SPAQ: HORIZON KINETICS SPAC ACTIVE ETF
ETF Education Report: HORIZON KINETICS SPAC ACTIVE ETF (SPAQ)
What this ETF is trying to do
The HORIZON KINETICS SPAC ACTIVE ETF (ticker: SPAQ) is an exchange-traded fund listed on the NASDAQ. While the specific strategy isn't detailed, it holds a variety of different assets. Based on its top holdings, many of these appear to be related to acquisition companies.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This only measures how much the share price itself has changed.
• Total Return: This includes both the change in share price *and* any cash distributions (dividends) paid out to investors.
For SPAQ, the numbers show a difference between these two:
• Year-to-Date (YTD): The YTD price return is approximately 2.75%. The YTD total return is also approximately 2.75%.
• One Year: The one-year price return was approximately -11.02%. However, the one-year total return was approximately 3.68%. This shows that while the share price dropped, the distributions helped improve the overall total return.
• Three Year: The three-year price return was approximately -5.71%, but the three-year total return was approximately 16.10%.
An estimated price from roughly one year ago was $104.71. The current price is $93.17.
Income and distribution explanation
This ETF has a high distribution yield of approximately 16.24%. This number describes the cash distributions relative to the ETF's price. It is important to remember that a high yield does not mean an investor earned that same percentage as their total return.
The distributions for this ETF are described as "irregular" or "less frequent," with one payout recorded in the last 12 months.
NAV erosion explanation
"NAV erosion" is a term used to describe a decline in the Net Asset Value of a fund. While a falling market price is a "share-price decline," it does not always mean the NAV has declined.
StockValueFinder uses an erosion-risk score to measure this risk. SPAQ has an erosion score of 75, which is labeled as "mild price erosion." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are the top holdings in the portfolio (note that this is a partial list):
• OACC: 5.34%
• NEWHOLD INVESTMENT CORP IV CLASS A (NHIV): 4.52%
• VIKING ACQUISITION CORP II CLASS A (VII): 4.28%
• EVOX: 4.19%
• CEPV: 4.11%
• WLII: 4.07%
• OTG ACQUISITION CORP I CLASS A (OTGA): 4.06%
• MTAL: 4.05%
• M EVO GLOBAL ACQUISITION CORP II: 4.04%
• RNAQU: 4.04%
*Holdings can change over time.*
Pros
• The total return has been positive over the one-year and three-year periods, even though the share price itself declined.
• The ETF offers a high distribution yield.
Cons
• The share price has experienced declines over the one-year and three-year periods.
• The distribution frequency is irregular.
Beginner takeaway
When looking at high-yield ETFs like SPAQ, it is important to look at the total return rather than just the distribution yield or the share price alone. A high yield can provide cash, but it does not guarantee that the share price will stay stable.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | n/a | OACC | 5.37% |
| 2 | NEWHOLD INVESTMENT CORP IV CLASS A | NHIV | 4.51% |
| 3 | VIKING ACQUISITION CORP II CLASS A | VII | 4.30% |
| 4 | n/a | EVOX | 4.22% |
| 5 | n/a | CEPV | 4.10% |
| 6 | n/a | WLII | 4.10% |
| 7 | OTG ACQUISITION CORP I CLASS A | OTGA | 4.10% |
| 8 | M EVO GLOBAL ACQUISITION CORP II | n/a | 4.06% |
| 9 | n/a | MTAL | 4.05% |
| 10 | n/a | ALOV | 4.05% |