Horizon Kinetics Inflation Beneficiaries ETF

INFL

Market cap $1.6B

Rising stagflation fears from the Iran war and oil spike are putting inflation-hedging ETFs back in focus.

The Horizon Kinetics Inflation Beneficiaries ETF has surged this year as oil and commodity prices climbed. But a reversal in energy markets could hit the fund hard.

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.

As inflation concerns continue to influence market dynamics in 2025 — especially after the most recent CPI print — investors are increasingly seeking equity-based strategies that can provide protection against rising prices. Several new and existing ETFs have emerged, each with distinct approaches to address inflation risk through sector exposure, asset allocation, and portfolio construction.

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.

NEW YORK, NY / ACCESS Newswire / February 24, 2025 / The portfolio management team of the Horizon Kinetics Inflation Beneficiaries ETF (NYSE:INFL) will host a webinar at 10am Eastern Time, on March 18th, 2025. INFL was launched in January 2021 and currently has approximately $1.1B in assets.

These ETF strategies may help you beat hot inflation.