded fund launched on 12/02/2010.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Financials - Insurance is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $200.30 million, making it one of the average sized ETFs attempting to match the performance of the Financials - Insurance segment of the equity market. KBWP seeks to match the performance of the KBW Nasdaq Property & Casualty Index before fees and expenses.
The KBW Nasdaq Property & Casualty Index is a modified market capitalization weighted index that reflects the performance of approximately 24 property and casualty insurance companies.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.64%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector--about 100% of the portfolio.
Looking at individual holdings, Progressive Corp/the (PGR - Free Report) accounts for about 8.32% of total assets, followed by Arch Capital Group Ltd (ACGL - Free Report) and Chubb Ltd (CB - Free Report) .
The top 10 holdings account for about 61.39% of total assets under management.
Performance and Risk
So far this year, KBWP has added about 2.40%, and is up about 7.97% in the last one year (as of 01/08/2024). During this past 52-week period, the fund has traded between $78.84 and $92.68.
The ETF has a beta of 0.61 and standard deviation of 19.14% for the trailing three-year period, making it a medium risk choice in the space. With about 25 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco KBW Property & Casualty Insurance ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. KBWP, then, is not a great choice for investors seeking exposure to the Financials ETFs segment of the market. Instead, there are better ETFs in the space to consider.
IShares U.S. Insurance ETF (IAK - Free Report) tracks Dow Jones U.S. Select Insurance Index and the SPDR S&P Insurance ETF (KIE - Free Report) tracks S&P Insurance Select Industry Index. IShares U.S. Insurance ETF has $474.21 million in assets, SPDR S&P Insurance ETF has $691.13 million. IAK has an expense ratio of 0.40% and KIE charges 0.35%.
Bottom Line
To 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.
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Should You Invest in the Invesco KBW Property & Casualty Insurance ETF (KBWP)?
Looking for broad exposure to the Financials - Insurance segment of the equity market? You should consider the Invesco KBW Property & Casualty Insurance ETF (KBWP - Free Report) , a passively managed exchange traded fund launched on 12/02/2010.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Financials - Insurance is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $200.30 million, making it one of the average sized ETFs attempting to match the performance of the Financials - Insurance segment of the equity market. KBWP seeks to match the performance of the KBW Nasdaq Property & Casualty Index before fees and expenses.
The KBW Nasdaq Property & Casualty Index is a modified market capitalization weighted index that reflects the performance of approximately 24 property and casualty insurance companies.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.64%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector--about 100% of the portfolio.
Looking at individual holdings, Progressive Corp/the (PGR - Free Report) accounts for about 8.32% of total assets, followed by Arch Capital Group Ltd (ACGL - Free Report) and Chubb Ltd (CB - Free Report) .
The top 10 holdings account for about 61.39% of total assets under management.
Performance and Risk
So far this year, KBWP has added about 2.40%, and is up about 7.97% in the last one year (as of 01/08/2024). During this past 52-week period, the fund has traded between $78.84 and $92.68.
The ETF has a beta of 0.61 and standard deviation of 19.14% for the trailing three-year period, making it a medium risk choice in the space. With about 25 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco KBW Property & Casualty Insurance ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. KBWP, then, is not a great choice for investors seeking exposure to the Financials ETFs segment of the market. Instead, there are better ETFs in the space to consider.
IShares U.S. Insurance ETF (IAK - Free Report) tracks Dow Jones U.S. Select Insurance Index and the SPDR S&P Insurance ETF (KIE - Free Report) tracks S&P Insurance Select Industry Index. IShares U.S. Insurance ETF has $474.21 million in assets, SPDR S&P Insurance ETF has $691.13 million. IAK has an expense ratio of 0.40% and KIE charges 0.35%.
Bottom Line
To 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.