Davis Select US Equity ETF

DUSA

Market cap $1.26B

Davis Select U.S. Equity ETF retains a Hold rating, as its growth-light factor mix and soft past performance do not support an upgrade. DUSA's portfolio is underweight in growth and GARP factors, while overweight in low volatility and value, limiting its upside potential versus IVV amid de-escalation. Despite the YTD outperformance, DUSA's total return since inception in 2017 is still approximately 60% weaker than IVV's.

Active management is gaining traction as investors navigate a market paradox where high valuations meet geopolitical uncertainty, according to Chris Davis, chairman and portfolio manager at Davis Advisors. Key Takeaways: DUSA crossed $1 billion in assets with a portfolio of 26 stocks trading at 14 times earnings.

In a recent webcast, Dodd Kittsley, director of ETF strategy at Davis Advisors, sat down with Cinthia Murphy, director of research at VettaFi, to unpack how active management is evolving — and where the Davis Select U.S. Equity ETF (DUSA) fits into that shift.

In a market environment defined by extreme index concentration and the transformative ripples of artificial intelligence, investors are increasingly questioning the sustainability of passive strategies.

The Davis Select U.S. Equity ETF (DUSA) officially surpassed $1 billion in assets under management, marking a significant milestone for the active ETF.  This achievement comes as the fund celebrates nine years of navigating the U.S. large-cap landscape with a high-conviction, benchmark-agnostic approach.

NEW YORK--(BUSINESS WIRE)--Davis Advisors, announced that the Davis Select U.S. Equity ETF (DUSA) has surpassed $1 billion in assets under management.

DUSA offers a high conviction, value-focused approach with a concentrated portfolio, providing lower correlation and potential shelter if markets turn volatile. The fund trades at a modest valuation with a P/E below both the broader market and most peers, making it attractive for value-oriented investors. DUSA has delivered strong risk-adjusted returns and outperformed most value peers, though it trails the very top performers.

Fortune recently published an article about Berkshire Hathaway's (NYSE:BRK.B) net worth is $663 billion, 10 times higher than Nvidia's (NASDAQ:NVDA) and nearly 12 times Apple's (NASDAQ:AAPL).

DUSA is an actively managed vehicle, placing bets on just a handful of high-quality U.S. and international stocks. In the current iteration, there are 26 equities in its portfolio, with most net assets allocated to financials. Its bet on value in tech via INTC has backfired. The stock has been the key detractor from its performance, potentially leading to its inability to beat IVV in 2024.

Warren Buffett remains one of the most famous investors. But his long-term performance isn't keeping up with his reputation.