The Invesco KBW Property & Casualty Insurance ETF (KBWP) was launched on 12/02/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Financials - Insurance segment of the equity market.

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Financials - Insurance is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.

Index Details

The fund is sponsored by Invesco. It has amassed assets over $404.33 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

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

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 1.70%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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, American International Group Inc (AIG) accounts for about 8.93% of total assets, followed by Progressive Corp/the (PGR) and Chubb Ltd (CB).

The top 10 holdings account for about 63.04% of total assets under management.

Performance and Risk

The ETF has added roughly 5.73% so far this year and it's up approximately 17.98% in the last one year (as of 03/26/2025). In that past 52-week period, it has traded between $100.62 and $126.40.

The ETF has a beta of 0.63 and standard deviation of 18.32% 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 holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, KBWP is an excellent option for investors seeking exposure to the Financials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.

IShares U.S. Insurance ETF (IAK) tracks Dow Jones U.S. Select Insurance Index and the SPDR S&P Insurance ETF (KIE) tracks S&P Insurance Select Industry Index. IShares U.S. Insurance ETF has $794.11 million in assets, SPDR S&P Insurance ETF has $999.79 million. IAK has an expense ratio of 0.39% 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Invesco KBW Property & Casualty Insurance ETF (KBWP): ETF Research Reports

American International Group, Inc. (AIG) : Free Stock Analysis Report

Chubb Limited (CB) : Free Stock Analysis Report

The Progressive Corporation (PGR) : Free Stock Analysis Report

iShares U.S. Insurance ETF (IAK): ETF Research Reports

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research