ETF Trends
ETF Trends

ETF Trends publisher Tom Lydon discussed SPDR S&P Insurance ETF (KIEon this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

Back-to-back Hurricanes have smashed insurance company stocks. KIE fell over 10% since the August high to test its 200-day simple moving average support.

Insurance company shares may be punished more than they should be; Insurers are well-capitalized against hurricane effects.

Insurers should be well capitalized to meet requirements since they should have been prepared before hand; CFRA estimates industry has a $300 billion cash cushion.

To put in perspective, Harvey damages are estimated at $10 billion to $15 billion, with worst case scenario at $20 billion.

KIE tries to reflect the performance of the S&P Insurance Select Industry. Its sector weights include property & casualty insurance 40.4%, life & health insurance 26.5%, insurance brokers 12.0%, multi-line insurance 11.0%, and reinsurance 10.0%.

Click here to listen to the podcast.

Related Insurance ETF articles

Hurricane Irma Helps Insurance ETFs Rebound

5 Insurance ETFs Asserting Leadership

Rising Interest Rates Set to Boost Insurance ETFs