This report includes candid statements and observations regarding investment strategies, individual securities, and economic and market conditions; how- ever, there is no guarantee that these statements, opinions or forecasts will prove to be correct. Equity markets are volatile and an investor may lose money. This is not a recommendation to buy, sell or hold any specific security. Past performance is not a guarantee of future results.
Past performance is not a guarantee of future results.
While very few companies have all of these characteristics, we search for those possessing several of these characteristics, or an appropriate combination of these characteristics.
This includes Davis Advisors, the Davis family, our employees, and Fund Directors. As of 12/31/18.
Past performance is not a guarantee of future results.
Note: NTM P/E. Source: Standard & Poor’s, Thomson Financial, FactSet, Credit Suisse. The Forward P/E ratio is the aggregate of the Forward P/E ratios of the S&P 500 Index’s holdings. The ratio is not a forecast of performance and is calculated for each security by dividing the current ending price of the stock by a forecast of its projected Earnings Per Share (EPS).
There is no guarantee Davis Selected Advisers, L.P. will continue to achieve positive returns. Davis Selected Advisers, L.P. was founded in 1969. Past performance is not a guarantee of future results.
Not a solicitation for XLF, which is offered under a separate prospectus and is not affiliated with Davis Selected Advisers, L.P. or Davis Select Financial ETF. See the endnotes for a description of some of the material differences between traditional mutual funds and ETFs, and for a description of the material differences between the Fund and XLF.
Holdings are subject to change.
Pierce Crosbie became a portfolio manager for Davis Select Financial ETF effective 12/31/18.
This report is authorized for use by existing shareholders. A current Davis Select Financial ETF prospectus must accompany or precede this material if it is distributed to prospective shareholders. You should carefully consider the Fund’s investment objective, risks, charges, and expenses before investing. Read the prospectus carefully before you invest or send money.
Davis Advisors is committed to communicating with our investment partners as candidly as possible because we believe our investors benefit from understanding our investment philosophy and approach. Our views and opinions include “forward-looking statements” which may or may not be accurate over the long term. Forward-looking statements can be identified by words like “believe,” “expect,” “anticipate,” or similar expressions. You should not place undue reliance on forward-looking statements, which are current as of the date of this report. We disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise. While we believe we have a reasonable basis for our appraisals and we have confidence in our opinions, actual results may differ materially from those we anticipate.
Shares of DFNL are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. There can be no guarantee that an active trading market for ETF shares will develop or be maintained, or that their listing will continue or remain unchanged. Buying or selling ETF shares on an exchange may require the payment of brokerage commissions and frequent trading may incur brokerage costs that detract significantly from investment returns.
Objective and Risks. Davis Select Financial ETF’s investment objective is long-term growth of capital. There can be no assurance that the Fund will achieve its objective. Under normal circumstances the Fund invests at least 80% of its net assets, plus any borrowing for investment purposes, in securities issued by companies principally engaged in the financial services sector. Some important risks of an investment in the Fund are: authorized participant concentration risk; common stock risk; credit risk; cybersecurity risk; depositary receipts risk; exchange-traded fund risk; fees and expenses risk; financial services risk; focused portfolio risk; foreign country risk: As of December 31, 2018, the Fund had approximately 15.3% of assets invested in foreign companies; foreign currency risk; headline risk; interest rate sensitivity risk; intraday indicative value risk; large-capitalization companies risk; manager risk; market trading risk; mid- and small-capitalization companies risk; and stock market risk. See the prospectus for a complete description of the principal risks.
The information provided in this material should not be considered a recommendation to buy, sell or hold any particular security. As of December 31, 2018, the top ten holdings of Davis Select Financial ETF were: Berkshire Hathaway Inc., Class B, 7.79%; U.S. Bancorp, 7.43%; American Express Co., 6.47%; Capital One Financial Corp., 6.09%; Markel Corp., 5.94%; Bank of New York Mellon Corp., 5.25%; Wells Fargo & Co., 4.88%; JPMorgan Chase & Co., 4.69%; Chubb Ltd., 4.63%; Loews Corp., 4.12%.
We gather our index data from a combination of reputable sources, including, but not limited to, Thomson Financial, Lipper and index websites.
The S&P 500 Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The index is adjusted for dividends, weighted towards stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. The S&P 500 Financials is a capitalization-weighted index that tracks the companies in the financial sector as a subset of the S&P 500 Index. The S&P 500 Low Volatility Index measures performance of the 100 least volatile stocks in the S&P 500 Index. The index benchmarks low volatility or low variance strategies for the U.S. stock market. Constituents are weighted relative to the inverse of their corresponding volatility, with the least volatile stocks receiving the highest weights. Investments cannot be made directly in an index.
Forward P/E ratio: Forward price to earnings (forward P/E) is a measure of the price-to earnings (PE) ratio using forecasted earnings for the PE calculation. Davis does not offer an opinion as to the accuracy of, and does not guarantee, the forecasted numbers.
Davis Select Financial ETF (“Fund”) and Financial Select Sector SPDR Fund (“XLF”). The Fund seeks long-term growth of capital while XLF seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Financial Select Sector Index. The Fund’s expense ratio is 0.98% and that of XLF is 0.13%. As of 12/31/18, the Fund had 28 holdings, while XLF had 68 holdings.
After April 30, 2019, this material must be accompanied by a supplement containing performance data for the most recent quarter end.
Shares of the Davis ETFs are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested.