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

Core Viewpoint - The SPDR S&P Insurance ETF (KIE) is a passively managed fund that provides broad exposure to the Financials - Insurance segment, appealing to both retail and institutional investors due to its low costs and tax efficiency [1][2]. Group 1: Fund Overview - KIE was launched on November 8, 2005, and has accumulated assets exceeding $838.19 million, positioning it as an average-sized ETF in its category [3]. - The fund aims to replicate the performance of the S&P Insurance Select Industry Index, which represents the insurance segment of the S&P Total Market Index [3]. Group 2: Cost Structure - KIE has annual operating expenses of 0.35%, making it one of the least expensive ETFs in the insurance sector [4]. - The ETF offers a 12-month trailing dividend yield of 1.57% [4]. Group 3: Sector Exposure and Holdings - The ETF is fully allocated to the Financials sector, with approximately 100% of its portfolio dedicated to this area [5]. - Key holdings include Lemonade Inc (2.44% of total assets), Genworth Financial Inc, and Lincoln National Corp, with the top 10 holdings comprising about 21.73% of total assets [6]. Group 4: Performance Metrics - Year-to-date, KIE has returned approximately 4.95%, and over the last 12 months, it has increased by about 6.42% as of September 1, 2025 [7]. - The ETF has traded between $53.63 and $62.03 in the past 52 weeks, with a beta of 0.74 and a standard deviation of 17.88% over the trailing three-year period, indicating medium risk [7]. Group 5: Alternatives - KIE holds a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Financials ETFs sector [8]. - Other alternatives include Invesco KBW Property & Casualty Insurance ETF (KBWP) and iShares U.S. Insurance ETF (IAK), with assets of $477.61 million and $717.29 million respectively, and expense ratios of 0.35% and 0.39% [9].