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DFNL - ETF AI Analysis

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DFNL

Davis Select Financial Etf (DFNL)

Rating:66Neutral
Price Target:
DFNL’s rating suggests it is a solid but not top-tier financial sector ETF, supported by several strong core holdings. High-quality names like Wells Fargo, Markel, Chubb, and JPMorgan contribute positively through robust profitability, attractive valuations, and generally favorable growth outlooks. The main risk is that the fund is heavily concentrated in financial companies, so sector-specific issues or economic stress on banks and insurers could weigh on overall performance, while holdings facing revenue growth challenges and overbought technical signals may also limit upside.
Positive Factors
Solid Core Financial Holdings
Several major bank and insurance stocks in the top holdings have shown steady to strong recent performance, helping support the fund’s returns.
Global Diversification Within Finance
While most assets are in U.S. companies, the ETF also holds financial firms from Europe and Asia, adding some international diversification to the portfolio.
Meaningful Asset Base
The fund manages a sizable pool of assets, which can help with trading liquidity and keeping the ETF operating efficiently for investors.
Negative Factors
High Sector Concentration
With the vast majority of assets in financial stocks, the ETF is heavily exposed to downturns in the financial sector.
Mixed Performance Among Top Holdings
Several of the largest positions have shown weak year-to-date performance, which has weighed on the fund’s overall results.
Relatively High Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees instead of going to investors.

DFNL vs. SPDR S&P 500 ETF (SPY)

DFNL Summary

DFNL (Davis Select Financial ETF) is an actively managed fund that focuses on financial companies rather than tracking a set index. It mainly holds U.S. banks, insurance firms, and other financial businesses, with some exposure to overseas names. Well-known holdings include JPMorgan Chase and Berkshire Hathaway. Someone might invest in DFNL if they want targeted exposure to the financial sector, which can offer growth and income when banks and insurers do well. A key risk is that it is heavily concentrated in financial stocks, so its price can rise or fall sharply with changes in interest rates and the health of the banking sector.
How much will it cost me?The Davis Select Financial ETF (DFNL) has an expense ratio of 0.63%, which means you’ll pay $6.30 per year for every $1,000 invested. This is higher than average because it is actively managed, meaning professional managers select and adjust the portfolio to target financial sector opportunities. Active management typically involves more research and trading, which increases costs.
What would affect this ETF?The Davis Select Financial ETF (DFNL) could benefit from rising interest rates, as higher rates often improve profit margins for banks and financial institutions, which make up the majority of its holdings. Additionally, advancements in financial technology and global economic growth could drive innovation and expansion in the sector. However, the ETF may face challenges from regulatory changes or economic slowdowns, which could negatively impact the profitability of its top holdings like JPMorgan Chase and Wells Fargo.

DFNL Top 10 Holdings

DFNL is a pure play on global financials, with the heavy lifting coming from U.S. banks and insurers. Capital One, Fifth Third, PNC, and US Bancorp have been rising lately, giving the fund a solid push as credit and rate worries ease. On the flip side, Berkshire Hathaway and Markel have been more mixed to lagging, acting like a small anchor on returns, while Wells Fargo has lost some steam this year. Overall, the ETF is concentrated in big North American financial names, with just a touch of overseas exposure like Julius Baer.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Capital One Financial9.62%$45.85M$121.72B6.26%
71
Outperform
US Bancorp5.44%$25.92M$87.90B41.40%
76
Outperform
Berkshire Hathaway B5.14%$24.50M$1.01T-11.49%
66
Neutral
Fifth Third Bancorp5.10%$24.32M$46.08B42.21%
71
Outperform
PNC Financial4.68%$22.32M$90.79B40.90%
71
Outperform
Markel4.61%$21.97M$24.21B6.72%
82
Outperform
Chubb4.44%$21.16M$129.90B18.04%
80
Outperform
Wells Fargo4.44%$21.15M$246.71B15.74%
80
Outperform
JPMorgan Chase4.19%$19.97M$840.64B27.41%
72
Outperform
Julius Baer Group Ltd4.18%$19.92MCHF12.75B20.44%
66
Neutral

DFNL Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
46.26
Positive
100DMA
47.26
Negative
200DMA
45.60
Positive
Market Momentum
MACD
0.56
Negative
RSI
52.76
Neutral
STOCH
28.74
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For DFNL, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 46.60, equal to the 50-day MA of 46.26, and equal to the 200-day MA of 45.60, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 52.76 is Neutral, neither overbought nor oversold. The STOCH value of 28.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DFNL.

DFNL Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$475.96M0.61%
66
Neutral
$777.61M0.17%
66
Neutral
$590.57M0.75%
71
Outperform
$509.55M0.95%
63
Neutral
$502.44M0.45%
65
Neutral
$187.01M0.63%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DFNL
Davis Select Financial Etf
46.99
9.17
24.25%
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Avantis Real Estate ETF
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EIPX
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VGSR
Vert Global Sustainable Real Estate ETF
TTEQ
T. Rowe Price Technology ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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