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The Strange and Happy Tale of Voya Corporate Leaders Trust

  • Article
  • Dec 24, 2019
  • #Business
John Rekenthaler
@JohnRekenthaler
(Author)
www.morningstar.com
Read on www.morningstar.com
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Voya Corporate Leaders Trust (LEXCX), nee Lexington Corporate Leaders Trust, is the industry's oddest duck. Founded in 1935, the fund was the industry's first passively managed offe... Show More

Voya Corporate Leaders Trust (LEXCX), nee Lexington Corporate Leaders Trust, is the industry's oddest duck. Founded in 1935, the fund was the industry's first passively managed offering, beating Vanguard 500 Index (VFINX) to the starting line by a cool four decades.

The fund has a very different heritage from today's indexers. It wasn't launched to refute the claims of active management, based on academic research that suggested that strong performances usually regress to the mean. Rather, its strategy reflected its structure. Created before the Investment Company Act of 1940 was passed, the fund was established as a unit investment trust, and was therefore banned by regulations from actively managing its investments.

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ValueStockGeek @ValueStockGeek ยท Apr 13, 2023
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Good article about it:
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