Designed to provide broad exposure to the Financials - Insurance segment of the equity market, the iShares U.S. Insurance ETF (IAK) is a passively managed exchange traded fund launched on May 1, 2006.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Financials - Insurance is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $635.93 million, making it one of the average sized ETFs attempting to match the performance of the Financials - Insurance segment of the equity market. IAK seeks to match the performance of the Dow Jones U.S. Select Insurance Index before fees and expenses.
The Dow Jones U.S. Select Insurance Index includes companies providing a range of specialized financial services, including securities brokers & dealers, online brokers & securities or commodities exchanges.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.38%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.77%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector -- about 100% of the portfolio.
Looking at individual holdings, Progressive Corp (PGR) accounts for about 15.65% of total assets, followed by Chubb Ltd (CB) and Travelers Companies Inc (TRV).
The top 10 holdings account for about 58.25% of total assets under management.
Performance and Risk
The ETF has added about 6.96% and is up roughly 2.92% so far this year and in the past one year (as of 11/17/2025), respectively. IAK has traded between $121.85 and $138.47 during this last 52-week period.
The ETF has a beta of 0.66 and standard deviation of 17.09% for the trailing three-year period, making it a medium risk choice in the space. With about 61 holdings, it effectively diversifies company-specific risk.
Alternatives
iShares U.S. Insurance ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IAK is a good option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Invesco KBW Property & Casualty Insurance ETF (KBWP) tracks KBW Nasdaq Property & Casualty Index and the State Street SPDR S&P Insurance ETF (KIE) tracks S&P Insurance Select Industry Index. Invesco KBW Property & Casualty Insurance ETF has $410.77 million in assets, State Street SPDR S&P Insurance ETF has $677.10 million. KBWP has an expense ratio of 0.35%, and KIE charges 0.35%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares U.S. Insurance ETF (IAK): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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