With the equities bull market heading into its ninth year, it is critical that exchange traded fund portfolio allocations include flexible, unconstrained strategies that seek the best opportunities in the US, Europe and Developing Markets.
On the upcoming webcast, Searching the Globe for Investment Opportunities, Danton Goei, Portfolio Manager for Davis Advisors, will discuss Davis Advisors’ proven global, actively managed investment approach that has been infused in an efficient, low-cost ETF wrapper.
For instance, the Davis Select Worldwide ETF (NasdaqGM: DWLD), which is managed by Goei, focuses on long-term global opportunities that incorporate Davis Advisors’ judgement experience, high conviction, low turnover, accountability and alignment.
Davis Advisors conducts extensive research to identify businesses that possess characteristics that they believe foster the creation of long-term value, such as proven management, durable franchise and business model, and sustainable competitive advantages, along with focusing on those that are trading at discounts to their intrinsic value. Specifically, the Davis team will also screen for fundamental characteristics, including cash flows assets and liabilities, and other criteria.
Davis focuses on durable businesses with above average margin returns, strong competitive advantages and durability. Companies also have to show strong management that have been in place for over five years as long-term investors can be sure that these are ethical, honest people that will help the business last. Additionally, the management team will determine valuation or what’s the right price of the company, targeting long-term free cash flow of businesses, owner earnings and how durable the cash is available.
The ETF currently has 37 positions, including top picks like Alphabet 6.8%, Amazon 5.3% and Naspers 5.0%. The portfolio includes a large 54.0% position in U.S. companies, along with 34.4% emerging markets and 11.6% developed countries.
Unlike traditional cap-weighted benchmarks, like the MSCI All Country World Index, the Davis Select Worldwide ETF includes an overweight position in emerging markets where investors may find greater opportunities, such as its 5.0% tilt toward Naspers, a South African brand, and a 3.8% position in Chinese e-commerce retailer JD.com.
Financial advisors who are interested in learning more about global opportunities can register for the Tuesday, May 2 webcast here.