Touchstone files to convert Dynamic Large Cap Growth into TDLG
Touchstone ETF Trust's 485APOS filed Wednesday, September 23, 2026, proposes TDLG at 0.55% after waivers, with a reorganization expected on or about January 22, 2027.
The strategy being wrapped as TDLG was installed in May 2025. That month Touchstone dropped Westfield Capital Management from what was then the Growth Opportunities Fund, an all-cap fundamental book that could own domestic growth companies of any size, and handed the portfolio to Los Angeles Capital. The name became Dynamic Large Cap Growth, and an 80% large-cap growth test replaced the old mandate. Wednesday's post-effective amendment would list that rebuilt book at 0.55% after waivers. The predecessor held $159 million as of June 30. Its published record still includes the Westfield years.
The filing is Form 485APOS: Post-Effective Amendment No. 15 under the Securities Act and Amendment No. 16 under the Investment Company Act. The prospectus is marked subject to completion, its date is blank, and it says the shares cannot be sold until the registration statement is effective. The cover checks the box for effectiveness 75 days after filing under Rule 485(a)(2). The trust's other ETFs are not being rewritten.
What the 485APOS actually registers
The proposed fund is the Touchstone Dynamic Large Cap Growth ETF, ticker TDLG, to be listed on Cboe BZX Exchange. It "is newly formed and will commence operations following the completion of the reorganization of the Predecessor Fund," the Touchstone Dynamic Large Cap Growth Fund, a series of Touchstone Strategic Trust, "which is expected to occur on or about January 22, 2027." The investment objective and principal strategies, the filing says, "are identical to those of the Predecessor Fund."
Under normal market conditions the ETF would invest at least 80% of assets in common stocks of large-capitalization, growth-oriented U.S.-listed companies, a non-fundamental policy that can be changed on 60 days' written notice. Large-cap growth, for this purpose, is typically a name in the Russell 1000 Growth Index at purchase. The filing puts that index's constituents, as of June 30, between about $2.5 billion and $4.8 trillion of market value. The fund would be non-diversified under the 1940 Act, so it may put a large share of assets in a single company even though the book is built to be broader than a concentrated growth sleeve.
The proposed expense table is the number that matters for anyone who already owns the mutual fund:
The 0.55% figure is a contractual cap on average daily net assets, not a completed fee cut at an operating ETF. The SAI sets the advisory fee at 0.60% on the first $200 million and 0.40% above that. The cap runs "through [_], 2028": the day and month are blank, and the board can end the agreement if it finds that better for shareholders. A 12b-1 plan is on the shelf at up to 0.25%; the filing says no such fee is incurred now and none will be until the board approves it. Individual shares could be bought and sold on the exchange through a broker, not directly from the fund.
From Westfield to Los Angeles Capital
Los Angeles Capital Management would sub-advise the ETF, as it already does the mutual fund. The process is the firm's Dynamic Alpha Stock Selection Model, a quantitative engine that scores risk factors from financial statements, earnings forecasts and returns, then builds a portfolio "with the highest expected return for an acceptable level of risk." The book "will typically hold up to 120 securities at time of rebalance." Hal W. Reynolds, Ed Rackham and Daniel Arche, the filing says, would run it from inception; they have run the predecessor since May 2025.
Under Westfield, the Growth Opportunities Fund invested primarily in domestic growth stocks the firm believed had a record of achievement and earnings potential over one to three years, and it could buy companies of any market capitalization. The Board approved the switch on February 13, 2025, effective May 9, 2025; it did not need a shareholder vote. The predecessor had 101 holdings as of June 30. The 485APOS puts the mutual fund's portfolio turnover at 176% for the fiscal year ended March 31, 2026, which is what a quantitative, frequently rebalanced book looks like on paper.
The same firm already runs Touchstone's international ETF, TDI, which converted from a mutual fund on December 11, 2023. Touchstone has used this conversion playbook before with the same sub-adviser.
Two U.S. growth ETFs already sit in the trust
TDLG would not be Touchstone's first U.S. large-cap growth ETF. The Touchstone Large Company Growth ETF TLG, converted from a mutual fund on or about March 13, 2026, and listed on Nasdaq, now runs $139 million in a concentrated DSM Capital book. The Touchstone Sands Capital US Select Growth ETF TSEL is a separate, high-conviction sleeve of about 25 to 35 names, with $79.5 million. If TDLG lists, the same trust would offer three different constructions of U.S. large-cap growth: concentrated fundamental, concentrated Sands, and a 120-name quantitative book.
The proposed 0.55% after waivers is in line with the predecessor's R6 expense limit (0.55% through at least July 29, 2027) and below the limits on Class A (0.99%), Class C (1.71%), Class Y (0.66%) and Institutional (0.60%) shares. In the US active-growth ETF sleeve, where etf.net counts 90 funds, that net rate matches the 0.55% the iShares Large Cap Growth Active ETF BGRO publishes. etf.net's cost measure, which ranks funds in that sleeve by net expense ratio, places that fee at the 50th percentile. Fidelity's fundamental large-cap growth ETF FFLG and T. Rowe Price's growth ETF TGRT each publish a 0.38% expense ratio.
What Dynamic Large Cap Growth holders should watch
Wednesday's 485APOS registers the receiving series and names an expected close on or about January 22, 2027. The mailing that tells mutual-fund holders whether they get a vote, and how taxes work, is a later document.
Before the TLG conversion, Touchstone mailed a prospectus/information statement on or about February 9, 2026, to holders of record as of January 22, 2026. The cover said "THIS IS NOT A PROXY STATEMENT. WE ARE NOT ASKING YOU FOR A PROXY AND YOU ARE REQUESTED NOT TO SEND US A PROXY." The reorganization was designed to be a non-taxable event. Fractional mutual-fund shares were to be cashed out at net asset value, a redemption the materials said would likely be taxable.
A holder in Dynamic Large Cap Growth should watch for a mailing of that kind ahead of the expected January 2027 close. Until it arrives, the terms that are set are the ones in Wednesday's paper: Los Angeles Capital's book, and a 0.55% cap that expires on a date still left blank.
Frequently asked
What is TDLG and when would it start trading?
TDLG is the proposed Touchstone Dynamic Large Cap Growth ETF, to be listed on Cboe BZX and to begin operations after a reorganization expected on or about January 22, 2027.
What would it cost?
The proposed expense table shows 0.84% before waivers and 0.55% after a contractual cap that runs through a blank date in 2028.
Who runs the money?
Los Angeles Capital Management would sub-advise using its Dynamic Alpha Stock Selection Model, with Hal W. Reynolds, Ed Rackham and Daniel Arche as managers, as they have run the predecessor since May 2025.
Do mutual fund holders have to vote?
The filing does not say; the mailing that tells holders whether they get a vote and how taxes work is a later document, and before the TLG conversion Touchstone sent an information statement that explicitly was not a proxy.