The Horizon Kinetics Inflation Beneficiaries ETF (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 Jan. 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.