Horizon Kinetics Launches Inflation Beneficiaries Exchange Traded Fund (INFL)
January 12 2021 - 9:35AM
Business Wire
Horizon Kinetics LLC announced the launch of its first exchange
traded fund (ETF), the Inflation Beneficiaries ETF (INFL), an
actively managed fund, which began trading on the New York Stock
Exchange (NYSE) today.
This active ETF will be managed using the same long-term,
value-oriented, and proprietary research-driven philosophy that has
guided the management of the Firm’s other products over the more
than 20 years since Horizon Kinetics’ inception. The ETF seeks to
address what Horizon Kinetics sees as the largest threat facing
investors: Inflation, by identifying unique, scalable businesses
that have the potential to thrive in an inflationary environment.
For more information about INFL, please visit
https://horizonkinetics.com/products/etf/infl/.
“This is our first ETF, and we are launching it because we see
an urgent need for a mechanism for inflation protection in the
market. For some time, I have seen signs that we are moving toward
an inflationary environment, and this trend has been accelerating
of late. Debt levels have continued to rise, and central banks are
loathe to raise interest rates (for good reason). In our opinion,
this leaves the creation of more money – inflation and currency
debasement – as the most likely outcome. So, we are launching an
ETF that seeks to be positioned to benefit in an inflationary
environment. Importantly we do not think that inflation is required
for the fund to perform well. Even if our expectation turns out to
be incorrect, we think the lack of exposure to inflation
beneficiaries in the major indexes could make the Fund a valuable
diversification vehicle. It is actively managed, because, as we
have written for years, indexes have had a tendency to become
top-heavy over time, which decreases diversification in the index.
We wish to have the ability to maintain the diversification that
most investors believe that they are getting when they invest in an
index,” said Murray Stahl, Founder, CEO, and Chief Investment
Officer at Horizon Kinetics.
“This portfolio is designed to provide a full cycle inflation
exposure, and seeks to thrive under many different inflation
scenarios. We believe this is possible because the Fund emphasizes
companies that have exposure to inflationary underlying assets, yet
do not have high capital intensity. We believe these 'asset light'
businesses have the ability to profitably endure low inflation for
extended periods of time, compounding asset value and economic
returns. Our research leads us to conclude that there is truly no
other product like this in the market, and it represents something
we believe all investors should consider when constructing a
diversified portfolio,” added James Davolos, Portfolio Manager.
About Horizon Kinetics LLC
Horizon Kinetics LLC, formed in May 2011, is the consolidated
parent company of Horizon Asset Management LLC (founded in 1994)
and Kinetics Asset Management LLC (founded in 1996) and various
affiliates. Horizon Kinetics is an independently owned and operated
investment boutique that adheres to a long-term, contrarian,
fundamental value investment philosophy that the founders
established 26 years ago at Bankers Trust Company. Horizon Kinetics
has over 80 employees and has primary offices in New York City and
White Plains, New York. For more information about Horizon
Kinetics, visit www.horizonkinetics.com
IMPORTANT RISK
DISCLOSURES
Please consider carefully a fund’s investment objectives,
risks, charges and expenses. For this and other important
information, obtain a statutory and summary prospectus by
contacting 646-495-7333. Read it carefully before
investing.
Past performance is not a guarantee of future returns and you
may lose money. Opinions and estimates offered constitute our
judgment as of the date made and are subject to change without
notice. This information should not be used as a general guide to
investing or as a source of any specific investment
recommendations.
The Horizon Kinetics Inflation Beneficiaries ETF (Symbol: INFL)
is an exchange traded fund (“ETF”) managed by Horizon Kinetics
Asset Management LLC (“HKAM”). HKAM is an investment adviser
registered with the U.S. Securities and Exchange Commission. You
may obtain additional information about HKAM at our website at
www.horizonkinetics.com.
Investing involves risk, including the possible loss of
principal. Shares of any ETF are bought and sold at market price
(not NAV), may trade at a discount or premium to NAV and are not
individually redeemed from the Fund. Brokerage commissions will
reduce returns. The Fund’s investments in securities linked to real
assets involve significant risks, including financial, operating,
and competitive risks. Investments in securities linked to real
assets expose the Fund to potentially adverse macroeconomic
conditions, such as a rise in interest rates or a downturn in the
economy in which the asset is located. The Fund is non‐diversified,
meaning it may concentrate its assets in fewer individual holdings
than a diversified fund. Therefore, the Fund is more exposed to
individual stock volatility than a diversified fund. 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. The Fund 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. The fund
is actively managed and may be affected by the investment adviser’s
security selections. Diversification does not assure a profit or
protect against a loss in a declining market.
HKAM does not provide tax or legal advice, all investors are
encouraged to consult their tax and legal advisors regarding an
investment in the Fund.
No part of this material may be copied, photocopied, or
duplicated in any form, by any means, or redistributed without the
express written consent of HKAM.
The Horizon Kinetics Inflation Beneficiaries ETF (INFL) is
distributed by Foreside Fund Services, LLC (“Foreside”). Foreside
is not affiliated with Horizon Kinetics LLC or its
subsidiaries.
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version on businesswire.com: https://www.businesswire.com/news/home/20210112005713/en/
Jay Kesslen Email: jkesslen@horizonkinetics.com Phone: (646)
495-7333
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