Investors looking for a more balance approach should consider the SPDR S&P Insurance ETF (NYSEArca: KIE). KIE, which has performed roughly inline with IAK over the past six months, is an equal-weight product with individual weights ranging from 2.1% to 2.6%.
As such, the ETF’s exposure to MetLife, Lincoln and Unum is considerably lower than IAK’s. That trio represents about 7% of KIE’s weight. KIE is the less expensive of the two ETFs with an annual expense ratio of 0.35%. IAK charges 0.45%.
iShares Dow Jones U.S. Insurance Index Fund
ETF Trends editorial team contributed to this piece.