For investors seeking momentum, iShares U.S. Insurance ETF (IAK) is probably on radar now. The fund just hit a 52-week high, which is up roughly 28.2% from its 52-week low price of $54.11/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
IAK in Focus
The underlying 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.
The fund holds about 62 securities. Top holdings include Chubb (NYSE:CB) (10.55%), Progressive (NYSE:PGR) (7.22%) and American International Group (NYSE:AIG) 7.20%). It charges 43 bps in fees (see all Financials ETFs here).
Why the Move?
As the broader market digested the U.S.-China trade relations and stocks rebounded, benchmark U.S. treasury yields edged up. This led to a steepening of the yield curve and benefited this insurance fund, which performs better in a rising rate environment. Plus, some key earnings of the sector came in better than expected. All these positives took the fund to a 52-week high.
More Gains Ahead?
The fund has a Zacks Rank #2 (Buy) and a positive weighted alpha of 11.80 which hints at more gains. So, there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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iShares U.S. Insurance ETF (IAK): ETF Research Reports
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Zacks Investment Research