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Core ETF

The Leuthold Core ETF Strategy is a tactical allocation strategy that seeks capital appreciation and income. The strategy invests in a mix of equities and fixed income, with allocations ranging from 30%-70% for Equities and 10%-70% for Fixed Income. Alternatives such as commodities, REITs, and other asset classes may also be employed.

Portfolio Summary

As of 2025-12-31 00:00:00
Star for Morningstar Rating Star for Morningstar Rating Star for Morningstar Rating Star for Morningstar Rating

Morningstar Rating™ Overall among 222 Tactical Allocation funds as of 12.31.25 based on risk-adjusted returns.†

Downloadable Materials
Details
  • Inception:
    December 2018
Investment Vehicles
  • SMA Platforms:
    • Account Minimum: $50,000
    • Management Fee: 50bps
    • Fees negotiable > $25mm
  • UMA Platforms:
    • Account Minimum: Varies
    • Management Fee: 35bps
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Annualized Performance

As of Sep 30, 2025 (gross of fees)
Period CORE Bench
Sep 2.53 3.65
Q3 5.06 8.12
2024 9.16 25.02
YTD 10.65 14.83
1-YR 9.43 17.60
3-YR 13.10 24.94
5-YR 8.53 16.47
11/27/18 8.70 16.16

Estimated Return Statistics

As of Sep 30, 2025
Statistic CORE Bench
Alpha -0.25 -
Beta 0.62 -
Tracking Error 5.40 -
R-squared 0.87 -
Standard Deviation 8.37 13.37
Sharp Ratio 0.92 1.42
Max Drawdown -5.59 -8.25
CORE = Core ETF Strategy Bench = S&P 500

Strategy

Tactical Allocation: The strategy uses a top-down, quantitative approach to make asset allocation decisions. This means that the portfolio managers actively adjust the portfolio's exposure to different asset classes based on their outlook for the market. 

Sector Rotation Model: This model evaluates the risk/reward potential of different equity sectors on a monthly basis. It utilizes a quantitative, top-down approach along with Leuthold's long-standing industry ratings. The model considers factors such as value, growth, profitability, technicals, and very long-term (VLT) momentum. The top-five rated sectors are purchased via sector ETFs. A sector position is held until its ranking drops below sixth place, at which point it is replaced by the highest-rated sector not currently held. The portfolio may also purchase ETFs to gain exposure to attractive industry groups within those sectors.

Broad Fixed Income Score: The fixed income portion of the portfolio includes a wide range of securities, including U.S. and global Treasuries, corporates, and mortgage-backed securities (MBS). The strategy also considers factors such as interest rates, credit quality, sector, and foreign exchange (FX) when making fixed-income investments.

Equity Hedge: The strategy may use an equity hedge to manage risk. This means that the portfolio managers may sell stocks short or use other strategies to reduce the portfolio's exposure to stock market declines.

Disciplined and Unemotional Approach: The strategy is based on a quantitative model that is designed to be objective and unemotional. This helps to avoid making investment decisions based on fear or greed.

Disclosures

The Leuthold Group was founded in 1981 as an independent investment research firm. In 1987, the firm registered an RIA subsidiary with the Securities and Exchange Commission and began to direct investment portfolios based on the financial analysis of their research. Historical performance reflected is for the Leuthold Core ETF Portfolio strategies. These are asset allocation strategies and utilize quantitative analysis in order to seek capital appreciation and/or growth. “Gross” performance results reflect the deduction of all transaction costs but do not include custodial, investment advisory fees, or other expenses. “Net” performance is an estimate that reflects the deduction of all transaction costs and investment advisory fees paid. For periods in the current quarter, net estimates are calculated based on the highest investment advisory fee paid. The current month’s gross performance is an estimate.

Returns presented for the strategies assume reinvestment of all dividends, interest, and realized gains. Gross Returns are presented before the deduction of management and custodial fees but after trading expenses. Past performance should not be considered predictive of future performance. As with any investment, there can be no assurance that the Adviser’s investment objective will be achieved or that an investor will not lose a portion or all of his investment. The strategy composites were established on January 3, 2020.

† Morningstar Rating™ or “star rating”: For funds with at least a 3-year history, a risk-adjusted-return measure is calculated to account for variation in monthly performance, placing more emphasis on downward variations and rewarding consistency. The top 10% of funds in each category receive 5 stars, next 22.5%=4 stars, next 35%=3 stars, next 22.5%=2 stars, and bottom 10%=1 star. The “Overall” Rating is derived from a weighted average of the 3-, 5-, and 10-year ratings. Within the Tactical Allocation category, for the 3-, 5-, and 10-year periods, respectively, Leuthold Core ETF Portfolio is rated 3, 4, and NA stars, among 222, 202, and NA funds. ©2025 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers is responsible for any damages or losses arising from any use of this information. Leuthold Funds’ adviser pays a license fee for the use of Morningstar Ratings™.

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