Davis Advisors’ actively managed equity ETFs turn one

Jan 19th, 2018 | By | Category: Equities

Davis Advisors’ suite of three actively managed ETFs has reached its one-year anniversary. Since launch, each of the funds has surpassed the $100 million assets-under-management mark, and together they have more than $375m in AUM.

Chris Davis, portfolio manager and chairman, Davis Advisors.

Chris Davis, portfolio manager and chairman, Davis Advisors.

“We’re delighted to celebrate the one year anniversary of the Davis ETFs: some of the first investment solutions that provide actively managed equity exposure in a traditional ETF wrapper,” said Chris Davis, portfolio manager and chairman of Boston-based Davis Advisors.

“We look forward to their continued growth as more and more investors see the value in a differentiated combination of active stock selection and Davis Advisors’ proven time-tested investment discipline offered with the benefits of an ETF.”

Each ETF utilizes a fundamental bottom-up approach, and consists of a high-conviction, benchmark-agnostic portfolio using Davis’s best investment ideas. The ETFs have low expected portfolio turnover and a strategic long-term time investment horizon.

The Davis Select U.S. Equity ETF (DUSA US) consists of a portfolio of around 20 US large-cap stocks. It represents the firm’s highest conviction stocks but its concentrated nature may make the fund more suitable as a complement to passive, index-oriented strategies, potentially enhancing total returns. The fund seeks to outperform the S&P 500 Index.

The Davis Select Financial ETF (DFNL US) consists of a relatively concentrated portfolio of around 20 financial companies that Davis believes to be best-of-breed. The fund seeks to outperform the S&P 500 Financials Index.

Davis said, “The financial sector is one of the most attractive areas in today’s market; however, it is vast and inefficient, so we believe selectivity and experienced active management are key to outperformance.”

The Davis Select Worldwide ETF (DWLD US) consists of a portfolio of around 40 global stocks that Davis believes to be best-of-breed.

Each fund has an expense ratio of 0.65%.

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