What is the  LCF ETF ?
5 min read
By Beqa Bumbeishvili, ETF Insider

What is the LCF ETF ?

In the world of finance, Exchange-Traded Funds (ETFs) have gained immense popularity due to their ability to offer investors exposure to a diverse range of assets. Among them, the LCF ETF stands out as a compelling option for those seeking exposure to U.S.-listed large capitalization equity securities. In this article, we will delve into the various aspects of the LCF ETF, shedding light on its underlying assets, benefits, and key considerations for potential investors.
The LCF ETF is designed to invest at least 80% of its assets in large capitalization equity securities listed on U.S. exchanges. The ETF's 80% policy is a non-fundamental investment policy, subject to change with prior notice to shareholders. Large capitalization companies, as defined by the ETF, have a market capitalization above $5 billion at the time of purchase. The ETF may include common stocks listed on exchanges or traded over-the-counter.

LCF ETF Underlying and Exposure: What Does It Track and How?

To achieve its investment objectives, the LCF ETF is managed by Fort Washington Investment Advisors, Inc. The selection process focuses on identifying companies that are trading below their intrinsic value and have sustainable competitive advantages. Fort Washington assesses a company's competitive advantage based on factors like cost advantage, economies of scale, high customer loyalty, or government barriers. The combination of economies of scale and higher customer loyalty is considered the strongest barrier to entry.
The LCF ETF is non-diversified, which means it may have significant exposure to a limited number of issuers. Typically, the ETF holds a portfolio of 25 to 45 companies, with cash and cash equivalents making up less than 10% of its net assets. However, the number of securities and cash allocation may vary based on market conditions and investment opportunities.

LCF overlap What is the  LCF ETF ?LCF overlap What is the LCF ETF ?

LCF ETF: Benefits to Invest

The LCF ETF offers several benefits to investors looking to diversify their portfolios. One of the key advantages is its exposure to large capitalization companies, which are often more stable and established. These companies have a proven track record, making the ETF a relatively less risky investment option compared to smaller and riskier ventures. Additionally, the ETF's focus on undervalued companies with strong competitive advantages can potentially yield attractive returns over the long term.
Moreover, as an ETF, LCF offers liquidity and flexibility. Investors can buy and sell shares on an exchange throughout the trading day, unlike traditional mutual funds. This liquidity ensures that investors can access their funds quickly when needed, providing greater convenience and control over their investments.

LCF ETF: Considerations Before Investing

While the LCF ETF has numerous benefits, potential investors should carefully consider certain factors before making their investment decisions. As with any investment, there are risks involved, and the value of the ETF's shares can fluctuate based on market conditions. Moreover, the ETF's non-diversified nature means that a substantial decline in the value of a single security could significantly impact the overall performance of the fund.
It is crucial for investors to conduct thorough research and understand the ETF's investment strategy, expenses, and historical performance. Additionally, individual financial goals and risk tolerance should align with the investment approach of the LCF ETF.


In conclusion, the LCF ETF presents an attractive investment opportunity for those seeking exposure to U.S. large capitalization equities. Its focus on undervalued companies with sustainable competitive advantages makes it a compelling choice for long-term investors. However, potential investors should exercise due diligence, considering both the benefits and risks associated with the ETF, and align their investment strategy with their financial goals.

This article is for informational purposes only and does not constitute investment advice. The content provided is not providing any investment advisory services. Investors are advised to consult with a financial professional before making any investment decisions.

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  • What is the LCF ETF?

    The LCF ETF, also known as the [Title Missing], is an exchange-traded fund that aims to track the investment results of the S&P Global 1200 Materials Index, which includes companies in the materials sector of the economy and is important to global markets.

  • How does the LCF ETF achieve its investment objective?

    The LCF ETF follows an indexing approach, where it does not try to outperform the Underlying Index but aims to replicate its performance. It uses a representative sampling indexing strategy, investing in a subset of securities with characteristics similar to the underlying index.

  • What types of companies are included in the S&P Global 1200 Materials Index?

    The S&P Global 1200 Materials Index comprises companies from the materials industry or sector in various countries, including Australia, Belgium, Brazil, Canada, Chile, Denmark, Finland, France, Germany, Ireland, Japan, Luxembourg, Mexico, the Netherlands, Norway, Peru, South Korea, Sweden, Switzerland, Taiwan, the U.K., and the U.S.

  • How much of the LCF ETF's assets are invested in the component securities of the Underlying Index?

    The LCF ETF generally invests at least 80% of its assets in the component securities of the S&P Global 1200 Materials Index, and up to 20% of its assets may be allocated to certain futures, options, swap contracts, cash, cash equivalents, and securities not included in the Underlying Index.

  • What are the benefits of investing in the LCF ETF?

    Investing in the LCF ETF provides exposure to a diversified basket of materials sector companies from various countries, reducing some of the risks associated with active management. It also aims for lower costs and better after-tax performance through its indexing approach.