DSTL - DSTL: With A Solid Share Of Holdings Replaced This FCF Strategy Remains A Buy
2024-04-06 00:47:36 ET
Summary
- DSTL, an actively managed vehicle focused on top-quality U.S. stocks with copious free cash flows, has reconstituted its portfolio since my December note.
- DSTL has become more attractive from a valuation standpoint, with quality definitely remaining robust. Unfortunately, there is something to dislike about growth.
- I am of the opinion that there are ample reasons for a Buy rating.
- Among the factors that secure a bullish view are its top-quality equity mix, an approximately 5% levered FCF yield, and robust past performance delivered since its inception in 2018.
Today's note is supposed to offer a quarterly sentiment update on the Distillate U.S. Fundamental Stability & Value ETF ( DSTL ), an actively managed cash flow-centered exchange-traded fund that I upgraded to a Buy in December 2023. Even though since then DSTL has underperformed the S&P 500 index slightly, a downgrade to a Hold is unjustified....
DSTL: With A Solid Share Of Holdings Replaced, This FCF Strategy Remains A Buy