The Leuthold Group has launched the Leuthold Core ETF, 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 rigour 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,” says 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,” says Ramsey.
The Leuthold Core ETF will dynamically allocate between equity and fixed-income markets (between 30 per cent – 70 per cent 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 per cent, part of a total expense ratio of 0.86 per cent (after expense reimbursement).