The insurance sector has been red hot. The insurance sector ETF, the SPDR KBW Insurance (KIE), has the highest percentage of its component companies reporting earnings this week (56%).
Though relatively small by ETF standards (market cap of around $225 million), and illiquid in terms of options, there’s no denying that the fund has been a standout performer for more than two months.
The chart below shows how KIE has enjoyed a huge rally along the tandem support of its 10-day and 20-day moving averages to sit at a 19-month high.
In fact, the ETF has closed just one day below the 10-day since early February.
KIE is up 30% off its February low, which is about double the performance of the S&P 500 (SPX) during the same period.
A good run of earnings reports this week should keep that momentum intact.
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