Horizon Kinetics SPAC Active ETF (SPAQ)

Overview

The Horizon Kinetics SPAC Active ETF (SPXZ) is an actively managed ETF focused on investing in special purpose acquisition companies (SPACs). The ETF seeks to capitalize on opportunities within the SPAC market, including pre-merger and post-merger companies.

Reputation and Reliability

Horizon Kinetics is known for its value-oriented investment approach and focus on unique asset classes.

Management Expertise

The management team has experience in identifying and analyzing investment opportunities in complex situations, including SPACs.

Goal

The investment objective is to achieve long-term capital appreciation by investing in SPACs and related securities.

Investment Approach and Strategy

Strategy: The ETF employs an active management strategy, selecting SPACs based on fundamental analysis and market conditions.

Composition The ETF holds a portfolio of SPACs, including common stock, warrants, and other securities related to SPAC transactions.

Market Share: SPXZ holds a niche market share within the broader ETF universe.

Total Net Assets (AUM): 14400000

Key Competitors

• Defiance Next Gen SPAC Derived ETF (SPAK)
• Morgan Creek - Exos SPAC Originated ETF (SPXZ)
• Accelerate Arbitrage Fund (ARB)

Competitive Landscape

The competitive landscape for SPAC ETFs is relatively concentrated, with a few key players dominating the market share. SPXZ differentiates itself through its active management approach, allowing it to potentially outperform passive SPAC ETFs. However, active management also introduces higher expense ratios and the risk of underperformance compared to its benchmarks. SPXZ is a smaller ETF compared to its competitors, therefore it may be more volatile than some of its larger counterparts.

Historical Performance: Historical performance data not readily available in a numerical format.

Benchmark Comparison: Benchmark comparisons are not readily available in a numerical format.

Expense Ratio: 1.29

Average Trading Volume

The average trading volume for SPXZ is moderate, but can fluctuate depending on market conditions.

Bid-Ask Spread

The bid-ask spread for SPXZ can vary, it may be wider than more liquid ETFs.

Market Environment Factors

Economic indicators, regulatory changes, and the overall appetite for risk in the market impact SPXZ. The performance is significantly correlated with the SPAC market sentiment.

Growth Trajectory

SPXZ's growth trajectory is closely tied to the pace of SPAC deal flow and investor interest in SPACs. Active management decisions have significant effects to the holdings and returns.

Competitive Edge

SPXZ's competitive edge stems from its active management team's expertise in selecting attractive SPAC opportunities and potentially avoiding less promising deals. Horizon Kinetics' value-oriented approach and focus on unique asset classes further differentiate it. The active strategy may allow SPXZ to outperform passively managed SPAC ETFs during certain market cycles. The ability to adjust the portfolio based on market conditions and individual SPAC fundamentals provides flexibility.

Volatility

SPXZ is expected to have higher volatility than broader market ETFs due to the speculative nature of SPAC investments.

Market Risk

The underlying assets of SPXZ are subject to market risk, regulatory risk, and the risk associated with the specific companies merging with SPACs.

Ideal Investor Profile

The ideal investor for SPXZ is one with a high risk tolerance and a strong understanding of the SPAC market. Suitable for investors seeking potential high growth and prepared to accept volatility.

Market Risk

SPXZ may be appropriate for active traders and sophisticated investors seeking niche market exposure. It may not be suitable for passive index followers or risk-averse investors.

SPXZ is an actively managed ETF focusing on SPAC investments, offering exposure to a unique and potentially high-growth market segment. Its active management approach aims to outperform passive SPAC ETFs, but also introduces higher expenses and the risk of underperformance. The ETF is suitable for investors with high risk tolerance, looking for potential capital appreciation. Investors should carefully consider the risks associated with SPACs, including regulatory changes, market risk, and the speculative nature of SPAC investments.

Data Sources:

• etf.com
• morningstar.com
• horizonkinetics.com

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions can change rapidly, and past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.