Horizon Kinetics Inflation Beneficiaries ETF earns a 'Hold' rating due to elevated valuation and risk profile despite strong momentum. INFL trades at a high 28.6x P/E and a PEG ratio over 2.5x, making its valuation less compelling for a diversification-focused portfolio. The ETF is heavily weighted toward Energy, Materials, and Financials, exposing it to cyclical and inflation-driven volatility.
Value and income equities, exemplified by SCHD, are showing early signs of a market rotation after years of underperformance vs. the S&P 500. REITs currently trade at a significant discount to the S&P 500, improving long-term risk/reward profiles for patient investors. Retail real estate and multifamily housing are highlighted as sectors with substantial tailwinds, supported by supply-demand dynamics and favorable rental value propositions.
INFL targets inflation beneficiaries in energy, materials, and financials, aiming for positive real returns in inflationary environments. Performance has been robust since 2021, but the ETF is volatile and vulnerable to recession-driven drawdowns, as seen in April 2025. Key risks include a recession and policy-driven low energy prices, which could reduce the fund's effectiveness as an inflation hedge.
Fed chair Powell acknowledged chances of higher inflation and slower growth amid Trump tariffs.
The easing of February inflation may be temporary, as tariffs could drive up March inflation. Buy these ETFs if inflation rises again.
Horizon Kinetics Inflation Beneficiaries ETF targets companies benefiting from inflation, focusing on the energy, financials, and materials sectors. INFL is primarily invested in the U.S. and Canada, shows value characteristics, and has outperformed the S&P 500 since its inception. On the downside, its track record is short, its expense ratio is excessive for the category, and it has underperformed a close competitor.
The annual inflation rate in the United States slowed for a sixth successive month to 2.4% in September 2024. However, figures came above forecasts of 2.3%.
Horizon Kinetics Inflation Beneficiaries ETF INFL is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 31.8% from its 52-week low price of $29.50/share.
NEW YORK CITY, NY / ACCESSWIRE / September 12, 2024 / The Horizon Kinetics Inflation Beneficiaries ETF (NYSE:INFL) will host an Investor Update Call on September 19th, 2024 at 11am Eastern Time. INFL was launched in January 2021 and has navigated various inflation, interest rate and economic regimes with compounded returns of 12.65% per annum (as of July 31, 2024), including positive returns in every calendar year.
Horizon Kinetics Inflation Beneficiaries ETF is an actively managed ETF investing in companies expected to benefit from rising real asset prices. The portfolio is concentrated in the U.S. and Canada, overweight in energy, materials, and financials. The INFL ETF has underperformed the S&P 500 since its inception in 2021, lagging another inflation-focused ETF.