On Thursday, Davis Advisors launched the Davis Select U.S. Equity ETF (NasdaqGM: DUSA), Davis Select Financial ETF (NasdaqGM: DFNL), and Davis Select Worldwide ETF (NasdaqGM: DWLD). DUSA has a 0.60% expense ratio, DFNL has a 0.65% expense ratio and DWLD has a 0.65% expense ratio.
DUSA will be managed by Christopher Davis and Danton Goei, a portfolio manager for the Davis Large Cap Value Portfolios and a member of the research team. Davis will also manage DFNL while Goei will manage DWLD.
Davis Advisors conducts extensive research to try to identify businesses that possess characteristics that they believe foster the creation of long-term value, like proven management, durable franchise and business model, and sustainable competitive advantages, along with targeting in those that are trading at discounts to their intrinsic value. According to the prospectus sheet, the Davis team will also identify fundamental characteristics, including cash flows assets and liabilities, and other criteria.
DUSA will track a portfolio of high-conviction U.S. large-cap stocks. The portfolio will include between 15 and 35 companies varying over time, with 21 components currently in the portfolio. Top holdings include Berkshire Hathaway 9.5%, Alphabet 7.3% and Amazon 7.3%. The portfolio leans towards financials at 38.4%, followed by industrials 15.4% and energy 14.2%.
DFNL includes the best-of-breed financial companies. The portfolio will include between 15 and 35 companies, it currently holds 24 positions. Top holdings include Markel Corp 6.7%, Capital One Financial 6.1% and Loews Corp 6.1%, with a focus on diversified financials, insurers and banks.
Lastly, DWLD includes global exposure. The ETF currently has 41 positions, including top picks like Alphabet 6.5%, Encana 5.7% and Amazon 4.8%. The portfolio includes a large 57.4% position in U.S. companies, along with 29.8% emerging markets and 12.9% developed countries.
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