As the investment landscape shifts and investors adapt to the changes, investors can consider an actively managed equity exchange traded fund strategy that incorporates sound judgment and a time-tested investment discipline.
On the upcoming webcast this Tuesday, All-Star Manager Chris Davis Discusses His Top Ideas and New ETF Strategy, Christopher Davis, Chairman and Portfolio Manager of Davis Advisors, will outline stock market conditions down the road and look to several active fund strategies to capitalize on opportunities and mitigate potential risks.
The traditional open-end mutual fund provider recently launched the Davis Select U.S. Equity ETF (NasdaqGM: DUSA), Davis Select Financial ETF (NasdaqGM: DFNL), and Davis Select Worldwide ETF (NasdaqGM: DWLD) to help investors gain exposure to Davis’ time-tested equity strategies in a cheap and efficient ETF wrapper.
DUSA is managed 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. When selecting component holdings, the Davis team will also identify fundamental characteristics, including cash flows assets and liabilities, and other criteria.
DUSA includes high-conviction U.S. large-cap stocks. The portfolio will hold between 15 and 35 companies varying over time, with 21 components currently in the portfolio. Top holdings include Berkshire Hathaway 9.6%, Amazon 7.5% and Alphabet 7.3%. The portfolio leans towards financials at 38.7%, followed by industrials 14.8% and energy 13.4%.
DFNL includes the best-of-breed financial companies. The portfolio will include between 15 and 35 companies, it currently holds 25 positions. Top holdings include Markel Corp 6.7%, American Express 6.0% and Loews 5.8%, 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 5.5% and Amazon 4.9%. The portfolio includes a large 57.1% position in U.S. companies, along with a significant 30.3% emerging markets and 12.5% developed countries.
Financial advisors who want to learn more about Davis Funds’ investment strategy and outlook can register for the Tuesday, February 14 webcast here.