DSTX Profile
The Distillate International Fundamental Stability & Value ETF aims to provide investors with exposure to large- and mid-cap international equities through a strategy focused on fundamental stability and value. The underlying index, developed in 2020 by the investment adviser and index provider, tracks the performance of globally listed, non-U.S. companies that exhibit strong fundamental characteristics. This index selects equity securities and depositary receipts based on rigorous criteria designed to identify firms with stable financial metrics and attractive valuation profiles.
The index employs a multifactor approach to evaluate and rank companies based on several key financial metrics, including profitability, stability, and valuation. Companies are chosen for their ability to maintain financial health and operational consistency, which is expected to contribute to long-term investment stability and performance. The ETF’s investment process involves concentrating on these high-quality, fundamentally strong firms, with a focus on achieving superior risk-adjusted returns relative to the broader market.
In situations where the index is concentrated in specific industries or groups of related industries, the fund will mirror this concentration in its investments. This means that the ETF may have significant exposure to particular sectors, reflecting the index’s structure and focus. By aligning its investment strategy with the index's sector concentrations, the fund seeks to provide investors with targeted exposure to areas of the market that are deemed to have strong fundamental characteristics.
The Distillate International Fundamental Stability & Value ETF is categorized as non-diversified, indicating that it may have substantial investments in fewer sectors or securities compared to a more broadly diversified fund. This concentration can potentially lead to higher returns if the targeted sectors perform well but also entails increased risk associated with sector-specific fluctuations. As such, the fund is designed for investors who are seeking focused exposure to international equities with an emphasis on stability and value.
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