US Insurance ETF
In general investing in an US insurance ETF may be a bit boring as share prices tend to go up slowly but securely. As long as there are no disasters the paid premiums will take care of a nice yearly profit.
But sometimes a bad year occurs. The aforementioned disaster may cause that but there are more risks. Fierce competition may have an impact on price setting. Also many minor mishaps may cause a bad result in one year.
In most cases than premiums will be set higher in the year to come which solves the problem. Getting in at this US insurance ETF just after a bad year may be the smartest decision. But beware of low interests, a situation of continuous low interests is hurting this industry.
SPDR S&P Insurance ETF
With this SPDR US insurance ETF you can invest in more than 50 American insurance companies.
You will find a myriad of insurance companies in this US insurance ETF. As the spread is well-balanced there is not a huge chance of sudden disappointments.
Every single insurance company is weighed approximately the same (2% each). This SPDR Insurance ETF is tracking the S&P Insurance Select Industry index.
All my transactions older than 1 month FOR FREE: Click here
SPDR S&P Insurance ETF info:
ETF provider: SPDR (State Street Global Advisors)
Ticker: KIE
ISIN: US78464A7899
Currency: Dollar
Exchange: Nyse Arca