Barron’s Interviews Chris Davis – Three Timely Insights for Investors

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.

Davis Advisors paid Barron’s their customary licensing fee to reprint this profile. Barron’s is not affiliated with Davis Advisors, and Davis Advisors did not commission Barron’s to create or publish this profile.

Shares are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. There can be no guarantee that an active trading market for ETF shares will develop or be maintained, or that their listing will continue or remain unchanged. Buying or selling ETF shares on an exchange may require the payment of brokerage commissions and frequent trading may incur brokerage costs that detract significantly from investment returns.

Davis Advisors may invest in companies when their prices become depressed. While Davis Advisors researches such companies, it cannot be correct every time, and the companies’ stocks may never recover or may become worthless. See the Fund’s prospectus for a complete description of the Fund’s risks.

This report includes candid statements and observations regarding investment strategies, 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.

Objectives and Risks. Davis Select U.S. Equity ETF’s investment objective is long-term capital growth and capital preservation. The Fund invests primarily in equity securities issued by large companies with market capitalizations of at least $10 billion. The investment objective of Davis Select International ETF and Davis Select Worldwide ETF is long-term growth of capital. Some important risks of investments in the Funds: authorized participant concentration risk, emerging market risk (DINT and DWLD only), exchange-traded fund risk, financial services risk (DUSA only) foreign country risk, intraday indicative value risk, manager risk, market trading risk, and stock market risk.

Disclosures. Following is a brief description of these risks. Please see the prospectus for a complete listing and a description of the principal risks. Authorized participant concentration risk: to the extent that Authorized Participants exit the business or are unable or unwilling to proceed with creation and/ or redemption orders with respect to the Fund and no other Authorized Participant is able to step forward to create or redeem Creation Units, Fund shares may trade at a discount to NAV and could face delisting; common stock risk: an adverse event may have a negative impact on a company and could result in a decline in the price of its common stock; emerging market risk: securities of issuers in emerging and developing markets may present risks not found in more mature markets; as of 3/31/20, DINT had approximately 52.6% of assets invested in securities from emerging markets and DWLD had approximately 36.7% of assets invested in securities from emerging markets; exchange-traded fund risk: the Fund is subject to the risks of owning the underlying securities as well as the risks of owning an exchange-traded fund generally; financial services risk: investing a significant portion of assets in the financial services sector may cause the Fund to be more sensitive to problems affecting financial companies; foreign country risk: foreign companies may be subject to greater risk as foreign economies may not be as strong or diversified; as of 3/31/20, DUSA had approximately 14.7% of assets invested in foreign companies; intraday indicative value risk: the Fund’s INAV agent intends to disseminate the approximate per share value of the Fund’s published basket of portfolio securities every 15 seconds. The IIV should not be viewed as a ‘‘real-time’’ update of the NAV per share of the Fund because the IIV may not be calculated in the same manner as the NAV, the calculation of NAV may be subject to fair valuation at different prices, the IIV does not take into account Fund expenses, and the IIV calculations are based on local market prices and may not reflect events that occur subsequent to the local market’s close; large-capitalization companies risk: companies with $10 billion or more in market capitalization generally experience slower rates of growth in earnings per share than do mid- and small-capitalization companies; manager risk: poor security selection may cause the Fund to underperform relevant benchmarks; market trading risk: includes the possibility of an inactive market for Fund shares, losses from trading in secondary markets, periods of high volatility, and disruptions in the creation/redemption process. ONE OR MORE OF THESE FACTORS, AMONG OTHERS, COULD LEAD TO THE FUND’S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV; mid- and small-capitalization companies risk: companies with less than $10 billion in market capitalization typically have more limited product lines, markets and financial resources than larger companies, and may trade less frequently and in more limited volume; and stock market risk: stock markets have periods of rising prices and periods of falling prices, including sharp declines.

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

As of March 31, 2020, the top ten holdings of Davis Select U.S. Equity ETF were: Alphabet, 11.54%; Amazon.com, 10.84%; Berkshire Hathaway, 9.15%; United Technologies, 5.85%; Capital One Financial, 5.22%; U.S. Bancorp, 4.80%; Wells Fargo & Co., 4.64%; New Oriental Education & Technology, 4.29%; Facebook, 4.24%; JPMorgan Chase, 4.04%.

As of March 31, 2020, the top ten holdings of Davis Select Financial ETF were: U.S. Bancorp, 8.67%; Berkshire Hathaway, 8.06%; Capital One Financial, 6.66%; Markel, 6.34%; American Express, 5.99%; Bank of New York Mellon, 5.24%; JPMorgan Chase, 5.16%; PNC Financial Services Group, 4.70%; Bank of America, 4.65%; Wells Fargo, 4.53%.

As of March 31, 2020, the top ten holdings of Davis Select Worldwide ETF were: New Oriental Education & Technology, 7.75%; Alphabet, 6.86%; Alibaba Group Holding, 6.53%; Amazon.com, Inc., 5.48%; JD.com, 5.41%; Berkshire Hathaway, 4.94%; United Technologies, 4.73%; Naspers, 4.64%; Applied Materials, 4.64%; Wells Fargo, 4.60%.

As of March 31, 2020, the top ten holdings of Davis Select International ETF were: New Oriental Education & Technology, 11.49%; Alibaba Group Holding, 7.52%; Meituan Dianping, 5.96%; Naspers, 5.34%; Schneider Electric, 5.33%; JD.com, 4.95%; AIA Group, 4.83%; DNB, 4.77%; Danske Bank, 4.57%; DBS Group Holdings, 4.50%.

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.

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.

Foreside Fund Services, LLC
3 Canal Plaza, Suite 100, Portland, Maine 04101
800-279-0279, davisetfs.com