ETF Education Report: Horizon Kinetics Energy and Remediation ETF (NVIR)

What this ETF is trying to do

The Horizon Kinetics Energy and Remediation ETF (ticker: NVIR) is an exchange-traded fund listed on the NYSE. Based on its name and holdings, it focuses on companies involved in energy and remediation. This ETF holds a total of 41 different investments.

What the numbers show

The current price of one share is $39.13. To understand how the price has moved, we can look at several different timeframes:

• Year-to-Date (YTD): The price return is approximately 19.74%.

• One Year: The share-price return (price return) was approximately 18.88%. When including distributions, the total return was approximately 19.96%.

• Three Years: The share-price return was approximately 48.69%. When including distributions, the total return was approximately 54.34%.

An estimated price from roughly one year ago was $32.92.

It is important to know the difference between price return and total return. Price return only tracks how much the share price itself went up or down. Total return is a more complete measure because it includes both the price changes and any cash distributions paid out to investors.

Income and distribution explanation

This ETF provides a distribution yield of approximately 0.77%. The trailing distributions were $0.30 per share. The data shows that the distribution frequency is "irregular" or "less frequent," with one payout recorded in the last 12 months. While some investors look for cash income through distributions, a high yield does not guarantee that the investment's value will stay the same.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. StockValueFinder uses an "erosion-risk score" to help measure this risk. For NVIR, the erosion 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.

Top Holdings

The following are the top holdings in this portfolio (note that this list is partial):

• CES Energy Solutions Corp: 6.66%

• Williams Companies Inc: 5.34%

• Permian Basin Royalty Trust: 5.28%

• Texas Pacific Land Corp: 5.05%

• Suncor Energy Inc: 4.78%

• Waterbridge Infrastructure LLC Class A: 4.57%

• Cheniere Energy Inc: 4.41%

• EQT Corp: 3.88%

• Enerflex Ltd: 3.84%

• Prairiesky Royalty Ltd: 3.54%

*Holdings can change over time.*

Pros

• The ETF has shown positive price returns over the last year and three years.

• The erosion-risk measurement is rated as "good."

Cons

• The distribution frequency is irregular rather than consistent.

Beginner takeaway

When looking at an ETF like NVIR, it is helpful to look at both the share price changes and the total return. This helps you see the full picture of how the fund has performed. Always remember that distributions are cash payments and are separate from the actual price of the shares.