Alternative Investments/ESG: The Energy And Remediation ETF From Horizon Kinetics Rides Two Boats
The new Horizon Kinetics ETF will invest in both energy companies as well as “remediation” companies that solve the problem of carbon emissions.
Horizon Kinetics has unveiled the Horizon Kinetics Energy and Remediation ETF (NYSEARCA: NVIR), a fund listed on the New York Stock Exchange that aims to strike a balance between meeting global energy needs and investing in existing remediation technology. The actively managed fund will hold both attractive, carbon-based energy companies and remediation companies that use existing technology to generate carbon-based energy in a more environmentally sensitive manner. (ETF Trends/VettaFi)
It will purchase innovative technologies in the “clean energy” space when their valuation justifies it.
The fund’s objective is to maintain a balance between hydrocarbon production and environmental remediation based on dynamic, fundamental research.
Horizon recognizes that access to economically viable and plentiful energy to power the world benefits everyone.
NVIR “will have two distinct elements or functional sectors,” according to Steven Tuen, co-portfolio manager and research analyst at Horizon.
The first element is exposure to fossil fuel producers, primarily royalty companies that own the land on which exploration and production companies operate.
The second element of the fund is companies that provide environmentally constructive solutions to the first group, including water recycling, oil rig electrification, flare gas capture, and solar/wind-powered drilling, as well as carbon sequestration projects.
Fredrik Tjernstrom, co-portfolio manager and research analyst at Horizon Kinetics, said, “The investment philosophy of the fund should resonate with a broad range of investors, particularly given the events of the last year. Today, it is more readily observable that the world, in terms of energy, faces structural supply/demand challenges that are not easily, certainly not rapidly, fixed. And it has become obvious that energy is a strategic asset, even as a matter of national security, since some countries can and do use energy exports as a weapon.”
The NVIR ETF has an expense ratio of 0.85%.
Related Story: New, Blockchain-Focused ETF From Horizon Kinetics
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