INFL Profile
The Horizon Kinetics Inflation Beneficiaries ETF is an actively managed fund that targets investments in companies positioned to benefit from inflationary trends. By focusing on both domestic and international equities, the fund seeks to capitalize on the potential for rising prices to enhance the value of certain businesses. The ETF primarily invests in common stocks, but it also includes ownership units of publicly traded master limited partnerships (MLPs) and units of royalty trusts. This diversified approach allows the fund to tap into various sectors that may experience gains as inflationary pressures increase.
One of the key strategies of the Horizon Kinetics Inflation Beneficiaries ETF is to identify companies with pricing power or those that operate in industries where costs can be passed on to consumers. Sectors such as energy, natural resources, and real estate are often included in the fund’s portfolio, given their historical correlation with inflation. By investing in companies that can maintain or grow their profitability during inflationary periods, the fund aims to provide investors with a hedge against the eroding effects of inflation on purchasing power.
The ETF’s holdings are not limited to any single market or region, allowing for a broad geographic diversification that includes emerging markets as well as developed economies. This global approach ensures that the fund can capture inflationary opportunities wherever they arise. Additionally, the inclusion of MLPs and royalty trusts provides exposure to income-generating assets that can benefit from rising commodity prices, adding a layer of potential income to the portfolio.
Horizon Kinetics, the fund’s manager, is known for its value-oriented investment philosophy and focus on long-term, inflation-sensitive assets. The Horizon Kinetics Inflation Beneficiaries ETF is a non-diversified fund, meaning it can invest a larger percentage of its assets in a smaller number of holdings. This approach allows the fund to concentrate on high-conviction ideas but also introduces a higher level of risk. The ETF is suitable for investors seeking to protect their portfolios from inflation while potentially benefiting from the growth opportunities presented by inflation-sensitive industries.
|
