2G·

🛡️(Re)insurer ETF: Your opinion is needed!

Dear Community,

For some time now, I have been struggling with the idea of using (re)insurers such as $MUV2 (+0,44%) or also $HNR1 (-0,67%) in my portfolio. But also the $ZURN (+0,34%) and the $SREN (-0,02%) have popped up from time to time.

While searching for a suitable ETF, I then came across the Invesco STOXX Europe 600 Optimized Insurance ETF $SC0Y (+0,22%) came across it.

Here are a few key facts about the ETF:

Comprises 20 companies, led by
$ALV (+0,92%)
(14,34%),
$CS (-0,42%)
(12,27%),
$ZURN (+0,34%)
(11,59%) and
$MUV2 (+0,44%)
(10,99%)
(as at: 11.06.2025)
Includes mainly companies from Germany (28,4%)Switzerland (24,4%)United Kingdom (15%) and France (13%) (as at: 11.06.2025)
Fund volume: just under 50 million, and rising (as at: 19.06.2025)
TER: 0.20%
Management type: passive
Dividend: Accumulating

I would like to invest just under 15% of my portfolio in this ETF.

Questions:

How do you generally rate the idea of holding (re)insurers in your portfolio?
How do you rate the relatively small number of companies in the ETF? Risk assessment?
What do you think of the ETF? Can you explain why it has a fund volume of "only" 50 million, while, for example, the more than twice as expensive iShares STOXX Europe 600 Insurance UCITS ETF (DE) $EXH5 (+0,27%) has a fund volume of more than 450 million - even though both ETFs have almost identical growth?

Thank you in advance for your constructive feedback. And remember to drink enough water in this weather! 💧

@Dividenden_Monteur
@BamBamInvest
@DividendenAlpaka
@RenditeRudin

Source:

https://www.invesco.com/de/de/financial-products/etfs/invesco-stoxx-europe-600-optimised-insurance-ucits-etf-acc.html

14 Commenti

Sina@lawinvest

Principle: Insurance belongs in every portfolio. They usually perform well even in times of crisis. Often combine share price growth (at least solid) with dividends.

The ETF: as it is still heavily weighted at the top for the few stocks (Allianz 14% etc.), I would personally prefer to put the shares in my portfolio myself.

But now the general point: insurance companies have been able to generate excess returns in recent years due to high interest rates. This may now be somewhat slower, which is why I would personally choose a staggered entry. And I would certainly stretch it out over a long period. Possibly the planned 15% on a 12-month savings plan or something like that

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DiviMike@DiviMike

@lawinvest Thank you Sina!

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KroateOhneHaare@KroateOhneHaare

21H

I personally work as an insurance broker in the Mainz-Bingen district.
I recently added Munich Re to my portfolio, and the next one will be Swiss Re on July 1.
I have also had a pure insurance ETF running since 01.01, but I have chosen the STOXX Europe 600 Insurance NR EUR.

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BamBamInvest@BamBamInvest

I had $ALV and $MUV2 in my portfolio myself and bought them in the 2022 dip, but unfortunately sold them too early with a 50% profit to regroup and because the two positions were too small. $SCR was also on my watchlist for a long time, but then I didn't buy it due to too much uncertainty, since then it has also risen sharply. I generally find the sector interesting, especially to stabilize the portfolio. On the subject of ETFs, they have already performed quite strongly, also due to the higher interest rate situation, so I would currently prefer a healthcare ETF and buy the $SC0Y in the event of a setback. But it all depends on your investment strategy. Since you tend to follow a core satellite strategy, I wouldn't stick with an ETF at the moment, as you don't have any other than the MSCI World.

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DiviMike@DiviMike

@BamBamInvest Thank you for your feedback!

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BamBamInvest@BamBamInvest

@DiviMike gerne ☺️

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BamBamInvest@BamBamInvest

@DiviMike I had also looked into it once, but hadn't found an ETF that was a bit more global and also included the USA, a kind of MSCI World Insurance, I would have liked it 😁

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Rendite Rudin@RenditeRudin

I can only agree with Sina's opinion, of course as a Swiss I would add $ZURN and $SREN to the portfolio... :)

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Enrique@Dividenden_Monteur

What would bother me about the etf is that it is accumulating.
I invest in insurance because it is a high-dividend business.

Can you use the benchmark function here?
Then I would benchmark the etf against the largest positions.

Sometimes stock picking is better than a thematic ETF

That's why I'm currently increasing my $MUV2 position to 12 in the short term (more in the long term), which will certainly bring me pleasure or cash flow in 30 years' time

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DiviMike@DiviMike

@Dividenden_Monteur The ETF reinvests the distribution in other shares. What do you mean by that?

Thanks for your feedback. :)

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Enrique@Dividenden_Monteur

@DiviMike but this does not give you more shares.

Personally, I would prefer to receive the dividend (in the division) so that I can decide what to do with it.

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DiviMike@DiviMike

@Dividenden_Monteur Isn't the dividend directly reinvested in the fund volume -> shares increase? Am I misunderstanding the principle behind accumulating dividend ETFs? 🤔

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Enrique@Dividenden_Monteur

@DiviMike the price of the shares increases, not the number of shares

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Guap@Guap

I can only agree with Sina! I also have $ALV and $MUV2 in my portfolio, and I'm currently also toying with AXA. Accumulation would bother me, as insurers pay nice dividends, among other things.

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