ETF Watch: New Firm Plans 3 Active Funds

Davis Selected Advisers looks to enter the ETF space with actively managed funds.
Reviewed by: Staff
Edited by: Staff

An investment management firm founded in 1969 is lined up to launch its own actively managed funds based on its in-house investment strategy. Davis Selected Advisers has filed for three ETFs that will apply the Davis Investment Discipline to three separate groups of stocks.

The Davis Focused US Equity ETF (DAVS) will target between 15 and 35 large-cap U.S. stocks with market capitalizations of at least $10 billion, while the Davis Select Financial ETF (DSFE) will invest globally in companies of any size that are categorized within the financial services space. Companies included in DSFE must derive at least 50% of the total value of their assets or at least 50% of their revenues from financial services.

Finally, the Davis Select World Opportunities ETF (DSWO) also has a global focus and can invest in companies of any size. Depending on market conditions, at least 30-40% of the portfolio will be invested in non-U.S. firms.

Davis’s investment approach is focused on well-managed companies with sustainable and resilient business models that have wide moats. The investment firm establishes an intrinsic value for each company and seeks to purchase shares when the stock is discounted by its standards. The firm focuses heavily on the evaluation of companies’ management and embraces the idea of individual stock selection, according to the prospectus.

The filing did not include expense ratios or a listing exchange.

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