Overview of KIE
The SPDR S&P Insurance ETF (KIE) 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. KIE’s equal weighting means it is tilted toward smaller companies. It’s the most liquid insurance ETF available in the country and is 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, and ACE (ACE). Year-to-date, shares of KIE have risen 8.6% and have outperformed the US stock markets.
Moving average analysis
On November 25, 2015, KIE closed at $72.23, 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 ETF has been trending upward since then.
The 14-day relative strength index (or RSI) for KIE is 58.9 as of November 25, 2015. This is an improvement from a level of 42.7 on September 4, when global stock markets plunged following the devaluation of the Chinese yuan.
An RSI figure of below 30 is an indication of an oversold stock, while an RSI of above 70 indicates an overbought stock.