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Diamond Hill Launches Active ETF DHLX

In a significant move for the investment community, Diamond Hill, a renowned boutique investment management firm based in Columbus, Ohio, has announced the successful conversion of its Large Cap Concentrated Fund into an Exchange-Traded Fund (ETF) named DHLX. This innovative step enhances Diamond Hill's offerings, aimed at providing more options for investors seeking active management and greater liquidity in their investments.

Transition from Mutual Fund to ETF

The transition from a mutual fund to an active ETF is a strategic one, designed to leverage the growing demand for flexibility in trading and transparency in the investment process. The Large Cap Concentrated ETF (DHLX) will hold between 20 to 30 carefully selected securities, embodying a concentrated approach that focuses on high-conviction investment philosophies.

Austin Hawley, CFA, who will manage DHLX, emphasized the importance of selectivity in investment strategies, stating, "The Large Cap Concentrated strategy underscores the power of selectivity and a high-conviction investment philosophy." With this move, Diamond Hill promises to maintain its intrinsic value-focused approach, ensuring that they deeply understand the valuations of the businesses in which they invest.

Investor-Friendly Features

One of the standout features of the DHLX ETF is its commitment to intraday liquidity, allowing investors the flexibility to buy and sell shares throughout the trading day. Additionally, investors will benefit from daily transparency regarding the fund's holdings, enabling them to make informed decisions based on current financial positions and overall market dynamics.

Heather Brilliant, CFA, the CEO of Diamond Hill, remarked, "At Diamond Hill, we evolve alongside our clients to provide solutions that best meet their long-term needs." This ethos is reflected in their ongoing commitment to innovation within the investment landscape, with plans for more portfolios and capabilities that may align well with active ETF structures in the future.

Focus on Client Goals

The inception of DHLX is not just about introducing a new product; it represents Diamond Hill's broader strategy of aligning with client interests. As of August 31, 2025, the firm managed assets totaling $32.8 billion, a testament to its commitment to delivering value to its investors through disciplined investing practices.

DHLX is designed for both seasoned investors and those new to the market, providing a robust platform for anyone looking to capitalize on market opportunities while holding a concentrated portfolio. The firm is confident that the ETF will not only enhance investment choices for clients but also reinforce its reputation as a leader in active asset management.

Understanding the Risks

However, potential investors should carefully consider the inherent risks associated with a more concentrated portfolio. As highlighted in their risk disclosure, because DHLX will hold a limited number of investments, any decline in the value of those specific securities may significantly impact overall performance. It’s crucial for investors to be informed and understand these dynamics before engaging with the fund.

Commitment to Transparency

In maintaining a culture of transparency, all essential information about the fund's objectives, risks, and expenses will be readily available in the prospectus and summary prospectus, which can be found on the company’s dedicated website. Diamond Hill encourages potential investors to read these documents closely to comprehend all aspects of their investment thoroughly.

In summary, the launch of the Large Cap Concentrated ETF (DHLX) marks an exciting new chapter for Diamond Hill, signifying a progressive approach to asset management that reflects the needs and expectations of modern investors. As they continue to innovate and grow, Diamond Hill remains dedicated to ensuring that client interests remain at the forefront of all strategic decisions.