{"id":53689,"date":"2023-08-27T19:53:16","date_gmt":"2023-08-27T23:53:16","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/undefined-marketwatch\/"},"modified":"2023-08-27T19:53:18","modified_gmt":"2023-08-27T23:53:18","slug":"undefined-marketwatch","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=53689","title":{"rendered":"undefined – MarketWatch"},"content":{"rendered":"
\n
<\/p>\n

<\/p>\n

<\/p>\n
<\/div>\n<\/figure><\/div>\n

Hurricanes, thunderstorms, and wildfires have thrust insurance companies into the spotlight, and while it may seem catastrophic weather would be a nightmare for them, it has long been the opposite. The worse things get, the more insurers respond with higher rates and stingier coverage, pushing up profits.\u00a0<\/p>\n

\u201cThere\u2019s an aphorism in insurance for insurance investing that bad news is good news,\u201d says Meyer Shields, an analyst at Keefe, Bruyette & Woods. \u00a0<\/p>\n

\n

Now may be the time to consider adding property and casualty insurers to your portfolio. <\/p>\n

Carriers have been able to boost premium rates, taking in revenue that they will invest to cover future losses. Many have also pulled out of disaster-prone areas, including California and Florida, where they couldn\u2019t charge high enough rates to make profits. Moreover, analysts say the industry is, for the most part, very well capitalized and can handle a coming storm of claims.\u00a0<\/p>\n

Investors can always buy shares of individual companies. Earlier this year, for example, Barron\u2019s <\/em>recommended
\n Chubb
\n (ticker: CB), the global leader in property and casualty insurance, as a stock pick. But for those looking for a cheap alternative that offers broad exposure across P&C insurers, one exchange-traded fund fits the bill: the Invesco
\n KBW Property & Casualty Insurance ETF
\n (KBWP).<\/p>\n

Rene Reyna, head of thematic and specialty product strategy at Invesco, says the fund, which has $151.6 million in assets, offers investors pure-play exposure with its portfolio of 24 companies\u2014carriers and reinsurance companies, which provide insurance to insurers\u2014across commercial and personal lines.\u00a0<\/p>\n

The passive strategy tracks the KBW Nasdaq Property & Casualty Index and is rebalanced quarterly. The fund\u2019s top five holdings are:
\n American International Group
\n (AIG),
\n Chubb,<\/span><\/p>\n

Progressive
\n (PGR),
\n Allstate
\n (ALL), and
\n Travelers
\n (TRV).<\/p>\n

Ryan Jackson,\u00a0<\/strong>manager research analyst for passive strategies at
\n Morningstar
\n Research Services, said the fund targets a specific corner of the market and investors need to set reasonable expectations for what it is going to deliver.<\/p>\n

The ETF has a five-star, bronze medalist rating from Morningstar, and is down about 4% this year. But it has delivered solid performance versus its Morningstar financial services benchmark since it launched in 2010\u2014the ETF ranks in the top quartile over one, five, and 10 years, with total returns of 5.64%, 7.75%, and 11.19%, respectively.<\/p>\n

Jackson says the fund charges a reasonable fee of 0.35%\u2014what he calls run-of- the-mill for a sector industry ETF.<\/p>\n

\u201cGenerally speaking, these more niche strategies are going to charge a little bit higher fees than something like a broadly diversified U.S. equity portfolio,\u201d he said.<\/p>\n

He likes that the fund tracks a market capitalization weighted index of companies.<\/p>\n

\u201cWe have a favorable view on market-cap weighting, the idea being that, especially in a market like the U.S. that\u2019s highly efficient and prices tend to do a good job of reflecting the intrinsic value of each stock, you\u2019re basically allowing the market to express its view on which stocks are most valuable,\u201d Jackson said.<\/p>\n

One caution, however, is that with two dozen stocks in the portfolio, the ETF is fairly concentrated. As such, the fund should be a \u201ccomplementary investment to something a lot more diversified as your core allocation,\u201d Jackson said. <\/p>\n

Write to Lauren Foster at lauren.foster@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Hurricanes, thunderstorms, and wildfires have thrust insurance companies into the spotlight, and while it may seem catastrophic weather would be a nightmare for them, it has long been the opposite. The worse things get, the more insurers respond with higher rates and stingier coverage, pushing up profits.\u00a0 \u201cThere\u2019s an aphorism in insurance for insurance investing […]<\/p>\n","protected":false},"author":1,"featured_media":53690,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-53689","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nundefined - MarketWatch | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Hurricanes, thunderstorms, and wildfires have thrust insurance companies into the spotlight, and while it may seem catastrophic weather would be a\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=53689\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"undefined - MarketWatch | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Hurricanes, thunderstorms, and wildfires have thrust insurance companies into the spotlight, and while it may seem catastrophic weather would be a\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=53689\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-27T23:53:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-27T23:53:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/08\/1693180397_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=53689#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=53689\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"undefined – MarketWatch\",\"datePublished\":\"2023-08-27T23:53:16+00:00\",\"dateModified\":\"2023-08-27T23:53:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=53689\"},\"wordCount\":547,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Investing\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=53689#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=53689\",\"url\":\"https:\/\/ifintechworld.com\/?p=53689\",\"name\":\"undefined - MarketWatch | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-08-27T23:53:16+00:00\",\"dateModified\":\"2023-08-27T23:53:18+00:00\",\"description\":\"Hurricanes, thunderstorms, and wildfires have thrust insurance companies into the spotlight, and while it may seem catastrophic weather would be a\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=53689#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=53689\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=53689#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"undefined – MarketWatch\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"undefined - MarketWatch | iFintechWorld","description":"Hurricanes, thunderstorms, and wildfires have thrust insurance companies into the spotlight, and while it may seem catastrophic weather would be a","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=53689","og_locale":"en_US","og_type":"article","og_title":"undefined - MarketWatch | iFintechWorld","og_description":"Hurricanes, thunderstorms, and wildfires have thrust insurance companies into the spotlight, and while it may seem catastrophic weather would be a","og_url":"https:\/\/ifintechworld.com\/?p=53689","og_site_name":"iFintechWorld","article_published_time":"2023-08-27T23:53:16+00:00","article_modified_time":"2023-08-27T23:53:18+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/08\/1693180397_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=53689#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=53689"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"undefined – MarketWatch","datePublished":"2023-08-27T23:53:16+00:00","dateModified":"2023-08-27T23:53:18+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=53689"},"wordCount":547,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Investing"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=53689#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=53689","url":"https:\/\/ifintechworld.com\/?p=53689","name":"undefined - MarketWatch | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-08-27T23:53:16+00:00","dateModified":"2023-08-27T23:53:18+00:00","description":"Hurricanes, thunderstorms, and wildfires have thrust insurance companies into the spotlight, and while it may seem catastrophic weather would be a","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=53689#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=53689"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=53689#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"undefined – MarketWatch"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/53689","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53689"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/53689\/revisions"}],"predecessor-version":[{"id":53691,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/53689\/revisions\/53691"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/53690"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53689"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}