Distillate Capital continues to expand its innovative value-driven range with the launch of DSMC: the Distillate Small/Mid Cash Flow ETF


CHICAGO–(BUSINESS WIRE)–Distillate Capital, a fundamentally-driven equity manager focused on delivering highly differentiated investment strategies focused on value and risk management, today announced the launch of Distillate Small/Mid Cash Flow ETF (NYSE Arca: DSMC), the newest addition to the company’s portfolio of fast-growing ETFs built around the company’s proprietary metrics of quality, risk and value, seen across the prism of free cash flow.

DSMC (“the Fund”) is designed to provide investors with exposure to a portfolio of approximately 150 U.S. small and mid cap stocks that meet specific parameters regarding current and future free cash flow, valuations and investment quality. . The Fund follows a systems approach, which investors can read more about here (https://distillatefunds.com/).

“We have been delighted with the investor response to our first two ETFs, DSTL and DSTX, and believe the time is right to expand our product line into the small and mid-cap segments of the US equity market, which, are brimming with opportunity,” said Thomas Cole, CEO of Distillate Capital. difference between valuations, high levels of leverage on the books of many names and the fact that almost 20% of the companies in the largest small cap index are not expected to generate free cash flow positive over the next twelve months. »

“Amongst market caps and exposures, we believe in selectivity and this category in particular requires a systematic methodology when examining the true fundamental value drivers and risks of each stock,” Cole added. “We are excited to bring DSMC to the market and continue to engage with advisors and investors on modern ways to approach value investing through the lens of free cash flow.”

Distillate Capital was founded with a mission to improve the results of value investing using a proprietary, systematic, cash flow-based assessment methodology that examines differentiated measures of value and quality and where they stand. overlap to assess both valuation and risk.

The company has often noted that due to a change in the evolution of the global economy over the past 30 years, companies and the economy as a whole have shifted away most of their value from factories. physical and tangible products (i.e. manufacturing facilities and mass production). property) to intangible assets. As has happened, business spending has shifted from physical spending (which is capitalized as an asset on a balance sheet) to research and development spending (which is not).

“The impact of this trend on traditional measures of value cannot be underestimated,” added Jay Beidler, co-founder of Distillate. “And that has led to the belief in many corners that value-driven investing strategies no longer work. In fact, nothing could be further from the truth; value is not dead, it is just not measured correctly.

Distillate launched its first ETF, the Distillate US Fundamental Stability & Value ETF (DSTL) in late 2018. This fund has delivered strong relative performance since its launch and has so far raised nearly $800 million in assets as of 31 /08/22, a very successful launch for an independent ETF provider. DSTL was joined in late 2020 by the Distillate International Fundamental Stability & Value ETF (DSTX), which takes a similar approach to identifying opportunities among global large- and mid-cap stocks outside the United States.

DSMC has an expense ratio of 0.55%, and you can learn more about the Distillate Fund family at https://distillatefunds.com/

About Distillate Capital

Drawing on decades of experience as fundamental investors, Chicago-based Distillate Capital has developed custom measures of value and quality that are especially relevant to today’s long-term investors. today. Distillate Capital uses these metrics in its investment process to create portfolios designed to exploit behavioral biases while seeking to minimize risk by eliminating stocks that are expensive, have volatile fundamentals, or are highly leveraged. For more information, visit www.distillatecapital.com


Investors should carefully consider the investment objectives, risks, charges and expenses before investing. To obtain a prospectus or simplified prospectus containing this and other information about the Fund, please call 1-800-617-0004 or visit our website at www.distillatefunds.com. Read the prospectus or simplified prospectus carefully before investing.

Investing involves risk, including possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV) and may trade at a discount or premium to NAV. Stock market risk. Equity securities held in the Fund’s portfolio may experience sudden and unpredictable declines in value or long periods of decline in value. This may occur due to factors that affect securities markets generally or factors affecting specific issuers, industries or sectors in which the Fund invests. Market capitalization risk. Securities of small and medium capitalization companies may be more vulnerable to adverse developments by the issuers, the market, political or economic conditions than securities of large capitalization companies. Small-cap stocks generally trade at lower volumes and are subject to greater and more unpredictable price swings than large-cap stocks or the stock market as a whole. New fund risk. The Fund is a recently incorporated investment company with a limited operating history. Therefore, potential investors have a limited background or track record on which to base their investment decision. Management risk. The Fund is actively managed and may not achieve its investment objective depending on the success or failure of the Advisor in implementing investment strategies for the Fund.

Free movement of capital refers to the cash generated by a business after taking into account the capital investments necessary to maintain or grow the business.

The Distillate Small/Mid Cash Flow ETF (DSMC) is distributed by Quasar Distributors, LLC.


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