Horizon Kinetics has launched the Horizon Kinetics Energy and Remediation ETF (NYSE Arca: NVIR), an actively managed fund listed on the New York Stock Exchange designed to strike a balance between addressing current global energy needs and participating in existing remediation technology.
The issuer described the fund as having “a dual, reality-based mandate” whereby it will own both fundamentally attractive, carbon-based energy companies and remediation companies that employ existing technology that allow carbon-based energy to be generated in a more environmentally sensible manner. As innovative technologies in the “clean energy” space are brought online, NVIR will purchase them when their valuation warrants it.
“After the success of the $1.2 billion inflation beneficiaries ETF, it is great to see Horizon Kinetics expand its suite,” said VettaFi’s head of research, Todd Rosenbluth. “The dual mandate makes the new carbon-focused ETF stand out in the ESG industry.”
The fund’s objective is to maintain a dynamic, fundamental research-based balance between hydrocarbon production and environmental remediation, recognizing that access to economically viable and plentiful energy to power the globe benefits everyone.
“Particularly given the events of the last year, the investment philosophy of the fund should resonate with a broad range of investors,” said Fredrik Tjernstrom, co-portfolio manager and research analyst at Horizon Kinetics. "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.”
Steven Tuen, co-portfolio manager and research analyst at Horizon Kinetics, added that NVIR “will have two distinct elements or functional sectors.”
“The first is an exposure to fossil fuel producers: primarily, and importantly, royalty companies that own the land on which the exploration and production companies operate,” Tuen said. “The other element of the fund is companies that provide environmentally constructive solutions to the first group. These can range from water recycling, oil rig electrification, flare gas capture, and solar/wind powered drilling, to carbon sequestration projects, among others.”
NVIR has an expense ratio of 0.85%.