Logan Capital debuts US large-cap growth ETF

Aug 9th, 2022 | By | Category: Equities

Philadelphia-based investment advisor Logan Capital has debuted its first ETF with the introduction of an actively managed US large-cap equity fund targeting innovative, high-growth companies.

Stephen Lee, Founding Principal of Logan Capital.

The Logan Capital Broad Innovative Growth ETF (LCLG US) has been listed on NYSE Arca with an expense ratio of 0.99%.

The fund has come to market with approximately $50 million in initial assets.

The ETF comprises approximately 50 stocks of US-listed companies that are applying innovative technologies and ideas to common business models in order to gain competitive advantages.

Logan seeks out firms with significant pricing power that are benefitting from an economic tailwind or that are otherwise trading in a way that would support a long-term upward move in price.

Investments are selected through a combination of top-down macroeconomic analysis, bottom-up fundamental company analysis, and technical analysis, a multi-layered process that Logan believes leads to a portfolio of growth companies whose earnings are less affected by economic cycles.

As the ETF comprises high-conviction positions, the portfolio is expected to exhibit a low annual turnover typically below 35%.

The fund will limit concentration in any one sector to twice its weight in the benchmark Russell 1000 Growth Index, or 20%, whichever is greater.

As of 8 August, notable positions in the ETF included Apple (5.5%), Mastercard (5.0%), Amazon (4.8%), Broadcom (4.7%), KLA (4.4%), Amphenol (3.8%), Estee Lauder (3.2%), and Williams Sonoma (3.0%).

Stephen Lee, Founding Principal of Logan Capital, said: “Economic headwinds and uncertainty in the market provide nimble companies who can quickly adapt their business model opportunities to thrive. As leaders in the large-cap growth sector, we believe our slightly aggressive approach in identifying innovative companies that also have proven track records of delivering profits will continue to drive exceptional earnings and ultimately reward patient investors.”

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