에 대한 최신 뉴스 iShares U.S. Insurance ETF (ARCA:IAK)

iShares U.S. Insurance ETF

Financial Services

Healthcare

Other

The Fund seeks to track the investment results of the Dow Jones U.S. Select Insurance Index; the Underlying Index, which measures the performance of the insurance sector of the U.S. equity market, as defined by S&P Dow Jones Indices LLC; the Index Provider or SPDJI. The Underlying Index may include large, mid or small capitalization companies.

Progressive Corp.

Chubb Ltd Common Stock Usd 24.15

American International Gr

Travelers Cos. Inc. (The)

MetLife Inc

Prudential Financial Inc.

Aflac Inc.

Allstate Corp.

Hartford Financial Services Group Inc.

iShares US Insurance ETF

Analyst Color

Equities

Long Ideas

News

Trading Ideas

iShares Dow Jones US Insurance Index Fund

워렌 버핏이 운영하는 버크셔 해서웨이(NYSE:BRK) (NYSE:BRK)가 보험사인 처브(NYSE:CB)를 미스터리 주식으로 공개한 후, 한 투자 자문가는 목요일에 다음 차례(로테이션)가 보험 부문이 될 수 있다고 말했다.

워런 버핏이 처브 주식에 시장 초점을 맞춘 후, 투자자들은 이 부문에서 30%의 잠재 수익을 기대

Biotech

Large Cap

Market Summary

Mid Cap

REIT

Sector ETFs

Broad U.S. Equity ETFs

Specialty ETFs

Health Care

Commodities

Small Cap

Econ #s

Federal Reserve

Markets

Tech

ETFs

Real Estate

AAUKF

COPX

SPDR Dow Jones Industrial Average ETF Trust

FILL

iShares Dow Jones US Broker Dealers Index Fund

iShares Dow Jones US Regional Banks Index Fund

iShares U.S. Digital Infrastructure and Real Estate ETF

IDGT

iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

iShares Dow Jones US Oil Equipment & Services Index Fund

iShares Dow Jones US Pharmaceuticals Index Fund

iShares Dow Jones US Health Care Provides Index Fund

iShares Dow Jones US Medical Devices Index Fund

ILIT

iShares Dow Jones US Aerospace & Defense Index Fund

iShares Dow Jones US Homenstruction Index Fund

iShares Trust Dow Jones US Financial Services Index Fund

iShares Dow Jones Transportation Average Index Fund

PAAS

PICK

iShares FTSE NAREIT Mortgage PLUS Capped Index Fund

iShares FTSE NAREIT Residential PLUS Capped Index Fund

RING

SLVP

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

XLRE

Select Sector SPDR-Consumer Discretionary

4월을 마무리하면서, 이번달에 가장 성과가 뛰어난 섹터와 산업 교환 펀드들을 순위화 할 시간이다.



주가를 더 넓은 시각에서 보면, S&amp;P 500 지수는 SPDR S&amp;P 500 ETF 트러스트(NYSE:SPY)로 표현되는 4월에 약 3% 하락하여 4월을 마감했다. 이로써 지난 5개월간 상승 기간이 끝난 셈이다.  



유사하게 Invesco QQQ

월가에 소나기 내린 4월: 우울한 시장에 광업 및 유틸리티 부문이 상승하며 부상

BofA Securities analyst Joshua Shanker downgraded Chubb Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CB#NYSE">CB</a>) to Underperform from Neutral, while raising<a target="_blank" href="https://www.benzinga.com/quote/CB/analyst-ratings" rel="noreferrer noopener"> the price target to $275 from $264</a>.
The analyst downgraded the stock after a period of strong outperformance (up 29% YTD and 41% over the past year) in CB shares and the broader P&amp;C sector.
The analyst writes that over the past decade, Chubb&#8217;s book value per share (BVPS), tangible BVPS, and EPS grew at CAGRs of 7%, 5%, and 10%, respectively—lower than peers despite a premium valuation.
Although growth accelerated to 15%, 17%, and 14% over the last year, it still lagged behind peers as P&amp;C underwriting margins peaked, adds the analyst.
Shanker says the company&#8217;s slower growth stems from lower operating leverage, a focus on premium-to-book acquisitions, and less efficient share repurchases at higher valuations.
The analyst&#8217;s 2025 forecast of 6% EPS growth and 12% BVPS growth is below consensus and at the lower end of peer expectations, with some peers poised for 20%+ BVPS growth.
Notably, the analyst&#8217;s estimates for 2025 and 2026 EPS forecasts dip slightly due to higher share prices for repurchases following stock outperformance.
However, Shanker&#8217;s third-quarter EPS estimate rose by nearly $0.20 per share as they lowered expectations for catastrophe losses.
The analyst projects third-quarter catastrophe activity at 7.7% of Global P&amp;C earned premiums, below the typical 9%, with no major events.
Investors can gain exposure to the stock via iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>) and Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>).
Price Action: CB shares are up 0.52% at $290.05 at the last check Friday.
Photo via Shutterstock
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</ul>

Downgrades

Price Target

Analyst Ratings

KBWP

Chubb's Growth Slows Vs. Peers, Analyst Downgrades Despite Stock Surge

Making its debut on 11/08/2005, smart beta exchange traded fund SPDR S&amp;P Insurance ETF (ARCA:KIE) provides investors broad exposure to the Financials ETFs category of the market.
<h2>What Are Smart Beta ETFs?</h2>
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
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.
<h2>Fund Sponsor &amp; Index</h2>
KIE is managed by State Street Global Advisors, and this fund has amassed over $890.09 million, which makes it one of the average sized ETFs in the Financials ETFs. This particular fund, before fees and expenses, seeks to match the performance of the S&amp;P Insurance Select Industry Index.
The S&amp;P Insurance Select Industry Index represents the insurance segment of the S&amp;P Total Market Index.
<h2>Cost &amp; Other Expenses</h2>
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.35% for this ETF, which makes it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.34%.
<h2>Sector Exposure and Top Holdings</h2>
It is important to delve into an ETF&#39;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.
KIE&#39;s heaviest allocation is in the Financials sector, which is about 100% of the portfolio.
When you look at individual holdings, Erie Indemnity Company Cl A (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/erie#NASDAQ">ERIE</a>) accounts for about 2.46% of the fund&#39;s total assets, followed by Ryan Specialty Holdings Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ryan#NYSE">RYAN</a>) and Kinsale Capital Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/knsl#NYSE">KNSL</a>).
Its top 10 holdings account for approximately 22.7% of KIE&#39;s total assets under management.
<h2>Performance and Risk</h2>
So far this year, KIE has added roughly 24.48%, and was up about 31.63% in the last one year (as of 09/16/2024). During this past 52-week period, the fund has traded between $41.63 and $56.48.
The ETF has a beta of 0.84 and standard deviation of 18.17% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
SPDR S&amp;P Insurance 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.
Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/kbwp#NASDAQ">KBWP</a>) tracks KBW Nasdaq Property &amp; Casualty Index and the iShares U.S. Insurance ETF (ARCA:IAK) tracks Dow Jones U.S. Select Insurance Index. Invesco KBW Property &amp; Casualty Insurance ETF has $333.52 million in assets, iShares U.S. Insurance ETF has $709.73 million. KBWP has an expense ratio of 0.35% and IAK charges 0.39%.
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.
<a href="https://www.zacks.com/stock/news/2336243/is-spdr-s-p-insurance-etf-kie-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2336243">To read this article on Zacks.com click here.</a>

Dividends

Insurance

ERIE

KNSL

RYAN

Is SPDR S&P Insurance ETF a Strong ETF Right Now?

The Allstate Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALL#NYSE">ALL</a>) shares are trading higher after the company reached a definitive deal to sell its Employer Voluntary Benefits business to StanCorp Financial Group, Inc. for $2.0 billion in cash, subject to <a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/b40354903/allstate-to-sell-employer-voluntary-benefits-business-to-the-standard" rel="noreferrer noopener">customary conditions and approvals</a>.
The sale is projected to generate a $600 million gain and<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener"> increase deployable capital by $1.6 billion.</a>
Allstate expects adjusted net income return on equity to decrease by approximately 100 basis points after the sale. The deal is anticipated to close in the first half of 2025.
The sale marks the initial phase of Allstate&#8217;s strategy to enhance growth by merging its Employer Voluntary Benefits, Individual Health, and Group Health businesses with companies that offer additional capabilities.
Apart from this, the companies will also form a product distribution partnership. Under the cooperation, The Standard will exclusively handle group life, disability, and other benefits sold through Allstate&#8217;s agents, providing a <a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/b40354955/the-standard-to-acquire-allstate-employer-voluntary-benefits-business-companies-announce-distribut" rel="noreferrer noopener">trusted group benefits partner</a>.
Tom Wilson, Chair, President and CEO of The Allstate Corporation, said, &#8220;Allstate&#8217;s Employer Voluntary Benefits business provides protection to over 3.5 million customers who will continue to be well served by The Standard. The alignment between Allstate&#8217;s industry-leading product offerings, employer relationships, distribution and talented team and The Standard&#8217;s group benefits business will provide customers with broader protection and higher value.&#8221;
&#8220;Allstate shareholders will also benefit as capital is deployed to increase market share in personal property-liability and expand protection offerings. Discussions on the sale of the Individual and Group Health businesses are continuing and are expected to achieve the same success.&#8221;
Allstate stock gained over&nbsp;60% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>) and IShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>).
Price Action: ALL shares are up 1.68% at $174.85 premarket at the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
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</ul>

Asset Sales

Allstate Sells Employer Voluntary Benefits Unit To StanCorp For $2B: Details

The Travelers Companies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) shares are trading higher on Friday after the company reported Q2 revenue growth of 12% Y/Y to $11.283 billion, <a href="https://www.benzinga.com/pressreleases/24/07/b39856554/travelers-reports-strong-second-quarter-and-year-to-date-results" target="_blank" rel="noreferrer noopener">missing the consensus of $11.341 billion</a>.
Core income per share reached $2.51, up from 6 cents a year ago, beating the <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">$1.98 consensus forecast</a>.
Core income increased mainly due to improved underwriting gains, better reserve development, and higher net investment income, partially offset by higher catastrophe losses.
For the&nbsp;second quarter, net written premiums increased by&nbsp;8% Y/Y&nbsp;to&nbsp;$11.12 billion.
In Business Insurance, net written premiums rose 7% to $5.5 billion, with a 10.1% increase in renewal premiums, 85% retention, and record new business of $732 million.
Bond &amp; Specialty Insurance premiums grew 8% to over $1 billion, featuring 90% retention in management liability and an 11% increase in surety premiums.
Personal Insurance saw a 9% boost in net written premiums, driven by 10% growth in Auto and 8% in Home.
Net realized investment losses stood at $65 million pre-tax ($51 million after-tax), up from $35 million pre-tax ($29 million after-tax) in the same quarter last year.
Catastrophe losses were mainly due to severe wind and hail storms across several states.
Underlying combined ratio improved 3.4 points Y/Y to 87.7% in the quarter. The lower the ratio, the more profitable the insurance company, and vice versa.
The quarterly net investment income increased&nbsp;24% Y/Y to&nbsp;$885 million&nbsp;pre-tax ($727 million after-tax). Income from the fixed-income portfolio rose from the previous year due to higher average yields and increased fixed-maturity investments.
Dividend: The Board declared a quarterly dividend per share of $1.05, payable on Sept. 30, 2024, to shareholders of record as of Sept. 10, 2024.
Alan Schnitzer, chairman and chief executive officer said, &#8220;Our results for the first half of the year include strong premium growth, excellent underlying underwriting profitability, record operating cash flow and steadily rising investment returns in our growing fixed income portfolio.&#8221;
Travelers Companies stock gained around&nbsp;29%&nbsp;in the last 12 months. Investors can gain exposure to the stock via&nbsp;Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>) and IShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>).
Price Action: TRV shares are down 3.10% at $213.66 during early morning trading Friday.
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock

Earnings

Travelers' Q2 Earnings Beat Expectations With Strong Core Income

After Warren Buffett-run Berkshire Hathaway, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) revealed insurer Chubb Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CB#NYSE">CB</a>) <a href="https://www.benzinga.com/markets/equities/24/05/38873913/warren-buffetts-berkshire-confirms-apple-sale-dumps-this-pc-maker-finally-reveals-mystery-stock-">as its mystery stock, </a>an investment advisor said on Thursday the next rotation could be into the insurance sector.
Buffett&#8217;s Bet: Berkshire&#8217;s 13F filed late Wednesday showed that the firm accumulated 25.92 million shares of the property and casualty insurer at a valuation of $6.72 billion. This gives Berkshire a 6.4% stake in the insurer (based on 406 million in outstanding shares). The stock rallied over 8% over two sessions following the disclosure.
&#8220;Warren is back to his second love (insurance),&#8221; said Lumida Wealth founder Ram Ahluwalia in a post on X, formerly Twitter. 
The investment advisor noted that <a href="https://www.benzinga.com/real-estate/23/08/33963717/warren-buffett-bets-on-the-u-s-housing-market-with-3-new-investments-be-greedy-when-others-are-fearf">Buffett was scooping up investments in multiple homebuilders</a> in the second half of the 2023, adding that nine months later, the billionaire&#8217;s investment in D.R. Horton, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) has risen 30%, outpacing the S&amp;P 500 Index.
&#8220;Now, Buffett has &#8216;alterted&#8217; the market that the next rotation is in Insurance,&#8221; Ahluwalia said. He noted that a few insurance companies rallied in sympathy with Chubb.
See Also: <a href="https://www.benzinga.com/money/best-financial-services-stocks">Best Financial Services Stocks</a>
Poised To Take Off? Ahluwalia pointed out that insurance premiums have remained elevated due to recent hurricanes in Florida, contributing to a 6% year-over-year increase. He added that despite strong fundamentals, stocks in the sector have lagged.
That said, the investor thinks the bad news is priced in and they are now &#8220;making more money.&#8221;
&#8220;Buffett has single-handedly re-focused Mr. Market, like the eye of Sauron, on the Insurance sector. And, perhaps if we get a &#8216;trend kick-off,&#8217; we can get returns of 30% much like homebuilders on the second half of last year,&#8221; he said.
&#8220;Insurance is also consistent with what Mr. Market is building up: Value.&#8221;
Delving into Lumida&#8217;s approach, Ahluwalia said, &#8220;We have an a priori view of what the best businesses in the world are. Then we wait for the theme to perform, or the asset to go on sale for silly reasons.&#8221;
 &#8220;That&#8217;s part of what lets us stay ahead of Mr. Market, or at least anticipate the turn&#8230;&#8221;
The iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>) rose 1.32% to $117.86 on Friday, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
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Photo: Shutterstock

Looking For Superlative Returns? Investor Flags Potential 30% Gains In This Sector After Warren Buffett Turns Market Focus Toward These Stocks

The insurance sector is among the prime beneficiaries of higher rates for a longer period. This is because the sector players are able to earn higher returns on their investment portfolio of longer-duration bonds. However, these firms incur losses as the value of longer-duration bonds goes down with a rise in interest rates. Nevertheless, since insurance companies have long-term investment horizons, they can hold investments until maturity, and hence, no actual losses are realized. 
Additionally, decent earnings reports have helped the sector to survive the market rout seen last month. SPDR S&amp;P Insurance ETF (ARCA:KIE) and iShares U.S. Insurance ETF (ARCA:IAK) are down about just 0.6% each over the past month, while Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/kbwp#NASDAQ">KBWP</a>) is relatively flat.
<h3>Insurance Earnings in Focus</h3>
The U.S. life insurance behemoth MetLife (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/met#NYSE">MET</a>) matched earnings estimates but missed revenue estimates. MetLife reported earnings of $1.83 per share, which were on par with the Zacks Consensus Estimate and improved 20.4% from the year-ago quarter. Revenues climbed 5.5% year over year to $17 billion and were below the consensus estimate of $17.69 billion. The second-largest U.S. life insurer Prudential Financial (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pru#NYSE">PRU</a>) missed on earnings but beat estimates on revenues. Earnings per share of $3.12 lagged the Zacks Consensus Estimate of $3.16 but increased 15.5% from the year-ago earnings. Revenues grew 44.8% year over year to $21.70 billion and edged past the consensus mark of $14.78 billion. 
Chubb Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cb#NYSE">CB</a>), one of the leading property and casualty insurers, surpassed the Zacks Consensus Estimate for earnings per share by 12 cents and topped the revenue estimate by $433 million. Earnings per share improved 22.7% year over year. Another property and casualty insurer, Allstate (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/all#NYSE">ALL</a>) posted an earnings per share of $5.13, surpassing the Zacks Consensus Estimate of $4.11. The company had reported a loss of $1.30 per share in the year-ago quarter. Revenues grew 12% year over year to $15.40 billion, well above the consensus mark of $15.29 billion. 
Earnings per share of $1.66 reported by Aflac (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/afl#NYSE">AFL</a>), a seller of supplemental health insurance, trumped the Zacks Consensus Estimate by 8 cents and improved from the year-ago earnings of $1.55. Revenues grew 13.3% year over year to $5.4 billion and beat the consensus mark of $5.3 billion. 
Personal property and casualty insurer Travelers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/trv#NYSE">TRV</a>) posted earnings per share of $4.69, missing the Zacks Consensus Estimate by 6 cents but improving 14.1% from the year-ago earnings. Revenues grew 15.3% year over year to $11.2 billion and edged past the consensus mark of $11.9 billion.
<h3>ETFs in Focus</h3>
SPDR S&amp;P Insurance ETF 
SPDR S&amp;P Insurance ETF follows the S&amp;P Insurance Select Industry Index, holding well-diversified 48 stocks in its basket. About 50% of the portfolio is allocated to property and casualty insurance, while life &amp; health insurance and insurance brokers round off the next two spots with double-digit exposure. SPDR S&amp;P Insurance ETF has managed $715.6 million in its asset base and charges 35 bps in annual fees. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. 
iShares U.S. Insurance ETF 
With AUM of $638.7 million, iShares U.S. Insurance ETF offers exposure to U.S. companies that provide life, property and casualty, and full-line insurance. It tracks the Dow Jones U.S. Select Insurance Index and holds 54 securities in its basket with a double-digit concentration on the top two firms. Property &amp; casualty insurance accounts for the largest share at 69.6%, while life &amp; health insurance rounds off the next spot with double-digit exposure. iShares U.S. Insurance ETF charges 40 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook. 
Invesco KBW Property &amp; Casualty Insurance ETF 
Invesco KBW Property &amp; Casualty Insurance ETF provides exposure to 25 companies primarily engaged in U.S. property and casualty insurance activities. It follows the KBW Nasdaq Property &amp; Casualty Index and is concentrated on the top five firms that make up about 8% share each. Invesco KBW Property &amp; Casualty Insurance ETF has managed $317.9 million in its asset base and has an expense ratio of 0.35%. KBWP has a Zacks ETF Rank #3 with a Medium risk outlook.
<a href="https://www.zacks.com/stock/news/2271639/here-s-how-insurance-etfs-are-placed-post-q1-earnings?cid=CS-BENZ-FT-etf_news_and_commentary-2271639">To read this article on Zacks.com click here.</a>

Here's How Insurance ETFs Are Placed Post Q1 Earnings

Citadel CEO Ken Griffin joined CNBC's "Power Lunch" Monday and discussed inflation, interest rates and the influence of AI <a href="https://www.benzinga.com/tech/24/05/38644881/warren-buffetts-warning-about-ai">on the American workforce.</a>&nbsp;&nbsp;
What Happened: The Federal Reserve held interest rates steady at its May meeting, marking the sixth consecutive meeting without a rate change. In an interview on CNBC this week, Griffin said the Fed is making the right decision by leaving rates unchanged as he believes rates should remain unchanged for the foreseeable future. 
"They've got to stay with higher rates to bring inflation back in check," Griffin said. "They need to bring inflation down over time."&nbsp;
The billionaire hedge fund manager noted that inflation has come down in goods, but remains elevated in the services sector and therefore, "Powell and the team, I think, has made the right choice of staying higher for longer." 
Related News: <a href="https://www.benzinga.com/news/24/05/38632032/feds-stance-on-inflation-job-market-performance-and-peter-schiff-slamming-jerome-powell-top-economic">Fed&#8217;s Stance On Inflation, Job Market Performance, And Peter Schiff Slamming Jerome Powell: Top Economic Updates This Week</a>
Griffin acknowledged some sectors and industries are more likely to suffer when interest rates are high, including commercial real estate and highly-leveraged companies.&nbsp;
"If you borrow money, you want to pay less in interest," the Citadel CEO said. 
On the other hand, companies in the financial sector including banks, money managers and insurance firms may benefit in a high-interest rate environment. Investors looking to gain <a href="https://www.benzinga.com/partner/markets/24/05/38666588/cboe-continues-to-increase-financial-access-now-offers-more-than-1-000-etfs">exposure </a>to the banking industry could purchase shares of the Invesco KBW Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NASDAQ">KBWB</a>) or the iShares US Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>), which offers exposure to companies in the insurance industry.
Looking Ahead: Griffin sees <a href="https://www.benzinga.com/news/24/05/38650683/whats-next-for-apples-ai-insights-from-research-provide-clues">artificial intelligence</a> as a strong tailwind for the economy as corporate executives lean into the adoption of AI in the workplace.&nbsp;
"AI has really transformed the mindset of corporate America," the CEO said before he pointed to a growing number of companies and executives looking to technology and AI as a way to "jumpstart" productivity. 
"This really improves life for the average American and helps to keep our economy strong and robust," Griffin concluded.&nbsp;
KBWB, IAK Price Action: At the time of publication Tuesday, Invesco KBW Bank ETF shares are up 0.5% at $53.78 and iShares US Insurance ETF shares are up 0.28% at $115.40, according to data from <a href="http://pro.benzinga.com">Benzinga Pro</a>,
Image: <a href="https://www.flickr.com/photos/187789660@N02/">Dan G</a> from Flickr.

KBWB

Citadel's Ken Griffin Says Fed Must Keep Rates 'Higher For Longer'

As April comes to a close, it&#8217;s time to compile the rankings for the top-performing sector and industry exchange-traded <a href="https://www.benzinga.com/etfs">funds of the month.</a>
Taking a broader look at the stock market, the S&amp;P 500 Index, represented by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), finished April on a downturn, declining by approximately 3%. This marks the end of a five-month streak of gains.
Similarly, the tech-heavy Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), experienced a 3.5% decline.
Among large-cap indices, blue-chip stocks showed slight underperformance, with the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) slipping by 4.5%.
Small-cap stocks, represented by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), plummeted by over 6%, marking their worst performance since October 2023.
Overall, it has been a challenging month for the stock market, primarily due to inflation surprises surpassing expectations. This has led to a recalibration of market expectations regarding potential Federal Reserve rate cuts.
Additionally, complex global geopolitical tensions have emerged, notably between Israel and Iran, alongside the ongoing issue in the Gaza Strip.
May is anticipated to start with a crucial event as investors await the Federal Reserve Open Market Committee <a href="https://www.benzinga.com/general/macro-notification/24/04/38526201/is-hawkish-shift-on-inflation-imminent-wall-street-analysts-traders-brace-for-fed-impa">(FOMC) meeting on Wednesday. </a>
While no interest rate changes are expected, all eyes will be on Fed Chair Jerome Powell&#8216;s remarks to assess the Fed&#8217;s stance in response to recent inflation surprises.
Read also: <a href="https://www.benzinga.com/general/macro-notification/24/04/38491988/federal-reserve-meeting-preview-high-interest-rates-need-more-time-to-work-bank-of-ame">Federal Reserve Meeting Preview: High Interest Rates &#8216;Need More Time To Work,&#8217; Bank of America Says</a>
<h2 class="wp-block-heading">Performance Of Sector ETFs In April 2024</h2>
At the sector level, only the utilities sector managed to avoid losses for the month, rising by 2.1%.
The largest stock contributors to the utilities&#8217; performance in April are NextEra Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEE#NYSE">NEE</a>), The Southern Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SO#NYSE">SO</a>), Dominion Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/D#NYSE">D</a>) and NRG Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>) which showed monthly gains between 4% and 8%. 
Energy stocks remained broadly stable, while the other nine S&amp;P 500&#8217;s sectors showcased losses.
Real estate experienced the worst performance, down by over 7%, dragged down by its high sensitivity to interest rates, as Treasury yields increase across the board during the month. 
Following real estate, the technology and healthcare sectors also showed poor performance in April.
<h4 class="wp-block-heading">April&#8217;s Best And Worst Sector ETFs: Utilities Lead, Real Estate Lags</h4>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Sector</th>
<th>April 2024 performance</th>
</tr>
</thead>
<tbody>
<tr>
<td>Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>)</td>
<td>2.06%</td>
</tr>
<tr>
<td>Energy&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)</td>
<td>0.01%</td>
</tr>
<tr>
<td>Consumer Staples&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>)</td>
<td>-1.11%</td>
</tr>
<tr>
<td>Industrials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>)</td>
<td>-3.23%</td>
</tr>
<tr>
<td>Consumer Discretionary&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td>
<td>-3.68%</td>
</tr>
<tr>
<td>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td>
<td>-3.85%</td>
</tr>
<tr>
<td>Materials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>)</td>
<td>-4.13%</td>
</tr>
<tr>
<td>Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td>
<td>-4.24%</td>
</tr>
<tr>
<td>Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>-4.78%</td>
</tr>
<tr>
<td>Health Care&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>)</td>
<td>-4.85%</td>
</tr>
<tr>
<td>Real Estate&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td>
<td>-7.83%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data as of Apr. 30, 2024 2:50 p.m. EDT</figcaption></figure>
<h2 class="wp-block-heading">Performance Of Industry ETFs In April 2024</h2>
Based on the industry ETF list provided by BlackRock Inc.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) iShares, only five out of the 25 industries managed to report gains in April. Among them, miners did well across the board, with silver, copper, and gold mining stocks reporting robust gains. 
Standout contributors to the mining industry&#8217;s outperformance in April were Pan American Silver Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PAAS#NYSE">PAAS</a>), up over 20%, Newmont Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), up 14%, Anglo American plc (OTCPK: AAUKF), up over 40%
Energy producers also managed to end the month in the green.
On the bottom side of the industry rankings, homebuilders, transportation, biotech stocks, digital infrastructure and real estate all report losses between 7% and 9.6% in April.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>Performance</th>
</tr>
</thead>
<tbody>
<tr>
<td>iShares MSCI Global Silver and Metals Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLVP#NYSE">SLVP</a>)</td>
<td>12.11%</td>
</tr>
<tr>
<td>iShares Copper and Metals Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>)</td>
<td>9.50%</td>
</tr>
<tr>
<td>iShares MSCI Global Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RING#NYSE">RING</a>)</td>
<td>5.93%</td>
</tr>
<tr>
<td>iShares MSCI Global Metals &amp; Mining Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PICK#NYSE">PICK</a>)</td>
<td>2.81%</td>
</tr>
<tr>
<td>iShares MSCI Global Energy Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FILL#NYSE">FILL</a>)</td>
<td>2.46%</td>
</tr>
<tr>
<td>iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>)</td>
<td>-1.16%</td>
</tr>
<tr>
<td>iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEO#NYSE">IEO</a>)</td>
<td>-1.37%</td>
</tr>
<tr>
<td>iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>)</td>
<td>-1.66%</td>
</tr>
<tr>
<td>iShares Lithium Miners and Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ILIT#NYSE">ILIT</a>)</td>
<td>-3.30%</td>
</tr>
<tr>
<td>iShares U.S. Broker-Dealers &amp; Securities Exchange ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAI#NYSE">IAI</a>)</td>
<td>-3.74%</td>
</tr>
<tr>
<td>iShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>)</td>
<td>-3.88%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>-4.37%</td>
</tr>
<tr>
<td>iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>)</td>
<td>-4.40%</td>
</tr>
<tr>
<td>iShares U.S. Healthcare Providers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHF#NYSE">IHF</a>)</td>
<td>-4.79%</td>
</tr>
<tr>
<td>iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>)</td>
<td>-4.85%</td>
</tr>
<tr>
<td>iShares U.S. Regional Banks ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>)</td>
<td>-5.11%</td>
</tr>
<tr>
<td>iShares U.S. Pharmaceuticals ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHE#NYSE">IHE</a>)</td>
<td>-5.38%</td>
</tr>
<tr>
<td>iShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>)</td>
<td>-5.45%</td>
</tr>
<tr>
<td>iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>)</td>
<td>-5.57%</td>
</tr>
<tr>
<td>iShares U.S. Medical Devices ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHI#NYSE">IHI</a>)</td>
<td>-5.75%</td>
</tr>
<tr>
<td>iShares Global Timber &amp; Forestry ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOOD#NYSE">WOOD</a>)</td>
<td>-6.20%</td>
</tr>
<tr>
<td>iShares Expanded Tech-Software Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGV#NYSE">IGV</a>)</td>
<td>-6.76%</td>
</tr>
<tr>
<td>iShares U.S. Digital Infrastructure and Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IDGT#NYSE">IDGT</a>)</td>
<td>-7.12%</td>
</tr>
<tr>
<td>iShares Biotechnology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBB#NYSE">IBB</a>)</td>
<td>-7.23%</td>
</tr>
<tr>
<td>iShares U.S. Transportation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYT#NYSE">IYT</a>)</td>
<td>-8.34%</td>
</tr>
<tr>
<td>iShares U.S. Home Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITB#NYSE">ITB</a>)</td>
<td>-9.60%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data as of Apr. 30, 2024 3:15 p.m. EDT</figcaption></figure>
Now read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38497224/ai-data-centers-drive-electricity-demand-goldman-sachs-picks-16-stocks-to-play-the-">AI Data Centers Drive Electricity Demand: Goldman Sachs Picks 16 Stocks To Play The Trend</a>
Image generated using artificial intelligence via Midjourney.

iShares S&P Global Timber & Forestry Index Fund

WOOD

April Showers On Wall Street:  Miners, Utilities Emerge As Bright Spots In Gloomy Market

The Travelers Companies&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) reported a mixed first quarter, with earnings lagging<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/b38288054/travelers-reports-excellent-first-quarter-results" rel="noreferrer noopener">&nbsp;analyst' expectations</a>. Core income per share reached $4.69 from $4.11 a year ago, missing the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">$4.90 consensus forecast</a>. Net income per share rose to $4.80 from $4.13 a year earlier.
The stock declined after the results. The New York-based company offers auto, home, and business property casualty insurance.
For the first quarter, net written premiums increased by 8% to $10.18 billion, while total revenues also increased 16% Y/Y to $11.23 billion, beating the Street consensus of $10.51 billion. The company attributed performance to strong profitability, production in all three segments, and higher investment income.
The quarter included an elevated level of catastrophe losses of $712 million pre-tax, compared to $535 million pre-tax in the prior year quarter.
Catastrophe losses primarily resulted from severe wind and hail storms in the central and eastern regions of the United States.
The company's underlying combined ratio fell from 90.6% to 87.7% in the quarter. The lower the ratio, the more profitable the insurance company, and vice versa.
The quarterly net investment income increased 28% to $846 million pre-tax ($698 million after-tax). Income from the fixed-income investment portfolio increased over the prior year's quarter due to a higher average yield and growth in fixed-maturity investments.
Dividend:&nbsp;The Board declared a 5%&nbsp;growth in the regular quarterly dividend to $1.05 per share.&nbsp;
Travelers Companies stock gained over 30% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Invesco KBW Property &amp; Casualty Insurance ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>) and&nbsp;IShares U.S. Insurance ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>).
Price Action: TRV shares are down 3.20% at $215.98 premarket on the last check Wednesday.
Photo via Wikimedia Commons

Movers

Elevated Catastrophe Losses From Hail and Wind Storm Hurt Travelers Companies Q1 Profit, Stock Slides

At least three people are reported to have died on Tuesday, Feb. 6 as a result of the floods and mudslides that <a href="https://www.benzinga.com/topic/california">swept across Southern California</a>.
Unprecedented levels of rainfall caused low-elevation sections of the Los Angeles area to flood, leaving destruction along its path of water and mud.
The region is becoming increasingly problematic for residents, as insurers flee the state — which is also highly prone to wildfires — causing the price of home and auto insurance to shoot up.
38 million people have been placed under flood alert, as heavy rains are expected to continue through Tuesday and the soil is oversaturated from the storm that began Sunday.
By Monday afternoon nearly 440,000 homes were left without electricity with some areas around LA reaching up to 11 inches of water.
The fire department responded to at least 130 flood incidents between Sunday and Monday, <a href="https://www.latimes.com/california/story/2024-02-05/stunning-rain-mudslides-flooding-thrash-southern-california-dangerous-storm-isnt-done">according</a> to the LA Times, with Governor Gavin Newsom declaring a state of emergency.
Daniel Swain, a climate scientist with UCLA, called the storm "remarkable and in some ways historic," as unseen levels of rainfall hit specific areas consistently.
With homes and vehicles around the area sustaining damage to diverse degrees, insurers covering the area will likely be hit with massive bills to cover.
The weather event, however, didn't cause a major disturbance to insurance stock prices as of Tuesday. Progressive Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PGR#NYSE">PGR</a>) was down 0.7% on Tuesday. Erie Indemnity Co (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ERIE#NASDAQ">ERIE</a>) was up 0.8%. Fidelity National Financial Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FNF#NYSE">FNF</a>) is up 0.1%.
<h3 class="wp-block-heading">The Causes And Consequences Of The California Insurance Exodus</h3>
The increasingly alarming rate of disastrous events in the Golden State has already become an exit alarm for some players in the California insurance market.
Allstate Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALL#NYSE">ALL</a>), one of the largest insurance companies in the country, decided last June to stop offering new policies in the state, which has also been <a href="https://www.benzinga.com/markets/equities/23/09/34211910/home-insurance-shockwave-climate-risks-trigger-coverage-cuts-as-claims-surge-report">battered by wildfires during recent years</a>.
"The cost to insure new home customers in California is far higher than the price they would pay for policies due to wildfires, higher costs for repairing homes and higher reinsurance premiums," said Allstar in a statement at the time.
The move followed that of competitor State Farm General Insurance Company, which stopped accepting new insurance applications in the Golden State in May.
In August last year Kemper Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMPR#NYSE">KMPR</a>) also decided to swiftly reduce its presence in the California market. The company, owning subsidiaries Merastar Insurance, Unitrin Auto and Home Insurance, Unitrin Direct Property and Casualty, as well as Kemper Independence Insurance decided to not renew existing preferred policies in home and auto insurance across the country.
The decision was expressed by CEO and Chairman Joseph P. Lacher, Jr as "the most effective and efficient way to support our stakeholders" and a way to "release capital and increase the resources available to support our core specialty auto and life businesses," in a move that was allegedly not motivated by climate reasons.
A similar trend has existed in disaster-prone Florida, where the Farmers Insurance Group, a wholly owned subsidiary of Zurich Insurance Group AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ZURVY#OTC">ZURVY</a>), announced its exit from the state in August 2023. Close after, the company also decided to withdraw from all insurance programs offered in California, including home, auto and renters policies.
The rising risk for California real estate is causing the cost of home insurance to rise at higher rates than <a href="https://www.benzinga.com/topic/inflation">inflation</a>. <a href="https://money.com/home-insurance-rates-predictions-2024/">According</a> to Money.com, State Farm was recently approved a 20% increase for renewals, which will be effective in March of this year. Allstate requested a 39.6% rate increase, which is currently under review by the California Department of Insurance.
Some residents of high-risk areas have been forced to last-resort options, including more expensive plans designed for customers who've been rejected by other insurers, <a href="https://www.policygenius.com/homeowners-insurance/news/homeowners-in-california-see-rate-increases-ahead-of-peak-wildfire-months/">reported</a> to PolicyGenius.
Insurance ETFs were generally unaffected by news of the floods.
<ul>
<li>SPDR S&amp;P Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KIE#NYSE">KIE</a>) is up 0.2% on Tuesday at the time of this writing.</li>
<li>iShares US Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>) remained flat on Tuesday.</li>
<li>Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>) is up 0.1%.</li>
</ul>
 Now Read: <a href="https://www.benzinga.com/news/24/01/36772879/california-developer-aims-to-build-americas-tallest-building-in-this-unusual-location">California Developer Aims To Build America&#8217;s Tallest Building In This Unusual Location</a>
Shutterstock image.

General

KMPR

ZURVY

Deadly Floods In California Put 38 Million Under Emergency Alert While State Faces Massive Insurance Crisis

In 2024, insurance company stocks have outperformed the S&amp;P 500 index, only lagging behind the exceptional <a href="https://www.benzinga.com/topic/semiconductors">performance of semiconductor stocks.</a>
The iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>) has experienced a 5% increase in January, surpassing the 3% rise of the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
But what is driving the rally in U.S. insurance stocks?
<h2 class="wp-block-heading">Insurance Costs For Motor Vehicles Are Soaring </h2>
The <a href="https://www.benzinga.com/topic/inflation">December Consumer Price Index report </a>provides valuable insight into the significant price increases experienced in motor vehicle insurance.
The index for motor vehicle insurance rose by 1.5% in December, following a 1.0% increase in the previous month.
Compared to December 2022, motor vehicle insurance costs have soared by +20.3%. This is the highest price increase for any item in the inflation basket over the past year.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="478" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/25133213/line_chart_english-1024x478.png" alt="" class="wp-image-194505" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/25133213/line_chart_english-1024x478.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/25133213/line_chart_english-300x140.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/25133213/line_chart_english-768x358.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/25133213/line_chart_english-1536x717.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/25133213/line_chart_english.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">The Influence Of Electric Vehicles (EVs)</h2>
A <a href="https://www.bloomberg.com/news/articles/2024-01-25/here-s-why-your-car-insurance-bill-has-never-been-more-expensive?srnd=premium&amp;sref=TBDibEcD">Bloomberg</a> report on Thursday highlighted a key factor influencing this trend: the complexity and costliness of repairing modern vehicles, especially those equipped with advanced technologies.
Bloomberg quotes Ben Clymer, a co-owner of a body shop chain in Southern California, who said the complexity of vehicles these days is generating increasing costs of maintenance. Repairing a basic model Kia is not like it used to be, as it might have 10 different computers and numerous sensors. This complexity, along with rising parts prices, Clymer explains, &#8220;creates the perfect storm for higher repair costs.&#8221; 
This has led to the fastest increase in auto insurance rates in nearly half a century.
The average repair cost for a traditional vehicle is now $4,437, according to CCC Intelligent Solutions, an auto insurance processing company. For EVs, the average repair cost is 49% higher, at $6,618, due to their advanced tech and the specialized handling needed for their electric powertrains.
Although equipped with fewer components compared to traditional internal combustion engine vehicles, EVs typically require over 20 days for repairs, which is 40% more time than needed for non-EVs, as reported by CCC Intelligent Solutions.
<h2 class="wp-block-heading">Top-Performing Insurance Stocks In 2024</h2>
Below is a list of the best-performing insurance stocks year-to-date included in the iShares U.S. Insurance ETF.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Company</th>
<th>Price</th>
<th>Weight</th>
<th>YTD Return</th>
</tr>
</thead>
<tbody>
<tr>
<td>Oscar Health, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OSCR#NYSE">OSCR</a>)</td>
<td>11.81</td>
<td>0.24%</td>
<td>29.13%</td>
</tr>
<tr>
<td>Kemper Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMPR#NYSE">KMPR</a>)</td>
<td>61.93</td>
<td>0.49</td>
<td>27.24</td>
</tr>
<tr>
<td>Kinsale Capital Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KNSL#NASDAQ">KNSL</a>)</td>
<td>399.89</td>
<td>1.26</td>
<td>19.40</td>
</tr>
<tr>
<td>W. R. Berkley Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WRB#NYSE">WRB</a>)</td>
<td>82.81</td>
<td>2.20</td>
<td>17.10</td>
</tr>
<tr>
<td>United Fire Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UFCS#NASDAQ">UFCS</a>)</td>
<td>22.69</td>
<td>0.09</td>
<td>12.77</td>
</tr>
<tr>
<td>The Allstate Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALL#NYSE">ALL</a>)</td>
<td>157.56</td>
<td>4.70</td>
<td>12.56</td>
</tr>
<tr>
<td>The Progressive Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PGR#NYSE">PGR</a>)</td>
<td>176.91</td>
<td>13.17</td>
<td>11.63</td>
</tr>
<tr>
<td>The Travelers Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>)</td>
<td>210.61</td>
<td>6.38</td>
<td>10.56</td>
</tr>
<tr>
<td>Primerica, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRI#NYSE">PRI</a>)</td>
<td>226.00</td>
<td>1.13</td>
<td>9.84</td>
</tr>
<tr>
<td>Mercury General Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCY#NYSE">MCY</a>)</td>
<td>40.94</td>
<td>0.17</td>
<td>9.72</td>
</tr>
</tbody>
</table>
</figure>
Now Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/01/36784298/meaningfully-stronger-us-economy-dismantles-slowdown-fears-boasts-3-3-growth-in-q4-">&#8216;Meaningfully Stronger&#8217; US Economy Dismantles Slowdown Fears, Boasts 3.3% Growth In Q4 2023</a>
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How EVs, High-Tech Vehicles Are Fueling Surge In Insurance Stocks

The COVID-19 pandemic has triggered a renewed interest in life insurance policies among Americans, creating opportunity for savvy investors. Many life insurance companies reported double-digit percentage increases in policy sales in 2020. In fact, Google searches for life insurance <a href="https://www.cnbc.com/2020/10/14/life-insurance-sales-increase-due-to-coronavirus-pandemic.html">spiked 50%</a> between March and May of 2020.
Unfortunately for buyers and investors, historically low interest rates have also prompted insurers to raise their <a href="https://www.benzinga.com/money/cheap-life-insurance/">policy rates</a> to maintain margins.
Life insurance stocks aren&rsquo;t the most glamourous or high-flying stocks in the market. However, many are trading at very attractive valuations, and many of them pay dividends as well. Here are three ways to invest in <a href="https://www.benzinga.com/money/best-whole-life-insurance/">life insurance</a> stocks.
Lincoln National Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lnc#NYSE">LNC</a>): Lincoln National just missed fourth-quarter earnings estimates.&nbsp;However, Bank of America analyst Joshua Shanker says the company has strong fundamentals, including impressive earnings growth and capital management in recent years. Lincoln National trades at just 5.2 times forward earnings and pays a 3.4% dividend. Bank of America has a buy rating and $56 price target for LNC.
Metlife Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/met#NYSE">MET</a>): MetLife&rsquo;s U.S. business just reported a 51% increase in adjusted earnings in the fourth quarter. The company&rsquo;s dental business has been much more profitable since the pandemic started, given customers are simply making fewer trips to the dentist. Traffic accident-related claims are also way down due to a&nbsp;steep drop-off in travel. CFRA analyst Catherine Seifert is bullish on MetLife and says the stock is undervalued relative to both its peer group and historical trading range, trading at just 7.8 times Seifert&#39;s&nbsp;2021 EPS estimate. CFRA has a buy&nbsp;rating and $58 price target for MET stock.
iShares US Insurance ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iak#NYSE">IAK</a>): For investors who want to take a more diversified approach to the insurance industry, the iShares US Insurance ETF contains about 60 stocks exposed to all types of insurance, including life. The IAK fund&rsquo;s top holdings include Chubb Ltd (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cb#NYSE">CB</a>), car insurer Progressive Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pgr#NYSE">PGR</a>) and MetLife. The fund has just a 0.42% expense ratio and plenty of liquidity, with 4,779 shares traded per day on average. And it&nbsp;pays a sizable 5.6% dividend.
(Photo by <a href="https://unsplash.com/@nate_dumlao?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Nathan Dumlao</a> on <a href="https://unsplash.com/s/photos/couple?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a>)

Education

3 Ways Investors Can Benefit From Americans' Renewed Interest In Life Insurance

In an emergency move, one that some argued was a sign of panic, the <a href="https://www.benzinga.com/news/20/03/15468112/federal-reserve-issues-emergency-0-5-interest-rate-cut-cites-evolving-risks-from-coronavirus">Federal Reserve on Tuesday slashed interest rates by 50 basis points</a>. The central bank meets later this month and there is plenty of chatter another rate cut could be revealed then as an avenue for propping up markets and the economy if the coronavirus situation doesn&#39;t improve.
Interest rate cuts are often viewed in a positive light, though the initial reaction to this one was downbeat as investors ponder the fate of a Fed running low on ammunition going forward.
Of course, interest rate reductions also have <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/03/15463193/it-could-be-time-for-these-two-bearish-bank-etfs">a way of crimping some sectors</a>, so even if the market rebounds, investors may want to steer clear of the following exchange traded funds.
<h2>iShares U.S. Insurance ETF (IAK)</h2>
One day doesn&#39;t mean in the broader scheme of things, but the iShares U.S. Insurance ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iak#NYSE">IAK</a>) is trailing the broader market Wednesday by a wide margin as stocks rebound. The reason for that scenario is straight forward: life and property and casualty insurers, such as the ones residing in IAK, are rate-sensitive in both directions, meaning higher rates usually benefit the industry.
Insurers typically hold large amounts of cash, so as rates decline, the amount of interest generated by that cash does as well. Bottom line: <a href="https://www.benzinga.com/money/insurance/">insurance companies&#39;</a> performance <a href="https://www.investopedia.com/articles/investing/052814/these-sectors-benefit-rising-interest-rates.asp">is often linear with interest rates</a>, meaning IAK and rival ETFs are probably a pass for some time.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/20/03/15471119/desperate-measures-heres-what-experts-think-about-the-feds-interest-rate-cut">Desperate Measures? Here&#39;s What Experts Think About The Fed&#39;s Interest Rate Cut</a>
<h2>SPDR S&amp;P Regional Banking ETF (KRE)</h2>
Like the aforementioned IAK, the SPDR S&amp;P Regional Banking ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kre#NYSE">KRE</a>) is rebounding today, but it&#39;s well behind the broader market. Broadly speaking, regional banks are vulnerable to interest rate reductions because lower rates pinch net interest margins.
From bank to bank, how sensitive each name is to lower interest rates is largely dependent on the composition of commercial loan portfolios, so with some due diligence, investors may be able to find some undervalued winners in the regional banking space today.
The issue is regional banks are universally viewed as ideas to eschew when rates are cut, a sentiment that will likely pressure products such as KRE over the near term.
<h2>Invesco S&amp;P SmallCap Financials ETF (PSCF)</h2>
Small-cap stocks can offer some benefits when interest rates rise because that scenario can be seen as a vote of confidence in the economy. Conversely, lower rates are also beneficial to smaller firms because of the possibility of lower financing costs.
However, the Invesco S&amp;P SmallCap Financials ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pscf#NASDAQ">PSCF</a>) won&#39;t be benefiting from either scenario anytime soon because rate hikes are clearly off the table.
In fact, small-cap banks are even more vulnerable to lower rates because they lack the scale and diversified business models of their large-cap peers.

Short Ideas

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Sector exchange traded funds have become increasingly popular with advisors and investors. While broad market funds such as the SPDR S&amp;P 500 ETF (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) give investors the benefit of diversity, sector funds allow users to overweight a specific group in an effort to identify potential outperformance.
Sector ETFs also allow investors to hone in on valuation opportunities, rotating out of richly valued groups and into sectors that look undervalued. That was one reason why the Financial Select SPDR (NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>) and other financial services ETFs saw a flurry of activity in late 2017.
XLF, the largest ETF dedicated to the financial services sector, rose 22 percent last year and is off to a fine start in 2018. The fund is already up 7.3 percent since the beginning of the year, easily making it one of the best-performing sector ETFs since the start of the year.
<h3>
	Solid Expectations</h3>
&ldquo;For financials, Capital IQ consensus forecasts call for 28-percent earnings growth in 2018, well ahead of the broader S&amp;P 500&#39;s 15-percent growth,&rdquo; <a href="https://newpublic.cfraresearch.com/">CFRA Research</a> Director of ETF &amp; Mutual Fund Research Todd Rosenbluth said in a Thursday note. &ldquo;Earnings for the sector were projected to increase 8.7 percent in 2017 as of Jan. 19 as fourth-quarter earnings season was getting started.&rdquo;&nbsp;
Rosenbluth adds that there are 25 financial services stocks in the S&amp;P 500 that CFRA has Buy or Strong Buy ratings on, including XLF holdings JPMorgan Chase &amp; Co. (NYSE: <a class="ticker" href="/stock/jpm#NYSE">JPM</a>) and Bank of America Corp. (NYSE: <a class="ticker" href="/stock/bac#NYSE">BAC</a>). Those two stocks are XLF&#39;s second- and third-largest holdings, respectively, and combine for almost 19 percent of the ETF&#39;s weight.
XLF devotes 45 percent of its lineup to bank stocks while capital markets firms and insurance providers combine for over 38 percent.
<h3>
	Other Ideas</h3>
Other ideas for financial services exposure include the iShares U.S. Financial Services ETF&nbsp;(NYSE: <a class="ticker" href="/stock/iyg#NYSE">IYG</a>) and the iShares U.S. Insurance ETF (NYSE: <a class="ticker" href="/stock/iak#NYSE">IAK</a>).
&quot;Chris Dhanraj, head of iShares Investment Strategy, also highlighted to CFRA that he finds the financials sector appealing as he thinks banks will likely benefit from net interest margin expansion and deregulation, while insurance companies would be aided from higher interest rates,&rdquo; said Rosenbluth.
IAK holds 63 stocks, but the ETF is cap-weighted, so larger insurance providers dominate the fund. IAK&#39;s top 10 holdings combine for over 57 percent of the ETF&#39;s weight. IYG and IAK are up an average of 6 percent this year.
CFRA has Overweight ratings on IAK, IYG and XLF.
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Todd Shriber owns shares of XLF.

Getting Tactical With Financial Services ETFs

Enthusiasm abounds for the financial services sector, the second-largest sector exposure in the S&amp;P 500. The Financial Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>), the largest exchange traded fund tracking financial services stocks, is up 15 percent since the start of the fourth quarter.
Analysts are taking note. <a href="https://newpublic.cfraresearch.com/">CFRA Research</a> recently upgraded its rating on the financial services sector from Marketweight to Overweight. On the back of its fourth-quarter surge, XLF is up 20 percent year-to-date after lagging other sector ETFs for much of the year.&nbsp;
Last week, CFRA raised its sector outlook for the S&amp;P 500 financials sector to Overweight from Marketweight, as part of a series of sector changes,&rdquo; Todd Rosenbluth,&nbsp;director of ETF and mutual fund research at CFRA, said in a Tuesday note.&nbsp;&ldquo;The CFRA equity strategy team thinks investors should have an approximately 15 percent weighting in the sector, higher than the 14 percent recent weighting in the broader index.&rdquo;
<h3>
	Banking On Banks</h3>
XLF is a diverisifed play on the financial services sector. The ETF allocates 44.5 percent of its weight to bank stocks, but four other industry groups are represented in the fund. Capital markets firms and insurance providers combine for about 39 percent of XLF&#39;s weight.
While the ETF holds 67 stocks, two really chart the fund&#39;s course. Warren Buffett&#39; Berkshire Hathaway Inc. (NYSE: <a class="ticker" href="/stock/brk-b#NYSE">BRK-B</a>) and Dow component JPMorgan Chase &amp; Co. (NYSE: <a class="ticker" href="/stock/jpm#NYSE">JPM</a>) combine for over 22 percent of XLF&#39;s weight.
CFRA has an Overweight ranking on XLF and views positively its low 0.14 percent expense ratio and tight $0.01 bid/ask spread,&rdquo; said Rosenbluth.
<h3>
	An Insurance Idea</h3>
A significant part of the bull thesis surrounding the financial services sector is the expectation of the Federal Reserve raising interest rates later this month and continuing to do so at a gradual pace in 2018. Higher interest rates are seen as helping money center and regional banks, but those higher interest rates can also be a boon for insurance providers.
The $178.7-million&nbsp;iShares U.S. Insurance ETF (NYSE: <a class="ticker" href="/stock/iak#NYSE">IAK</a>) is up more than 15 percent year-to-date. Several of IAK&#39;s top 10 holdings are stocks CFRA has Buy or Strong Buy ratings on. The research firm has a Marketweight rating on the ETF.
Related Links:
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Todd Shriber owns shares of XLF.

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BRK-B

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Now two weeks removed from Election Day, it is not a stretch to say one of the safest spaces of all has been the U.S. equity market. Those looking for tactical safer spaces can certainly find them with myriad sector and industry exchange-traded funds with much of that safety coming from financial services ETFs.
<h3>Financials</h3>
The Financial Select Sector SPDR Fund(NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>), the largest financial services ETF, is higher by 13.2 percent, with the bulk of that gain being accrued after Election Day. XLF and rival financial services ETFs are rallying, in part, on expectations that President-elect Donald Trump will be <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/11/8688670/trump-may-not-be-all-gravy-for-bank-etfs">more friendly on the regulatory front</a> than his opponent Hillary Clinton and President Barack Obama.
<h3>Insurance Stocks And ETFs</h3>
Within the financial services space, insurance stocks and ETFs were surprising leaders while the broader sector dithered for much of this year. The theme of insurance strength has continued following Election Day, as highlighted by a November gain of 8.5 percent for the SPDR S&amp;P Insurance ETF (NYSE: <a class="ticker" href="/stock/kie#NYSE">KIE</a>). The iShares Dow Jones US Insurance Index ETF (NYSE: <a class="ticker" href="/stock/iak#NYSE">IAK</a>) is higher by 9.5 percent this month.
IAK is a cap-weighted fund while KIE is an equal-weight ETF. Much of the market&#39;s ebullience toward insurance ETFs is also attributable to a more sanguine regulatory under Trump.
&ldquo;Broad financial industry deregulation under the Trump administration would ease regulatory burdens for large insurance companies while macroeconomic trends resulting from shifting global and economic policies could have a significant impact on profitability, premium growth and investment performance,&rdquo; said <a href="https://www.fitchratings.com/site/pr/1015116">Fitch Ratings</a> in a note out Monday.
ETFs such as KIE could be further bolstered into year end if the Federal Reserve moves forward with an interest rate increase at its December meeting.
Insurance ETFs&#39; rising rates advantage is tied to the strong dollar. The stronger greenback effects an array of sectors and industry groups, but not insurance companies because U.S.-based insurance providers write the bulk of their <a href="http://www.thestreet.com/story/13220377/1/insurance-etfs--another-idea-for-profiting-from-rising-rates.html">policies in the United States</a>.
Insurance is the third-largest industry weight in XLF at 19.3 percent and three insurance stocks are found among the ETF&#39;s top 10 holdings.
<h3>Dodd-Frank Act</h3>
&ldquo;The potential repeal or amendment of the Dodd-Frank Act is a case in point. The designation of systemically important bank and non-bank financial institutions (SIFIs) falls under the Financial Stability Oversight Council (FSOC).
&ldquo;SIFIs in the US face higher regulatory standards and three insurers &mdash; Prudential Financial Inc (NYSE: <a class="ticker" href="/stock/pru#NYSE">PRU</a>), American International Group Inc (NYSE: <a class="ticker" href="/stock/aig#NYSE">AIG</a>) and Metlife Inc (NYSE: <a class="ticker" href="/stock/met#NYSE">MET</a>) &mdash; were designated as such in 2014. Fitch believes a Trump administration could promote a pullback on insurance SIFI designations via a less inclusive approach following changes in FSOC leadership or via changes to the Dodd-Frank act itself.
&ldquo;MetLife won a court ruling in March that rescinded its SIFI designation and the Trump administration may choose not to follow through on an appeal,&rdquo; added Fitch.
Disclosure: Todd Shriber owns shares of XLF.

Topics

More Industry ETFs That Should Like The Trump White House

Perhaps more than any other sector, financial services, the second-largest sector weight in the S&amp;P 500, would like to see the Federal Reserve raise interest rates. Better yet, financial services stocks wouldn&#39;t mind multiple rate hikes.

	Within the financial services sector, some industry groups are more dependent on higher rates than others. Regional banks take the cake on that front, but insurance providers also stand to benefit from hawkish Fed action.

	Insurance ETFs deserve some credit for being positively correlated to rising Treasury yields. Simply put, steeper yield curves are advantageous<a href="http://www.benzinga.com/trading-ideas/long-ideas/15/08/5730304/forget-deductibles-and-premiums-look-at-insurance-etfs"> for insurance providers</a>. In other words, the SPDR S&amp;P Insurance ETF (NYSE: <a class="ticker" href="/stock/kie#NYSE">KIE</a>) deserves some credit for recently making a series of all-time highs. KIE was one of just 12 ETFs to do so on Monday, extending its year-to-date gain to over 8 percent. That is more than double the year-to-date return of the Financial Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>).

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/08/8401373/7-wall-street-firms-interpret-yellens-jackson-hole-speec">7 Wall Street Firms Interpret Yellen&#39;s Jackson Hole Speech</a></bzrelatedlink>

	Insurance ETFs&#39; rising rates advantage is tied to the strong dollar. The stronger greenback affects an array of sectors and industry groups, but not insurance companies because U.S.-based insurance providers write the bulk of their&nbsp;<a href="http://www.thestreet.com/story/13220377/1/insurance-etfs--another-idea-for-profiting-from-rising-rates.html">policies in the US</a>.

	The results of the Fed&#39;s CCAR open the door for XLF holdings to increase dividends and buybacks, an important factor when considering many XLF&#39;s holdings, although sources of dividend growth in recent years, still sport payouts below those seen prior to the financial crisis. Insurance providers, including some residing in KIE have been generous in terms of increasing dividends and buybacks in recent years.

	KIE is an equal-weight ETF, a strategy that&#39;s proving rewarding for investors this year as the fund has outperformed the cap-weighted iShares U.S. Insurance ETF (NYSE: <a class="ticker" href="/stock/iak#NYSE">IAK</a>) by a margin of better than 2-to-1.

	XLF, the largest financial services ETF by assets, allocates 16.4 percent of its weight to insurance providers, making that group the ETF&#39;s third-largest industry weight behind banks and real estate.

	The $570.6 million KIE allocates 38.8 percent of its weight to property and casualty insurers and another 24.7 percent of its lineup to life and health insurance providers. Reinsurance, insurance brokers and multi-line firms combine for over a third of the ETF&#39;s weight.

	Disclosure: The author owns shares of XLF.

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