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Factor Tilt

Diversified across key factors with moderate tilts to take advantage of macro economic, market, and current factor conditions.

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 742 Large Blend portfolios as of 12.31.25 based on risk-adjusted returns.†

Downloadable Materials
Details
  • Inception:
    Jan. 1, 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 FT Bench
Sep 2.37 3.65
Q3 5.93 8.12
2024 20.12 25.02
YTD 12.45 14.83
1-YR 12.98 17.60
3-YR 20.28 24.94
5-YR 13.64 16.47
12/31/17 11.28 14.44

Estimated Return Statistics

As of Sep 30, 2025
Statistic FT Bench
Alpha -0.21 -
Beta 0.95 -
Tracking Error 5.98 -
R-squared 0.93 -
Standard Deviation 12.85 13.37
Sharp Ratio 1.13 1.42
Max Drawdown -7.58 -8.25
FT = Factor Tilt Bench = S&P 500

Philosophy

Factors are investment characteristics that have historically produced excess risk-adjusted returns. Cyclicality results in factors experiencing periods of outperformance as well as underperformance, while low correlation means that diversification and portfolio design can be optimized to achieve superior risk-adjusted returns. Through an analysis of forward returns using market cycles, factor signal strength, and factor relative valuation, we seek to identify the most promising factors for a given market environment.

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 Sector Rotation Strategy, Leuthold Enhanced Sector Rotation Strategy, and Leuthold Factor Tilt Strategy. These are equity styles that are flexible and utilize quantitative analysis in order to seek capital appreciation; they will remain fully invested at all times. The current month’s performance is an estimate.

Returns presented for the Strategies assume reinvestment of all dividends, interest, and realized gains. Gross Returns are presented before 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 Sector Rotation and Enhanced Sector Rotation Strategy composites were established on May 10, 2016. The Factor Tilt Strategy composite was established on December 28, 2017.

† 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 Large Blend category, for the 3-, 5-, and 10-year periods, respectively, Leuthold Factor Tilt ETF Portfolio is rated 4, 4, and NA stars, among 742, 671, and NA portfolios. ©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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