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If you're interested in broad exposure to the Financials - Insurance segment of the equity market, look no further than the Invesco KBW Property & Casualty Insurance ETF (KBWP), a passively managed exchange traded fund launched on 12/02/2010.

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

Sector ETFs are also funds of convenience, offering many 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 1, placing it in top 6%.

Index Details

The fund is sponsored by Invesco. It has amassed assets over $461.01 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

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

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 1.28%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. 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, Travelers Cos Inc/the (TRV) accounts for about 8.77% of total assets, followed by American International Group Inc (AIG) and Chubb Ltd (H1467J104).

The top 10 holdings account for about 61.25% of total assets under management.

Performance and Risk

So far this year, KBWP has added about 35.98%, and is up about 38.94% in the last one year (as of 11/19/2024). During this past 52-week period, the fund has traded between $88.78 and $121.95.

The ETF has a beta of 0.64 and standard deviation of 18.69% 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 holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, KBWP is an excellent option for investors seeking exposure to the Financials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.

IShares U.S. Insurance ETF (IAK) tracks Dow Jones U.S. Select Insurance Index and the SPDR S&P Insurance ETF (KIE) tracks S&P Insurance Select Industry Index. IShares U.S. Insurance ETF has $767.40 million in assets, SPDR S&P Insurance ETF has $960.93 million. IAK has an expense ratio of 0.39% 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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Invesco KBW Property & Casualty Insurance ETF (KBWP): ETF Research Reports

American International Group, Inc. (AIG) : Free Stock Analysis Report

The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report

iShares U.S. Insurance ETF (IAK): ETF Research Reports

SPDR S&P Insurance ETF (KIE): ETF Research Reports

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.