Leuthold Group Revolutionizes ETF Market with Mutual Fund Conversion

Leuthold Group Expands ETF Presence with Mutual Fund Conversion

The Minneapolis-based research and investment management firm, Leuthold Group, has made a significant move into the exchange-traded funds (ETFs) market by converting one of its long-standing mutual funds into an ETF. This strategic decision marks a new chapter in the company’s growth journey.

A Proven Track Record

The Leuthold Select ETF (LST) has begun trading, following its conversion from the 25-year-old Leuthold Select Industries mutual fund. Founded in 1981, Leuthold has built a reputation as a trusted research firm, launching its first mutual fund in 1995. Today, the company manages a total of three mutual funds, with $1.1 billion in assets under management.

Entering the ETF Space

Leuthold’s foray into the ETF market began in 2020 with the launch of the Leuthold Core ETF (LCR), which has since grown to $81 million in assets. The LCR ETF has earned a five-star rating from Morningstar and ranks in the 55th percentile of the tactical allocation category.

LST ETF: A Capital Appreciation Strategy

The newly converted LST ETF employs an actively managed capital appreciation strategy, focusing on equity group selection and rotation based on dynamic market themes. This approach is designed to capitalize on market opportunities and minimize risks.

A Growing Trend

The conversion of mutual funds to ETFs is becoming increasingly popular, with over 55 mutual funds making the switch last year. This trend is driven by the benefits of ETFs, including operational ease and tax advantages.

Performance Highlights

The latest data from the mutual fund that LST was converted from shows an impressive 13.2% gain last year and a five-year annualized gain of 12.7%. The LST portfolio is diversified across 20 industry sectors, with communications services, systems software, and homebuilding being the top allocations.

Expert Management

The LST ETF is managed by Leuthold’s experienced team, including Director of Equities Scott Opsal and Portfolio Managers Greg Swenson and Chun Wang. According to Leuthold Chief Investment Officer Doug Ramsey, “LST represents a longstanding, proven investment discipline that is now tapping into the operational ease and tax benefits of an ETF.”

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