Overview
Distillate Capital Partners LLC (Distillate or the “Firm”) is an Illinois limited liability company formed in 2017 with
its principal place of business in Chicago and is an investment adviser registered with the Securities and Exchange
Commission. Distillate is owned and controlled by its co-founders Thomas Cole, CFA; Jay Beidler, CFA; and Matt
Swanson, CFA.
Distillate offers investment advisory services to individuals, institutions and investment companies registered
under the Investment Company Act of 1940, as amended (each a “Client” and, together, “Clients”). Our investment
company Clients include the Distillate U.S. Fundamental Stability & Value ETF, the Distillate International
Fundamental Stability & Value ETF and the Distillate Small/Mid Cash Flow ETF (the Funds”), a series of ETF Series
Solutions (the “Trust”). The Trust is an open-end management investment company registered under the
Investment Company Act and the shares of the Trust are registered under the Securities Act of 1933, as amended.
Shares of the Funds are listed on a national securities exchange (NYSE Arca: DSTL, DSTX and DSMC respectively)
and trade at prevailing market prices. The Funds are subject to the general supervision of the Board of Trustees
of the Trust.
Distillate seeks to provide long-term investors with strong, after-fee returns by exploiting behavioral biases and
accounting distortions while mitigating risk. We do this using a quantitative approach to equity investing to distill
the starting universe down to only the stocks where quality and value overlap.
Separately Managed Accounts (SMAs)
Distillate offers separately managed account services to institutions and high net worth individuals seeking to
employ our methodology to a targeted investment universe. Individual portfolios are developed in consultation
with the Client, developing an appropriate starting universe to which Distillate’s quantitative approach is applied.
Clients may impose restrictions on investing in certain securities or types of securities. Distillate then continually
monitors the Client’s portfolio to ensure that the starting universe remains appropriate and the portfolio remains
consistent with the stated objectives. Separate accounts are managed subject to an investment management
agreement and Distillate typically maintains full discretion over investment selection and trading of separately
managed accounts. SMA strategies may be similar to or different from Funds
advised by Distillate, however we do
not invest SMA assets in affiliated funds. At this time, the Firm does not have any SMA Clients engaged for
providing investment advisory services.
Registered Investment Company – Exchange Traded Funds (ETFs)
Distillate serves as the primary adviser and index provider to the Distillate U.S. Fundamental Stability & Value
ETF, the Distillate International Fundamental Stability & Value ETF and the Distillate Small/Mid Cash Flow ETF.
Distillate has designed these Funds with the goal of distilling the available equity universes down to only those
stocks where Distillate’s measures of quality and value overlap.
Distillate has engaged Vident Asset Management LLC (“Vident”) to serve as the sub-adviser to the ETFs. Vident is
responsible for the day-to-day management of the Funds. Vident is a registered investment adviser, a wholly
owned subsidiary of Vident Financial, LLC, with its principal offices located in Georgia. Vident is responsible for
trading portfolio securities for the Funds, including selecting broker-dealers to execute purchase and sale
transactions or in connection with any rebalancing or reconstitution of the index, subject to the supervision of
Distillate and the Trustees. For its services, Vident is paid a fee by Distillate. The Funds investment objectives and
guidelines are set forth in investment advisory agreements and governing fund documents, including the
prospectus and statement of additional information.
Model-Only Delivery
Distillate offers its investment strategies as a Model-Only service offered though a Turnkey Asset Management
Program (“TAMPs”), where the Firm is responsible only for supplying lists of recommended securities holdings
and weightings that may correspond to strategies offered in other vehicles such as ETFs. Distillate does not have
discretion over any Client assets that have been engaged in such a model-only arrangement, and Clients are not
required to follow Distillate’s recommendations. Distillate is generally compensated by entities sponsoring Model-
Only client accounts with a fee based on the assets under advisement of such strategies. These fees, a percentage
of account values, may be lower than those fees for accounts for which Distillate exercises discretion.
As of December 31, 2023, Distillate managed approximately $1,607,209,186 in assets on a discretionary basis.
Distillate does not manage assets on a non-discretionary basis.