Invesco KBW Property & Casualty Insurance ETF Overview and Market Position

The Invesco KBW Property & Casualty Insurance ETF (KBWP), launched in December 2010, is a passively managed fund that aims to provide broad exposure to the U.S. Financials - Insurance sector, specifically focusing on property and casualty insurance companies. It tracks the KBW Nasdaq Property & Casualty Index, which is market capitalization weighted and includes approximately 24 property and casualty insurers. With assets totaling over $410 million, KBWP represents a moderate-sized option for investors seeking sector-specific equity exposure. Passively managed ETFs like KBWP are valued for their low costs, transparency, flexibility, and tax efficiency, making them attractive for long-term investors. KBWP carries an expense ratio of 0.35%, which is competitive within the sector, and offers a trailing 12-month dividend yield of 1.76%. The fund's portfolio is concentrated entirely in the Financials sector, with top holdings including prominent insurers such as Chubb Ltd, Travelers Cos Inc, and American International Group Inc, which together account for a significant portion of assets. Performance-wise, KBWP gained 7.73% over the last 12 months but experienced a slight decline of 0.45% year-to-date as of early December 2025. Its risk profile is considered medium, with a beta of 0.55 and a standard deviation of 17.62% over three years, reflecting moderate volatility relative to the broader market. The fund’s concentrated portfolio of about 27 holdings provides focused exposure compared to more diversified peers. For investors assessing sector ETFs, KBWP holds a Zacks ETF Rank of 3 (Hold), based on factors such as expected returns, expense ratio, and market momentum. Competing ETFs include the iShares U.S. Insurance ETF (IAK) and the State Street SPDR S&P Insurance ETF (KIE), which track related insurance indices and have comparable assets under management and fee structures. This ETF offers a viable option for market participants seeking diversified yet targeted exposure to the U.S. property and casualty insurance industry through a cost-effective and transparent vehicle. Investors should monitor the fund’s holdings and performance relative to sector trends and alternative ETFs to optimize portfolio alignment with their investment objectives.