Logan Capital Broad Innovative Growth ETF (LCLG)

The Logan Capital Broad Innovative Growth ETF is an actively managed fund designed to capture long-term capital appreciation by holding companies that demonstrate innovation, sustainable competitive advantages, and durability through business cycles. Managed by the Logan Capital investment team, LCLG does not track an index; instead, it constructs a portfolio based on a disciplined research process that values quality and innovation over hot market trends.

The portfolio approach

LCLG invests across sectors and market capitalizations within the US equity market, from large multinationals to mid-size innovators. The common thread is not sector membership but rather company characteristics: strong return on capital, defensible competitive positions, recurring revenue models, and management teams demonstrating sustained capital discipline. The fund might hold a legacy industrial company with breakthrough automation technology alongside a healthcare innovator or a financial services firm with a strong digital transformation story.

The portfolio typically runs between 50 and 80 positions. This breadth provides diversification against any single bet being catastrophic, but the number of holdings is small enough that the portfolio managers’ conviction matters—each position represents a meaningful allocation. Holdings are rebalanced quarterly, and the managers retain flexibility to overweight high-conviction ideas or to trim positions that no longer meet their criteria.

Logan Capital publishes daily holdings, so investors can see exactly what is owned and how it is weighted. The fund’s prospectus details the selection criteria and governance, and quarterly reports include manager commentary on market conditions, recent transactions, and the forward-looking investment thesis.

Costs and trading

The expense ratio reflects active management—higher than a passive index fund but designed to be fair relative to the research and stock selection involved. Because LCLG is structured as an ETF, trading happens continuously throughout the market day at transparent, real-time prices. The creation-redemption mechanism ensures that large inflows and outflows are handled efficiently without the fund paying hidden transaction costs. Bid-ask spreads are typically narrow given the fund’s assets and investor base.

Who fits and what to watch

LCLG appeals to investors who believe active managers can identify innovators and quality compounders before the broad market recognizes them, and who are willing to pay a modest fee for that potential outperformance. The broad mandate (50–80 names across sectors) means the fund is a core large-position holding rather than a satellite bet. Appropriate for taxable accounts because ETF structure tends to minimize forced capital gains distributions.

The principal risk is that active managers may systematically underperform a passive competitor—this is a hard-to-predict statistical reality that has humbled many active funds over decades. Concentration risk is present: if the largest positions falter, the fund’s performance suffers more than an equally-weighted index would. Sector bets matter too—if the managers are underweighted to a market leader (such as mega-cap technology during a growth rally), relative performance will lag.

Getting the details

Request the prospectus and fact sheet from the fund’s sponsor. Review LCLG’s trailing performance versus the Russell 1000 Growth or S&P 500 Growth indices, both net and gross of fees, over one, three, and five-year periods. Look at the top 10 holdings and the sector weightings; if the portfolio looks similar to the index, the active management is not adding much value. Download the quarterly holdings list and read the manager letter—it will explain the investment philosophy and highlight recent changes. Track the fund’s expense ratio and turnover rate; high turnover implies more trading costs and potential tax drag, while low turnover might suggest the managers have found a stable set of ideas.