Generate excess return relative to a comparable U.S. equity market capitalization-weighted strategy over long-term periods (5 years or longer).
The Index is composed of approximately 500 of the largest U.S.-listed equity securities weighted by intrinsic value capitalization. The Index uses a proprietary, patent-pending valuation methodology developed by Diamond Hill Capital Management, Inc. to evaluate the 700 largest U.S.-listed equity securities by market capitalization.
Fundamental company data and consensus earnings per share estimates are used to estimate cash flows and determine terminal value at the end of five years. Cash flows are discounted to estimate intrinsic value and determine the intrinsic value capitalization for each of the 700 companies in the starting universe. A portfolio of the 500 largest companies by intrinsic value capitalization is created, eliminating the bottom 200. Each company is then weighted according to its intrinsic value capitalization as a percentage of the total portfolio capitalization. The Index is rebalanced and reconstituted quarterly to incorporate new data into the intrinsic value calculation.
Top Ten Holdings As Of January 19, 2018
|ALPHABET INC A-SHARES||3.2%|
|BERKSHIRE HATHAWAY INC-CL B||2.1%|
|JPMORGAN CHASE & CO||1.7%|
|JOHNSON & JOHNSON||1.4%|
|EXXON MOBIL CORP||1.3%|
|WELLS FARGO & CO||1.3%|
Index holdings are subject to change at any time and should not be viewed as a recommendation to buy or sell any security.
Prices AS OF January 22, 2018
Performance is not guaranteed. The performance data quoted represents past performance; past performance does not guarantee future results.
The Diamond Hill Valuation-Weighted 500 ("Diamond Hill Valuation-Weighted 500", the "Index") is an Index of Diamond Hill Capital Management, Inc. and is calculated and distributed by Solactive AG. The Index applies a version of the Diamond Hill Investment Model to estimate the intrinsic value of each company.
An investment cannot be made directly into an index.