Roundhill’s LOHA ETF targets companies with heavy assets and low obsolescence, countering AI-driven market concentration.
Roundhill Investments launched the Roundhill Heavy Assets and Low Obsolescence ETF (LOHA) in May 2026, focusing on physical infrastructure firms. The ETF aims to diversify portfolios away from software and AI-heavy indices, emphasizing companies with long-lived capital and entrenched distribution networks.
LOHA holds 100 equally weighted US companies, rebalanced quarterly, with a 0.35% expense ratio. Top holdings include Cummins (CMI), AutoZone (AZO), and Lennox International (LII), which represent engines, auto parts, and HVAC systems. Cummins reported record Q2 Power Systems sales of $2.3 billion, up 19%, driven by demand for backup diesel generators from AI data centers.
Despite strong performance in some sectors, Lennox International saw residential revenues decline 30% due to high mortgage rates. The ETF’s thesis, coined by Josh Brown of Ritholtz Wealth Management, highlights the stability of physical assets in contrast to rapidly evolving software.