The Natixis Loomis Sayles Focused Growth ETF (LSGR) seeks to provide long-term capital appreciation by investing in a concentrated portfolio of growth-oriented companies. This actively managed equity ETF targets companies with strong earnings growth potential, innovative business models, and expanding market opportunities across various sectors and market capitalizations.
How It Works
LSGR employs an active management approach where portfolio managers select 25-40 high-conviction growth stocks based on fundamental research and proprietary analysis. The fund focuses on companies demonstrating accelerating revenue growth, expanding profit margins, and disruptive competitive advantages. Holdings are weighted based on conviction levels rather than market capitalization, with position sizes typically ranging from 1-8% of assets. The concentrated approach allows for meaningful exposure to the managers' best growth ideas while maintaining diversification across sectors.
Key Features
- Concentrated portfolio of 25-40 high-conviction growth stocks allows for meaningful impact from top investment ideas
- Active management by experienced Loomis Sayles team with proven track record in growth investing strategies
- Zero expense ratio structure makes it cost-competitive with passive growth ETFs while providing active management
Risks
- This ETF can lose significant value during growth stock selloffs, potentially declining 40-60% when investors rotate from growth to value stocks
- Concentrated portfolio means poor performance from top holdings can severely impact returns, with single positions representing up to 8% of assets
- Active management risk exists as fund performance depends entirely on managers' stock selection skills rather than broad market exposure
Who Should Own This
Best suited for aggressive growth investors with 5+ year time horizons and high risk tolerance willing to accept significant volatility for potential outperformance. Works as a satellite holding representing 5-15% of equity allocation for investors seeking active growth exposure. Appropriate for those comfortable with concentrated portfolios and manager-dependent performance outcomes.