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Insurance ETF (KIE) Hits New 52-Week High

Sweta Killa

For investors seeking momentum, SPDR S&P Insurance ETF KIE is probably on radar now. The fund just hit a 52-week high, and is up roughly 26.1% from its 52-week low price of $26.49/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

KIE in Focus    

KIE targets the insurance corner of the broad financial space and offers a diversified exposure to 48 stocks. About 43% of the portfolio is allocated to property and casualty insurance, while life & health insurance accounts for one-fourth share. The fund charges investors 35 basis points a year in fees (see: all the Financial ETFs here).

Why the Move?

The insurance sector has been an area to watch lately given a solid job market, increasing wages and rising consumer confidence that is spurring demand for all types of insurance services. Further, the industry is benefiting from the implementation of new technologies and innovative processes.

More Gains Ahead?

Currently, KIE has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.

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SPDR S&P Insurance ETF (KIE): ETF Research Reports
 
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