If you're interested in broad exposure to the Financials - Insurance segment of the equity market, look no further than the Invesco KBW Property & Casualty Insurance ETF (KBWP), a passively managed exchange traded fund launched on December 2, 2010.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Financials - Insurance is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $253.94 million, making it one of the average sized ETFs attempting to match the performance of the Financials - Insurance segment of the equity market. KBWP seeks to match the performance of the KBW Nasdaq Property & Casualty Index before fees and expenses.
The KBW Nasdaq Property & Casualty Index is a modified market capitalization weighted index that reflects the performance of approximately 24 property and casualty insurance companies.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.93%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector -- about 100% of the portfolio.
Looking at individual holdings, Aon Plc (AON) accounts for about 8.11% of total assets, followed by Travelers Cos Inc/the (TRV) and Chubb Ltd (CB).The top 10 holdings account for about 59.97% of total assets under management.
Performance and Risk
So far this year, KBWP has lost about 3.99%, and was up about 2.06% in the last one year (as of 06/12/2026). During this past 52-week period, the fund has traded between $115.133 and $128.36.
The ETF has a beta of 0.41 and standard deviation of 16.98% for the trailing three-year period, making it a medium risk choice in the space. With about 26 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco KBW Property & Casualty Insurance ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. KBWP, then, is not a suitable option for investors seeking exposure to the Financials ETFs segment of the market. Instead, there are better ETFs in the space to consider.
iShares U.S. Insurance ETF (IAK) tracks Dow Jones U.S. Select Insurance Index and the State Street SPDR S&P Insurance ETF (KIE) tracks S&P Insurance Select Industry Index. iShares U.S. Insurance ETF has $371.75 million in assets, State Street SPDR S&P Insurance ETF has $483.89 million. IAK has an expense ratio of 0.38%, and KIE charges 0.35%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco KBW Property & Casualty Insurance ETF (KBWP): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).