A slump in tech stocks could indicate a buying opportunity for Natixis Investment Managers’ active growth ETF.
The Natixis Loomis Sayles Focused Growth ETF (LSGR ) offers U.S. large-cap growth exposure but takes a unique approach. The active ETF is managed with a long-term, private equity ownership perspective, focusing on high-quality businesses with truly sustainable competitive advantages.
As tech stocks have weakened in the past month, it could now be an interesting opportunity to buy while growth ETFs are off recent highs. LSGR could be a compelling fund to consider as it has a track record of outperforming the Russell 1000 Growth.
In its year since inception, the active ETF has demonstrated its ability to outperform the Russell 1000 Growth. Year to date through July 30, the fund has gained 16.6% while the index has increased 15.5%. Since its launch, the fund has outpaced the benchmark by 130 basis points.
Under the Hood of Active ETF ‘LSGR’
The active ETF’s top holdings differ from the benchmark Russell 1000 Growth.
LSGR holds Nvidia, Meta Platforms, Alphabet, Amazon.com, Microsoft, Tesla, Netflix, Vertex Pharmaceuticals, Oracle, and Autodesk as of June 30.
The active ETF employs a high-conviction portfolio of typically 20 to 30 stocks. LSGR deliberately leans into concentration, with the top 10 holdings making up 70% of the portfolio by weight.
Meanwhile, the top names in the Russell 1000 Growth as of June 30 include Microsoft, Apple, Nvidia, Amazon.com, Meta Platforms, Alphabet (Class A and C), Eli Lilly & Co, Broadcom, and Tesla. The index includes around 400 securities.
Compared to the Russell 1000 Growth, LSGR provides less exposure to the information technology sector, industrials, and consumer staples sectors. The active ETF notably includes no exposure to the energy, materials, real estate, and utilities sectors.
Meanwhile, the active ETF offers greater exposure to communication services and healthcare sectors than the index.
LSGR and the index provide comparable exposure to the consumer discretionary and financial sectors.
Investors Look to Increase Active ETF Ownership
LSGR is a compelling offering as investors look to add exposure to active ETFs. Active ETFs saw record flows during the first half of 2024, bringing in over $120 billion in net flows during the first two quarters of the year.
See more: The Investor’s Guide to the Rise in Active ETFs
LSGR has seen over $63 million in net flows over a one-month period as of July 29. The fund launched in June 2023 and has $232 million in assets under management.
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