Davis Select US Equity Fund Surpasses $1 Billion in Assets

The DUSA ETF surpasses $1B in assets, offering a concentrated, low-turnover value strategy as an alternative to tech-heavy index funds amid market uncertainty.

The Davis Select US Equity ETF (DUSA) has achieved a significant milestone early in the second quarter of 2026, crossing the $1 billion threshold in assets under management. This growth comes during a period characterized by heightened macroeconomic uncertainty and geopolitical tensions, positioning this actively managed fund as a notable alternative to traditional, often technology-heavy index-tracking products.

A Strategic Contrast to Index Concentration

A defining feature of the DUSA strategy is its concentrated, "benchmark-agnostic" portfolio, which typically holds just 25 to 26 stocks. This stands in direct contrast to the S&P 500, whose performance remains heavily influenced by a handful of large-cap growth names. The fund's managers employ this focused approach to target companies they believe possess resilient business models and are trading meaningfully below their intrinsic value.

The portfolio's current sector allocations are proving advantageous. With significant holdings in firms like Coterra Energy and Capital One Financial, the fund has meaningful exposure to the energy and financial sectors. The recent climb in oil prices toward the $100 per barrel mark, for instance, has served as a key performance driver for its energy investments.

Low Turnover and a Long-Term Horizon

Reflecting a patient, long-term investment philosophy, the fund exhibits an exceptionally low turnover rate of approximately 8%. This level of trading activity distinguishes it from many systematic value ETFs, which tend to adjust their holdings far more frequently. On the cost front, DUSA carries an expense ratio of 0.59%, placing it in the mid-range for actively managed large-cap value funds and putting it in competition with quantitative strategies from providers such as Avantis and Dimensional.

Looking ahead, a critical test for the strategy will be whether its substantial valuation discount relative to the broader S&P 500 can provide the anticipated buffer should overall market valuations come under pressure. Investors will be closely monitoring the management team's tactical responses to the persistent "higher-for-longer" interest rate environment and the outcomes of the upcoming earnings season.