Should You Invest in the Invesco KBW Property & Casualty Insurance ETF (KBWP)?

MeIf you want to know more about Financials – The insurance sector of the equity market, look no further than the Invesco KBW Property & Casualty Insurance ETF (KBWP), a passively managed fund launched on 12/02/2010.

Although they are an excellent vehicle for long-term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low cost, transparency, flexibility, and taxes.

Investor-friendly ETFs, sector ETFs offer a wide range of ways to get low risk and diversified exposure to a wide range of companies in certain sectors. Financials – Insurance is one of 16 Zacks sectors included in the Zacks Industry Index. It is currently at 4, putting it in the top 25%.

Index details

The fund is sponsored by Invesco. It has accumulated over $203.32 million in assets, making it one of the largest ETFs that attempts to match the performance of the Financials – Insurance sector of the equity market. KBWP seeks to compare the performance of the KBW Nasdaq Property & Casualty Index before fees and expenses.

The KBW Nasdaq Property & Casualty Index is a modified index that reflects the performance of approximately 24 insurance companies.

Price

Since low-cost funds tend to perform better than high-cost funds, all other things being equal, it is important for investors to pay close attention to the ratio of ETFs.

The annual fee for this ETF is 0.35%, making it one of the cheapest in the region.

The company paid a dividend of 3.15 %.

Sector Exposure and Top Holdings

It is important to look into the performance of ETFs before investing even though there are many advantages to these types of funds such as diversified exposure, which reduces the risk of a single stock. And, many ETFs are highly transparent products that disclose their holdings on a daily basis.

Looking at individual stocks, Progressive Corp/the (PGR) accounts for about 8.20% of the total, followed by Allstate Corp/the (ALL) and Travelers Cos Inc/the (TRV).

The top 10 accounts for about 60.34% of all monitored products.

Actions and Risks

The ETF has lost about -2.17% and is up about 4.99% so far this year and one year ago (since 07/25/2022), respectively. KBWP has traded between $74.94 and $88.41 over the past 52 weeks.

The ETF has a beta of 0.72 and a standard deviation of 28.32% for the three consecutive years, making it a medium-risk choice in the sector. With about 25 holdings, it is more transparent than its peers.

Other methods

Invesco KBW Property & Casualty Insurance ETF has a Zacks ETF Rank of 2 (Buy), which is based on expected earnings, earnings ratio, and leverage, among other factors. Because of this, KBWP is a great option for investors who want exposure to the Financials ETFs sector of the market. There are some additional ETFs in the area that investors may also consider.

The iShares US Insurance ETF (IAK) tracks the Dow Jones US Select Insurance Index and the SPDR S&P Insurance ETF (KIE) tracks the S&P Insurance Select Industry Index. The iShares US Insurance ETF has $318.25 million in assets, the SPDR S&P Insurance ETF has $514.80 million. IAK has an interest rate of 0.42% and KIE costs 0.35%.

Down Under

To find out more about these and other ETFs, open the screens related to your investment and read the latest news in the ETF Investment Universe, please visit Zacks ETF Center.

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Invesco KBW Property & Casualty Insurance ETF (KBWP) stock price history

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

The Allstate Corporation (ALL): Free Stock Analysis Report

The Progressive Corporation (PGR): Free Stock Analysis Report

iShares US 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.