The Diamond Hill Valuation-Weighted 500 ETF (DHVW) is a smart alternative to classic S&P 500 funds because it is forward-looking and focuses on intrinsic value, said Ric Dillon, CEO of Diamond Hill Capital Management. Dillon added that traditional market cap-weighted indexes are based on current price and can overweight overvalued securities and underweight those that may be undervalued. He said Diamond Hill’s ETF starts with a universe of the 700 largest U.S.-listed companies and estimates the intrinsic value for each. It then takes the 500 largest of these companies into the fund and weights them according to their intrinsic values.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
