The average annual name turnover in an LIFG portfolio is approximately 15%.
If a stock’s thesis is unchanged, LIFG tends to trade around the periphery. If a stock’s share price has fallen in the market due to short-term controversy, LIFG may increase its position (providing the thesis is unchanged). If a stock is overhyped, LIFG will trim the position to take profits. Trading in both profitable and losing investments that do not have thesis changes is for the purposes of reallocating into names with higher upside to the valuation target. As a result, individual security turnover numbers are higher and can range between 60-75%. Note: This only applies to LIFG’s actively managed ETFs. The index ETFs are designed to track an index.
For more information, please read the LIFG ETF Trust Annual Report and the ETF prospectus, available on our Investor Resources page.