DSMC - ETF AI Analysis

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Distillate Small/Mid Cash Flow ETF (DSMC)

Rating:67Neutral

Price Target:―

DSMC, the Distillate Small/Mid Cash Flow ETF, appears to be a solid but not top-tier fund, supported by strong holdings like CHRD, APA, and CF, which benefit from healthy cash flows, attractive valuations, and generally positive earnings call commentary. These strengths are partly offset by weaker names such as Owens Corning, which faces declining revenues, profitability issues, and bearish technical trends, and by holdings with bearish or mixed technical signals and valuation concerns, adding risk. The main risk factor is the fund’s exposure to several companies with challenging market conditions and bearish momentum, which could increase volatility even though the overall portfolio quality is reasonably strong.

Positive Factors

Broad Sector Mix

The fund spreads its investments across many sectors, which can help reduce the impact if any one industry struggles.

Generally Positive Recent Performance

The ETF has shown steady gains over the year so far, supported by positive one-month and three-month results.

Several Strong Top Holdings

Some of the largest positions, such as CF Industries, Mosaic, and Owens Corning, have delivered strong gains, helping support overall returns.

Negative Factors

Higher-Than-Average Expense Ratio

The fund’s fee is on the higher side for an ETF, which can eat into long-term returns compared with lower-cost options.

Heavy U.S. Concentration

With almost all assets in U.S. stocks and very little in other countries, the fund offers limited geographic diversification.

Some Weak Top Holdings

A few of the larger positions, including Antero Resources and DXC Technology, have shown weak or negative performance, which can drag on the fund’s results.

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

AUM117.98M

RegionNorth America

Expense Ratio0.55%

Beta0.94

IssuerDistillate

Inception DateOct 05, 2022

Dividend Yield1.15%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume7,499

30 Day Avg. Volume10,359

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

44.99

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering151

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

DSMC Summary

The Distillate Small/Mid Cash Flow ETF (DSMC) focuses on smaller and mid-sized U.S. companies that generate strong cash flow, rather than following a traditional stock index. It spreads investments across many sectors, including consumer, industrial, technology, and energy businesses. Well-known holdings include CF Industries and Molson Coors. Someone might consider DSMC to seek growth and diversification beyond the usual large, well-known companies, while still focusing on firms with solid cash generation. A key risk is that small and mid-sized stocks can be more volatile and can go up and down more sharply than the overall market.

How much will it cost me?The Distillate Small/Mid Cash Flow ETF (DSMC) has an expense ratio of 0.55%, meaning you’ll pay $5.50 per year for every $1,000 invested. This is higher than average for ETFs because DSMC is actively managed, focusing on small and mid-cap companies with strong cash flow characteristics, which requires more research and management effort.

What would affect this ETF?The DSMC ETF, with its focus on small and mid-cap U.S. companies, could benefit from economic growth and increased consumer spending, especially in sectors like Consumer Cyclical and Technology. However, it may face challenges from rising interest rates or economic slowdowns, which can negatively impact smaller companies and sectors like Industrials and Energy. Regulatory changes or shifts in market sentiment could also influence its performance.

DSMC Top 10 Holdings

DSMC is leaning hard into U.S. small and mid-cap cyclicals, with energy and industrial names doing much of the heavy lifting. Ovintiv, Carlisle Companies, and CF Industries have been rising steadily, acting like the fund’s growth engine, while Mosaic and APA are also contributing with generally solid, if sometimes choppy, gains. HF Sinclair looks more mixed, occasionally losing steam and softening the overall ride. With no single mega-cap in charge and a clear tilt toward North American energy, materials, and industrial cash-flow stories, this ETF is a focused bet on the real-economy side of the market.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
VSNT	Versant Media Group	1.83%	$2.19M	$5.41B	―	―
DINO	HF Sinclair Corporation	1.71%	$2.04M	$10.33B	84.57%	68 Neutral
APA	APA	1.55%	$1.86M	$11.87B	76.52%	73 Outperform
AR	Antero Resources	1.49%	$1.79M	$12.45B	10.94%	67 Neutral
CHRD	Chord Energy	1.29%	$1.54M	$6.99B	19.03%	76 Outperform
MOS	Mosaic Co	1.25%	$1.50M	$9.96B	25.14%	65 Neutral
BTU	Peabody Energy Comm	1.15%	$1.38M	$4.37B	176.17%	61 Neutral
SNX	TD SYNNEX Corporation	1.15%	$1.37M	$12.37B	22.49%	73 Outperform
SWKS	Skyworks Solutions	1.11%	$1.33M	$8.30B	-17.84%	70 Outperform
IT	Gartner	1.08%	$1.30M	$11.31B	-64.48%	67 Neutral

DSMC Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

37.63

Negative

100DMA

36.34

Positive

200DMA

35.27

Positive

Market Momentum

MACD

-0.24

Positive

RSI

35.96

Neutral

STOCH

11.11

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For DSMC, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 37.81, equal to the 50-day MA of 37.63, and equal to the 200-day MA of 35.27, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 35.96 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DSMC.

DSMC Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
DSMC	―	―	$117.98M	0.55%	67 Neutral
MSSM	―	―	$699.97M	0.57%	65 Neutral
RSMC	―	―	$689.45M	0.75%	69 Neutral
GRNJ	―	―	$379.97M	0.75%	70 Neutral
NBSM	―	―	$215.07M	0.65%	68 Neutral
SMIZ	―	―	$196.86M	0.56%	68 Neutral

Performance Comparison

DSMC

Distillate Small/Mid Cash Flow ETF

36.51

4.80

15.14%

MSSM

Morgan Stanley Pathway Small-Mid Cap Equity ETF

―

RSMC

Rockefeller U.S. Small-Mid Cap ETF

―

GRNJ

Fundstrat Granny Shots US Small- & Mid-Cap ETF

―

NBSM

Neuberger Berman Small-Mid Cap ETF

―

SMIZ

Zacks Small/Mid Cap 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.

Disclaimer

This 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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