DSTL ETF: A Complete Guide – Returns, Expense Ratio, Holdings & Alternative ETFs
A strategic ETF that selects undervalued quality value stocks based on financial health and cash flow stability. Pursues a cash-flow-driven value investing approach.
SubscribeWhat is this ETF?
DSTL is a factor-based ETF that goes beyond simply tracking low P/E stocks, seeking companies that are inexpensive relative to their intrinsic value among firms with low debt and robust cash flow. It leverages Distillate Capital's proprietary valuation model.
It is well-suited for investors who want to overcome the limitations of traditional value-stock metrics and invest long term in quality value companies with sound financial structures.
It is an ETF launched in 2018 by Distillate Capital that is managed on a passive (index-tracking) basis.
How does it invest?
| Item | Details |
|---|---|
| Tracked Index | Distillate U.S. Fundamental Stability & Value Index |
| Management Style | Passive (Strategic Index Tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Schedule | Quarterly Dividend |
| Total Expense Ratio | 0.39% |
From the 500 most profitable U.S. large-cap stocks, companies with excessive debt or unstable cash flow are excluded. From the remaining names, approximately 100 firms that appear relatively undervalued based on free cash flow yield are selected, with weights adjusted according to each company's cash flow generation ability.
- Valuation centered on free cash flow
- Strict screening for debt and earnings stability
Size and Cost
Assets under management (AUM) stand at $2.1B, with a total expense ratio of 0.39% annually.
Although it follows an index-tracking approach, the manager applies its own proprietary screening criteria, resulting in a portfolio that differs from a typical value-stock ETF.
Performance and Flows
1-Year Price Performance
Dividend & Yield
52-Week Price RangeBecause the fund focuses on companies with superior financial health, it tends to display relatively resilient flows during periods of market volatility or rising rates. Return volatility varies with the broader environment for the value-stock sector.
As interest in free-cash-flow-based investment strategies has grown, the fund has seen steady inflows. There is demand for it as an alternative asset that combines the characteristics of quality and value stocks.
Strengths and Weaknesses
By emphasizing free cash flow and financial health, the ETF enables high-quality value investing, but its reliance on a specific valuation model carries the risk of underperformance when market styles shift.
💪 Key Strengths
⚠️ Things to Watch
Alternative ETFs and Related Products
CGDV and DFAT shown in the table are comparison vehicles focused on dividend or quality value, while FVD emphasizes dividend stability, and DFSV and WTV each focus on small- and mid-cap value and broad U.S. market value exposure, respectively. DSTL stands out for combining large-cap quality and value. Similar strategic alternatives include COWZ, which focuses on free cash flow, and QVAL, a quality-value strategy, while DGRW is also a solid choice for investors seeking a combination of dividend growth and quality. Those looking to expand into small- and mid-cap value may also consider AVUV, and CALF is worth reviewing for small-cap companies with strong cash flow.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 CGDV | Capital Group Dividend Value ETF | $48.67 | -0.3% | $39.6B | 0.33% | 1.24% | +14.1% |
 DFAT | U.S. Targeted Value Portfolio-ETF Class Shares | $70.68 | +0.9% | $14.4B | 0.29% | 1.32% | +24.1% |
 DFSV | US Small Cap Value Portfolio ETF Class Shares | $39.73 | +0.7% | $8.5B | 0.31% | 1.37% | +26.6% |
 FVD | First Trust Value Line Dividend Index Fund | $51.40 | +1.4% | $8.1B | 0.62% | 2.18% | +13.9% |
 WTV | WisdomTree U.S. Value Fund | $107.61 | +0.6% | $3.3B | 0.12% | 1.99% | +19.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| ABBV | Abbvie Inc | 0.06% | $288.84 | -2.0% | $510.4B | 49.6 | 2.37% |
| MRK | Merck & Co Inc | 0.06% | $148.36 | -0.8% | $366.0B | 151.5 | 2.3% |
| QCOM | Qualcomm Inc | 0.02% | $162.08 | -1.6% | $173.1B | 18.8 | 2.23% |
| CRM | Salesforce Inc | 0.02% | $226.18 | -1.3% | $186.1B | 20.6 | 0.5% |
| TMUS | T-Mobile US Inc | 0.02% | $160.15 | +2.4% | $169.6B | 15.4 | 2.61% |
| BKNG | Booking Holdings Inc | 0.02% | $153.93 | +3.9% | $115.7B | 17.0 | 1% |
| CMCSA | Comcast Corp | 0.02% | $23.87 | +2.8% | $84.8B | 7.6 | 5.56% |
| UBER | Uber Technologies Inc | 0.02% | $66.71 | +2.2% | $136.3B | 14.7 | - |
Investor Checklist
DSTL is a smart-beta ETF that pursues both financial stability and reasonable pricing. Investors who emphasize company fundamentals over simply buying cheap stocks should review the following points.
| Checkpoint | What to Verify | Current Status |
|---|---|---|
| 💵 Cash Flow Yield | Appropriateness of free-cash-flow-based valuation | Maintained |
| 📉 Debt Levels | Overall financial health of holdings | Very Strong |
| 📊 Portfolio Composition | Diversification and sector weighting across roughly 100 holdings | Adequate |
| 📈 Market Style | Whether the environment is favorable for value and quality sectors | Needs Review |
Given its stability-focused nature, the fund may be overlooked during sharp growth-stock rallies, and it should be noted that free cash flow metrics may not apply uniformly across all industries.
It is a suitable option for conservative value investors looking to buy financially sound companies at attractive prices. It has strong potential to serve as a strategic core holding for those seeking to capture both quality and value.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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