Additionally, the selective nature of the actively managed ETF would also help investors hone in on cheap but strongly positioned companies that can potentially lead market gains in the environment ahead.
Given their outlook on potential opportunities, Davis Advisors has focused on the financial sector as a “triple play” opportunity, pointing to attractive earnings, multiples and buybacks/dividends.
S&P 500 financial companies are currently trading at the greatest discount to the broader market, reflecting their cheap valuations. Additionally, banks and insurers are also paying out some of the lowest dividends, which leaves them more room to grow their payouts in the years ahead.
Moreover, investors can take a broader approach to the markets through the Davis Select U.S. Equity ETF (NasdaqGM: DUSA), which also includes a heavy focus on the financial sector. 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, along with a large 38.0% tilt toward financials.
Financial advisors who are interested in learning more about opportunities in the financial sector in the current market environment can register for the Tuesday, April 4 webcast here.