Exchange Traded Funds (ETFs)

Invest in Inflation with This Fund

The Horizon Kinetics Inflation Beneficiaries ETF (NYSEARCA:INFL) is an actively managed fund seeking long-term capital growth in inflation-adjusted terms from companies expected to benefit directly or indirectly from inflation.

INFL is Horizon Kinetics’ first ETF launch, with an exposure to global companies expected to be inflation beneficiaries (typically those that can increase revenue without a corresponding increase in expenses in an inflationary environment). Such companies may be engaged in exploration and production, mining, transportation, infrastructure and real estate (with an emphasis on “asset-light” businesses with royalty, streaming, rental, brokerage, management and leasing exposure). INFL may also have significant exposure to securities exchange companies.

The fund’s portfolio will comprise approximately 20-60 issuers of any market capitalization, and its investments will generally include common stocks, ownership units of publicly traded master limited partnerships (MLPs), including general and limited partnership interests, as well as units of royalty trusts.

INFL is non‐diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, INFL is more exposed to individual stock volatility than a diversified fund.

Founded on January 11, 2021, INFL currently has amassed $596 million in assets under management with an average spread of 0.11%. Its expense ratio is 0.85%, meaning it is in the medium range of inexpensive to expensive funds to hold in relation to other ETFs, and it currently has 38 holdings.

The fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. It may invest in the securities of smaller and mid‐capitalization companies, which may be more volatile than funds that invest in larger, more established companies. Since the fund is actively managed, that may be affected by the investment adviser’s security selections.

Exclusive ETF Talk: Tapping into the Power of Language with This Communications ETF

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Jim Woods

Jim Woods is a 20-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor. Jim is the editor of Successful Investing, the Bullseye Stock Trader, and The Deep Woods (formerly the Weekly ETF Report). His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. His articles have appeared on many leading financial websites, including StockInvestor.com, InvestorPlace.com, Main Street Investor, MarketWatch, Street Authority, Human Events and many others. Jim formerly worked with Investor’s Business Daily founder William J. O’Neil, helping to author training courses in the CANSLIM stock-picking methodology. The independent firm TipRanks rates Jim the No. 3 financial blogger in the world (out of more than 6,000). TipRanks calculates that, since 2012, he's made 361 successful recommendations out of 499 total, earning a success rate of 72% and a +15.3% average return per recommendation. He is known in professional and personal circles as “The Renaissance Man,” because his expertise includes such varied fields as composing and performing music; Western horsemanship, combat marksmanship, martial arts, auto racing and bodybuilding. Jim holds a BA in philosophy from the University of California, Los Angeles, and is a former U.S. Army paratrooper. A self-described “radical for capitalism,” he celebrates the virtue of making money from his Southern California horse ranch.