Overview of KIE
The SPDR S&P Insurance ETF invests in a portfolio of insurance stocks and seeks to provide returns that correspond to the S&P Insurance Select Industry Index, which is an equal-weighted index of insurance companies. Its equal-weighting means it is tilted toward smaller companies. It is the most liquid insurance ETF available in the country and also among the cheapest, with an expense ratio of 0.35%.
KIE’s top holdings are Arch Capital Group (ACGL), CNO Financial Group (CNO), Assurant (AIZ), Progressive Corporation, and Ace Ltd (ACE). Year-to-date, shares of KIE have gained 8.6% and have outperformed the US stock markets.
Moving average analysis
On November 23, shares of KIE closed at $72.38, above its 100-day, 50-day, and 20-day moving averages of $70.07, $70.06, and $71.73, respectively. The chart above shows that KIE crossed above its 20-day moving average on November 13, signaling a buy. The KIE ETF has been trending upward since then.
The 14-day Relative Strength Index (or RSI) for the KIE ETF was 58.9 as of November 20. The RSI for the KIE ETF has improved from 42.7 on September 4, when global stock markets plunged following the devaluation of the yuan.
An RSI figure below 30 is an indication of an oversold stock while an RSI above 70 denotes an overbought stock.