DSMC ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings and Alternative ETFs
DSMC is the Distillate Small/Mid Cash Flow ETF, which invests in US small- and mid-cap companies with low debt, strong earnings and excellent free cash flow generation. It considers dividends and long-term share price prospects together to find stocks with financial soundness and reasonable valuations.
SubscribeWhat Is the Distillate Small/Mid Cash Flow ETF?
This fund selects and invests in high-quality US small- and mid-cap stocks, using a company's free cash flow and debt level as key metrics to focus on businesses with high financial stability.
Moving away from a simple market-cap-weighted approach, it suits long-term investors who want to invest in small- and mid-cap stocks built on solid cash flow.
It is an actively managed ETF run by Distillate.
How Does the Distillate Small/Mid Cash Flow ETF Invest?
| Item | Details |
|---|---|
| Investment region | US small- and mid-cap stocks |
| Management style | Active (cash flow-based selection) |
| Rebalancing frequency | Quarterly |
| Dividend frequency | Quarterly dividends |
| Total expense ratio | 0.55% |
From a broad universe, the fund first excludes companies with high debt ratios, then applies its proprietary free cash flow methodology to select and weight companies with reasonable valuations.
- Application of a proprietary valuation model based on cash flow
- Quality filtering that screens out companies with excessive debt in advance
Distillate Small/Mid Cash Flow ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $145.3M, and the total expense ratio is 0.55% per year.
Instead of traditional metrics such as dividends or asset size, the fund focuses on the cash flow companies actually generate, which sets it apart from typical value funds.
Distillate Small/Mid Cash Flow ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeEven in an environment marked by macroeconomic uncertainty and the high volatility typical of the small- and mid-cap market, the portfolio holds quality companies that generate solid real cash flow. This offers relative stability in value-led markets and shows a positive fundamental trend.
As market interest in financial soundness and the quality factor gradually grows amid interest rate swings or concerns about an economic slowdown, funds may continue to flow into small- and mid-cap quality funds with solid, stable cash flow.
Distillate Small/Mid Cash Flow ETF Pros and Cons
Downside protection based on strong free cash flow is a strength, but the market volatility risk typical of small- and mid-cap stocks is inherent.
💪 Key Strengths
⚠️ Points to Note
Distillate Small/Mid Cash Flow ETF Alternative ETFs and Related Products
VIG, SCHD, VYM and others shown in the table under the same category are mainly large-cap-focused dividend growth or high-dividend portfolios, and differ greatly in character from the small- and mid-cap-based DSMC. If you are looking for a similar cash flow-focused strategy, it is worth comparing CALF, a small-cap value product, or DSTL, a fund from the same manager that invests in large caps. COWZ, a representative product focused on free cash flow, is also worth considering as an alternative.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 SCHD | Schwab US Dividend Equity ETF | $35.65 | +1.4% | $119.9B | 0.06% | 2.95% | +33.4% |
 VIG | Vanguard Dividend Appreciation FTF | $249.25 | +2.4% | $113.9B | 0.04% | 1.46% | +15.6% |
 VYM | Vanguard High Dividend Yield Indx ETF | $162.72 | +2.3% | $80.9B | 0.04% | 2.26% | +16.0% |
 DFAC | U.S. Core Equity 2 Portfolio-ETF Class Shares | $44.86 | +2.4% | $48.1B | 0.18% | 0.88% | +16.2% |
 RDVY | First Trust Rising Dividend Achievers ETF | $79.38 | +2.1% | $25.0B | 0.47% | 0.86% | +18.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 APA | APA Corp | 0.02% | $44.55 | -0.2% | $15.0B | 7.2 | 2.26% |
 DINO | HF Sinclair Corp | 0.02% | $99.76 | +2.6% | $17.1B | 5.1 | 2.07% |
 VSNT | Versant Media Group Inc | 0.03% | $35.09 | +4.2% | $4.8B | 6.9 | 3.64% |
 AR | Antero Resources Corp | 0.02% | $36.36 | +0.8% | $11.2B | 8.2 | - |
 CHRD | Chord Energy Corp | 0.01% | $137.49 | +0.7% | $7.3B | 8.6 | 3.82% |
 CDW | CDW Corp | 0.01% | $164.61 | +4.8% | $20.5B | 19.2 | 1.56% |
 TOL | Toll Brothers Inc | 0.01% | $156.33 | +2.5% | $14.4B | 12.6 | 0.66% |
 SNX | TD Synnex Corp | 0.01% | $228.33 | +4.4% | $18.2B | 13.9 | 0.84% |
 MAS | Masco Corp | 0.01% | $85.92 | +4.5% | $16.6B | 18.6 | 1.49% |
Distillate Small/Mid Cash Flow ETF Investor Checkpoints
These are the key items to examine carefully before investing. It is wise to confirm whether the performance of the fund's proprietary cash flow-centered valuation model is effective over the long term relative to its actual running costs.
| Checkpoint | What to check | Current status |
|---|---|---|
| 💵 Cost structure | Check the fee burden from active management | Average level |
| 📊 Factor validation | Real-world results of cash flow-focused investing | Ongoing monitoring needed |
| 🔄 Turnover | Trading costs from quarterly rebalancing | Relatively frequent |
Even though it pursues stable cash flow, the portfolio is fundamentally centered on small- and mid-cap stocks, so price sensitivity is high during a macroeconomic slowdown or recession. Keep in mind that investing based on a past model does not always guarantee future returns.
For active investors who want to diversify over the long term into small- and mid-cap quality stocks with strong balance sheets and consistently stable free cash flow, this product is a useful alternative for portfolio diversification.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 29, 2026.
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