The Leuthold Group expands access to flagship strategy with launch of Leuthold Core ETF
The Leuthold Group has announced the launch of the Leuthold Core ETF (NYSE: LCR), an exchange-traded fund that was designed as a core holding for investors seeking steady growth along with the liquidity and convenience of an ETF. It will apply the same disciplined, rules-based quantitative rigor as the firm's Core mutual fund and reflects Leuthold Group's philosophy that exposure to multiple asset classes?and dynamically adjusting exposures at different points in the business cycle?can potentially generate growth and long-term investment success.
"With the bull market in stocks entering its record 11th year, we know that advisors and their clients are focused on investment options that can adjust if and when conditions change," said Leuthold Group Co-CEO John Mueller. "We also know that they want a product format that's as nimble as the investment strategy itself, which is why we made the decision to offer our tactical asset allocation approach as an ETF."
Research Director Scott Opsal, Senior Analyst Chun Wang, and Leuthold Chief Investment Officer Doug Ramsey will serve as co-portfolio managers. "We've been developing, implementing and refining successful tactical asset allocation strategies for decades and I'm excited that it's going to be easier than ever for investors to gain exposure to this style of investing through an ETF," said Ramsey.
The Leuthold Core ETF will dynamically allocate between equity and fixed-income markets (between 30% - 70% for each) on a monthly basis, using Leuthold's time-tested Major Trend Index. Once equity versus fixed income weightings are determined, the equity component will invest in sectors and industry groups that rank highly in a monthly industry group analysis. Fixed income exposure will be aligned with Leuthold's inflation outlook and?within the credit space?with the firm's momentum plus relative yield model. The fund may trade a wide array of securities, but typically will own fixed-income, equity-sector and industry-group ETFs.
The Leuthold Core ETF carries a management fee of 0.50%, part of a total expense ratio of 0.86% (after expense reimbursement).
About The Leuthold Group LLC
Based in Minneapolis, The Leuthold Group has produced independent research for institutional clients for more than three decades. The experienced investment team also manages approximately $1.0 billion in both separate accounts and five mutual funds. The Leuthold Group is recognized as a pioneer in tactical asset allocation with a flexible flagship strategy managed over three decades. For more information, visit https://leutholdgroup.com.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. The Prospectus contains this and other information about the Fund. Please read the Prospectus carefully before you invest. Investing involves risk, including the possibility of loss of principal. For a current Prospectus, please call 1-866-306-8117. Distributor: Compass Distributors, LLC
Risks of Investing in the Fund
Asset Allocation Risk: The Fund may favor an asset category or investment strategy that performs poorly to other asset categories and investment strategies for short or long periods of time.
Foreign and Emerging Markets Securities Risk: Investments in securities and instruments traded in developing or emerging markets, or that provide exposure to such securities, can involve additional risks relating to political, economic, or regulatory conditions not associated with investment in U.S. securities and instruments.
Market Risks: Common stocks are susceptible to general stock market fluctuations and to volatile increases and decreases in value as market confidence and perceptions of their issuers change.
Fixed Income Securities Risk: Issuers of bonds may not be able to make interest or principal payments, or may suffer adverse changes in financial condition that could lower the credit quality.
Quantitative Investment Approach Risk: The Fund utilizes a quantitative investment approach. There may be market conditions where the quantitative investment approach performs poorly.
Managed Futures Strategy/Commodities Risk: Investments in managed futures programs or commodities may subject an Underlying Investment to greater volatility than investments in traditional securities.
Sector Risk: The Fund's investing approach may dictate an emphasis on certain sectors, industries, or sub-sectors of the market. The Fund may invest more heavily in one sector, industry, or sub-sector; or may lack exposure to one or more sectors, which may adversely affect performance.
Liquidity Risk: Liquidity risk is the risk that the Fund may be unable to find a buyer for its investments when it seeks to sell them or to receive the price it expects based on the Fund's valuation of the investments. If the Fund is forced to sell its investments at an unfavorable time and/or under adverse conditions in order to meet redemption requests, such sales could negatively affect the Fund.
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