iShares US Insurance ETF

IAK

Market cap $673M

Designed to provide broad exposure to the Financials - Insurance segment of the equity market, the iShares U.S. Insurance ETF (IAK) is a passively managed exchange traded fund launched on May 1, 2006.

After the industry's combined ratio improved by 5.1 percentage points in 2024 to an 11-year low of 96.5% due in large part to a spectacular fourth quarter for the personal lines, our outlook for 2025 and 2026 contemplates narrower profit margins. A decidedly more favorable operating environment in the private auto business, which accounted for 33.6% of US P&C industry direct premiums written in 2024, will have negative implications for top-line growth in 2025 and 2026 in particular, as some carriers have begun to lower rates.

The iShares U.S. Insurance ETF allocates its assets primarily to Property & Casualty insurance stocks. Southern California wildfires have likely contributed to IAK underperforming U.S. financials so far this year, in line with trends observed during past natural disasters. Weak price gains have resulted in IAK holdings trading at only 12x their trailing earnings, a 33% discount to U.S. financials ex-insurance.

If you're interested in broad exposure to the Financials - Insurance segment of the equity market, look no further than the iShares U.S. Insurance ETF (IAK), a passively managed exchange traded fund launched on 05/01/2006.

I reiterate my buy rating on iShares U.S. Insurance ETF, citing strong momentum, compelling valuation, and favorable technicals as we approach mid-2025. Insurance stocks have outperformed the S&P 500 and financial sector, with IAK up 7.2% YTD and delivering solid risk-adjusted returns. The Fund offers value-leaning exposure, a high long-term earnings growth rate, and a record-high 2024 dividend payout, despite portfolio concentration risks.

Launched on 05/01/2006, the iShares U.S. Insurance ETF (IAK) is a passively managed exchange traded fund designed to provide a broad exposure to the Financials - Insurance segment of the equity market.

Following the worst week since the start of the pandemic, let's examine the health of the U.S. stock market on World Health Day.

Small-cap ETFs are not a great place to seek refuge amid trade war tensions. Instead, insurance and utilities could be a great place to be invested, per some strategists.

The iShares U.S. Insurance ETF (IAK) offers exposure to U.S. insurance companies. IAK charges an expense ratio of 0.39% and has underperformed the broader market but with significantly less risk due to the insurance sector's stability. Unlike high-valuation defensive sectors like Utilities and Consumer Staples, the insurance sector trades at a substantial discount despite similar growth prospects.

Launched on 05/01/2006, the iShares U.S. Insurance ETF (IAK) is a passively managed exchange traded fund designed to provide a broad exposure to the Financials - Insurance segment of the equity market.