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)	$149
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	27
Wgt avg mkt cap (mns)	$158,485
Large cap (>$10bn)	93.0%
Mid cap ($2-10bn)	3.3%
Small cap (<$2bn)	3.7%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	60.0 %
US BANCORP	8.4 %
CAPITAL ONE FINANCIAL CORP	7.9 %
BERKSHIRE HATHAWAY INC-CL B	7.8 %
JPMORGAN CHASE & CO	5.7 %
AMERICAN EXPRESS CO	5.5 %
WELLS FARGO & CO	5.5 %
MARKEL CORP	5.3 %
BANK OF AMERICA CORP	4.9 %
BANK OF NEW YORK MELLON CORP	4.8 %
PNC FINANCIAL SERVICES GROUP	4.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	78.6 %
	SWITZERLAND	8.6 %
	BERMUDA	4.0 %
	NORWAY	3.8 %
	SINGAPORE	3.0 %
	CAYMAN ISLANDS	0.7 %
	BRITAIN	0.5 %
	DENMARK	0.5 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
18.4%	8.6%	--	--	8.7%

Market Correlations
versus...	Beta	R-squared
S&P500	1.05	81%
MSCI EAFE	1.04	65%
MSCI Emg. Mkts.	0.77	57%

Technical Indicators
Recent close	$25.04
30d moving avg.	$24.45
Annualized volatility	14.6%
Short interest (ETF)	0.1%
Relative strength (RSI)	78

Liquidity measures
Avg. volume (thou.)	12
Turnover	0.2%
Bid/Ask (% of price)	0.27%
ADV underlying (mns)	$9,103

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™:

6.8%

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	45.3	63	1	5.1	-1.7
XLF	Financials Select Sector SPDR	40.5	13	51	7.1	+0.3
RWW	Invesco S&P Financials Revenue	39.9	45	19	7.4	+0.7
KBWB	Invesco KBW Bank Portfolio	38.4	35	29	7.7	+1.0
FNCL	Fidelity MSCI Financials	38.1	8	56	7.4	+0.7
VFH	Vanguard Financials	37.9	10	54	7.4	+0.7
IYF	iShares DJ US Financials	32.0	42	22	6.2	-0.6
IEFN	iShares Evolved U.S. Financials	30.8	18	46	7.4	+0.7
IYG	iShares DJ US Financial Services	30.4	42	22	6.5	-0.3
IXG	iShares S&P Global Financial Sector	28.5	46	18	8.4	+1.6
JHMF	John Hancock Multifactor Financials	27.8	40	24	6.7	-0.1
FTXO	First Trust Nasdaq Bank	27.4	60	4	7.8	+1.1
DWLD	Davis Select Worldwide	25.9	64	0	6.1	-0.6
RYF	Invesco S&P Equal Weight Financials	22.6	40	24	7.5	+0.7
IWX	iShares Russell Top 200 Value	18.9	20	44	7.0	+0.2
SPVU	Invesco S&P 500 Value	18.7	13	51	11.2	+4.4
PWV	Invesco Dynamic Large Cap Value	15.8	55	9	8.0	+1.2
MGV	Vanguard Mega Cap 300 Value	15.6	7	57	7.1	+0.3
JKF	iShares Morningstar Large Value	14.9	25	39	7.8	+1.0
TTFS	AdvisorShares Whilshire Buyback	14.5	91	-27	6.5	-0.3

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	1.2	x
Less: Expense ratio	64	bp
Equals: ALTAR Score	6.8	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.67	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.