The Leuthold Select Industries ETF (LST) seeks to provide exposure to select industry sectors through an actively managed approach based on Leuthold Group's proprietary research methodology. This sector rotation strategy aims to identify and invest in industries positioned for outperformance based on fundamental and technical analysis.
How It Works
LST employs an active management approach using Leuthold Group's decades of sector rotation research to identify attractive industries. The fund's portfolio managers analyze macroeconomic trends, valuation metrics, and technical indicators to select sectors and individual securities within those industries. Holdings are concentrated in the most compelling opportunities, with position sizes and sector allocations adjusted based on ongoing research. Rebalancing occurs as market conditions and research insights evolve.
Key Features
- Leverages Leuthold Group's 50+ year track record in sector rotation and tactical asset allocation strategies
- Active management allows for concentrated positions in highest-conviction sectors rather than broad market exposure
- Recently launched ETF offering institutional-quality sector selection research in accessible ETF wrapper format
Risks
- This ETF can lose value if the manager's sector selection proves incorrect, as concentrated positions amplify both gains and losses
- Active management risk means the fund may underperform passive broad market ETFs during periods when sector rotation strategies struggle
- As a newly launched fund with limited assets, liquidity may be constrained and tracking spreads could be wider than established ETFs
Who Should Own This
Best suited for tactical investors with 1-3 year time horizons seeking active sector exposure as a satellite holding (5-15% of equity allocation). High risk tolerance required due to concentrated positions and active management volatility. Appropriate for investors who believe in sector rotation strategies and want professional management of industry selection timing.