“The intrinsic value calculation is designed to look beyond current market price and estimate intrinsic value based on cash flows over the next five years. This forward-looking element is an important distinction to the current price snapshot used by market capitalization-weighted indexes,” according to Diamond Hill. [Inside View of Smart Beta]
DHVW debuts at a time of increased usage of alternative indexing methodologies by institutional investors. Smart beta ETFs now account for more than $230 billion in U.S. ETF assets, nearly quadruple the number seen five years ago. [Smart Beta Boom]
DHVW charges just 0.1% per year, an expense ratio that is paltry compared to other smart beta products.
DHVW Top 10 Holdings
Table Courtesy: Diamond Hill Capital
