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“Right now, we see a new primary trend, which is the rise of yields. Obviously, rising yields imply that Treasury prices go down. But, more importantly, it will probably put pressure on gold prices. It remains to be seen how commodities will react on this (probably muted) and how stocks will digest this (likely investment risk appetite will rise leading to higher stock prices),” according to ETF Daily News.
Investors looking for solid exposure to insurance stocks without the commitment of a dedicated industry fund, such as IAK or KIE, can consider the First Trust Financial AlphaDEX Fund (NYSEArca: FXO).
“Which sector(s) that are benefiting from the new primary trend? Life insurance companies are outperformers even if stocks are retracing, just like investment services,” reports ETF Daily News.
For more information on the insurance industry, visit our insurance category.
SPDR S&P Insurance ETF