Distillate U.S. Fundamental Stability & Value ETF
Our economy has undergone tectonic changes over the last several decades, and accounting rules have not kept up, rendering many traditional measures of value, quality, and risk unhelpful.
By drawing on decades of experience as fundamental investors, we have developed customized measures of value and quality that are particularly relevant to today’s long-term investors. We utilize these measures in our investment process to exploit behavioral biases and minimize risk by eliminating stocks that are either expensive, have volatile fundamentals, or are significantly indebted.
- Rationally-defined value: utilizes Distillate Capital’s proprietary normalized cash yield methodology, which focuses on through-cycle durability of an asset’s cash generation and indebtedness.
- Rationally-defined quality: focuses on long-term fundamental stability and leverage rather than short-term price volatility.
- Rationally-defined risk: operates as a function of quality and value; de-emphasizes short-term price fluctuations.