Active Management Can Add Value

Before investing in the Davis ETFs, you should carefully consider the investment objectives, risks, charges, and expenses of the Funds. The prospectus and summary prospectus contains this and other information about the Funds. You can obtain performance information and a current prospectus and summary prospectus by visiting davisetfs.com or calling 800 279 0279. Please read the prospectus or summary prospectus carefully before investing or sending money. Investing involves risks including possible loss of principal.

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While Davis Advisors attempts to manage risk there is no guarantee that an investor will not lose money. Equity markets are volatile and the investment return and principal value of an investment will vary. Diversification does not ensure against loss.

This report includes candid statements and observations regarding investment strategies, individual securities, and economic and market conditions; however, there is no guarantee that these statements, opinions or forecasts will prove to be correct. These comments may also include the expression of opinions that are speculative in nature and should not be relied on as statements of fact.

Davis Advisors is committed to communicating with our investment partners as candidly as possible because we believe our investors benefit from understanding our investment philosophy and approach. Our views and opinions include “forward-looking statements” which may or may not be accurate over the long term. Forward-looking statements can be identified by words like “believe,” “expect,” “anticipate,” or similar expressions. You should not place undue reliance on forward-looking statements, which are current as of the date of this report. We disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise. While we believe we have a reasonable basis for our appraisals and we have confidence in our opinions, actual results may differ materially from those we anticipate.

Common stocks and bonds represent different asset classes subject to different risks and rewards. Unlike bonds, the Fund does not offer a fixed rate of return if held to maturity, and the Fund has risks not associated with holding a bond. Bonds are considered to have less risk than equities. Future economic events may favor one asset class over another.

Chris Davis noted that active international investors have outperformed passive international investors. The source of this is Morningstar. As of 12/31/17. Universe is Foreign Large Cap Growth, Value and Blend. Oldest share class is used and index funds are not included. The percent of large cap international stock fund managers that outperformed the MSCI ACWI ex US is 1 year: 71%; 5 years: 77%; and 10 years: 84%.

The information provided in this material should not be considered a recommendation to buy, sell or hold any particular security.

As of May 31, 2018, the top ten holdings of Davis Select U.S. Equity ETF were: Amazon.com, Inc., 12.45%; Berkshire Hathaway Inc., Class B, 9.46%; Alphabet Inc., Class C, 9.17%; Capital One Financial Corp., 6.98%; United Technologies Corp., 6.60%; Safran S.A., 5.06%; American Express Co.; 4.45%; Markel Corp., 4.43%; JPMorgan Chase & Co., 4.40%; and Apache Corp., 4.37%.

As of May 31, 2018, the top ten holdings of Davis Select Financial ETF were: Capital One Financial Corp., 6.59%; American Express Co., 6.49%; Berkshire Hathaway Inc., Class B, 6.35%; Markel Corp., 5.71%; Visa Inc., Class A; 5.01%; Wells Fargo & Co., 4.67%; Bank of New York Mellon Corp., 4.67%; U.S. Bancorp, 4.65%; JPMorgan Chase & Co., 4.47%; and Loews Corp., 3.84%.

As of May 31, 2018, the top ten holdings of Davis Select Worldwide ETF were: Amazon.com, Inc., 6.57%; Alibaba Group Holding Ltd., ADR, 6.51%; Alphabet Inc., Class C, 6.42%; Naspers Ltd. – N, 5.16%; Wells Fargo & Co., 4.52%; New Oriental Edu & Tech ADR, 4.36%; Hollysys Automation Technologies Ltd., 4.22%; Ferguson PLC, 4.01%; Encana Corp., 4.00%; and Berkshire Hathaway Inc., Class B, 3.95%.

As of May 31, 2018, the top ten holdings of Davis Select International ETF were: Alibaba Group Holding Ltd., ADR, 7.57%; Naspers Ltd. – N, 6.07%; Hollysys Automation Technologies Ltd., 5.49%; Safran S.A., 5.19%; Ferguson PLC, 4.60%; New Oriental Edu & Tech ADR, 4.57%; Encana Corp., 4.16%; Schneider Electric SE, 3.79%; DBS Group Holdings Ltd., 3.73%; and InterGlobe Aviation Ltd., 3.44%.

Davis Fundamental ETF Trust has adopted a Portfolio Holdings Disclosure policy that governs the release of non-public portfolio holding information. This policy is described in the prospectus. Holding percentages are subject to change. Visit davisetfs.com or call 800 279 0279 for the most current public portfolio holdings information.

Chris Davis noted that funds with low fees and high ownership have outperformed the index. The source of this is Capital Group, based on Morningstar data. Based on monthly rolling periods from July 1996 to June 2016. Funds in the “Average Fund” group are those U.S. domestic equity funds in the Morningstar Large Value, Large Blend and Large Growth categories. “Funds with Low Fees and High Ownership” group are those U.S. domestic equity funds in the Morningstar Large Value, Large Blend and Large Growth categories filtered for the quartile with the lowest net expense ratios (NER) and the quartile with the highest manager ownership. U.S. index is S&P 500 Index. The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Past performance is not a guarantee of future results.

Shares of the Davis Fundamental ETF Trust are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested.

Distributor, Foreside Fund Services, LLC
800-279-0279, davisetfs.com