DSMC: DISTILLATE SMALL/MID CASH FLOW ETF
ETF Education Report: Distillate Small/Mid Cash Flow ETF (DSMC)
The Distillate Small/Mid Cash Flow ETF (DSMC) is designed to invest in small and mid-sized companies with a focus on cash flow. Based on the data, this ETF has shown strong price growth over the last three years and provides a modest income stream through quarterly distributions.
What this ETF is trying to do
DSMC invests in a diversified group of 152 companies. Its strategy focuses on small and mid-cap stocks. As of October 12, 2026, its Top Holdings include Skyworks Solutions Inc (2.08%), Versant Media Group Inc Class A (1.2%), and DXC (1.14%). Because holdings can change over time, these weights may shift.
What the numbers show
The data shows a positive trend in both share price and total returns:
• Year-to-Date (YTD): The price return is 20.34%, while the total return is 21.40%.
• One Year: The price return is 20.78%, and the total return is 22.36%.
• Three Year: The price return is 41.61%, and the total return is 46.97%.
Price return measures only the change in the share price. Total return is a broader measure that includes the distributions paid to investors. In this case, the total return is higher than the price return, meaning distributions added to the overall gain.
For a simple example, the estimated price from roughly one year ago was $35.34. If an investor had put $10,000 into the ETF at that estimated price, the price-only growth (20.78%) would have increased the value of those shares to approximately $12,078.
Income and Distribution Explanation
DSMC usually pays distributions quarterly. Over the last 12 months, it has made 4 payments. The distribution yield is 1.17%.
It is important for beginners to remember that a distribution yield is not the same as a total return. While this ETF provides some cash income, the majority of its recent growth has come from the increase in its share price.
NAV Erosion Explanation
"NAV erosion" happens when the net asset value of a fund's holdings declines over time. The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, looking at price-based evidence, the erosion score is 100, and the label states "No price erosion detected." The severe erosion-risk flag is also false.
Pros
• Strong Growth: The ETF has shown significant price and total returns over the one-year and three-year periods.
• Positive Risk Score: It has a "good" erosion severity rating.
• Income Grade: It has an income rating grade of "A."
Cons
• Low Yield: The distribution yield is relatively low (1.17%) for investors seeking high immediate cash income.
• Market Risk: As a small/mid-cap fund, it is subject to the volatility of those specific company sizes.
Beginner Takeaway
DSMC is a fund that has combined steady price growth with a small amount of quarterly income. While it does not offer a very high yield, its total returns have been strong over the last three years. Investors typically use funds like this for a mix of growth and modest income.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | SKYWORKS SOLUTIONS INC | SWKS | 2.08% |
| 2 | VERSANT MEDIA GROUP INC CLASS A | VSNT | 1.20% |
| 3 | n/a | DXC | 1.14% |
| 4 | INVESCO LTD | IVZ | 1.12% |
| 5 | APA CORP | APA | 1.11% |
| 6 | GARTNER INC | IT | 1.05% |
| 7 | TOLL BROTHERS INC | TOL | 1.05% |
| 8 | GAP INC | GAP | 1.03% |
| 9 | MASCO CORP | MAS | 1.02% |
| 10 | CARLISLE COMPANIES INC | CSL | 1.01% |