What are the most popular mutual funds that invest primarily in the insurance sector?

By
Melissa Horton
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Melissa Horton is a financial literacy professional. She has 10+ years of experience in the financial services and planning industry.
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Updated July 31, 2022
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Michael J Boyle
Michael Boyle
Reviewed by Michael J Boyle
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Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics.
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Fact checked by Kirsten Rohrs Schmitt

Under the purview of the financial services industry, the insurance sector is an attractive investment option for mutual fund investors. Based on the predicted strength of the financial services industry due to an expected increase in interest rates, the insurance sector is poised for growth in coming years. Mutual fund investments targeting financial services and insurance companies are the simplest way to take advantage of a potential rise in the industry. The most popular mutual funds focused on insurance sector companies include the Fidelity Select Insurance Portfolio, the T. Rowe Price Financial Services Fund and the John Hancock Financial Industries Fund.

Fidelity Select Insurance Portfolio

The Fidelity Select Insurance Portfolio invests more than 88% of pooled assets in equity securities of companies engaged in the personal and business insurance operations. These organizations include carriers that perform underwriting, reinsurance, selling, distribution and placement of life, disability, health, property and casualty insurance. The fund seeks capital appreciation through active management and is non-diversified. As of December 2020, the fund has lost -.22% over the last year, and returned 4.82% over three years and 9.44% over five years.

T. Rowe Price Financial Services Fund

The T. Rowe Price Financial Services Fund invests its assets in the common stock of companies operating within the financial services industry, including large, highly rated insurance carriers. The fund seeks to grow investor assets through long-term capital appreciation in addition to providing income through dividends. As of September 2020, PRISX has lost 14.31% over one year, 0.52% over three years and returned 5.79% over five years.

John Hancock Financial Industries Fund

The John Hancock Financial Industries Fund seeks capital appreciation through investing in the equity securities of companies engaged in the financial services industry, including insurance carriers. The fund diversifies its investment holding among foreign and domestic companies, and it carries a 0.95% expense ratio. As of November 2020, the fund has lost 3.86% over the last year, returned 2.67% over three years, and returned 7.16% over five years.

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  1. Fidelity. "Fidelity Select Insurance Portfolio."

  2. T. Rowe Price. "Financial Services Fund."

  3. John Hancock. "Financial Industries Fund."

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