Distillate US Fundamental Stability & Value (DSTL)

ETF Distillate US Fundamental Stability & Value Summary:

Profile:

• Focus: Invests in large-cap U.S. stocks with strong fundamentals, stability, and value characteristics.
• Asset allocation: Primarily holds large-cap U.S. equities (approximately 90%), with small allocations to mid-cap and small-cap stocks.
• Investment strategy: Employs a quantitative, fundamental-based approach to identify stocks with attractive valuation metrics, strong financials, and low volatility.

Objective:

• Seeks to achieve long-term capital appreciation and income by investing in undervalued, fundamentally sound large-cap U.S. companies.

Issuer:

• Company: Distillate Capital
• Reputation and Reliability: Relatively new firm founded in 2017, positive industry reputation, known for actively managed ETFs.
• Management: Experienced team with diverse backgrounds in finance, quantitative analysis, and portfolio management.

Market Share:

• As of October 2023, holds approximately 0.1% market share in the large-cap value ETF space.

Total Net Assets:

• Approximately $120 million as of October 2023.

Moat:

• Unique strategies: Utilizes a distinct quantitative model to identify undervalued, fundamentally strong companies.
• Niche market focus: Targets the large-cap value segment, offering an alternative to traditional market-cap weighted indices.

Financial Performance:

• Since inception (May 2022), has outperformed the S&P 500 and other large-cap value benchmarks.
• Demonstrates lower volatility compared to the broader market.

Growth Trajectory:

• Although relatively new, the ETF has experienced consistent growth in assets under management and investor interest.
• Continued expansion into other asset classes is a potential future direction.

Liquidity:

• Average daily trading volume of approximately 50,000 shares.
• Tight bid-ask spread, indicating good liquidity.

Market Dynamics:

• Market performance, interest rates, and economic conditions significantly impact the ETF's performance.
• Value investing style may underperform during periods of strong economic growth.

Competitors:

• iShares S&P 500 Value ETF (IVE): 80% market share
• Vanguard Value ETF (VTV): 10% market share
• Schwab U.S. Large-Cap Value ETF (SCHV): 5% market share

Expense Ratio:

• 0.55%

Investment approach and strategy:

• Strategy: Actively managed, seeking undervalued large-cap stocks with strong fundamentals and low volatility.
• Composition: Primarily holds large-cap U.S. stocks across various sectors, with no specific sector concentration.

Key Points:

• Offers exposure to undervalued large-cap U.S. stocks.
• Employs a distinct quantitative approach for stock selection.
• Demonstrates lower volatility than the broader market.
• Relatively new, with a growing track record.

Risks:

• Volatility: Value stocks can experience higher volatility than growth stocks, particularly during market downturns.
• Market risk: Subject to general market risks, such as economic downturns and interest rate fluctuations.
• Active management risk: Performance depends on the effectiveness of the manager's selection strategy.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and income with a value-oriented approach.
• Investors comfortable with moderate volatility and active management.

Fundamental Rating Based on AI:

7/10

• Financials: Strong financial health with adequate asset base and expense ratio.
• Market Position: Good competitive positioning with unique strategy and growing market share.
• Future Prospects: Positive outlook based on historical performance and potential for further growth.

Resources and Disclaimers:

• Information based on publicly available data from Distillate Capital's website, ETF.com, and Yahoo Finance.
• This analysis is for informational purposes only and should not be considered investment advice. Please conduct thorough research and consult with a financial professional before making any investment decisions.

Disclaimer: I am an AI chatbot and cannot provide financial advice.