Should You Invest in the Invesco KBW Property & Casualty Insurance ETF (KBWP)?

Launched on December 2, 2010, the Invesco KBW Property & Casualty Insurance ETF (KBWP) is a passively managed exchange traded fund designed to provide a 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.Investor-friendly, sector ETFs provide many options 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 1, placing it in top 6%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $410.32 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.CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 1.76%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. 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, Chubb Ltd (CB) accounts for about 8.48% of total assets, followed by Travelers Cos Inc/the (TRV) and American International Group Inc (AIG).The top 10 holdings account for about 60.69% of total assets under management.Performance and RiskThe ETF has gained about 7.73% and is down about 0.45% so far this year and in the past one year (as of 12/02/2025), respectively. KBWP has traded between $110.12 and $126.65 during this last 52-week period.The ETF has a beta of 0.55 and standard deviation of 17.62% for the trailing three-year period, making it a medium risk choice in the space. With about 27 holdings, it has more concentrated exposure than peers.AlternativesInvesco KBW Property & Casualty Insurance ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, KBWP is a sufficient option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.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 $508.98 million in assets, State Street SPDR S&P Insurance ETF has $635.06 million. IAK has an expense ratio of 0.38%, and KIE charges 0.35%.Bottom LineTo 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>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 ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks