DFNL vs PSR

DFNLBDavis Select Financial ETF

PSRAInvesco Active U.S. Real Estate ETF

In short

DFNL Most financials ETFs hand you the whole sector by market cap. DFNL hands you roughly 30 banks and insurers, picked one at a time by Davis, a firm that has been investing since 1969.

PSR Active REIT stock-picking without the active price tag: since 2008, PSR has run a tight book of about 30 US property names for 0.35% a year, roughly half the median fee among active US equity ETFs.

Stated mandate

DFNL The Fund seeks long-term growth of capital.

PSR The Fund seeks high total return through capital appreciation and current income, investing principally in equity real estate investment trusts.

Why people hold it

• DFNL Genuinely active, not index-plus. The prospectus sets a 15 to 35 stock range and puts at least 80% in financial services, so security selection shapes the book, not index weights.sec.gov
• Patient by design. Reported portfolio turnover has run low since launch, and the prospectus is blunt that turnover drives trading costs and taxable gains.sec.govsec.gov 2
• The 0.61% fee sits near the going rate among the 35 active sector-equity ETFs we track, and it is the full sticker: no waiver dressing it up, nothing to expire.
• One of the stronger implementations in its active sector-equity peer group, built on the same Davis Investment Discipline the firm applies across its funds.sec.gov

• PSR 0.35% a year against a 0.65% median for active US equity ETFs. Active management without the usual active-management markup.
• Running since 2008, across multiple rate regimes and property cycles, and it sits in the upper half of its active US equity peer group.
• Concentrated by design: about 30 equity REITs, so each holding carries real weight instead of being diluted across the entire property market.invesco.com
• The mandate targets capital appreciation plus current income from equity REITs, and the fund distributes quarterly.invesco.com

Worth knowing

• DFNL Non-diversified on purpose. About 30 names in one sector means a stumble at a big holding lands hard, with no other sectors to soften it.sec.gov
• Thinly traded compared with the giant index financials funds, and mid-size in assets, so spreads can widen and order placement matters more.
• Income is a byproduct here. Distributions land once or twice a year, not monthly, and the stated objective is long-term growth of capital.

• PSR Thinly traded. Spreads can widen and larger orders can move the price more than they would in a heavily traded index fund.
• One sector, one economy: US property. When rates jolt REITs, the portfolio has no other sector to lean on.
• Assets stay modest next to the giant index REIT funds, and smaller ETFs generally face a higher bar to stay open over the long haul.

Full DFNL profile⁠

Full PSR profile⁠