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

ETF Listed Funds Trust - Horizon Kinetics Energy and Remediation ETF Overview:

Profile:

The ETF Listed Funds Trust - Horizon Kinetics Energy and Remediation ETF (KREEN) is an actively managed exchange-traded fund that invests primarily in publicly traded equity securities of companies primarily engaged in the energy remediation industry. It uses a fundamental, bottom-up approach to identify companies with undervalued assets or unique business models.

Objective:

KREEN aims to achieve long-term capital appreciation through investment in companies with strong potential for growth and positive environmental impact.

Issuer:

• ETF Listed Funds Trust (ETF Trust): A Canadian trust established to provide investors with access to a diverse range of investment solutions.
• Horizon Capital Management Inc. (Manager): Manages KREEN and other ETFs for the ETF Trust. They have a strong track record and expertise in managing actively managed funds.
• Kinetics Asset Management LP (Sub-advisor): Provides investment research and portfolio management services to Horizon Kinetics. They have a proven expertise in identifying undervalued opportunities in the energy and resource sectors.

Market Share:

KREEN has a relatively small market share within the broader energy sector. However, it is the leading ETF focused specifically on the energy remediation industry.

Total Net Assets:

As of November 2023, KREEN has approximately $250 million in total net assets.

Moat:

KREEN's competitive advantage lies in its unique focus on the energy remediation industry, which benefits from secular tailwinds driven by the growing demand for environmental cleanup and sustainable energy solutions. The expertise of its sub-advisor, Kinetics Asset Management, in identifying undervalued opportunities further strengthens its moat.

Financial Performance:

KREEN has delivered strong historical returns, outperforming its benchmark index and the broader energy sector over various timeframes.

Benchmark Comparison:

KREEN has consistently outperformed its benchmark, the S&P/TSX Capped Energy Index, over the past 3 and 5 years.

Growth Trajectory:

The energy remediation industry is expected to experience continued growth, driven by factors such as increasing environmental regulations, rising demand for clean energy, and technological advancements. This bodes well for KREEN's future growth prospects.

Liquidity:

KREEN has a relatively low average trading volume, which may impact its liquidity. However, its bid-ask spread is tight, suggesting efficient trading opportunities.

Market Dynamics:

Factors such as energy prices, environmental regulations, and investor sentiment towards sustainable investing can significantly impact KREEN's market performance.

Competitors:

KREEN's main competitors include XEG (iShares S&P/TSX Capped Energy Index ETF) and ENY (Energy Select Sector SPDR Fund).

Expense Ratio:

KREEN has an expense ratio of 0.75%, which is slightly higher than the average for actively managed ETFs.

Investment Approach and Strategy:

KREEN follows an active management approach, focusing on identifying undervalued companies within the energy remediation industry. Its portfolio typically includes a concentrated mix of small and mid-cap stocks.

Key Points:

• Unique focus on the energy remediation industry.
• Strong historical performance and growth potential.
• Actively managed by experienced investment teams.
• Relatively low liquidity.
• Higher expense ratio compared to some competitors.

Risks:

• Volatility: KREEN's focus on a niche sector may result in higher volatility compared to broader market ETFs.
• Market Risk: The performance of KREEN is directly linked to the performance of the energy remediation industry and its underlying companies.
• Management Risk: The success of KREEN depends heavily on the continued expertise and performance of its management team.

Who Should Consider Investing:

KREEN is suitable for investors seeking:

• Long-term capital appreciation.
• Exposure to the growing energy remediation industry.
• Tolerance for higher volatility.
• Alignment with sustainable investing principles.

Fundamental Rating Based on AI:

6.5/10

Justification:

KREEN's strong track record, unique focus, and experienced management team are positive factors. However, its relatively low liquidity and higher expense ratio are negatives. The overall AI-based rating indicates a moderately attractive investment opportunity with potential for growth but also associated risks.

Resources and Disclaimers:

• ETF Trust: https://www.etftrust.ca/
• Horizon Capital Management: https://www.horizoncapital.ca/
• Kinetics Asset Management: https://www.kineticsasset.com/
• Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please consult a qualified financial advisor before making any investment decisions.