What are insurance ETFs?
Insurance companies collect premiums from customers and promise to pay claims when something goes wrong, from a car crash to a house fire. Insurance ETFs (exchange-traded funds, which trade on an exchange like a single stock) own baskets of these companies. Three stocks appear in all three funds: Progressive, Travelers and Cincinnati Financial. Chubb, Allstate, Arch Capital, Hartford, W. R. Berkley and Markel each appear in two of the three.
All three are index funds. An index fund follows a rules-based list of stocks instead of a manager's picks. None of the three is leveraged, inverse or built around options. The main difference is weighting. The iShares U.S. Insurance ETF (IAK) tracks an index of US insurance stocks and leans on a few names: Progressive is 13.64% and Chubb 13.13%, and its top 10 holdings make up 65.9% of assets. The Invesco KBW Property & Casualty Insurance ETF (KBWP) follows the KBW Nasdaq Property & Casualty Index. It owns just 24 stocks and puts 61.34% in its top 10, led by Travelers. The SPDR S&P Insurance ETF (KIE) spreads its money far more evenly across 53 stocks. Its largest holding, Baldwin Insurance Group, is only 2.46%, and its top 10 total 20.44%.
Costs barely differ. The expense ratio is the yearly fee taken out of fund assets. The median is 0.35%: KIE and KBWP charge 0.35% and IAK 0.37%. All of the money in US-listed insurance ETFs, about $1.16 billion, sits in these three funds: about $457 million in KIE, $422 million in IAK and $284 million in KBWP.
Insurance ETF holdings: the stocks most funds own
The stocks that show up most often among the largest positions of the 3 biggest insurance ETFs with holdings reports, from their latest N-PORT filings.
| Stock | Funds holding it | Typical weight |
|---|---|---|
| Progressive Corp | 3 of 3 | 7.95% |
| Travelers Cos Inc | 3 of 3 | 7.51% |
| Cincinnati Financial Corp | 3 of 3 | 3.2% |
| Chubb Limited | 2 of 3 | 7.54% |
| The Allstate Corporation | 2 of 3 | 4.34% |
| Arch Capital Group Ltd. | 2 of 3 | 3.77% |
| The Hartford Insurance Group, Inc. | 2 of 3 | 3.75% |
| W. R. Berkley Corporation | 2 of 3 | 2.32% |
| Markel Group Inc | 2 of 3 | 1.92% |
Typical weight is the median share of each fund’s assets in the stock, among the funds that hold it in their 25 largest positions.
The largest insurance ETFs, side by side
Swipe the table to see all 3 funds.
| KIE | IAK | KBWP | |
|---|---|---|---|
| Net assets | $457.4M | $421.5M | $283.8M |
| Expense ratio | 0.35% | 0.37% | 0.35% |
| Holdings | 53 | 57 | 24 |
| In the 10 largest | 20.44% | 65.9% | 61.34% |
| Biggest holding | Baldwin Insurance Group Inc (2.46%) | The Progressive Corporation (13.64%) | Travelers Cos., Inc. (The) (8.7%) |
| Yield | 1.59% | 2.44% | 1.81% |
| 1-year return | +10.8% | +17.4% | +16.6% |
| 3 years, a year | +16.2% | +19.3% | +18.7% |
| 5 years, a year | +11.0% | +14.1% | +13.4% |
| Worst drop, past year | -11.8% | -10.5% | -12.0% |
| Launched | 2005 | 2006 | 2010 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Oct 27, 2026.
Head to head
KIE vs IAK
KIE and IAK, the two largest insurance ETFs, hold 53 and 57 stocks but weight them differently. IAK puts 65.9% of assets in its top 10, led by Progressive at 13.64%. KIE's top 10 is 20.44%, and its biggest holding, Baldwin Insurance Group, is 2.46%. About 47.3% of their assets overlap. KIE charges 0.35% a year, IAK 0.37%. As of October 27, 2026, IAK returned 17.4% over one year versus 10.8% for KIE, with a smaller fall from its peak (10.5% vs 11.8%). IAK may suit those focused on big insurers; KIE, those wanting smaller insurers to count too.
IAK vs KBWP
IAK covers the wider US insurance industry with 57 stocks; KBWP tracks the KBW Nasdaq Property & Casualty Index with 24. Both are top-heavy: IAK's top 10 is 65.9% of assets, led by Progressive at 13.64%; KBWP's is 61.34%, led by Travelers at 8.7%. Their assets overlap by 49.7%, the most of any pair. KBWP costs 0.35%, IAK 0.37%. As of October 27, 2026, IAK returned 17.4% over one year and KBWP 16.6%, with KBWP falling further from its peak (12% vs 10.5%). KBWP may suit those wanting property and casualty insurers alone; IAK, a broader insurance mix.
KIE vs KBWP
KIE and KBWP both charge 0.35% a year, but they are built very differently. Every one of KBWP's 24 stocks also appears in KIE, which holds 53. Yet only 43.3% of their assets overlap, the least of any pair. KIE's top 10 is 20.44% of assets. KBWP's is 61.34%, led by Travelers at 8.7%, and its index focuses on property and casualty insurers. As of October 27, 2026, KBWP returned 16.6% over one year versus 10.8% for KIE, though their falls from peak were similar (12% vs 11.8%). KIE may suit those wanting breadth; KBWP, a tighter focus.
How much do the largest insurance ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
From each fund’s full holdings in its latest N-PORT report.
How have insurance ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
Best-performing insurance ETFs over the past year
| # | Fund | Net assets | Cost | 1 mo | YTD | 1 yr | 3 yr |
|---|---|---|---|---|---|---|---|
| 1 | IAK iShares U.S. Insurance ETF | $421.5M | 0.37% | +6.1% | +9.9% | +17.4% | +19.3% |
| 2 | KBWP Invesco KBW Property & Casualty Insurance ETF | $283.8M | 0.35% | +9.0% | +7.7% | +16.6% | +18.7% |
| 3 | KIE SPDR S&P Insurance ETF | $457.4M | 0.35% | +4.6% | +5.1% | +10.8% | +16.2% |
Funds with at least $25 million in net assets; leveraged and inverse funds left out. Past returns don’t predict future returns.
How insurance ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| KIE | -74.6% | -44.0% | -6.5% |
| IAK | -76.7% | -44.4% | -0.9% |
| KBWP | not yet launched | -38.7% | -3.2% |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives insurance ETFs?
Insurers earn money in two ways. They collect premiums and try to pay out less in claims and expenses, which is called underwriting profit. They also invest the premiums they hold until claims come due, mostly in bonds, so interest rates matter: higher rates can raise investment income but cut the market value of bonds already owned. Profits also move with the pricing cycle, as insurers push premiums up after heavy losses and competition later pulls them down. Hurricanes, wildfires and inflation in repair and medical bills raise claims, and state regulators in the US must often approve rate increases.
These funds have not moved in step with the broad market. In the 2008 financial crisis, KIE fell 74.6% and IAK 76.7%, far more than the S&P 500's 55.2%; KBWP did not launch until 2010. In the 2020 COVID crash, KIE and IAK each fell about 44% and KBWP 38.7%, versus 33.7% for the S&P 500. The 2022 bear market went the other way: IAK lost 0.9%, KBWP 3.2% and KIE 6.5%, while the S&P 500 dropped 24.5%. These funds fell harder than the market in both sudden crashes but held up far better in 2022.
Insurance ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | KIE SPDR S&P Insurance ETF | 0.35% | $35 a year | $457.4M |
| 2 | KBWP Invesco KBW Property & Casualty Insurance ETF | 0.35% | $35 a year | $283.8M |
| 3 | IAK iShares U.S. Insurance ETF | 0.37% | $37 a year | $421.5M |
Ordinary funds with at least $10 million in net assets. The median ordinary insurance ETF charges 0.35% a year; leveraged and inverse funds usually charge more.
Do insurance ETFs pay dividends?
3 of the 3 ordinary insurance ETFs with a page here paid distributions over the last 12 months, with a median yield of 1.81%.
| Highest yields | Yield | Net assets |
|---|---|---|
| IAK iShares U.S. Insurance ETF | 2.44% | $421.5M |
| KBWP Invesco KBW Property & Casualty Insurance ETF | 1.81% | $283.8M |
| KIE SPDR S&P Insurance ETF | 1.59% | $457.4M |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets.
How to choose a insurance ETF
- Costs are nearly the same. KIE and KBWP charge 0.35% a year and IAK 0.37%. The expense ratio is the yearly fee taken from fund assets. With so small a gap, holdings and weighting separate these funds far more than cost.
- How much the biggest holdings count. IAK puts 65.9% of assets in its top 10, with Progressive at 13.64% and Chubb at 13.13%. KIE's top 10 is 20.44%, and its largest stake, Baldwin Insurance Group, is 2.46%, so no single insurer dominates.
- Whole industry or property and casualty. KBWP tracks the KBW Nasdaq Property & Casualty Index: 24 stocks led by Travelers, Marsh & McLennan and Progressive. Property and casualty insurers cover cars, homes and businesses. IAK and KIE follow broader insurance-industry indexes with 57 and 53 stocks.
- Combining two funds means heavy overlap. Each pair of funds shares 43.3% to 49.7% of its assets, and Progressive, Travelers and Cincinnati Financial sit in all three. KIE holds every one of KBWP's 24 stocks, though at very different weights.
- Fund size and history. KIE, launched in 2005, is the largest at about $457 million, with IAK, from 2006, close behind at about $422 million. KBWP, at about $284 million, launched in 2010, so it has no record through the 2008 crisis.
- Dividend yields vary. As of October 27, 2026, IAK yielded 2.44%, KBWP 1.81% and KIE 1.59%. Yield is a year's dividends as a share of the price. None uses options to raise income; the payouts come from the insurers' own dividends.
What are the risks of insurance ETFs?
- Heavy bets on a few insurers. IAK has 13.64% in Progressive and 13.13% in Chubb, and its top 10 make up 65.9% of assets; KBWP's top 10 are 61.34%. Bad news at one large insurer can move these funds noticeably.
- Catastrophes and rising claim costs. Hurricanes, wildfires and other disasters can bring a wave of claims at once, and rising repair and medical costs push claims higher. These losses fall hardest on property and casualty insurers, the focus of KBWP.
- Steeper losses than the market in crashes. KIE fell 74.6% and IAK 76.7% in the 2008 financial crisis, against 55.2% for the S&P 500, and all three funds fell more than the index in the 2020 COVID crash. Insurance stocks have not been a refuge in every slump.
- Double-digit drops within a single year. In the year to October 27, 2026, volatility, a measure of how widely returns swing, ran from 16.3% for IAK to 18.3% for KBWP. At some point, each fund fell 10.5% to 12% from a high.
- KIE's even spread can mean different results. With its largest stake at 2.46%, KIE gives names like Lemonade and Palomar as much weight as Cincinnati Financial. Its returns can differ from top-heavy funds: 10.8% versus IAK's 17.4% in the year to October 27, 2026.
List of all insurance ETFs, by size
Questions investors ask about insurance ETFs
Is there an ETF for insurance companies?
Yes, there are three US-listed insurance ETFs: the SPDR S&P Insurance ETF (KIE), the iShares U.S. Insurance ETF (IAK) and the Invesco KBW Property & Casualty Insurance ETF (KBWP). Together they hold about $1.16 billion. All three are index funds that own company shares directly, and none is leveraged, inverse or built around options. They differ mainly in how many stocks they hold and how much weight they give their largest positions.
What is the largest insurance ETF?
KIE, the SPDR S&P Insurance ETF from State Street, is the largest, with about $457 million in net assets. IAK, from iShares, is close behind at about $422 million, and Invesco's KBWP holds about $284 million. KIE is also the oldest. It launched in November 2005, and IAK followed in May 2006. Larger funds often trade more easily, but size says nothing about how a fund's holdings will do.
Which insurance ETF has the lowest expense ratio?
KIE and KBWP tie at 0.35% a year, while IAK charges 0.37%. The expense ratio is the yearly fee for running the fund, taken out of its assets. With costs this close, fees do little to separate the three. What they own differs far more. KIE spreads its money across 53 stocks with no holding above 2.46%. KBWP holds 24 stocks from a property and casualty index, and IAK puts 65.9% of assets in its top 10.
KIE vs IAK: what's the difference?
The main difference is weighting. IAK leans heavily on a few names: Progressive is 13.64% of the fund, Chubb 13.13%, and its top 10 holdings make up 65.9% of assets. KIE spreads its money more evenly across 53 stocks, with a top 10 of 20.44% and no holding above 2.46%. About 47.3% of their assets overlap. As of October 27, 2026, IAK returned 17.4% over one year and KIE 10.8%. KIE costs 0.35% a year and IAK 0.37%.
Do insurance ETFs pay dividends?
Yes, all three pay dividends. As of October 27, 2026, IAK had the highest yield at 2.44%, followed by KBWP at 1.81% and KIE at 1.59%. A yield is the income paid over a year as a share of the fund's price. The payouts come from dividends paid by the insurers each fund owns, so they can rise or fall with those companies' payouts. None of these ETFs uses options to raise its income.
Do insurance ETFs own Progressive?
Yes. Progressive is one of three stocks that all three insurance ETFs hold, along with Travelers and Cincinnati Financial. Its weight varies widely. It is IAK's largest holding at 13.64% and makes up 7.95% of KBWP. In KIE it is not among the five largest positions, which top out at 2.46%. Chubb, Allstate and Hartford each appear in two of the three funds.
Is there a Vanguard insurance ETF?
No. None of the three US-listed insurance ETFs comes from Vanguard. They are issued by State Street (KIE), iShares (IAK) and Invesco (KBWP). Broad financial-sector funds also own insurers, but they mix them with banks and other financial companies, so they are a different kind of fund from the insurance-only ETFs covered in this guide.
Which insurance ETF focuses on property and casualty insurers?
KBWP does. The Invesco KBW Property & Casualty Insurance ETF tracks the KBW Nasdaq Property & Casualty Index and holds 24 stocks, led by Travelers (8.7%), Marsh & McLennan (8.24%), Progressive (7.95%), Chubb (7.54%) and Aon (7.06%). Property and casualty insurers cover things like cars, homes and businesses against damage and liability claims. KIE and IAK track broader insurance-industry indexes. KBWP charges 0.35% a year.
Is there a Vanguard, Fidelity or Schwab insurance ETF?
No. None of the three offers a insurance ETF. The largest insurance ETFs come from SPDR (State Street) (KIE), iShares (IAK) and Invesco (KBWP), and customers of all three firms can buy other companies’ ETFs in their brokerage accounts. For a broader fund, VFH (Vanguard Financials ETF) and FNCL (Fidelity MSCI Financials Index ETF) are covered in our financials ETF guide.
