Distillate US Fundamental Stability & Value (DSTL)

Overview

The Distillate US Fundamental Stability & Value ETF (DSTL) seeks to provide investment results that, before fees and expenses, correspond generally to the performance of the Distillate US Fundamental Stability & Value Index. It focuses on identifying stable and undervalued U.S. companies by excluding those reliant on debt or aggressive accounting. The ETF favors companies with strong free cash flow and sound fundamentals.

Reputation and Reliability

Distillate Capital is a smaller, specialized asset manager focused on fundamental, value-oriented investing with a focus on risk management.

Management Expertise

The management team has experience in fundamental analysis and quantitative strategies, specifically targeting value and stability within the U.S. equity market.

Goal

To provide investment results that closely correspond to the performance of the Distillate US Fundamental Stability & Value Index before fees and expenses.

Investment Approach and Strategy

Strategy: The ETF aims to track the Distillate US Fundamental Stability & Value Index.

Composition The ETF primarily holds stocks of U.S. companies that meet the index's criteria for fundamental stability and value, screening out companies with high debt or aggressive accounting practices.

Market Share: DSTL has a relatively small market share compared to larger, more established value ETFs.

Total Net Assets (AUM): 85340000

Key Competitors

• iShares Russell 1000 Value ETF (IWD)
• Vanguard Value ETF (VTV)
• SPDR Portfolio S&P 500 Value ETF (SPYV)

Competitive Landscape

The ETF market is highly competitive, with many established players. DSTL differentiates itself through its unique fundamental stability and value screening process, potentially offering a different risk/return profile than broad-based value ETFs. DSTL's smaller size may lead to higher trading costs and less liquidity, but it also allows for more flexibility in stock selection. Larger ETFs benefit from economies of scale, resulting in lower expense ratios.

Historical Performance: Historical performance data needs to be sourced from financial data providers.

Benchmark Comparison: Benchmark comparison data is dependent on availability and should be sourced from financial data providers.

Expense Ratio: 0.39

Average Trading Volume

DSTL's average daily trading volume is moderate, which may impact the ease of buying or selling large positions.

Bid-Ask Spread

The bid-ask spread for DSTL is variable, which affects the cost of trading the ETF, influenced by trading volume and market conditions.

Market Environment Factors

Economic growth, interest rates, inflation, and sector-specific trends influence DSTL's performance. Value stocks often perform well during periods of economic recovery or rising interest rates.

Growth Trajectory

The growth trajectory depends on the continued adoption of its investment strategy and the performance of its underlying holdings. Any changes to the fundu2019s strategy or holdings will impact its performance.

Competitive Edge

DSTL's competitive advantage lies in its unique, fundamentally-driven approach to value investing. It focuses on stability and avoids companies with excessive debt or aggressive accounting, potentially reducing risk. This niche focus may appeal to investors seeking a more conservative approach to value investing. The fund's methodology may offer downside protection in volatile markets, distinguishing it from more traditional value ETFs.

Volatility

DSTL's volatility is dependent on the volatility of its underlying holdings and overall market conditions.

Market Risk

DSTL is subject to market risk, including the risk of declines in the value of its holdings due to economic or market factors. The fund's focus on value stocks may lead to underperformance during periods when growth stocks are favored by the market.

Ideal Investor Profile

The ideal investor for DSTL is someone seeking a value-oriented ETF with a focus on fundamental stability and risk management.

Market Risk

DSTL is suitable for long-term investors seeking a value strategy with a focus on downside protection.

DSTL is a value-oriented ETF that focuses on fundamental stability and avoids companies with excessive debt or aggressive accounting practices. Its distinct strategy distinguishes it from broader value ETFs and may provide downside protection during market downturns. The fund is suitable for long-term investors seeking a more conservative approach to value investing. However, its relatively small size can result in lower liquidity and potentially higher trading costs. Investors should carefully consider their risk tolerance and investment objectives before investing.

Data Sources:

• ETF.com
• Morningstar
• Distillate Capital Website
• Bloomberg

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment decisions should be based on individual financial circumstances and consultation with a qualified financial advisor. Market share data is approximate and may vary depending on the source and calculation methodology.