Moreover, rising rates means that banks will generate greater revenue from the spread between what they pay deposit savers and the prime rates they charge credit-worthy clients and other highly-rated debt.
Competitors to KIE include the iShares US Insurance ETF (NYSEArca: IAK), PowerShares KBW Property & Casualty Insurance Portfolio (NYSEArca: KBWP) and PowerShares KBW Insurance Portfolio (NYSEArca: KBWI).
KIE, home to nearly $893 million in assets under management, tracks the S&P Insurance Select Industry Index and debuted almost 12 years ago. The ETF holds 50 stocks from the Insurance Brokers, Life & Health Insurance, Multi-Line Insurance, Property & Casualty Insurance, and Reinsurance industries.
The weighted average market value of KIE’s roster is $16.6 billion, according to issuer data. The ETF’s price-to-earnings ratio of 14 implies a significant discount to the broader market.
For more information on the financial sector, visit our financial category.