Invesco has launched Europe’s ETF offering exposure to the US insurance industry, ETF Stream can reveal.
The Invesco Dow Jones US Insurance UCITS ETF (INSU) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.35%.
INSU tracks the Dow Jones US Select Insurance index of 56 US-based companies involved in full-line, property, casualty and life insurance.
The index is market cap weighted and rebalances quarterly. Chubb, Progressive Corporation and Arthur J Gallagher comprise the three largest allocations with a combined weighting of almost 30%.
INSU becomes only the second ETF to track the benchmark after the $367m iShares US Insurance ETF (IAK) listed in the US in 2006. There are currently three ’40-Act’ ETFs offering targeted exposure to insurance companies.
Invesco’s insurance ETF launched on the same day as the Invesco Nasdaq-100 Equal Weight UCITS ETF (IEWQ).
IEWQ equalises constituent weights at each quarterly rebalance, reducing the allocations to its top ten holdings to 10% from the current 60% in the parent Nasdaq 100 benchmark.
Last month, Invesco entered the equity ETF fee war with the Invesco FTSE All-World UCITS ETF (FWRA), undercutting rival products from BlackRock, Vanguard and State Street Global Advisors (SSGA).
