Today saw the launch of an actively managed ETF that will seek to take advantage of the rising inflation that many expect to see. The Horizon Kinetics Inflation Beneficiaries ETF (INFL) looks to invest in companies that are likely to “benefit from inflationary pressure,” according to its prospectus.
INFL comes with an expense ratio of 0.85% and lists on the NYSE Arca.
The new ETF is actively managed and global in nature. It also can invest in a variety of equity securities beyond common stocks. The fund document notes that it will target in particular companies that are “asset light,” meaning they draw income from things like royalty, streaming, brokerage, management and leasing activities that don’t involve high levels of working capital or financial leverage. It points to firms involved in mining; energy exploration and production; real estate; transportation; and infrastructure business lines as potentially attractive holdings for the portfolio.
The fund’s managers use a fundamental-based, bottom-up approach to select 20 to 60 securities from the full range of market capitalization sizes. The prospectus further notes that the fund could have significant exposure beyond the U.S. to companies generating revenues from Australia, Canada and Europe.
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