At a glance
DSMC charges 0.55% a year, below the 0.6% average of the 4 funds most like it (the 2nd cheapest of 5). It has $129.1M in assets, the 4th largest of that group; it paid 1.12% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +26.7% with distributions reinvested (S&P 500: +11.5%), 4th of those 5 funds; over three years it returned +17.3% a year. Its ten largest positions make up 11.1% of the fund, out of 150 in all.
The short version
Distillate Small/Mid Cash Flow ETF (DSMC) is an actively managed fund from Distillate Capital. It owns about 150 U.S. small- and mid-sized companies that generate a lot of free cash flow for their price and carry little debt. Its 0.55% expense ratio is below the 0.60% average of similar cash-flow and value funds. It is far smaller than its largest rival, Pacer's CALF, and it trades its holdings heavily, with 112% annual turnover.
Price history
The interactive chart needs JavaScript.
DSMC +26.7% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| DSMC official prospectus, to Dec 31, 2025 | — | +2.63% | — | — | — | +12.89% |
| DSMC price data to Oct 27, 2026 | +26.7% | +26.7% | +17.3% | — | — | +17.6% |
- Over the year to Oct 27, 2026, DSMC returned +26.7%, 4th of 5 among similar funds.
- Its worst full calendar year was 2025 (+2.8%); its best was 2023 (+29.5%).
- The deepest fall in its price history was 28.6% (Nov 25, 2024 to Apr 8, 2025), recovered by Jan 21, 2026.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +26.7% | — |
| 2025 | +2.8% | +2.63% |
| 2024 | +2.8% | +2.92% |
| 2023 | +29.5% | +29.46% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.3500 | |
| 2025 | $0.4300 | -6.5% |
| 2024 | $0.4600 | +27.8% |
| 2023 | $0.3600 |
What's inside
As of Jun 30, 2026, the fund held 150 securities; the ten largest made up 11.05% of assets.
| Holding | Weight | |
|---|---|---|
| CDW Corp/DE | 1.24% | |
| Versant Media Group Inc | 1.24% | |
| Toll Brothers Inc | 1.22% | |
| Masco Corp | 1.14% | |
| HF Sinclair Corp | 1.10% | |
| Invesco Ltd | 1.08% | |
| Carlisle Cos Inc | 1.08% | |
| Jazz Pharmaceuticals PLC | 1.01% | |
| GoDaddy Inc | 0.98% | |
| DXC Technology Co | 0.96% | |
| Bath & Body Works Inc | 0.96% | |
| Skyworks Solutions Inc | 0.95% | |
| APA Corp | 0.95% | |
| Taylor Morrison Home Corp | 0.94% | |
| Hormel Foods Corp | 0.92% |
By country
United States 97.35%Ireland 1.41%Puerto Rico 0.63%Canada 0.6%By asset type
Stocks 99.98%What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $316K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +6.06%, +0.54%, +1.33%.
How it works
DSMC does not track an index. Its adviser, Distillate Capital Partners LLC, picks the stocks using set rules. It starts with companies in the smallest 10% of the total U.S. stock market by value. As of January 13, 2026, that meant companies worth about $13.5 billion or less. A company must be based in the U.S. and trade often enough to buy and sell easily. It also needs three years of reported free cash flow, which is the cash left after running and investing in the business, and an analyst forecast of EBITDA (earnings before interest, taxes, depreciation and amortization). Companies that FactSet expects to have negative free cash flow over the next 12 months are dropped.
Distillate then ranks companies by its own measure of free cash flow yield: normalized free cash flow divided by enterprise value (a company's stock market value plus its debt, minus its cash). It looks for the cheapest companies and avoids heavy borrowers. A stock is sold when it becomes too expensive, its cash flow weakens, a cheaper stock comes along, or its debt rises too far compared with its income. At least 80% of assets stay in small and mid caps.
As of June 30, 2026, the fund held 150 stocks and no derivatives. The 10 largest made up just 11.05% of assets, led by CDW at 1.24%. Turnover of 112% can add trading costs and taxable gains.
What it really costs
- DSMC charges 0.55% a year, versus an average of 0.6% for the similar funds below (2nd of 5, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $56 in the first year and $689 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| DSMC | $56 | $176 | $307 | $689 |
In a retirement portfolio
It is an actively managed fund of smaller U.S. companies with a short record and a 28.6% peak-to-trough drop, so it fits better alongside a broad core than as one.
DSMC could add smaller U.S. companies to a portfolio, with a tilt toward cheap, cash-generating businesses that carry little debt. Large-cap index funds hold little of this part of the market. Its record is short. It launched on October 5, 2022, so it missed the 2008 crisis, the 2020 COVID crash and most of the 2022 bear market. Its deepest drop was 28.6%, from November 25, 2024 to April 8, 2025. It took about 9.5 months to recover, getting back to its old high on January 21, 2026. Anyone who had to sell near the low would have taken a large loss.
It has had no losing calendar year so far. Its weakest year was 2025, when it gained 2.63%. Income is modest: the yield was 1.12% as of October 27, 2026, paid quarterly. Under the SEC's standard example, costs are $56 in the first year on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking U.S. small and mid caps screened for free cash flow and low debt, at 0.55% versus a 0.60% peer average.
- Long-term holders who can sit through drops like the fund's 28.6% fall from November 2024 to April 2025.
- Those who want a widely spread portfolio: 150 stocks, with the top 10 at just 11.05% as of June 30, 2026.
Look elsewhere if
- Income seekers: the yield was 1.12% as of October 27, 2026, paid quarterly.
- Investors who want a long track record: it launched in October 2022 and has no history through 2008, 2020 or most of 2022.
- Taxable-account investors wary of heavy trading: 112% turnover may raise trading costs and the taxes passed on to shareholders.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| DSMC this fund | — | 0.55% | $129.1M | +26.7% | +17.3% |
| CALF Pacer US Small Cap Cash Cows ETF | 29% | 0.59% | $3.67B | +32.7% | +15.0% |
| SFLO VictoryShares Small Cap Free Cash Flow ETF | 28% | 0.49% | $606.4M | +38.1% | — |
| FYT First Trust Small Cap Value AlphaDEX Fund | 23% | 0.72% | $194.5M | +27.4% | +18.4% |
| SQLV Royce Quant Small‑Cap Quality Value ETF | 21% | 0.6% | $28.7M | +26.7% | +18.1% |
Questions investors ask
Is DSMC an index fund?
No. DSMC is actively managed by Distillate Capital Partners LLC, which uses its own rules instead of tracking an index. It looks for U.S. small and mid caps with positive expected free cash flow, then picks the ones that look cheapest on its own free cash flow yield measure. It avoids companies with heavy debt. Stocks are sold when they become expensive or their debt rises. That process led to 112% portfolio turnover.
What's the difference between DSMC and CALF?
Both pick smaller U.S. companies based on cash flow, and 29% of their holdings overlap. DSMC costs 0.55% a year and CALF costs 0.59%. CALF is much larger: it had $3.67 billion in net assets as of July 31, 2026, while DSMC had $129 million as of June 30, 2026. As of October 27, 2026, CALF returned 32.7% over one year against DSMC's 26.7%. Over three years, DSMC's annualized return was 17.3% against CALF's 15.0%.
Does DSMC pay dividends?
Yes. DSMC pays dividends quarterly, but the income is small. As of October 27, 2026, its trailing 12-month yield was 1.12%, or about $0.50 per share. That is because the fund aims for capital appreciation, not income. It picks companies for cash flow and value, not for high dividends. Investors who need steady income from this part of a portfolio may find the payout modest.
What is DSMC's expense ratio?
DSMC's expense ratio is 0.55%, all of it a management fee with no fee waiver, according to its prospectus filed January 26, 2026. The SEC's standard example assumes $10,000 invested with a 5% annual return. On that basis, costs come to $56 after one year, $176 after three, $307 after five and $689 after ten. Among similar funds, SFLO costs 0.49%, CALF 0.59%, SQLV 0.60% and FYT 0.72%.
How has DSMC performed since it launched?
Results have been uneven. According to its prospectus, DSMC returned 29.46% in 2023, 2.92% in 2024 and 2.63% in 2025. From its October 2022 launch through December 31, 2025, its average annual return was 12.89%. Its worst quarter was a 9.3% loss in early 2025. Based on price, it returned 26.7% over the year to October 27, 2026. Its short history makes it hard to judge over a full market cycle.