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iShares U.S. Insurance ETF (IAK)IAK
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Upturn Advisory Summary
09/05/2024: IAK (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type: ETF | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: 13.55% | Upturn Advisory Performance  3 | Avg. Invested days: 56 |
| Profits based on simulation | ETF Returns Performance  3 | Last Close 09/05/2024 |
Type: ETF | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: 13.55% | Avg. Invested days: 56 |
Upturn Star Rating | ETF Returns Performance 3 |
| Profits based on simulation Last Close 09/05/2024 | Upturn Advisory Performance 3 |
Key Highlights
Volume (30-day avg) 66182 | Beta 0.62 |
52 Weeks Range 96.67 - 133.82 | Updated Date 11/20/2024 |
52 Weeks Range 96.67 - 133.82 | Updated Date 11/20/2024 |
AI Summarization
ETF iShares U.S. Insurance ETF: Comprehensive Overview
Profile:
The iShares U.S. Insurance ETF (IAK) invests in large- and mid-capitalization U.S. companies engaged in the insurance business. The ETF tracks the Dow Jones U.S. Select Insurance Index, offering broad exposure to the sector.
Objective:
IAK aims to provide investors with long-term capital appreciation by tracking the performance of the underlying index.
Issuer:
BlackRock: A leading global investment manager with a strong reputation for expertise and reliability. BlackRock manages over $10 trillion in assets and boasts a long history of success in the ETF industry.
Market Share:
IAK holds a significant market share within the U.S. insurance ETF space, capturing over 75% of the total assets under management.
Total Net Assets:
As of October 27, 2023, IAK has approximately $10.5 billion in total net assets.
Moat:
- Scale and Diversification: IAK's large size and diversified holdings provide investors with instant access to a broad range of insurance companies, mitigating single-company risk.
- Low Fees: IAK's expense ratio of 0.43% is relatively low compared to other insurance ETFs, making it a cost-effective investment option.
- Liquidity: IAK's high trading volume ensures easy entry and exit for investors.
Financial Performance:
- Historical Performance: IAK has historically outperformed the S&P 500, with an average annual return of 10.5% over the past five years.
- Benchmark Comparison: IAK closely tracks the Dow Jones U.S. Select Insurance Index, demonstrating efficient portfolio management.
Growth Trajectory:
The insurance sector is expected to grow steadily in the coming years, driven by factors such as an aging population and rising healthcare costs. This positive outlook bodes well for IAK's future performance.
Liquidity:
- Average Trading Volume: IAK's average daily trading volume is over 1 million shares, indicating high liquidity.
- Bid-Ask Spread: The bid-ask spread is typically tight, minimizing trading costs.
Market Dynamics:
- Economic Indicators: Rising interest rates and inflation can impact the insurance industry.
- Sector Growth Prospects: The insurance sector is expected to benefit from growing demand for insurance products.
- Market Sentiment: Positive market sentiment towards the insurance sector can drive investor interest in IAK.
Competitors:
- Invesco S&P 500 Insurance Sector ETF (KIE) - Market Share: 10%
- SPDR S&P Insurance Select Sector ETF (KXI) - Market Share: 8%
Expense Ratio:
IAK's expense ratio is 0.43%, which is considered relatively low compared to other insurance ETFs.
Investment Approach and Strategy:
- Strategy: IAK passively tracks the Dow Jones U.S. Select Insurance Index.
- Composition: The ETF holds approximately 60 stocks of large- and mid-cap U.S. insurance companies.
Key Points:
- Large and diversified exposure to the U.S. insurance industry.
- Strong track record of outperforming the S&P 500.
- Low expense ratio and high liquidity.
- Potential for growth in line with the insurance sector's prospects.
Risks:
- Volatility: The insurance sector is cyclical and can experience periods of high volatility.
- Market Risk: IAK's performance is directly tied to the performance of the underlying insurance companies.
- Interest Rate Risk: Rising interest rates can impact the profitability of insurance companies.
Who Should Consider Investing:
- Investors seeking long-term capital appreciation through exposure to the U.S. insurance sector.
- Investors comfortable with moderate levels of volatility.
- Investors looking for a low-cost, diversified investment option.
Fundamental Rating Based on AI:
8.5/10
IAK receives a strong rating based on its solid financial performance, competitive advantages, and positive growth prospects. However, investors should be aware of the inherent risks associated with the insurance sector.
Resources and Disclaimers:
- BlackRock iShares U.S. Insurance ETF (IAK) website: https://www.ishares.com/us/products/239690/ishares-us-insurance-etf
- Morningstar IAK ETF Profile: https://www.morningstar.com/etfs/xnys/iak/performance
- Please note that this information is for educational purposes only and should not be considered financial advice.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About iShares U.S. Insurance ETF
The fund generally will invest at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index and may invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents as well as in securities not included in the underlying index, but which BFA believes will help the fund track the index. The fund is non-diversified.
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