Consuelo Mack interviews PMs Chris Davis and Danton Goei on the key advantages of active management within an equity ETF: Rigorous research, high conviction stock selection, a portfolio distinct from the index, low costs, tax efficiency, transparency, intraday liquidity

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This video is authorized for use by existing shareholders. A current Davis Fundamental ETF Trust prospectus must accompany or precede this material if it is distributed to prospective shareholders. You should carefully consider the Fund’s investment objective, risks, fees, and expenses before investing. Read the prospectus carefully before you invest or send money.

Davis Advisors paid MackTrack Inc. their customary licensing fee to reprint this video. MackTrack Inc. is not affiliated with Davis Advisors, and Davis Advisors did not commission MackTrack Inc. to create or publish this video.

Shares of Davis Fundamental ETF Trust 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.

This video 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.

Objective 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. Davis Select Financial ETF’s investment objective is long-term growth of capital. There can be no assurance that the Fund will achieve its objective. Under normal circumstances the Fund invests at least 80% of its net assets, plus any borrowing for investment purposes, in securities issued by companies principally engaged in the financial services sector. Davis Select Worldwide ETF’s investment objective is long-term growth of capital. There can be no assurance that the Funds will achieve their objectives.

Some important risks of an investment in the Funds are: 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; credit risk: The issuer of a fixed income security (potentially even the U.S. Government) may be unable to make timely payments of interest and principal; depositary receipts risk: depositary receipts involve higher expenses and may trade at a discount (or premium) to the underlying security; emerging market risk: securities of issuers in emerging and developing markets may present risks not found in more mature 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; fees and expenses risk; financial services risk; focused portfolio risk: investing in a limited number of companies causes changes in the value of a single security to have a more significant effect on the value of the Fund’s total portfolio; foreign country risk; foreign currency risk; headline risk; interest rate sensitivity risk: interest rates may have a powerful influence on the earnings of financial institutions; 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; manager risk; 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; and stock market risk. See the prospectus for a complete description of the principal risks.

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.

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 March 31, 2018, the top ten holdings of Davis Select U.S. Equity ETF were:, Inc., 11.47%; Berkshire Hathaway Inc., Class B, 10.22%; Alphabet Inc., Class C 9.04%; Capital One Financial Corp. 7.38%; United Technologies Corp. 6.90%; Markel Corp. 4.90%; JPMorgan Chase & Co. 4.69%; Safran S.A. 4.68%; American Express Co. 4.38%; and Apache Corp. 4.37%;

As of March 31, 2018, the top ten holdings of Davis Select Financial ETF were: Capital One Financial Corp., 6.68%; Berkshire Hathaway Inc., Class B, 6.58%; Markel Corp., 6.37%; American Express Co., 6.12%; U.S. Bancorp, 4.67%; JPMorgan Chase & Co., 4.58%; Visa Inc., Class A, 4.55%; Bank of New York Mellon Corp., 4.37%; Everest Re Group, Ltd., 4.03%; and Wells Fargo & Co., 3.94%;

As of March 31, 2018, the top ten holdings of Davis Select Worldwide ETF were: Alphabet Inc., Class C, 6.42%;, Inc., 6.13%; Alibaba Group Holding Ltd., ADR, 6.02%; Naspers Ltd. – N, 5.26%; Hollysys Automation Technologies Ltd., 4.47%; Berkshire Hathaway Inc., Class B, 4.21%; Wells Fargo & Co., 3.73%; Inc., Class A, ADR, 3.61%; Encana Corp., 3.55%; and Apache Corp., 3.37%;

As of March 31, 2018, the top ten holdings of Davis Select International ETF were: Alibaba Group Holding Ltd., ADR, 6.58%; Naspers Ltd. – N, 5.91%; Hollysys Automation Technologies Ltd., 5.77%; Ferguson PLC, 4.91%; New Oriental Edu & Tech ADR, 4.44%; Safran S.A., 4.43%; Inc., Class A, ADR, 3.97%; Schneider Electric SE, 3.94%; Tarena International, Inc.,Class A, AD, 3.76%; and Encana Corp., 3.66%;

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 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 notinsured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested.

Distributor, Foreside Fund Services, LLC