Leuthold Select Industries ETF (LST)

Overview

The fund is dedicated to achieving capital appreciation by primarily focusing its investment strategy on equity securities that are actively traded within the U.S. securities markets. This includes a diverse range of instruments such as common stocks, preferred stocks, convertible preferred stocks, warrants, options, and American Depositary Receipts (ADRs). The investment approach is inclusive of companies across various sizes and industries, offering opportunities in both “growth” stocks that are anticipated to grow at an above-average rate and “value” stocks that are considered undervalued. This comprehensive strategy aims to capitalize on different sectors and market conditions to generate robust returns for investors.

Products and Services

• Common Stocks: These are shares that represent ownership in a company and provide investors with voting rights and potential dividends. Investing in common stocks allows the fund to participate in a company's growth and profitability.
• Preferred Stocks: As a hybrid security, preferred stocks combine features of equity and debt. They generally offer fixed dividends and have a higher claim on assets than common stocks, making them a relatively stable investment option.
• Convertible Preferred Stocks: These securities can be converted into a predetermined number of common shares at certain times during their life, providing investors with both fixed income and growth potential depending on the underlying stock's performance.
• Warrants: Warrants are long-term options that give investors the right, but not the obligation, to purchase a company's stock at a specific price before expiration. They are leveraged investment vehicles that can enhance returns.
• Options: Options contracts provide the right to buy or sell a stock at an agreed-upon price before a specified date. The fund utilizes options to hedge positions and manage risk, as well as to speculate on price movements.
• American Depositary Receipts (ADRs): These are negotiation instruments issued by U.S. banks representing shares in foreign companies. ADRs allow U.S. investors to invest in foreign stocks easily and are integral to the fund's strategy for global diversification.
• Growth Stocks: Investing in this category focuses on companies expected to grow at an above-average rate compared to their industry or the overall market. Such stocks reinvest earnings for expansion rather than paying dividends, which can lead to substantial capital gains.
• Value Stocks: The fund targets stocks that are perceived to be undervalued relative to their intrinsic value. Investing in these securities is intended to provide investors with opportunities for long-term capital appreciation as the market corrects their pricing over time.