On Tuesday, The Leuthold Group expanded its ETF lineup with the launch of the Leuthold Select Industries ETF (LST ).
Following a notable fee waiver, LST operates with a net expense ratio of 65 basis points. The fund is actively managed and looks to provide long-term capital appreciation for its investment community.
LST’s portfolio is constructed through a wide variety of equities trading on the U.S. market. This can include companies of any market-cap size. Companies chosen for this portfolio may also include growth and value stocks.
As the fund’s title may imply, LST looks to focus its investments on specific sectors and individual industry groups. The ETF’s philosophy is driven by examining industries to find groups of companies that could provide compelling performance.
This industry-focused strategy goes far beyond simple sector exposure. Per the fund’s prospectus, LST’s management team categorizes companies into about 120 different groups. As a result, these narrower selections can provide more targeted exposure to more specific industries.
A Preexisting Strategy
Formerly a mutual fund, LST gives investors access to The Leuthold’s Group’s established experience in piloting industry-focused strategies. Prior to the ETF conversion, LST’s mutual fund counterpart had been on the market for well over two decades,
Looking at advantageous industries may prove to be a reliable strategy to lock in returns in 2025. Some market experts are projecting equity growth to broaden out to other sectors this year, creating good opportunities for portfolios positioned in the correct industries.
LST marks the second ETF from The Leuthold Group to be listed in U.S. markets. The first Leuthold ETF to do so was the Leuthold Core ETF (LCR ). This fund lets investors tap into Leuthold’s core strategy through the efficiency of the ETF wrapper. It has a little over $80 million in assets under management.
“With LST, equity investors who want exposure to a longstanding, proven investment discipline—coupled with the lower cost, operational ease and tax benefits of an ETF—will have that opportunity,” noted Leuthold CIO Doug Ramsey. “We’ve been pleased with the performance and market reception of LCR, so it was a natural progression to convert Select Industries to an ETF.”
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