“When the winds of change blow, some people build walls, and others build windmills.”
— Ancient Chinese proverb
What better way to apply this principle than by investing wisely in today’s inflation-riddled economy? Recently, we’ve seen prices steadily rise as expansionary monetary policy intersects with supply chain disruptions and broader economic uncertainty, leading to our currency’s debasement.
Now, an inclination here for investors may be to respond by “building walls” — raising liquidity, favoring low-yield bonds or even reducing market exposure entirely — essentially resisting the inevitable winds of inflation. A smarter approach, however, could be to “build a windmill” in your portfolio, adapting to be more resilient to change and effectively harnessing these winds instead of fighting them. One way to do this is through the debasement trade, which involves investing in assets that gain value as purchasing power erodes — turning a chaotic market into an opportunity.
Which brings us to this week’s ETF: the Horizon Kinetics Inflation Beneficiaries ETF (INFL), a tool designed to capture the very winds of change that may initially cause fear or hesitation.
This fund’s goal is long-term growth of capital despite, and perhaps because of, inflation. It invests in U.S. and global companies that benefit from rising prices of real assets, such as commodities, and whose revenue can rise with inflation without their costs going up as fast. It has net assets of $1.32 billion, and because of its strategy and active management, it has a higher expense ratio of 0.85%.
INFL focuses primarily on investing in energy, financial services and basic materials sectors. Its top 10 holdings constitute approximately 47.29% of total assets and include Wheaton Precious Metals Corp. (TSX: WPM), 7.78%; Franco-Nevada Corporation (TSX: FNV), 5.11%; PrairieSky Royalty Ltd. (TSX: PSK), 4.75%; LandBridge Company LLC (NYSE: LB), 4.65%; Viper Energy, Inc. (NASDAQ: VNOM), 4.63%; OR Royalties Inc. (TSX: OR), 4.29%; Intercontinental Exchange, Inc. (NYSE: ICE), 4.12%; Cameco Corporation (TSX: CCO), 4.10%; Texas Pacific Land Corporation (NYSE: TPL), 4.05% and WaterBridge Infrastructure LLC (NYSE: WBI), 3.80%.
Chart courtesy of www.stockcharts.com.
The fund is up 0.92% in the last month, down 0.21% in the last three months and up 17.96% year to date. If you take a look at the six-month chart pictured above, INFL exhibited a generally steady climb up until the beginning of 2026, when the fund surged.
Inflation can create sudden gusts and downturns, but INFL’s goal isn’t to avoid the wind altogether — it’s to stay in motion as prices rise by focusing on companies that keep momentum. Still, this fund won’t be the right fit for every investor. Its targeted exposure can lead to performance swings, especially during uncertain periods.
Investors should always do their own due diligence and carefully research any stock, fund or ETF before adding it to their portfolio, assessing their tolerance for windy conditions along the way.
As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.
