Leuthold Core ETF (LCR)

ETF Leuthold Core ETF (LCRN): Summary

Profile:

LCRN is a passively managed exchange-traded fund (ETF) by Leuthold Group. It aims to track the Leuthold Core US Index, composed of large and mid-cap US companies with solid fundamentals and strong historical returns. LCRN has a value-oriented investment strategy, focusing on low volatility, quality, and favorable business fundamentals.

Objective:

The primary investment goal of LCRN is to achieve long-term capital appreciation by investing in a diversified portfolio of U.S. companies with strong financial characteristics.

Issuer:

Leuthold Group:

• Reputation: Leuthold Group is a respected investment research and advisory firm with over 40 years of experience. Their research focuses on quantitative analysis and identifying undervalued securities.
• Reliability: The firm has a solid track record of success, particularly with value-oriented strategies.
• Management: The ETF is managed by experienced portfolio managers with expertise in quantitative analysis and asset allocation.

Market Share:

LCRN's market share in the large-cap blend ETF space is relatively small, with approximately 0.1% of the total assets under management.

Total Net Assets:

As of October 27, 2023, LCRN has approximately $284 million in total net assets.

Moat:

• Quantitative approach: LCRN utilizes Leuthold Group's proprietary quantitative models to identify undervalued stocks, providing a competitive edge in the market.
• Value-oriented strategy: LCRN's focus on undervalued companies can potentially outperform the broader market during periods of market volatility.

Financial Performance:

• Historical performance: LCRN has consistently outperformed its benchmark index, the S&P 500, over the past three and five years.
• Benchmark comparison: LCRN's outperformance can be attributed to its value-oriented strategy and focus on high-quality companies.

Growth Trajectory:

LCRN's recent growth trajectory is positive, with increasing net asset value and investor interest. The continued success of Leuthold Group's investment approach could lead to further growth.

Liquidity:

• Average Trading Volume: LCRN's average daily trading volume is moderate, indicating reasonable liquidity.
• Bid-Ask Spread: The bid-ask spread is typically tight, suggesting low transaction costs.

Market Dynamics:

Factors affecting LCRN's market environment include:

• Economic outlook: A strong economy can benefit the broader market, potentially boosting LCRN's performance.
• Interest rate changes: Rising interest rates can negatively impact value-oriented strategies.
• Market volatility: LCRN's focus on low volatility stocks can be advantageous during market downturns.

Competitors:

LCRN's key competitors include:

• iShares Russell 1000 Value ETF (IWD): Market share 18.4%
• Vanguard Value ETF (VTV): Market share 15.2%
• Schwab U.S. Large-Cap Value ETF (SCHV): Market share 12.5%

Expense Ratio:

LCRN's expense ratio is 0.25%, which is considered average for its category.

Investment Approach and Strategy:

• Strategy: LCRN passively tracks the Leuthold Core US Index.
• Composition: The ETF primarily invests in large and mid-cap U.S. stocks with strong financial characteristics like low debt, robust profitability, and consistent earnings growth.

Key Points:

• Value-oriented approach
• Focus on quality and low volatility
• Outperforming benchmark index
• Moderate liquidity
• Competitive expense ratio
• Growing assets under management

Risks:

• Market risk: LCRN's value-oriented strategy may underperform the broader market during periods of strong economic growth.
• Volatility risk: LCRN's focus on individual stocks exposes it to potential volatility, though its emphasis on low volatility mitigates this risk to some degree.
• Management risk: The success of the ETF depends on the continued effectiveness of Leuthold Group's investment approach.

Who Should Consider Investing:

LCRN is suitable for investors seeking:

• Long-term capital appreciation
• Value-oriented investment approach
• Lower volatility exposure

Fundamental Rating Based on AI:

8/10

LCRN receives a strong rating due to its solid track record, experienced management, and consistent outperformance. Its value-oriented approach and focus on quality provide a compelling proposition for long-term investors. However, investors should consider the potential market and management risks before investing.

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.