Understanding the HORIZON KINETICS JAPAN OWNER OPERATOR ETF (JAPN)

The HORIZON KINETICS JAPAN OWNER OPERATOR ETF, trading under the ticker JAPN, is an exchange-traded fund designed to invest in Japanese companies. This report explains the recent performance and data for this ETF to help you understand its current characteristics.

What this ETF is trying to do

JAPN focuses on Japanese companies. Based on its name and holdings, it targets "owner-operator" style businesses in Japan. The fund holds a total of 36 different holdings.

Top Holdings:

• FURUNO ELECTRIC CO LTD (10.61%)

• M&A CAPITAL PARTNERS CO LTD (4.99%)

• FINATEXT HOLDINGS LTD (4.50%)

• RESORTTRUST INC (4.26%)

• FURYU CORP (4.25%)

• JAPAN ELEVATOR SERVICE HOLDINGS CO LTD (3.95%)

• TSUBURAYA FIELDS HOLDINGS INC (3.94%)

• ULS GROUP INC (3.92%)

• HIKARI TSUSHIN INC (3.82%)

• KOTOBUKI SPIRITS CO LTD (3.61%)

*Note: This list is a partial view of the holdings and can change over time.*

What the numbers show

The data shows that the share price of JAPN has declined recently.

• Current Price: $25.70

• Estimated price from roughly one year ago: $28.28

• Year-to-Date (YTD) Price Return: -6.42%

• One-Year Price Return: -9.13%

It is important to distinguish between price return and total return. Price return only tracks the change in the share price. Total return includes both the price change and any distributions (cash payments) made to investors.

• YTD Total Return: -6.42%

• One-Year Total Return: -8.91%

Income and distribution explanation

Some investors look at ETFs for regular cash payments, known as distributions. The distribution yield for JAPN is 0.24%. This number describes the cash distributions relative to the current ETF price.

The distribution frequency for this fund is described as "irregular" or "less frequent," with only one payout counted in the last 12 months. Because the yield is relatively low, the fund received an income rating grade of "D."

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund).

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

Regarding price erosion, the fund has an erosion score of 75, which is labeled as "mild price erosion." This means the market price has shown some downward movement. However, there is no "severe erosion-risk flag" present for this ETF.

Pros

• The fund provides exposure to a specific group of Japanese companies.

• It does not use leverage or inverse strategies, which can be higher risk.

Cons

• The ETF has experienced a share-price decline over the last year.

• The distribution yield is low, and payments are infrequent.

Beginner takeaway

When researching JAPN, it is important to look at both the share price and the total return. While the share price has fallen, the total return accounts for the small amount of cash distributions provided. Always remember that a high distribution yield does not guarantee that an investment's value will stay the same.