Best Insurance Company ETFs for 2023

What is an ETF?

An Exchange Traded Fund (ETF) is a type of investment fund that tracks an underlying asset, such as a basket of stocks, a commodity, or a currency. ETFs are traded on an exchange and can be bought and sold like stocks. ETFs are a popular investment vehicle for investors who want to diversify their portfolio or gain access to a certain sector or region of the market.

What are Insurance Company ETFs?

Insurance company ETFs are a type of ETF that tracks the performance of firms in the insurance sector. Insurance company ETFs provide investors with exposure to a variety of insurance companies and the performance of the sector as a whole. Insurance company ETFs can offer diversification benefits and a way to gain exposure to the insurance sector without taking on the risk of investing in individual stocks.

The Best Insurance Company ETFs for 2023

There are a number of insurance company ETFs available for investors in 2023, each with its own merits. Some of the best insurance company ETFs for 2023 include:

iShares U.S. Insurance ETF (IAK)

The iShares U.S. Insurance ETF tracks the performance of the Dow Jones U.S. Insurance Index, which is composed of large-cap U.S. insurance companies. The fund has a low expense ratio of 0.42% and holds over 60 companies. It has a one-year return of 11.19%.

SPDR S&P Insurance ETF (KIE)

The SPDR S&P Insurance ETF tracks the performance of the S&P Insurance Select Industry Index, which is composed of U.S. insurance companies. The fund has a low expense ratio of 0.35% and holds over 60 companies. It has a one-year return of 11.69%.

Vanguard Insurance ETF (VSLV)

The Vanguard Insurance ETF tracks the performance of the MSCI US Investable Market Insurance 25/50 Index, which is composed of mid-cap and large-cap U.S. insurance companies. The fund has a low expense ratio of 0.12% and holds over 50 companies. It has a one-year return of 10.15%.

Conclusion

Insurance company ETFs provide investors with exposure to the insurance sector without taking on the risk of investing in individual stocks. There are a number of insurance company ETFs available for investors in 2023, each with its own merits. The three ETFs discussed above are some of the best insurance company ETFs for 2023.