Distillate US Fundamental Stability & Value ETF

Distillate US Fundamental Stability & Value ETF (DSTL) is an actively managed fund. It held 107 large US-listed companies as of June 30, 2026, picked for steady cash flow, low debt and cheap prices relative to free cash flow. It may appeal to investors who want large-company stocks with a value and quality tilt. Its 0.39% expense ratio is above the 0.31% average of similar funds.

• Over the year to Oct 27, 2026, DSTL returned +18.2%, 2nd of 4 among similar funds.
• Its 5-year annualized return was +11.3%.
• In the 2020 COVID crash it fell 32.8% and regained its old high 2.5 months after the low.
• Its worst full calendar year was 2022 (-10.7%); its best was 2019 (+35.5%).
• The deepest fall in its price history was 33.1% (Feb 12, 2020 to Mar 23, 2020), recovered by Jul 22, 2020.

As of Jun 30, 2026, the fund held 107 securities; the ten largest made up 20.05% of assets.

By sector

• Over the three months to Jun 30, 2026, investors added a net $266.6M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.02%, +0.84%, -0.15%.

DSTL does not track an index. Its adviser, Distillate Capital Partners, picks the stocks using its own rules. It starts with US-listed companies that pass tests for profitability, past cash flow and trading liquidity. It then ranks them on two measures. The first is valuation, based on free cash flow yield. That compares a company's normalized free cash flow (free cash flow adjusted to remove one-off items) with its enterprise value (its market value plus its debt). The second is cash flow stability, meaning how much past and projected cash flows swing.

From the most undervalued companies, the fund buys only large caps, defined as roughly the 500 largest US-listed companies by free-float market value. It usually avoids heavily indebted firms, using the adviser's own debt-to-income test. A stock is sold when it becomes overvalued, takes on too much debt, reports a drop in income that fails the debt test, or no longer passes the cash flow stability test. The adviser can also include or exclude companies at its discretion.

The portfolio is reviewed at least once a quarter. Portfolio turnover was 70%, so holdings change often. The fund uses no derivatives or leverage, and at least 80% of net assets goes into US assets.

• DSTL charges 0.39% a year, versus an average of 0.31% for the similar funds below (3rd of 4, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $40 in the first year and $493 over 10 years (assuming a 5% annual return).

It holds a broad basket of 107 large US companies with a value and quality tilt, so it could fill the US stock part of a portfolio rather than serve as a niche bet.

DSTL could make up the large-company US stock part of a long-term portfolio, with a tilt toward cheaper, less indebted companies. It is still a stock fund. In the 2020 COVID crash it fell 33.1% from peak to trough and recovered in about four months. In the 2022 bear market it dropped 20.1% and did not regain its peak until July 2023, about nine months after the low. Its worst calendar year was 2022, at -10.58%. Anyone forced to sell shares during drops like these would lock in losses. The fund launched in 2018, so it has no record from 2008.

The yield was 1.07% as of October 27, 2026, paid quarterly, so DSTL is not built for income. Its 0.39% expense ratio is above the 0.31% average of its closest peers. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.