Horizon Kinetics Inflation Beneficiaries ETF (INFL)

Overview

The Horizon Kinetics Inflation Beneficiaries ETF (INFL) seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the Inflation Beneficiaries Index. The fund focuses on companies that are expected to benefit from an inflationary environment, typically in the natural resources and commodity-related sectors. INFL employs a fundamental, bottom-up approach to identify companies likely to benefit from inflation, rather than tracking a broad market index.

Reputation and Reliability

Horizon Kinetics is a well-regarded investment manager known for its unique and often contrarian investment strategies. They have a solid track record in managing specialized investment products.

Management Expertise

The management team at Horizon Kinetics possesses extensive experience in fundamental research and value investing, with a particular focus on identifying companies undervalued due to inflationary pressures or unconventional business models.

Goal

The primary investment goal of INFL is to achieve long-term capital appreciation by investing in companies expected to benefit from inflation.

Investment Approach and Strategy

Strategy: INFL does not track a specific index. Instead, it employs a fundamental, bottom-up investment approach to select companies.

Composition The ETF's holdings primarily consist of common stocks of companies operating in sectors such as natural resources, energy, agriculture, and other commodity-related industries.

Market Share: INFL holds a smaller market share compared to broad market ETFs but holds significant influence within the inflation beneficiary space.

Total Net Assets (AUM): 66470000

Key Competitors

• Simplified Inflation + Treasury ETF (VTIP)
• iShares TIPS Bond ETF (TIP)
• ProShares Inflation Expectations ETF (RINF)

Competitive Landscape

The competitive landscape includes ETFs focused on Treasury Inflation-Protected Securities (TIPS) and inflation expectations. INFL differentiates itself with its actively managed approach and focus on specific companies rather than broad inflation hedges. Its competitive advantage lies in its stock picking prowess, identifying undervalued beneficiaries of inflation, however itu2019s disadvantages include volatility and high concentration risk.

Historical Performance: Historical performance data is subject to market fluctuations and past performance is not indicative of future results.

Benchmark Comparison: INFL's performance is typically compared to benchmarks reflecting inflation gauges and commodity-related indexes.

Expense Ratio: 0.85

Average Trading Volume

The average trading volume of INFL is moderate, which could impact ease of entry and exit for larger trades.

Bid-Ask Spread

The bid-ask spread for INFL can vary depending on market conditions, but generally is relatively modest.

Market Environment Factors

Economic indicators such as inflation rates, interest rate policies, and commodity prices significantly impact INFL's performance. Sector growth prospects are tied to the demand for natural resources and energy.

Growth Trajectory

The growth trajectory of INFL is linked to investors' concerns about inflation and the fund's ability to identify companies that effectively capitalize on rising prices. Changes to the fund's holdings are actively managed based on the evolving inflationary environment.

Competitive Edge

INFL's competitive edge lies in its active management and focus on identifying specific companies that benefit from inflation. It uses a fundamental, bottom-up approach, potentially offering superior returns compared to passive inflation-hedging strategies. This strategy allows the fund to capitalize on unique opportunities others may overlook. The concentrated portfolio can lead to higher potential gains during inflationary periods.

Volatility

INFL exhibits moderate to high volatility due to its concentrated portfolio and exposure to commodity-related sectors.

Market Risk

Specific risks include commodity price fluctuations, regulatory changes affecting natural resources, and the overall cyclicality of the sectors in which it invests.

Ideal Investor Profile

The ideal investor for INFL is someone seeking to hedge against inflation and willing to accept higher levels of risk and volatility. Investors looking for diversification through exposure to commodity-related companies and those who understand the nature of a concentrated investment strategy.

Market Risk

INFL is suitable for investors with a medium to long-term investment horizon and a higher risk tolerance, not for risk-averse investors or those seeking stable income.

Horizon Kinetics Inflation Beneficiaries ETF is an actively managed fund focused on companies expected to benefit from inflation. The fund provides exposure to sectors like natural resources and commodities through a concentrated portfolio. It is best suited for investors seeking inflation protection and willing to accept a higher risk profile. While the fund offers the potential for significant gains during inflationary periods, it also carries risks associated with commodity price volatility and a concentrated investment approach.

Data Sources:

• Horizon Kinetics Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor. Past performance is not indicative of future results. Market share calculations may vary based on data source and methodology.