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Post by Norbert on Feb 9, 2022 10:03:12 GMT
This newish ETF has the following basic strategy:
The Horizon Kinetics Inflation Beneficiaries ETF seeks ... to achieve its investment objective by investing primarily in domestic and foreign equity securities of companies that are expected to benefit ... from rising prices of real assets ... such as those whose revenues are expected to increase with inflation without corresponding increases in expenses.
An in-depth presentation of the investment strategy is HERE; pp. 19-20 describe the stock selection rationale.
The M* portfolio characteristics are HERE. Note the:
- Basic Materials, Financial Services, and Energy sectors overweight
- 50% domestic, 50% international allocation
- Relatively high Sales Growth and Cash Flow growth stats.
One-year (since inception) performance comparison to SCHD and SPY (click to enlarge):
Questions:
* What do you think of the ETF's investment strategy rationale? Conceptually solid or Marketing BS?
* Could this ETF be a good complement to, say, SCHD, as inflation threatens?
* Interesting diversifier or investing gimmick?
Note that INFL is a pure equity fund. It's not a multi-asset, long-short, or quant fund. Its success depends entirely on astute stock selection.
N.
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Deleted
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Post by Deleted on Feb 9, 2022 11:36:11 GMT
First blush - I think it looks worth investigating. Provided a good inflation adjusted return since inception - 94%+! Top 3 holdings - some sort of land strategy, healthcare, and energy. Wonder if it generates K-1s for individual holdings that an investor would need to file or prevent it from being in a ROTH or TIRA. ADM - another holding - if that stock price falls enough, I'm buying it! Yield overall is 5.5% - I think it must throw off K-1s.
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Post by fishingrod on Feb 9, 2022 12:04:06 GMT
According to ETFdatabase NO on the K-1 for INFL
Edit; not sure on ADM, I believe it is a common stock. It is part of the SP500, no partnerships in the SP.
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Post by chang on Feb 9, 2022 13:08:56 GMT
Fidelity’s FFGCX is also pure equity; it would be a logical comparison.
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Post by uncleharley on Feb 9, 2022 13:32:53 GMT
Since it is a stock fund, it's success will depend on how adept they are at selecting common stocks. They seem to claim to be a hedge or play on inflation yet they seem to be ignoring Ag commodities. That strategy is odd to me since corn and soybeans are poised for a dbl in price. That dbl [more or less] will, of course, have something to do with the spring weather and the politics of Eastern Europe. It may be a compliment to other securities that are readily available.
Added by Edit; Oil might go up another $10 per brl this yr. Corn and Soybeans are more likely to double in price. My choice would be to overweight Ag commoditiies and the producers of them.
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Post by richardsok on Feb 9, 2022 16:16:55 GMT
Since it is a stock fund, it's success will depend on how adept they are at selecting common stocks. They seem to claim to be a hedge or play on inflation yet they seem to be ignoring Ag commodities. That strategy is odd to me since corn and soybeans are poised for a dbl in price. That dbl [more or less] will, of course, have something to do with the spring weather and the politics of Eastern Europe. It may be a compliment to other securities that are readily available. Added by Edit; Oil might go up another $10 per brl this yr. Corn and Soybeans are more likely to double in price. My choice would be to overweight Ag commoditiies and the producers of them. Agree with harley. INFL did very well from its opening, but the trajectory has settled down somewhat for the last several months. I use the term "trajectory" loosely b/c it really doesn't have one; INFL short term charts are far too volatile for my comfort. If interested, I'd put a small buy in right here with a much larger GTC buy limit at about 30, to try to catch a dip. For my inflation-themed investments, I have recently bought over allocations in RJA (agri commodity ETN) and BCI (general commodities, no K-1).
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Post by uncleharley on Feb 9, 2022 22:52:01 GMT
FYI; Coffee closed at an 11 yr high today. Inflation is going to begin to hurt.
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Post by chang on Feb 10, 2022 0:12:02 GMT
No kidding. Coffee is the foundation of my food pyramid.
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Post by uncleharley on Feb 10, 2022 14:19:07 GMT
The CPI is coming in at +7.5%. But Coffee Beans have dbld in the past yr.
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Post by richardsok on Feb 11, 2022 15:39:31 GMT
Barron's is out with an article today suggesting dividend ETFs as inflation hedges. They list VIG VYM SCHD DGRO SDY DVY NOBL RDVY HDV
For my purposes, these are all marginally acceptable, generally too volatile during the recent market bumps & surprises the past few months. (Yesterday was no exception.) The best of the bunch, IMO, is HDV but it has the smallest AUM.
As posted elsewhere, I have been loading into commodity funds.
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Post by Chahta on Feb 11, 2022 16:02:25 GMT
Barron's is out with an article today suggesting dividend ETFs as inflation hedges. They list VIG VYM SCHD DGRO SDY DVY NOBL RDVY HDV For my purposes, these are all marginally acceptable, generally too volatile during the recent market bumps & surprises the past few months. (Yesterday was no exception.) The best of the bunch, IMO, is HDV but it has the smallest AUM. As posted elsewhere, I have been loading into commodity funds. Not sure about commodities. My only experience with them was as a college student. I "gave" (donated) $1000 to a broker in the 70s. He quickly churned (ground) it into 100% commissions. As a college student I learned alot from that. Never used a broker again in my life.
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Post by richardsok on Feb 11, 2022 16:13:01 GMT
Barron's is out with an article today suggesting dividend ETFs as inflation hedges. They list VIG VYM SCHD DGRO SDY DVY NOBL RDVY HDV For my purposes, these are all marginally acceptable, generally too volatile during the recent market bumps & surprises the past few months. (Yesterday was no exception.) The best of the bunch, IMO, is HDV but it has the smallest AUM. As posted elsewhere, I have been loading into commodity funds. Not sure about commodities. My only experience with them was as a college student. I "gave" (donated) $1000 to a broker in the 70s. He quickly churned (ground) in into 100% commissions. As a college student I learned alot from that. Never used a broker again in my life. Chahta -- Let me clarify. I'm not playing commodities or futures. I've taken positions in COMMODITY ETFs and CEFs, notably BCI, NRGX and RJA. Completely different animals -- and not nearly so hairy. Your post brought back a memory when I was 21 and clueless. "Invested" the first $500 I ever saved from my last summer job, and ..... you know the rest.
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Post by Norbert on Mar 18, 2022 22:58:14 GMT
I noticed that the ETF is trading at all-time highs now.
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