Key Takeaways
- • The Leuthold Group launched the Leuthold Core ETF (NYSE: LCR), an exchange-traded version of its flagship tactical asset allocation strategy, as announced via Business Wire on January 7, 2020.
- • The fund carries a 0.50% management fee and a total expense ratio of 0.86% after expense reimbursement.
- • The ETF dynamically allocates between equities and fixed income (30% to 70% for each) on a monthly basis using the firm's Major Trend Index.
- • Co-portfolio managers are Research Director Scott Opsal, Senior Analyst Chun Wang, and Chief Investment Officer Doug Ramsey.
- • The Leuthold Group, which manages approximately $1.0 billion across separate accounts and five mutual funds, is positioning the product as a core holding for advisors and clients seeking adjustment capability.
Summary
The Leuthold Group, a Minneapolis-based firm that has produced independent research for institutional clients for more than three decades, has launched the Leuthold Core ETF (NYSE: LCR), according to a Business Wire announcement. The fund is designed as a core holding for investors seeking steady growth with the liquidity and convenience of an ETF. It applies the same disciplined, rules-based quantitative process used in the firm's Core mutual fund, reflecting the Leuthold philosophy that exposure to multiple asset classes, dynamically adjusted across the business cycle, can potentially generate long-term investment success.
In announcing the launch, Co-CEO John Mueller framed the product against the backdrop of the bull market in stocks entering its record 11th year, noting that advisors and clients are focused on options that can adjust if conditions change. Mueller said the firm chose to offer its tactical asset allocation approach in ETF format because clients want a product structure as nimble as the strategy itself. Chief Investment Officer Doug Ramsey, who will serve as co-portfolio manager alongside Research Director Scott Opsal and Senior Analyst Chun Wang, said the firm has been developing and refining tactical asset allocation strategies for decades.
The fund will allocate between equity and fixed-income markets, with each component ranging from 30% to 70%, reset on a monthly basis using Leuthold's Major Trend Index. Within equities, the fund will invest in sectors and industry groups that rank highly in a monthly industry group analysis. Fixed-income exposure will align with the firm's inflation outlook and, within credit, with its momentum plus relative yield model. The fund may trade a wide range of securities but typically will hold fixed-income, equity-sector and industry-group ETFs.
The ETF carries a management fee of 0.50% and a total expense ratio of 0.86% after expense reimbursement. The filing materials note risks including asset allocation risk, quantitative investment approach risk, sector concentration, fixed income credit risk, managed futures and commodities volatility, foreign and emerging markets exposure, and liquidity risk. Distributor is Compass Distributors, LLC, and investors are directed to the prospectus, available by calling 1-866-306-8117.
In announcing the launch, Co-CEO John Mueller framed the product against the backdrop of the bull market in stocks entering its record 11th year, noting that advisors and clients are focused on options that can adjust if conditions change. Mueller said the firm chose to offer its tactical asset allocation approach in ETF format because clients want a product structure as nimble as the strategy itself. Chief Investment Officer Doug Ramsey, who will serve as co-portfolio manager alongside Research Director Scott Opsal and Senior Analyst Chun Wang, said the firm has been developing and refining tactical asset allocation strategies for decades.
The fund will allocate between equity and fixed-income markets, with each component ranging from 30% to 70%, reset on a monthly basis using Leuthold's Major Trend Index. Within equities, the fund will invest in sectors and industry groups that rank highly in a monthly industry group analysis. Fixed-income exposure will align with the firm's inflation outlook and, within credit, with its momentum plus relative yield model. The fund may trade a wide range of securities but typically will hold fixed-income, equity-sector and industry-group ETFs.
The ETF carries a management fee of 0.50% and a total expense ratio of 0.86% after expense reimbursement. The filing materials note risks including asset allocation risk, quantitative investment approach risk, sector concentration, fixed income credit risk, managed futures and commodities volatility, foreign and emerging markets exposure, and liquidity risk. Distributor is Compass Distributors, LLC, and investors are directed to the prospectus, available by calling 1-866-306-8117.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.