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2 Simple Ways To Add Some Insurance To Your Portfolio

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etfdailynews.com

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Tue, Jul 18, 2023 05:30 PM

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July 18th, 2023 SPONSORED AD Investing in dividend stocks might sound boring, but it works. It's how

[ETF Daily News]( July 18th, 2023 SPONSORED AD [5 Stocks - 10%+ Yields]( Investing in dividend stocks might sound boring, but it works. It's how some of America's richest families have built and kept their fortunes. That's why we just released our latest report -- 5 Stocks Paying 10% Yields. Each opportunity comes from a different sector of the market. From energy to real estate to emerging markets - these are 5 companies that nearly guarantee returns for years to come. [Click here to download]( [2 Simple Ways To Add Some Insurance To Your Portfolio]( [Insurance stocks]( are not on most investors’ radar these days, as tech stocks continue to dominate the market. However, there are several factors indicating that the insurance sector is well-positioned to benefit from the current economic environment. The Federal Reserve is expected to raise interest rates again at its next meeting, which could be a headwind for tech stocks. Insurance companies, on the other hand, can benefit. [Insurance companies]( generate a significant portion of their revenue through investing the premiums they collect. When interest rates rise, insurers can reinvest their funds at higher rates, leading to increased investment income and profits. After collecting premiums from policyholders, insurance companies invest the portion of those funds that have not yet been paid out in claims, known as the float, into safe, short-term fixed income instruments. As interest rates rise, the value of these investments also rises, generating income for the insurance companies. There is also growing demand for life insurance with [an aging population]( becoming more concerned about protecting their financial assets. The premiums they receive are typically paid for many years before a claim is even paid out on a relatively small number of actual claims.This gives insurance companies time to invest the premiums increasing their profits. [Insurance ETFs]( can be a good way to gain exposure to the insurance industry, which besides life insurance includes health insurance, property and casualty, as well as reinsurance. This broader exposure can smooth out the inherent risks of investing in any one particular company. The SPDR S&P Insurance ETF ([KIE]( is one of the largest insurance ETFs in the sector. It holds an equal-weight of no more than 3% each of its 50 holdings. Companies in KIE’s lineup include the following: Insurance Brokers, Life & Health Insurance, Multi-Line Insurance, Property & Casualty Insurance and Reinsurance. Holdings include… Continue reading at [WEALTHPOP.com]( NOTE: If URLs do not appear as live links in your e-mail program, please cut and paste the full URL into the location or address field of your browser. [Privacy Policy]( | [Terms & Conditions]( This email contains a paid advertisement.This is not a solicitation for the purchase or sale of securities. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice, prior to making any investment decision. Advertisements and sponsorships are provided as a service to Stock News users. Stock News is not responsible for their content, services or products. The statements and opinions contained in this advertisement are not those of Stock News, and Stock News disclaims any liability for or arising from such statements and opinions. You are hereby advised that Stock News is receiving a fee as compensation for the distribution of this advertisement. [Click here to unsubscribe]( Copyright © 2023 ETF Daily News, part of StockNews.com - POWR Stock Rating, Market Outlook & Investment Insights Magnifi Communities, 1 Penn Plaza, Suite 3910, New York, NY 10019

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