Invesco’s property and casualty insurance ETF has generated strong returns for investors this year.
The Invesco KBW Property & Casualty ETF (KBWP) is up 28.5% year to date as of Sept. 3. The P&C ETF has climbed 7.6% in the past one-month period, and has offered attractive returns over longer durations. Over three- and five-year periods, KBWP has returned 54.4% and 81%, respectively, nonannualized.
KBWP provides exposure to the property and casualty subsegment of the financials sector. The fund is based on the KBW Nasdaq Property & Casualty Index. It includes companies primarily engaged in U.S. property and casualty insurance activities, weighted by market cap.
The fund is outpacing the S&P 500 financials sector by 681 basis points year to date through Sept. 3, making it an interesting way to get focused exposure to the part of the sector.
Under the Hood of Invesco’s Property & Casualty Insurance ETF
Invesco’s property and casualty insurance ETF is relatively concentrated, comprising 25 individual stocks. Its top holdings as of Sept. 3 include Progressive (PGR), Allstate (ALL), Travelers Companies (TRV), Chubb (CB), and American International Group (AIG).
Progressive and Allstate have been strong performers, driving returns for the fund. Progressive is up 59.4% year to date through Sept. 3, while Allstate is up 37.4%. Over a three-year period, Progressive and Allstate have climbed 169.7% and 52.9%, respectively, nonannualized.
Notably, Invesco’s property and casualty ETF offers the greatest exposure to Allstate of any U.S. ETF on the market, with the security comprising 8.3% of the fund by weight. Of all U.S. ETFs available, KBWP offers the second greatest exposure to Progressive, as the stock makes up 8.8% of the fund by weight.
The ETF has $334 million in assets under management and has accreted $113 million in net flows over a one-year period.
The fund charges 35 basis points.
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