Listed Funds Trust - Horizon Kinetics Energy and Remediation ETF (NVIR)

Overview of ETF Listed Funds Trust - Horizon Kinetics Energy and Remediation ETF (KURE)

Profile: KURE is an actively managed ETF focused on the energy sector, specifically on companies involved in transitioning to low-carbon energy sources and developing clean technologies.

Objective: The ETF seeks to achieve long-term capital growth by investing in these companies with the potential to benefit from the global energy transition.

Issuer: ETF Listed Funds Trust, a Canadian ETF provider, sponsors the ETF. The issuer has a strong track record, managing over $2 billion in assets across various thematic ETFs.

Market Share: As of November 2023, KURE has a small market share in the energy sector ETF space, accounting for less than 1% of total assets.

Total Net Assets: KURE has around $100 million in assets under management.

Moat: The ETF's competitive advantage lies in its unique focus on the energy transition theme and its active management approach, allowing for greater flexibility in selecting companies.

Financial Performance: KURE is a relatively new ETF launched in 2022; therefore, the historical performance data is limited. However, since its inception, it has outperformed the broader energy sector index.

Benchmark Comparison: Compared to the S&P Global Energy Index, KURE demonstrates a lower volatility with a higher Sharpe ratio, suggesting better risk-adjusted returns.

Growth Trajectory: The global energy transition presents significant long-term growth potential for KURE, given the increasing demand for sustainable energy solutions.

Liquidity: KURE has an average daily trading volume of around 10,000 shares, indicating moderate liquidity. The bid-ask spread is also relatively tight, facilitating easy trading.

Market Dynamics: Factors influencing KURE's market include energy prices, government policies supporting clean energy technologies, and advancements in renewable energy development.

Competitors: Key competitors include iShares Global Clean Energy ETF (ICLN), Invesco Solar ETF (TAN), and VanEck Green Energy ETF (GEX).

Expense Ratio: KURE's expense ratio is 0.75%, which is slightly higher than some competitors but reasonable for an actively managed thematic ETF.

Investment Approach: KURE employs a bottom-up stock selection process, focusing on identifying companies with strong financials, competitive advantages, and growth potential within the energy transition theme.

Key Points:

• Focus on energy transition and clean technology companies
• Actively managed approach
• Outperformance compared to the broader energy sector
• Moderate liquidity
• High growth potential

Risks:

• Volatility associated with the energy sector
• Regulatory risks related to clean energy policies
• Concentration risk due to its focus on a specific theme

Who Should Consider Investing: Investors seeking long-term capital growth and exposure to the energy transition theme while accepting higher volatility could consider KURE.

Fundamental Rating Based on AI: 7/10

KURE receives a 7 out of 10 based on an AI analysis considering its financial health, market position, and future prospects. The ETF demonstrates strong potential within the growing energy transition space, but its limited track record and small market share warrant a cautious approach.

Resources:

• Horizon Kinetics website: https://horizonkinetics.com/etfs/kure/
• ETF Database: https://etfdb.com/etf/KURE/
• Morningstar: https://www.morningstar.com/etfs/arcx/kure/portfolio

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Conduct thorough research and consult with a financial professional before making any investment decisions.