Shareholder Report
Jul. 31, 2026
USD ($)
Holding
This report describes changes to the Fund that occurred during the reporting period.
What were the Fund expenses for the last year?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Davis Research Fund (Class A) |
$77 | 0.68% |
Management’s Discussion of Fund Performance
Summary of Results
The Fund outperformed the Standard & Poor’s 500 Index (“S&P 500” or the “Index”) for the period. The Fund’s Class A shares delivered a total return on net asset value of 25.43%, versus a 19.56% return for the S&P 500. The Fund invests principally in common stocks (including American Depositary Receipts) issued by medium- and large-capitalization companies. The Fund considers companies with market capitalizations between $3 billion and $10 billion to be medium-capitalization companies and companies with market capitalizations of at least $10 billion to be large-capitalization companies. The Fund has the flexibility to invest in foreign securities.
Market Overview
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S&P 500
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Strongest performing sectors - Energy (+41%), Health Care (+27%), and Information Technology (+26%)
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Weakest performing sectors - Utilities (+6%), Consumer Discretionary (+8%), and Consumer Staples (+10%)
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Contributors to Performance
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Information Technology - outperformed the Index sector (+63% vs +26%)
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Samsung Electronics (+262%), Applied Materials (+184%), Lam Research (+211%), and Texas Instruments (+56%)
- four largest individual contributors -
Silergy (+41%) - new purchase during the period
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Financials - outperformed the Index sector (+17% vs +11%)
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U.S. Bancorp (+46%), Danske Bank (+58%), and Fifth Third Bancorp (+40%)
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Health Care - outperformed the Index sector (+50% vs +27%)
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Consumer Staples - outperformed the Index sector (+21% vs +10%) and underweight (average weighting 2% vs 5%)
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Individual holdings
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Amazon.com (+16%) and Alphabet (+85%)
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Detractors from Performance
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Consumer Discretionary - underperformed the Index sector (+2% vs +8%) and overweight (average weighting 15% vs 10%)
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Entain (-45%), Sea (-32%), and Prosus (-20%)
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Overweight in Financials (average weighting 32% vs 13%)
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Rocket Companies (-13%)
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Communication Services - underperformed the Index sector (-2% vs +19%)
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Meta Platforms (-28%) and Pinterest (-38%)
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Industrials - underperformed the Index sector (-6% vs +20%)
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DiDi Global (-43%) - new purchase during the period
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Individual Information Technology holdings
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SAP (-36%) - largest individual detractor
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Oracle (-48%) and Synopsys (-35%)
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Synopsys - new purchase during the period
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Fund Performance
The following graph compares the initial and subsequent account values of a $10,000 investment in the Fund and the S&P 500 Index over 10 fiscal years for an investment made on July 31, 2016.
GROWTH OF $10,000
| AVERAGE ANNUAL TOTAL RETURN FOR PERIODS ENDED 07/31/26 | 1 Year | 5 Years | 10 Years |
| Davis Research Fund (Class A) — Without sales charge | 25.43% | 12.32% | 14.30% |
| Davis Research Fund (Class A) — With sales charge* | 19.47% | 11.24% | 13.75% |
| S&P 500 Index | 19.56% | 12.85% | 15.07% |
|
* |
Reflects 4.75% front-end sales charge. |
Key Fund Statistics
| Fund net assets as of 07/31/26 (in millions) | $88.5 |
| Total number of portfolio holdings as of 07/31/26 | 66 |
| Portfolio turnover rate for the period | 26% |
| Total advisory fees paid for the period (in thousands) | $444.8 |
Top Sectors as of 07/31/26 Net Assets
| Financials | 29.38% |
| Information Technology | 26.18% |
| Consumer Discretionary | 13.45% |
| Communication Services | 5.01% |
| Health Care | 4.20% |
How has the Fund changed?
At a meeting held on September 15, 2026, the Board of Directors of Davis New York Venture Fund, Inc. approved an Agreement and Plan of Reorganization between Davis Research Fund and Davis Select U.S. Equity ETF (and the Board of Trustees of Davis Fundamental ETF Trust has similarly reviewed and approved). The Reorganization will be presented to stockholders of Davis Research Fund at a special meeting of stockholders, which is scheduled to be held on or about November 10, 2026. If approved by stockholders, the Reorganization is expected to take place on November 13, 2026, with Davis Select U.S. Equity ETF, through a tax-free exchange, acquiring all of the net assets of Davis Research Fund Class A.
This is a summary of certain planned changes to the Fund since July 31, 2026. For more complete information, you may review the Fund’s next supplement to its prospectus, which we expect to be available by October 9, 2026 at https://dsainternal.davis.local/html/fundinfo/fundinfo.html or upon request by contacting Investor Services (1-800-279-0279 and dvsinvestor.services@dsaco.com).
This is a summary of certain planned changes to the Fund since July 31, 2026. For more complete information, you may review the Fund’s next supplement to its prospectus, which we expect to be available by October 9, 2026 at https://dsainternal.davis.local/html/fundinfo/fundinfo.html or upon request by contacting Investor Services (1-800-279-0279 and dvsinvestor.services@dsaco.com).