A sound investment process and strong management team underpin SPDR® S&P Insurance ETF's Morningstar Medalist Rating of Silver. The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's sensible investment philosophy merits an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in quality exposure and an underweight in volatility exposure compared with category peers. A high quality exposure means holding stocks that are consistently profitable, growing, and have solid balance sheets. And low volatility exposure is rooted in stocks that have a lower standard deviation of returns. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Allstate

Oscar Health

Progressive

Arch Capital

Lincoln National

Old Republic International

Reinsurance Group of America

Cincinnati Financial

Hartford Financial Services Group

Unum

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. SPDR® S&P Insurance ETF earns an Above Average Process Pillar rating. The main contributor to the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Impressive risk-adjusted performance also supports the process. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the process was successful over that period. Lastly, the process is limited by the parent firm's five-year retention rate of 74%, which suggests it could do more to retain its portfolio managers.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of an index that tracks the performance of publicly traded companies in the insurance industry.  In seeking to track the performance of the S&P Insurance Select Industry Index (the "index"), the fund employs a sampling strategy. It generally invests substantially all, but at least 80%, and of its total assets in the securities comprising the index. The index represents the insurance segment of the S&P Total Market Index ("S&P TMI"). 

 The portfolio is overweight in financial services by 16.2 percentage points in terms of assets compared with the category average, and its consumer defensive allocation is similar to the category. The sectors with low exposure compared to category peers are technology and consumer cyclical, with technology underweighting the average portfolio by 5.7 percentage points of assets and consumer cyclical similar to the average. The portfolio is composed of 49 holdings and is diversified among those holdings. In its most recent portfolio, 25.1% of the portfolio's assets were concentrated in the top 10 fund holdings, compared to the category’s 46.6% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 23% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Above Average

Process

State Street’s equity team is strong compared with others in the industry, resulting in an Above Average People Pillar rating. There are two managers listed on the fund: Karl Schneider, Raymond Donofrio. Experience on the team is abundant, with 20 years of average portfolio management experience. Together, they manage a total of six strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

People

State Street Global Advisors is under new leadership but continues to move along the positive trajectory established by former leaders. SSGA maintains its Above Average Parent Pillar rating.
Cyrus Taraporevala, who oversaw much of SSGA’s recent transformation, retired from the CEO position in December 2022 and passed the baton to his successor, Yie-Hsin Hung. She inherited a business that’s become more disciplined with its fund lineup. Fees have come down, while product development remains focused on fixed-income and sustainability funds, and many of SSGA’s launches have echoed that intention.
The seeds that SSGA planted over the past several years have been bearing fruit. It built out a low-cost series of portfolio building-block ETFs in the U.S. bearing the “SPDR Portfolio” branding. SSGA launched these later than its industry rivals, so they aren’t as large. But they’re competitive, with solid management and low fees, which helped them consistently take in new money over the past several years.
SSGA continued to overhaul its ETF business in Europe with most of its recent fixed-income and sustainability fund launches. Many of these funds track indexes and charge relatively low fees. With operations in the U.S. and Europe standing on a firm foundation, SSGA will put more focus on its Asia-Pacific business—the smallest regional segment of its business.

Parent

SPDR S&P Insurance ETF

KIE tracks an equal-weighted-index of insurance companies, as defined by GICS.

SPDR S&P 500 ETF Trust

Financial Select Sector SPDR Fund

On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research Todd Rosenbluth discussed the SPDR S&P Insurance ETF (KIE) with Chuck Jaffe of “Money Life.” The pair talked about several topics regarding the fund to give investors a deeper understanding of the ETF overall.

VIDEO: ETF of the Week: SPDR S&P Insurance ETF (KIE)

VettaFi's Head of Research Todd Rosenbluth discussed the SPDR S&P Insurance ETF (KIE) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and analysis, visit VettaFi | ETF Trends.

ETF of the Week: SPDR S&P Insurance ETF (KIE)

The SPDR S&P Insurance ETF (KIE) was launched on 11/08/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Financials - Insurance segment of the equity market.

Should You Invest in the SPDR S&P Insurance ETF (KIE)?

Stocks are on track for their 5th straight monthly advance - a signal that even further gains may lie ahead.

Money Rotates as Rally Broadens Out: Where to Look for Upside Potential

The SPDR S&P Insurance ETF (KIE) made its debut on 11/08/2005, and is a smart beta exchange traded fund that provides broad exposure to the Financials ETFs category of the market.

Is SPDR S&P Insurance ETF (KIE) a Strong ETF Right Now?

Insurance and reinsurance companies are often overlooked and undercovered by investors. The sector has shown strong performance recently, outperforming the broader financial services group. The insurance cycle has turned, with better performance and a positive outlook for the future.

Insurance - Own The Hidden Gems In Financial Services - As Opposed To KIE

Insurance stocks have been big winners amid record earnings with climbing coverage premiums in recent years. The KIE ETF is currently trading at an all-time high, but industry valuations appear stretched. We expect the KIE ETF to face renewed volatility into new uncertainties regarding the macro backdrop and the trajectory of interest rates.

KIE: Caution As Dividend Yield Dips To Decade Low

iShares U.S. Insurance ETF

Invesco KBW Property & Casualty Insurance ETF

Continuing its momentum from the last year, the insurance industry is poised for a robust 2024. Look into ETFs to capitalize on the industry's optimistic outlook.

Tap Into the Insurance Industry's Momentum With These ETFs

Arthur J. Gallagher & Co.

This stock outperformed during last year's bear market and has continued the trend this year.

Steady As She Goes: A Proven Winner Through Good Times and Bad

S&P Insurance ETF is a stable investment option in a volatile market, particularly due to the growth potential of the insurance sector. Insurance companies are implementing proactive risk management measures and integrating technological advances to make the industry more profitable and trustworthy. KIE is a diversified ETF with a midsized asset size, making it a consideration for retail investors without major liquidity concerns.

KIE: The (Investment) Climate Is Changing - Better Get Some Insurance

National Western Life Group

National Western Life Group Inc. NWLI, -0.67% announced an agreement Monday to be acquired by Prosperity Life Group affiliate S. USA Life Insurance company in a cash deal valued at $1.9 billion.

North Western Lift to be bought out by a Prosperity Life affiliate for $500 a share

KIE benefits from higher interest rates and offers exposure to insurance reserve portfolios gaining as they rollover at higher rates. KIE equities are not that risky, and benefit from low PEs. While there are risks to the equity portfolios at insurance companies, demand side resilience and higher rates on large fixed income portfolios should win out.

KIE: Insurance Is Still A Winner

Apple

Amazon

Global X Robotics & Artificial Intelligence ETF

Renaissance IPO ETF

JPMorgan Ultra-Short Income ETF

First Trust Low Duration Strategic Focus ETF

Proshares Online Retail ETF

Snowflake

Technology Select Sector SPDR Fund

Veteran investor Warren Buffett's Berkshire Hathaway reported second-quarter earnings in late last week. These are lessons we have learnt from the release.

ETF Lessons to Learn from Berkshire Earnings

iShares Floating Rate Bond ETF

Invesco KBW Regional Banking ETF

Vanguard Value ETF

The Federal Reserve, as widely expected, raised interest rates by a quarter-percentage point and signaled the possibility of further increases ahead.

ETFs to Gain as Fed Raises Rates to a 22-Year High

Teucrium Corn Fund

Advisorshares Restaurant ETF

VanEck Vectors Agribusiness ETF

United States Natural Gas Fund LP

Teucrium Wheat Fund

Materials Select Sector SPDR Fund

SPDR S&P Metals & Mining ETF

El Nino, the periodic weather phenomenon characterized by an abnormal warming of the Pacific Ocean, has set in 2023.

Harnessing El Nino in 2023 & Its Impact on ETF World

Aflac

Chubb

MetLife

Prudential Financial

Travelers

With the Fed slowing down the pace of rate hike and expectations of a pause in further hikes coupled with mixed results of the leading players in the industry, insurance ETFs struggled to find a footing over the last month.

A Look at Insurance ETFs Post a Mixed Bag Q1

UBS ETRACS Wells Fargo Business Development Cmpn Indx ETN 2015-26.4.41 Lkd to Wells Fargo Business Dvlpmnt Indx Ser B

VanEck Vectors BDC Income ETF

Davis Select Financial ETF

Direxion Daily Regional Banks Bull 3X Shares

iShares MSCI Europe Financials ETF

Fidelity MSCI Financials Index ETF

First Trust Nasdaq Bank ETF

First Trust Financials AlphaDEX Fund

iShares U.S. Broker-Dealers & Securities Exchanges ETF

iShares U.S. Regional Banks ETF

iShares Global Financials ETF

iShares U.S. Financials ETF

iShares US Financial Services ETF

SPDR S&P Bank ETF

Invesco KBW Bank ETF

Invesco KBW High Dividend Yield Financial ETF

SPDR S&P Capital Markets ETF

SPDR S&P Regional Banking ETF

Invesco DWA Financial Momentum ETF

Invesco S&P SmallCap Financials ETF

First Trust NASDAQ ABA Community Bank Index Fund

Lipper Financial Services ETFs recorded their largest weekly outflow of the year over the past fund flows week (-$1.4 billion). On top of the bank failures, market participants are worried about the largest U.S. banks gaining an increasing market share by allowing them to take over the smaller regional institutions.

Regional Banking Concerns Produce Financial Services ETF Outflows

First Trust NASDAQ Global Auto Index Fund

iShares Global Clean Energy ETF

iShares U.S. Consumer Services ETF

iShares U.S. Healthcare ETF

iShares U.S. Real Estate ETF

Vanguard Real Estate ETF

Energy Select Sector SPDR Fund

Consumer Staples Select Sector SPDR Fund

Health Care Select Sector SPDR Fund

SPDR S&P Transportation ETF

The annual inflation rate in the United States dropped to 4.9% in April 2023, the lowest since April 2021.

Sector ETFs Likely to Gain on April Inflation Data

The Federal Reserve, as expected, raised interest rates by a quarter-percentage-point but signaled that it may pause further increases.

4 ETFs Zones to Benefit as Fed Pushes Rate to Above 5%

JPMorgan Equity Premium Income ETF

Janus Henderson Small Cap Growth Alpha ETF

iShares MSCI USA Quality Factor ETF

Invesco S&P 500 Quality ETF

Invesco S&P MidCap Quality ETF

U.S. equity ETFs regained popularity in April after largely being shunned in the first quarter relative to international equities and fixed income products.

Strong April Equity Flows for Up-and-Coming ETFs

KIE: Is Equal Weighting Insurance Stocks Costing You Money?

Brighthouse Financial

Genworth Financial

The crisis of investors confidence in banks has spilled over to the insurance sector, which has taken a beating in the past week. The SPDR S&P Insurance exchange-traded fund KIE, -3.10% slid 3.2% in morning trading toward a five-month low, and has tumbled 9.9% over the past seven sessions, since the troubles of SVB Financial Group's SIVB, Silicon Valley Bank became public.

Insurance sector also taking a beating as bank stocks keep selling off

Lets dig into earnings of some of the prominent insurance players.

Insurance ETFs Rising on Q4 Earnings Results

iShares 20+ Year Treasury Bond ETF

Insurance ETFs have been gaining steadily. Coverage for intangible assets especially in the area of technology holds promise.

Insurance ETFs At 52-Week Highs: More Gains Ahead?

Insurance ETF KIE hit a 52-week high level lately. Can it soar higher?

News for SPDR S&P Insurance ETF ETF (KIE)