2024-01-28 10:28:25 ET
Summary
- The iShares U.S. Insurance ETF provides exposure to US insurance stocks, with an especially large exposure to P&C insurance.
- The expense ratio of IAK is only slightly higher than the average for US insurance stock ETFs, and the PE is in line with long-term market levels.
- The growth in electric vehicles and car sophistication is expected to drive growth in automotive insurance as repair costs secularly rise, giving pricing power in automotive insurance.
- In addition to greater investment income in the prevailing rate environment, we feel that IAK and insurance generally is overweight.
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For further details see:
IAK: Pricing Power In Automotive