Share-split context: A forward split was recorded on Nov 30, 2017 with coefficient 3. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

Understanding the State Street SPDR S&P Insurance ETF (KIE)

The State Street SPDR S&P Insurance ETF (ticker: KIE) is an exchange-traded fund designed to provide exposure to the insurance industry. It tracks companies involved in various types of insurance services.

What this ETF is trying to do

KIE focuses on the insurance sector. Instead of buying just one company, this ETF holds a collection of different insurance-related businesses. Based on the most recent data, its top holdings include companies like The Baldwin Insurance Group Inc Class A and Reinsurance Group of America Inc. Because the holdings list provided is partial, these represent only some of the 55 total holdings in the fund.

What the numbers show

When looking at KIE, it is important to distinguish between price return (how the share price moves) and total return (which includes both price changes and distributions).

• Year-to-Date (YTD): The YTD price return is approximately -1.03%, while the YTD total return is approximately 0.14%.

• One-Year: The one-year price return is approximately -0.85%, while the one-year total return is approximately 0.84%.

• Three-Year: The three-year price return is approximately 39.41%, while the three-year total return is approximately 46.24%.

• Five-Year: The five-year total return is approximately 63.51%.

Note that this ETF has a history of forward splits. In a forward split, each old share becomes multiple new shares, and the price per share falls proportionally. This is a structural change and does not create a gain or loss for the investor.

Income and distribution explanation

KIE provides cash distributions to investors. The current distribution yield is approximately 1.67%. This means the annual cash payments represent about 1.67% of the current share price. The distributions are usually paid quarterly, with four payments recorded over the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, we can look at the erosion-risk score, which is 94. This is labeled as "Stable / sideways" with a "good" severity rating. There is no severe erosion-risk flag for this ETF.

Pros

• Sector Focus: Provides a way to invest in many different insurance companies at once.

• Positive Total Returns: Over the one, three, and five-year periods, the total returns have been positive.

• Stable Risk Profile: The erosion-risk score suggests the price trend has been relatively stable.

Cons

• Price Fluctuations: The recent one-year and YTD price returns have been slightly negative, meaning the share price itself has decreased.

• Sector Concentration: Because it focuses only on insurance, the fund's performance is tied specifically to how that industry performs.

Beginner takeaway

KIE is an ETF that tracks the insurance industry. While the share price has seen some small declines recently, the total return (which includes cash distributions) has remained positive over longer periods. Investors interested in insurance companies can use this to gain exposure to many different firms at once, but they should remember that price changes and cash distributions are two different parts of an investment's performance.