BrandywineGLOBAL - Dynamic US Large Cap Value ETF

BrandywineGLOBAL - Dynamic US Large Cap Value ETF (DVAL) is an actively managed Franklin Templeton fund. It uses computer models to pick about 112 large US stocks that look cheap compared with the Russell 1000 Value Index. The models switch between a broad value approach and a deep value approach as market conditions change. It costs 0.49% a year, above the 0.30% average of similar funds. It is also small, with about $72 million in assets as of June 30, 2026.

• Over the year to Oct 27, 2026, DVAL returned +13.9%, 5th of 7 among similar funds.
• Its worst full calendar year was 2023 (+8.7%); its best was 2024 (+12.8%).
• The deepest fall in its price history was 18.1% (Nov 29, 2024 to Apr 8, 2025), recovered by Dec 11, 2025.

As of Jun 30, 2026, the fund held 112 securities; the ten largest made up 35.24% of assets.

By sector

• Over the three months to Jun 30, 2026, investors withdrew a net $15.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.52%, +0.52%, +2.08%.

DVAL does not track an index. Its sub-advisor uses its own quantitative models, which are computer rules that score each stock on measurable traits. The goal is to find large US companies that look cheap and seem to offer more upside and less downside than the Russell 1000 Value Index, the fund's benchmark. The models look at valuation, quality and market sentiment. Quality covers things like earnings quality, profitability and how well management uses the company's money.

A feature the fund calls its Dynamic Shifting Tool decides how much each factor counts. It moves between a broad value model and a deep value model, which favors the cheapest stocks, as market conditions change. A stock usually enters the fund when three things are true: it is large enough, its price-to-earnings or price-to-book ratio looks low compared with other large US companies, and it gets a high combined score. It usually leaves when its score hits a sell target, its valuation rises above set limits, or it shrinks below the fund's large-company cutoff.

At least 80% of net assets go into large US value companies. The fund trades often. Its 80% turnover means it replaced holdings worth about four-fifths of the portfolio in a year, which adds trading costs and can raise taxes. As of June 30, 2026, it held 112 stocks, with no derivatives. The top 10 made up about 35% of assets, led by GE Aerospace, Cisco Systems and JPMorgan Chase.

• DVAL charges 0.49% a year, versus an average of 0.3% for the similar funds below (5th of 7, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $50 in the first year and $615 over 10 years (assuming a 5% annual return).

Its heavy weighting in cheaper banks, industrials and telecom stocks, and its low market sensitivity, could offset a portfolio built on growth-heavy index funds.

DVAL may add a value tilt to a portfolio built on growth-heavy index funds, with big weights in banks, industrials and telecoms. As of October 27, 2026, its one-year beta was 0.44, so it moved less than half as much as the market. Every full calendar year since its October 31, 2022 launch was positive. The weakest was 2023, at 8.7%. Its deepest drop was 18.1%, from November 2024 to April 2025, and it took about eight months to recover.

The ETF launched after the 2008 crash, the 2020 crash and the 2022 bear market. Its prospectus record still shows a 6.41% loss in 2022 and a 25.83% fall in the first quarter of 2020. Selling in such a stretch locks in losses. The yield over the prior 12 months was 5.15% as of October 27, 2026, paid twice a year. The SEC's standard example puts costs at $50 in year one on $10,000. 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.