Understanding the Horizon Kinetics Inflation Beneficiaries ETF (INFL)

What this ETF is trying to do

The Horizon Kinetics Inflation Beneficiaries ETF (ticker: INFL) is an exchange-traded fund listed on the NYSE. While the specific investment strategy isn't detailed in the data, the name suggests it focuses on companies that may benefit from inflation. The fund holds a total of 48 different holdings.

Top Holdings

The following are the largest companies in the fund's portfolio (note that this is a partial list):

• Landbridge Co LLC Class A Shares: 6.95%

• Waterbridge Infrastructure LLC Ordinary Shares Class A: 5.89%

• Wheaton Precious Metals Corp: 5.38%

• PrairieSky Royalty Ltd: 5.07%

• Franco-Nevada Corp: 4.71%

• Texas Pacific Land Corp: 4.66%

• Viper Energy Inc Ordinary Shares Class A: 4.42%

• Intercontinental Exchange Inc: 4.21%

• Cameco Corp: 3.98%

• Singapore Exchange Ltd: 3.82%

*Please note that holdings can change over time.*

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return (how much the share price moved) and total return (which includes both price changes and cash distributions).

• Year-to-Date (YTD): The price return is approximately 19.10%, while the total return is approximately 19.60%.

• One Year: The price return was approximately 20.67%, and the total return was approximately 21.73%.

• Three Year: The price return was approximately 70.86%, and the total return was approximately 78.73%.

• Five Year: The five-year total return was approximately 93.99%.

To visualize the price change, the current price is $52.95. The estimated price from roughly one year ago was approximately $43.88.

Income and distribution explanation

This ETF pays out cash to investors, known as distributions. The distribution yield is approximately 0.78%. This number describes the cash paid out relative to the ETF's price. The fund usually pays these out quarterly, having made 4 payments over the last 12 months.

It is important to remember that a distribution yield is not the same as total return. While distributions provide cash income, they do not guarantee that your original investment will stay the same value.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). Some investors worry about this because if the value of the underlying assets drops significantly, it can affect the share price.

For this ETF, the erosion-risk score is 100, and the label states "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• The fund has shown positive price returns and total returns over the one-year, three-year, and five-year periods.

• The data shows no detected price erosion.

Cons

• The distribution yield is relatively low at approximately 0.78%.

Beginner takeaway

When studying INFL, it is helpful to distinguish between the share price movement and the total return. This fund has provided both price growth and cash distributions over the measured timeframes. Always remember that high yields or price increases in the past do not guarantee what will happen in the future.