The insurance ETFs have also been outperforming S&P

2015-06-18 07:35:23

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9 days ago we wrote about the huge abnormal returns of the bank stock ETFs (see: http://www.trendsinvesting.com/blog-entry/69,huge-abnormal-returns-of-the-bank-stock-etfs). But the insurance ETFs have also been outperforming S&P, considering their beta values.

Since the beginning of June they have grown 3.73% above S&P on the average :

http://www.trendsinvesting.com/motif-details/Insurance/months/relative

This trend is very natural. Insurance companies' liabilities are policies and their assets are bonds. Higher interest rates mean more profit from spreads between the bond yields and the policy payouts. The most liquid SPDR S&P Insurance ETF (KIE) has increased 4% above S&P 500 in June.

The bank stock ETFs are still better in June. The SPDR S&P Regional Banking ETF (KRE) is 6% above S&P. However, last week KRE lost the uptrend and now, after the Fed press conference, is 1.5% below S&P in 8 days, whereas KIE is still 2% above:

http://www.trendsinvesting.com/symbol/KIE#eod/20/relative/basic

http://www.trendsinvesting.com/symbol/KRE#id15/10/relative/basic

 

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