Touchstone US Large Cap Focused ETF

Touchstone US Large Cap Focused ETF (LCF) is an actively managed fund. It holds 25 to 45 large US companies picked by sub-adviser Fort Washington Investment Advisors because they trade below its estimate of their value and have lasting competitive advantages. It is concentrated: its top 10 holdings made up 54.6% of assets as of June 30, 2026. At 0.56% a year, it costs more than each similar fund compared, which average 0.23%.

• Over the year to Oct 27, 2026, LCF returned +8.2%, 7th of 9 among similar funds.
• Its worst full calendar year was 2025 (+17.2%); its best was 2023 (+26.2%).
• The deepest fall in its price history was 18.3% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 26, 2025.

As of Jun 30, 2026, the fund held 45 securities; the ten largest made up 54.59% of assets. It also reported 3.57% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

By sector

• Over the three months to Jun 30, 2026, investors added a net $7.7M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +9.74%, +3.25%, -3.00%.

LCF does not track an index. Under normal conditions, it puts at least 80% of its assets in US-listed large companies, defined as those worth more than $5 billion at the time of purchase. Fort Washington, the sub-adviser hired by Touchstone, looks for stocks trading below their intrinsic value, meaning its estimate of what the business is really worth. It also wants durable competitive advantages, which it judges by barriers to entry: cost advantages, economies of scale, customer loyalty, or government barriers such as licenses. It views scale combined with customer loyalty as the strongest barrier.

The fund generally holds 25 to 45 companies, and cash is expected to stay under 10% of assets. It may hold more cash when too few stocks meet its standards. It is non-diversified, meaning it can put larger amounts in a few companies, and it may lean toward certain sectors. As of June 30, 2026, it held 45 companies, led by Alphabet (9.5%), Apple (7.6%), Nvidia (7.4%) and Microsoft (7.1%). Technology made up 33.8% of assets, communication services 16.7% and financials 13.4%.

There is no fixed rebalancing schedule. The manager generally sells a stock when it reaches its fair-value estimate, when a better opportunity turns up, or when a structural change makes the business hard to judge. Turnover was 8%, so trading is light. The fund held no derivatives as of June 30, 2026, and uses no leverage or options.

• LCF charges 0.56% a year, versus an average of 0.23% for the similar funds below (9th of 9, cheapest first).
• Of that, 0.7% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.62% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $57 in the first year and $1,377 over 10 years (assuming a 5% annual return).

It is a non-diversified, manager-driven portfolio of about 45 stocks, with more than half its assets in its top 10 holdings, so it fits better alongside a broader core fund than in place of one.

LCF can add a focused, value-minded slice of large US companies, but its track record is short. It launched on July 29, 2022, so it missed the 2008 and 2020 crashes and most of the 2022 bear market. It has not had a losing calendar year. Its weakest full year was 2025, at 17.0% according to the prospectus. Its deepest drop was 18.3%, from February 19 to April 8, 2025, and it recovered by June 26, 2025, about 2.6 months later. Anyone who had to sell near that low would have locked in the loss. Income is small: the yield was 0.5% as of October 27, 2026, paid once a year. At 0.56%, it costs more than the 0.23% average for similar funds. In the SEC's $10,000 example, costs come to $57 after one year and $1,377 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.