Davis Adds International Fund To ETF Lineup

Davis Advisors added to its lineup of actively managed exchange-traded funds Friday with the debut of the Davis Select International ETF DINT. The Davis Select International ETF is the first ETF introduced by the firm since its originally three ETFs debuted in January 2017.

DINT looks to invest in companies that have most of their business outside the U.S., potentially providing investors with an alternative or complement to traditional MSCI ACWI ex-US Index strategies. The new ETF is managed by Danton Goei who has been with Davis for two decades.

“The fund invests in approximately 30 stocks at a given time,” said Davis Advisors in a statement. “As with all Davis ETFs, DINT seeks to offer long term capital appreciation through a high conviction, benchmark agnostic portfolio. It provides the traditional benefits of ETFs along with Davis’ unique investment discipline and experienced active management team.”

More DINT Details

DINT comes to market with 29 holdings, a highly focused portfolio compared to passively managed international ETFs and index funds. The weighted average market value of the new ETF's holdings is $70.7 billion, according to issuer data.

DINT allocates 48.4 percent of its weight to emerging markets, while another 38.3 percent is devoted to ex-US developed markets. The remainder of the ETF's weight is in cash.

DINT's top 10 geographic exposures include China, France, the U.K., Switzerland and South Africa. The new fund allocates over 58 percent of its combined weight to the consumer discretionary, industrial and technology sectors. Those sectors combine for 35 percent of the MSCI ACWI ex-US Index. Familiar names in DINT include Alibaba Group Holding Ltd. BABA and JD.com Inc. JD.

Costs

DINT's annual expense ratio is 0.75 percent, or $75 on a $10,000 investment. That is high compared to passively managed ETFs, but fair relative to many large-cap international actively-managed strategies.

Davis has three other ETFs, each of which has more than $100 million in assets under management.

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