At a glance
SPAQ charges 0.85% a year. It has $10.1M in assets; it paid 16.38% of its price in distributions over the past 12 months, annual. Over the past year it returned +2.1% with distributions reinvested (S&P 500: +11.5%); over three years it returned +4.8% a year. Its ten largest positions make up 42.4% of the fund, out of 37 in all.
The short version
Horizon Kinetics SPAC Active ETF (SPAQ) is an actively managed fund that invests in special purpose acquisition companies (SPACs). These are shell companies that park the cash from their stock market debut in a trust while seeking a merger. It aims to beat short-term interest rates rather than the stock market, and its returns have barely moved with stocks. Trade-offs include a 0.85% yearly fee and about $10 million in assets as of June 30, 2026.
Price history
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SPAQ +2.1% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| SPAQ official prospectus, to Dec 31, 2025 | — | +8.85% | — | — | — | +6.08% |
| SPAQ price data to Oct 27, 2026 | +1.9% | +2.1% | +4.8% | — | — | +5.1% |
- Over the year to Oct 27, 2026, SPAQ returned +2.1%.
- Its worst full calendar year was 2024 (+4.3%); its best was 2025 (+7.4%).
- The deepest fall in its price history was 5.3% (Jun 20, 2025 to Sep 17, 2025), recovered by Oct 8, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.9% | — |
| 2025 | +7.4% | +8.85% |
| 2024 | +4.3% | +4.26% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $15.1300 | +412.9% |
| 2024 | $2.9500 |
What's inside
As of Jun 30, 2026, the fund held 37 securities; the ten largest made up 42.44% of assets.
| Holding | Weight | |
|---|---|---|
| Oaktree Acquisition Corp III L | 5.31% | |
| NewHold Investment Corp IV | 4.56% | |
| Wen Acquisition Corp | 4.19% | |
| Evolution Global Acquisition C | 4.15% | |
| Cantor Equity Partners V Inc | 4.09% | |
| Willow Lane Acquisition Corp I | 4.05% | |
| OTG Acquisition Corp I | 4.03% | |
| Space Asset Acquisition Corp | 4.03% | |
| Metals Acquisition Corp II | 4.03% | |
| RRE Ventures Acquisition Corp | 4.01% | |
| Daedalus Special Acquisition C | 4.00% | |
| Kensington Capital Acquisition | 3.99% | |
| Spartacus Acquisition Corp II | 3.97% | |
| Dynamix Corp | 3.96% | |
| Aldabra 4 Liquidity Opportunit | 3.94% |
By country
United States 89.93%Cayman Islands 4.16%United Kingdom 4.11%By asset type
Stocks 98.2%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.86%, +0.91%, +0.79%.
How it works
A SPAC, or “blank check” company, has no operating business. It raises cash from public investors and generally holds it in a trust account of U.S. government securities or money market funds. Meanwhile it seeks a private company to merge with, typically within 24 months. If no deal closes, it liquidates and returns the trust cash, less taxes, fees and expenses. Holders can also redeem their shares for their slice of the trust when a deal is proposed.
Ryan Heritage, LLP, the sub-adviser that picks investments, chooses SPACs it expects to earn realized gains above what bank certificates of deposit of similar length pay. It aims to exit at a profit after an attractive deal announcement, or fall back on the trust cash. That floor has limits: SPAC shares can trade above trust value, so any premium paid can be lost. At least 80% of net assets go into SPACs that haven't merged yet, plus their warrants or rights, which allow purchasing stock later at a set price.
There is no index or set rebalancing schedule. On June 30, 2026, its 10 largest holdings made up 42.44% of assets. If few SPACs clear the manager's bar, or markets turn rough, it can hold up to 100% in cash and short-term debt. Turnover, the share of holdings replaced in a year, was 81%.
What it really costs
- SPAQ charges 0.85% a year.
- Using the prospectus's standard example, $10,000 invested would cost about $87 in the first year and $1,049 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SPAQ | $87 | $271 | $471 | $1,049 |
In a retirement portfolio
Its returns have barely tracked stocks, with a one-year beta (sensitivity to stock market moves) of 0.01 as of October 27, 2026, but its narrow SPAC focus and short record make it a side holding rather than a core one.
SPAQ could add returns that have barely moved with stocks. It launched on January 30, 2023, so it missed the 2008, 2020 and 2022 sell-offs and is untested in a crash. Its worst calendar year, 2024, was still a 4.3% gain. Its deepest share-price drop was 5.3%, from June 20 to September 17, 2025, and it was made back by October 8. Its small size (about $10 million as of June 30, 2026) could make exiting costlier in a rough market.
It pays out once a year. The trailing 12-month yield was 16.38% as of October 27, 2026, but a payout cuts the share price by the same amount. Total return over that year was 2.1%. Its 0.85% fee comes to $87 in the first year on $10,000 under the SEC's standard example. Past results don't predict future ones, and a plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a small position that aims to beat short-term interest rates through SPAC deals, and that has barely moved with stocks so far.
- People who understand SPAC trust accounts and redemption rights, and are comfortable with an active manager and 81% yearly portfolio turnover.
- Investors who value a steady, if short, record: annual gains of 4.26% in 2024 and 8.85% in 2025, per the prospectus.
Look elsewhere if
- Savers who need protected principal: unlike an insured bank certificate of deposit, the fund can lose money, and its 0.85% fee comes out of returns.
- Retirees wanting regular income: it pays once a year, and its 16.38% trailing yield far exceeded its 2.1% one-year total return to October 27, 2026.
- Investors wanting broad diversification or easy trading: it is non-diversified, holds mainly SPACs, and had about $10 million in assets on June 30, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
What does SPAQ invest in?
SPAQ invests mainly in special purpose acquisition companies (SPACs), shell companies that hold investor cash in a trust while they look for a private business to merge with. At least 80% of net assets go to SPACs that haven't completed a merger, plus their warrants or rights. As of June 30, 2026, the largest of its 60 positions were Oaktree Acquisition Corp III Life Sciences (5.3%), NewHold Investment Corp IV (4.6%) and Wen Acquisition Corp (4.2%). There is no index. The sub-adviser, Ryan Heritage, LLP, picks the holdings.
How has SPAQ performed since it launched?
SPAQ has delivered modest, steady gains so far. Its prospectus shows returns of 4.26% in 2024 and 8.85% in 2025, and 6.08% a year from its January 30, 2023 launch through December 31, 2025. Measured by market price, it gained 2.1% in the year to October 27, 2026, and 4.8% a year over the three years to that date. Its deepest share-price drop was 5.3%, from June 20 to September 17, 2025. The record is short and hasn't been through a stock market crash.
Is SPAQ a safe alternative to a CD?
No. SPAQ aims to beat what bank certificates of deposit (CDs) of similar length pay, but unlike an insured CD it can lose money. Its approach leans on the right to redeem SPAC shares for trust cash, yet that floor isn't guaranteed. SPAC shares can trade above trust value, and the ETF's own shares can trade away from the value of its holdings. Its one-year Sharpe ratio, a measure of return for the risk taken, was -0.31 as of October 27, 2026. That means it trailed a risk-free cash rate over that year.
Does SPAQ pay dividends?
Yes, but only once a year. Its trailing 12-month yield was 16.38% as of October 27, 2026, from $15.13 per share in payouts. That figure overstates what the fund earns. A fund's share price drops by the amount it pays out, and SPAQ's total return, which counts payouts, was 2.1% over the same year. Because the fund aims for realized capital gains, payouts may vary from year to year. In a taxable account, payouts are generally taxable.
What is SPAQ's expense ratio?
SPAQ's expense ratio is 0.85% a year, all of it a management fee, according to its prospectus filed April 27, 2026. The SEC's standard example assumes $10,000 invested, a 5% yearly return and all shares redeemed at the end. On that basis, costs come to $87 after one year, $271 after three, $471 after five and $1,049 after ten. For a strategy aimed at beating short-term interest rates, that fee is a meaningful hurdle. Trading costs from its 81% turnover aren't included.