New York-based investment adviser Horizon Kinetics has made its European ETF debut with the launch of an actively managed equity fund targeting companies positioned to benefit from an inflationary environment.
Murray Stahl, Founder, CEO, and CIO at Horizon Kinetics.
The Horizon Kinetics Inflation Beneficiaries UCITS ETF (INFBN NA) has been listed on Euronext Amsterdam with an expense ratio of 0.85%.
The fund replicates the strategy behind Horizon Kinetics’ inaugural US-listed ETF – the Horizon Kinetics Inflation Beneficiaries ETF (INFL US) – which has grown its assets under management to over $1.1 billion since debuting on NYSE Arca in January 2021.
Led by Murray Stahl, Horizon Kinetics’ Founder, CEO and CIO, the ETF selects between 20 and 60 stocks of companies of any size, primarily choosing firms that are domiciled in, or earn a majority of their revenues from activities within, the United States, though not exclusively.
The ETF seeks out companies whose revenues are expected to increase with rising consumer, producer, raw material, or asset prices without a corresponding increase in expenses.
According to Horizon Kinetics, businesses fitting these criteria include exploration and production companies, mining companies, transportation companies, infrastructure companies, and real estate companies.
The strategy emphasizes so-called ‘asset-light’ businesses with royalty, streaming, rental, brokerage, management, and leasing exposure. This includes companies with indirect exposure to inflation drivers, such as financial exchanges that facilitate transactions in commodity, interest rate, and currency instruments, as well as data providers that specialize in data and analytics in industries that are sensitive to movements in interest rates and consumer prices.
In selecting individual securities for the portfolio, the ETF employs a fundamental, value-driven, bottom-up approach.
Notable holdings currently include Prairiesky Royalty (5.3%), Wheaton Precious Metals (5.0%), Texas Pacific Land (4.7%), Viper Energy Partners (4.6%), Archer-Daniels-Midland (4.6%), and Franco-Nevada (4.3%).