The SPDR S&P Insurance ETF (KIE) has added $257 million in assets in 2015 so far. In comparison, during the previous year, the fund witnessed outflows of $139 million. During the week ended November 20, investors added $7.3 million to the KIE ETF. In November so far, investors have withdrawn $3.6 million from KIE.
The increased possibility of a rate hike in December is bringing investors back to the financial sector. In the past month, the financial sector has outperformed the broad markets and has gained 1.5%. The Financial Select Sector SPDR ETF (XLF) represents the financial sector.
Change in institutional investors’ holdings
Despite the negative flows, institutional investor holdings for the third quarter show a positive picture for the insurance sector.
In 3Q15, trade activity by 13F filers displayed a 33% increase in aggregate shares held by institutional investors and hedge funds. Among the 67 13F filers holding the stock, 13 funds reduced their exposure to KIE, while seven funds sold all their holdings of the ETF. In contrast, 17 funds created new positions and 23 funds increased their exposure to the KIE ETF.
Major institutional asset management firms Bank of Montreal, Goldman Sachs (GS), Morgan Stanley (MS), Brookstone Capital Management, and Clark Capital Management were top buyers of the KIE ETF during the third quarter.
Credit Suisse (CS), Bluecrest Capital Management, Susquehanna Capital Management, and Tower Research Capital were the largest sellers of shares of KIE.