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IAK - AI Analysis
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iShares U.S. Insurance ETF (IAK)
Rating:73Outperform
Price Target:
$148.10
Positive Factors
Strong Holdings Performance
Several top holdings, such as Travelers Companies and Hartford Financial, have delivered strong year-to-date gains, supporting the ETF's overall performance.
Focused Sector Exposure
The ETF's heavy allocation to the financial sector provides targeted exposure to the insurance industry, which can benefit from favorable market conditions.
Reasonable Expense Ratio
The fund charges a relatively low expense ratio compared to actively managed funds, helping investors retain more of their returns.
Negative Factors
Underperforming Key Holdings
Major positions like Progressive and Prudential Financial have seen weak year-to-date performance, which could drag on the ETF's overall returns.
High Geographic Concentration
The ETF is almost entirely focused on U.S. companies, limiting diversification and exposing investors to domestic market risks.
Sector Overconcentration
With nearly all assets in the financial sector, the fund is highly sensitive to downturns in the insurance industry.
IAK vs. SPDR S&P 500 ETF (SPY)
AUM628.46M
RegionNorth America
Expense Ratio0.38%
Beta0.53
IssueriShares
Inception DateMay 01, 2006
Dividend Yield1.85%
Asset ClassEquity
Index TrackedDJ US Select / Insurance
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume75,063
30 Day Avg. Volume53,843
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
148.10Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering58
IAK Summary
The iShares U.S. Insurance ETF (IAK) is an investment fund that focuses on the U.S. insurance industry, including companies that provide life, health, property, and casualty insurance. It tracks the Dow Jones U.S. Select Insurance Index, offering exposure to well-known insurers like Progressive and Chubb. This ETF could be appealing to investors looking for diversification within the financial sector or seeking steady growth from companies that play a key role in managing risk and stability. However, new investors should be aware that the ETF’s performance is closely tied to the insurance industry, which can be affected by economic changes and regulatory shifts.
How much will it cost me?The iShares U.S. Insurance ETF (IAK) has an expense ratio of 0.38%, meaning you’ll pay $3.80 per year for every $1,000 invested. This cost is slightly higher than average for ETFs because it focuses on a specific sector (insurance) and is passively managed to track a niche index. Sector-focused ETFs often have higher costs due to their specialized nature.
What would affect this ETF?The iShares U.S. Insurance ETF (IAK) could benefit from rising demand for insurance products as economic growth and population trends drive the need for life, health, and property coverage, while strong financial performance from top holdings like Progressive and Chubb may boost returns. However, the ETF could face challenges from regulatory changes in the U.S. insurance industry or economic downturns that reduce consumer spending on insurance and impact profitability. Interest rate fluctuations could also affect the sector's investment income and overall performance.
IAK Top 10 Holdings
The iShares U.S. Insurance ETF (IAK) is firmly rooted in the U.S. insurance sector, with heavyweights like Progressive and Chubb leading the charge. However, both stocks have been lagging recently, with bearish technical trends and mixed valuation metrics holding them back. Travelers Companies and Hartford Financial are providing some stability, with steady growth and positive earnings momentum. AFLAC stands out as a bright spot, rising on strong cash flow and shareholder returns. Overall, the fund’s concentrated focus on insurance means its performance hinges on the sector’s ability to navigate economic uncertainties and regulatory shifts.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Progressive | 14.54% | $91.33M | $128.43B | -11.35% | 73 Outperform | |
| Chubb | 11.96% | $75.09M | $112.41B | -2.88% | 79 Outperform | |
| Travelers Companies | 6.96% | $43.73M | $60.20B | 7.12% | 78 Outperform | |
| Allstate | 5.82% | $36.58M | $50.91B | 2.11% | 73 Outperform | |
| AFLAC | 4.73% | $29.70M | $57.32B | -2.04% | 68 Neutral | |
| American International Group | 4.68% | $29.41M | $43.77B | 2.36% | 67 Neutral | |
| Metlife | 4.58% | $28.79M | $52.32B | -5.08% | 71 Outperform | |
| Prudential Financial | 4.30% | $27.01M | $35.97B | -18.62% | 69 Neutral | |
| Hartford Financial | 4.20% | $26.38M | $35.18B | 10.21% | 74 Outperform | |
| Arch Capital Group | 3.82% | $23.97M | $32.53B | -18.66% | 78 Outperform |
IAK Technical Analysis
Negative
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Price Trends
131.62
Negative
130.78
Negative
130.80
Negative
Market Momentum
-1.37
Positive
34.66
Neutral
20.91
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IAK, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 130.80, equal to the 50-day MA of 131.62, and equal to the 200-day MA of 130.80, indicating a bearish trend. The MACD of -1.37 indicates Positive momentum. The RSI at 34.66 is Neutral, neither overbought nor oversold. The STOCH value of 20.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IAK.
IAK Peer Comparison
Comparison Results
Performance Comparison
IAK
iShares U.S. Insurance ETF
126.14
0.49
0.39%
KIE
SPDR S&P Insurance ETF
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KCE
SPDR S&P Capital Markets ETF
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REM
iShares Mortgage Real Estate ETF
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IAT
iShares U.S. Regional Banks ETF
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KBWP
Invesco KBW Property & Casualty Insurance ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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