5 Best Financial and Fintech ETFs To Buy

4. SPDR S&P Insurance ETF (NYSE:KIE)

5-Year Performance as of August 9: 36.13%

SPDR S&P Insurance ETF (NYSE:KIE)’s main objective is to achieve investment outcomes that closely align with the overall performance of the S&P Insurance Select Industry Index. The ETF was introduced on November 8, 2005. As of August 9, 2023, the fund offers an expense ratio of 0.35% and has a portfolio of 48 stocks. SPDR S&P Insurance ETF (NYSE:KIE) is one of the best financial ETFs to monitor. 

Brighthouse Financial, Inc. (NASDAQ:BHF) is the largest holding of SPDR S&P Insurance ETF (NYSE:KIE). Brighthouse Financial, Inc. (NASDAQ:BHF) specializes in annuity and life insurance products, and the company’s operations are divided into three segments – Annuities, Life, and Run-off. On August 8, the company reported a Q2 non-GAAP EPS of $4.13, beating Wall Street estimates by $0.75.

According to Insider Monkey’s first quarter database, 27 hedge funds held stakes worth $246.8 million in Brighthouse Financial, Inc. (NASDAQ:BHF), compared to 26 funds in the prior quarter worth $319.7 million. David Einhorn’s Greenlight Capital is the leading position holder in the company, with 3.12 million shares valued at $137.7 million. 

Greenlight Capital made the following comment about Brighthouse Financial, Inc. (NASDAQ:BHF) in its Q1 2023 investor letter:

“Brighthouse Financial, Inc. (NASDAQ:BHF) was the other material loser during the quarter, with shares declining by 14%. In response to the bank failures, partially caused by a few banks buying long duration bonds that fell in value when interest rates rose, the market sold other industries that own long duration bonds as well. Life insurers went to the top of the pile and, well, BHF is a life insurer and owns a lot of bonds. Though BHF is a beneficiary of higher rates by virtue of having very long duration liabilities, which are quite different from short-term deposits that can leave abruptly, the market decided to simply ignore this difference and focus on its exposure to bonds. We don’t believe any of the concern is BHF specific, as other life insurers suffered similar stock performance.”