DUSA ETF

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.

Davis Select U.S. Equity ETF is an actively managed ETF with a portfolio of only 26 companies and a 0.61% expense ratio. The DUSA ETF is overweight in its top holdings and in financials. DUSA has underperformed the S&P 500 and some passively managed growth and quality ETFs.

DUSA is a high cost, high conviction ETF benchmarked against the S&P 500 Index. It has a 0.61% expense ratio and $521 million in assets under management. Recent results for active large-cap blend funds are encouraging, but for the most part, active funds have lagged passive funds over the last five years. DUSA is no different. Despite emphasizing how different DUSA is compared to broad market funds like SPY, ironically, its recent success is because it's overweighted mega-caps like Meta Platforms, Amazon, and Alphabet.

DUSA is a actively managed fund that provides access to a highly streamlined stock portfolio managed using advanced techniques rooted in the Davis Investment Discipline. It appears that DUSA has recently begun to outperform after a period of underperformance, surpassing IVV in 2023 and showing strong momentum in 2024. Despite acknowledging its progress in the growth factor area, I would like to maintain a more neutral stance rather than being overly optimistic.

DUSA is an actively managed ETF with a highly selective investment strategy based on the Davis Investment Discipline. 2023 was grossly successful for the fund as it beat IVV for the first time since its inception in January 2017. Since October, DUSA's portfolio has seen notable changes; its quality exposure increased, yet growth is still mostly soft.

Davis Select U.S. Equity ETF has an ultra-minimalist, high-conviction approach to portfolio management. It has placed the lion's share of its bets on financials, which is one of the key reasons for its earnings yield being so alluring. After reassessing DUSA's factor exposures, I see no reason for a rating upgrade as its relatively strong EY of about 8% is insufficient to succeed in the current environment.