Conclusion, Investment Implications, Strategy

The SPDR S&P Insurance ETF (KIE) is in the midst of a November 2023 minor uptrend amid monthly asset expansion and quarterly relative outperformance versus the benchmark S&P 500.  As long as these positive factors remain intact, this sets up a potential opportunity to buy KIE and the Insurance-related assets it represents.

Current Sector & Industry Group Ideas

Table 1 below is also accessible via the Sector & Industry Group Ideas rectangle at the top of the Research Center.

 

Table 1

Click the table to  make it larger

This table also regularly appears in our weekly Keys To This Week: Sector & Industry Groups report published on Monday mornings.

Analysis & Investment Implications

The upper panel of Chart 1 below plots the SPDR S&P Insurance ETF (KIE) daily since October 2023 with its 200- and 50-day moving averages, widely-watched major and minor trend proxies.  The green highlights point out that KIE rose and remained above its 50-day MA on Nov 1st to indicate a minor bullish trend change.

Chart 1

The middle panel plots the corresponding total net assets (AUM) invested in KIE with their 21-day moving average, the latter to identify the monthly (our Tactical timeframe) trend of expansion or contraction.  The green arrow points out that these assets most recently moved above their 21-day MA on Mar 6th to indicate a new trend of monthly expansion.

The lower panel plots a corresponding chart of the daily relative performance between KIE and the S&P 500 (SPY) with its 63-day moving average, the latter to identify the quarterly (our Strategic timeframe) trend of relative outperformance or underperformance.  The green arrow points out that KIE shifted to a new trend of Strategic relative outperformance versus SPY on Feb 15th.

Together, these metrics suggest an emerging long/overweight opportunity in KIE from a price trend, asset flows, and relative performance standpoint.