ETF Research Center

The Davis Select Financial ETF is an actively managed portfolio of global financial sector stocks. The fund seeks long-term growth of capital.

FUND BASICS
Category	US Equities
Fund Sponsor	Davis
Website	davisetfs.com
Inception date	Jan 11, 2017
Assets (mns)	$160
Currency	USD
Expense ratio	64 bp
Distributions	Annually

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Proprietary
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	26
Wgt avg mkt cap (mns)	$171,605
Large cap (>$10bn)	96.2%
Mid cap ($2-10bn)	2.7%
Small cap (<$2bn)	1.1%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	57.2 %
CAPITAL ONE FINANCIAL CORP	8.2 %
BERKSHIRE HATHAWAY INC-CL B	7.7 %
US BANCORP	7.2 %
AMERICAN EXPRESS CO	5.5 %
JPMORGAN CHASE & CO	5.4 %
MARKEL CORP	5.2 %
BANK OF AMERICA CORP	4.8 %
WELLS FARGO & CO	4.6 %
BANK OF NEW YORK MELLON CORP	4.4 %
PNC FINANCIAL SERVICES GROUP	4.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	74.6 %
	SWITZERLAND	8.8 %
	BERMUDA	4.2 %
	NORWAY	3.7 %
	SINGAPORE	3.2 %
	DENMARK	1.2 %
	CAYMAN ISLANDS	0.6 %
	BRITAIN	0.5 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
27.4%	27.4%	--	--	10.9%

Market Correlations
versus...	Beta	R-squared
S&P500	1.05	82%
MSCI EAFE	1.04	64%
MSCI Emg. Mkts.	0.73	54%

Technical Indicators
Recent close	$25.20
30d moving avg.	$25.67
Annualized volatility	14.3%
Short interest (ETF)	0.3%
Relative strength (RSI)	53

Liquidity measures
Avg. volume (thou.)	9
Turnover	0.1%
Bid/Ask (% of price)	0.25%
ADV underlying (mns)	$6,834

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Davis Select Financial ETF based on the alternatives' overlap in portfolio holdings with DFNL. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

DFNL

Expense:

64 bp

ALTAR Score™:

6.6%

ALTERNATIVE ETFs BASED ON OVERLAP WITH DFNL
Ticker	Fund Name	Overlap¹ vs DFNL (%)	Expense ratio (bp)	Savings vs DFNL (bp)	ALTAR Score™ (%)	ALTAR vs DFNL (%)
DUSA	Davis Select U.S. Equity	44.7	63	1	5.1	-1.5
XLF	Financials Select Sector SPDR	39.1	13	51	6.7	+0.1
RWW	Invesco S&P Financials Revenue	38.6	45	19	7.0	+0.4
KBWB	Invesco KBW Bank Portfolio	37.3	35	29	7.5	+0.9
VFH	Vanguard Financials	36.5	10	54	7.1	+0.5
FNCL	Fidelity MSCI Financials	36.4	8	56	7.1	+0.5
IYF	iShares DJ US Financials	30.8	42	22	5.8	-0.8
IEFN	iShares Evolved U.S. Financials	29.3	18	46	7.2	+0.6
IYG	iShares DJ US Financial Services	29.0	42	22	6.1	-0.5
IXG	iShares S&P Global Financial Sector	27.9	46	18	8.1	+1.5
JHMF	John Hancock Multifactor Financials	27.1	40	24	6.3	-0.3
DWLD	Davis Select Worldwide	26.0	64	0	5.5	-1.2
FTXO	First Trust Nasdaq Bank	25.6	60	4	7.6	+1.0
RYF	Invesco S&P Equal Weight Financials	22.4	40	24	7.0	+0.4
IWX	iShares Russell Top 200 Value	18.5	20	44	6.6	0.0
SPVU	Invesco S&P 500 Value	16.3	13	51	10.2	+3.6
PWV	Invesco Dynamic Large Cap Value	16.1	55	9	8.1	+1.5
MGV	Vanguard Mega Cap 300 Value	15.5	7	57	6.8	+0.2
FMK	First Trust Mega Cap AlphaDEX	14.8	70	-6	5.4	-1.3
TTFS	AdvisorShares Whilshire Buyback	14.2	91	-27	5.8	-0.8

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Davis Select Financial
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	9.2	%
Divided by: Fwd. P/BV	1.3	x
Less: Expense ratio	64	bp
Equals: ALTAR Score	6.6	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.68	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.