PM Chris Davis on fully transparent, actively managed Davis ETFs; what’s driving our individual stock selection today across US, Global, International and Financial ETFs
The views expressed are those of the portfolio managers as of 11/1/21, are subject to change and may differ from the views of other portfolio managers or the firm as a whole. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. NAV and market price returns assume that all distributions were reinvested at NAV. Current performance may be lower or higher than the performance quoted. Since 1/11/17 Inception. Periods less than one year are not annualized. It is not possible to invest directly in an index. For the Fund’s current standardized performance:
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.
Shares of Davis ETFs 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 podcast 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.
Objective and Risks. The investment objective of Davis Select U.S. Equity ETF (“DUSA”) is long-term capital growth and capital preservation. The investment objective of Davis Select Financial ETF (“DFNL”), Davis Select Worldwide ETF (“DWLD”), and Davis Select International ETF (“DINT”) is long-term growth of capital. There can be no assurance that a Fund will achieve its objective. Some important risks of an investment in the Fund are: stock market risk; common stock 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; 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; foreign country risk; headline risk; large-capitalization companies risk; manager risk; 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; cybersecurity risk: a cybersecurity breach may disrupt the business operations of the Fund or its service providers; depositary receipts risk: depositary receipts involve higher expenses and may trade at a discount (or premium) to the underlying security; fees and expenses risk; foreign currency risk; and mid- and small-capitalization companies risk. See the prospectus for a complete description of the principal risks.
The information provided in this material should not be considered a recommendation to buy, sell or hold any particular security. As of September 30, 2021, the top ten holdings of DUSA were: Capital One Financial, 11.90%; Alphabet, 9.95%; Berkshire Hathaway, 7.87%; Amazon.com, 6.56%; Wells Fargo, 6.31%; U.S. Bancorp, 5.02%; Facebook, 4.95%; DBS Group, 4.65%; American Express, 4.21%; and JD.com, 3.73%.
As of September 30, 2021, the top ten holdings of DFNL were: Capital One Financial, 10.36%; U.S. Bancorp, 7.44%; Berkshire Hathaway, 5.93%; Chubb, 5.92%; Wells Fargo, 5.64%; PNC Financial, 4.92%; Bank of America, 4.85%; Markel, 4.75%; JPMorgan Chase, 4.65%; and Bank of New York Mellon, 4.18%.
As of September 30, 2021, the top ten holdings of DWLD were: Wells Fargo, 6.95%; DBS Group, 5.62%; JD.com, 5.50%; Berkshire Hathaway, 4.93%; Danske Bank, 4.82%; Alphabet, 4.55%; Facebook, 4.32%; Prosus, 4.07%; AIA Group, 3.97%; and Hollysys Automation Technologies, 3.81%.
As of September 30, 2021, the top ten holdings of DINT were: DBS Group, 6.41%; Meituan, 6.11%; Julius Baer Group, 5.91%; Schneider Electric, 5.79%; Bank of N.T. Butterfield & Son, 5.52%; JD.com, 5.37%; Danske Bank, 5.21%; AIA Group, 5.07%; Tokyo Electron, 4.86%; and Samsung Electronics, 4.84%.
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 8002790279 for the most current public portfolio holdings information.
The S&P 500 Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The index is adjusted for dividends, weighted towards stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. The S&P 500 Financials is a capitalization-weighted index that tracks the companies in the financial sector as a subset of the S&P 500 Index. The MSCI ACWI (All Country World Index) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets throughout the world. The index includes reinvestment of dividends, net foreign withholding taxes. The MSCI ACWI (All Country World Index) ex U.S. is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. The index includes reinvestment of dividends, net of foreign withholding taxes. Investments cannot be made directly in an index.
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.
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