Apple

Microsoft

Netflix

Visa

Berkshire Hathaway Inc. - Ordinary Shares - Class B

Mastercard

JPMorgan Chase & Co

Broadcom

NVIDIA

Principal U.S. Mega-Cap ETF

USMC is actively managed to offer exposure to the largest of the US large-cap segment. The fund uses a proprietary, quantitative model to construct the portfolio.

Principal U.S. Mega-Cap ETF provides concentrated, actively managed exposure to a select number of U.S. mega-caps. Fees are low at 0.12%, and the ETF has $2.35 billion in assets under management. Unlike market-cap-weighted alternatives like XLG, USMC assigns substantially different weights to its 42 holdings. Magnificent Seven exposure is 33% compared to 53% for XLG. The fund's prospectus indicates managers assign greater weight to stocks expected to be less volatile, but my analysis found little evidence this was the case. USMC's five-year beta is 1.03.

USMC: Why This Top Quality Mega-Cap ETF Disappoints

Principal U.S. Mega-Cap ETF is an actively managed fund that primarily invests in U.S. mega-cap companies. The USMC ETF's active, rules-based framework provides durability and stability during market volatility. The fund's heavy concentration in the technology sector could pose a risk if the sector underperforms.

USMC: Active Large Caps That Perform Like Passive

Principal U.S. Mega-Cap ETF (USMC) is an actively managed fund that invests in growth and value stocks of mega-cap companies within the top 50th percentile of the S&P 500 Index. USMC has a low expense ratio of 0.12 percent and has posted double-digit total returns over the past five years, despite a poor 2022. The fund is heavily focused on technology stocks, with over half of its assets invested in companies reliant on information and communication technology.

USMC: Low-Yielding Tech-Biased Portfolio Of Mega-Caps Generates Strong Returns

USMC selects stocks from the top 50th percentile by market value of the S&P 500, re-weighting the vast majority by a proprietary measure of financial strength. Fees are just 0.12%. Despite suggestions otherwise, USMC is not a low-volatility ETF by any stretch. Its 0.99 five-year beta and slightly lower standard deviation compared to SPY are our first clues.

USMC: Should You Buy This Low-Cost, Concentrated Mega-Cap ETF?

USMC offers a peculiar concentrated mix of mega-cap growth and value names with a tilt towards those that are less prone to frenetic price swings. This is a rare factor combination. There is one major downside. Names the fund selects for its portfolio are inherently overpriced, which is a perennial issue for the mega-cap league and especially for the IT sector.

USMC: An In-Between Vehicle

Is Principal U.S. MegaCap ETF (USMC) a Strong ETF Right Now?

Should Principal U.S. MegaCap ETF (USMC) Be on Your Investing Radar?

Flexshares US Quality Low Volatility Index Fund

Invesco S&P 500 Minimum Variance ETF

A recession may happen. Lowering your portfolio's beta can protect the huge gains you've racked up since Q1 2020. A way to do this is with low volatility ETFs. I'll present all 28 that I track, but will highlight three high-quality choices that don't get a lot of coverage.

Worried About A Recession? Try These 3 Cheap Low-Volatility ETFs

With inflation concerns continuing to linger in the background, markets have pulled back slightly from their upward momentum with the CPI shock last week. This week brings the retail side into focus with big box retailers such as Walmart and Home Depot reporting their earnings in what should be a barometer of consumer sentiment.

Big Box Stores Set to Report Earnings This Week

The #1 trillion infrastructure bill that is currently circulating through Senate this week would be a boon for poor and isolated communities in terms of access to internet. $65 billion of the bill is allocated to improving internet access for communities that do not currently have reliable or high-speed internet, reports the Wall Street Journal.

Infrastructure Bill Would Expand Country's Internet Access

On Tuesday, the S&P and Nasdaq indices hit new record highs as mega-cap stocks pushed even higher, according to Reuters. The technology sector saw a 1.1% bump to hit a new peak, from which the tech-heavy Nasdaq benefited.

Boosted by Earnings Reports, S&P and Nasdaq Hit New Heights

Multi-factor exchange traded funds hit some rough spots earlier this year due to value exposure, but the Principal U.S. Mega-Cap Multi-Factor Index ETF (NasdaqGM: USMC) stands as an example of a multi-factor ETF that is primed outperform in the new year. USMC, which tries to reflect the performance of the Nasdaq US Mega Cap Select [.

Why the USMC Multi-Factor ETF Deserves Your Attention in 2021

While 2020 was a trying year for some investment factors, others were mediocre, and even more flourished, a scenario underscoring the utility of multi-factor strategies such as the Principal U.S. Mega-Cap Multi-Factor Index ETF (NasdaqGM: USMC). USMC, which tries to reflect the performance of the Nasdaq US Mega Cap Select Leaders Index, is comprised of companies [.

Mega-Caps with Mega Returns? The USMC ETF

Principal Healthcare Innovators Index ETF

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ETF Trends CEO Tom Lydon spoke with Ed Nini, Global Head of Product Strategy for Principal Global Investors, about the tumultuous year that has been 2020 and what kinds of strategies have been put into place with various advisors to account for it. Specifically, Lydon wanted to hear from Nini about the trends in portfolio [.

Principal on Trends in Portfolio Construction Amid 2020 Volatility

Factor timing is difficult, which adds to the case for using multi-factor exchange traded funds. One prominent example is the Principal U.S. Mega-Cap Multi-Factor Index ETF (NasdaqGM: USMC).

A Solid Multi-Factor Approach for a Fickle ETF Market

Investors looking to tap the benefits of multiple investment factors under the umbrella of a single fund may find the Principal U.S. Mega-Cap Multi-Factor Index ETF (NasdaqGM: USMC) to their liking. USMC, which tries to reflect the performance of the Nasdaq US Mega Cap Select Leaders Index, is comprised of companies with the largest market [.

Here's a Strong Umbrella for Multiple Investment Factors

Vanguard Mega Cap Growth ETF

Stay-at-home orders, social distancing, and remote work have all fed into a funnel of opportunities in technology to help facilitate human interaction. As such, the tech-focused mega cap companies could continue to thrive well past the pandemic, especially the big names like Zoom and Amazon.

Mega Cap Companies Could Continue to Thrive Past the Pandemic

The Principal U.S. Mega-Cap Multi-Factor Index ETF (NasdaqGM: USMC), as its name implies, is a multi-factor exchange, but as a home to some of most well-known domestic mega-cap stocks, the fund offers investors some worthy exposure to the quality factor.

An Indirect, But Credible Quality Idea With This Multi-Factor ETF

Tech giants like Facebook, Apple, Google, Microsoft, and Amazon have thrived during the Covid-19 pandemic as individuals and businesses are utilizing more technology in order to adjust to the new normal. Even as economies start to reopen, it should be a seamless transition for these tech giants, which should duly benefit mega cap-focused exchange-traded funds [.

Capitalize on Further Strength in Megacaps with This ETF

As investors look for ways to better navigate the current markets, one may consider smart beta or multi-factor exchange traded fund strategies designed to help enhance and diversify an investment portfolio.

A Multi-Factor ETF Strategy to Participate in Today’s Market

ETF Trends CEO Tom Lydon discussed the Principal U.S. Mega-Cap Multi-Factor Index ETF (USMC) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

ETF of the Week: Principal U.S. Mega-Cap Multi-Factor Index ETF (USMC)

As investors look back into stocks, one may consider a de-risking ETF strategy that allows you to participate in the broad equity market and mitigate any further potential drawdowns.

A Way to Better Manage Equity Risk with a Low-Volatility ETF

Principal Exchange-Traded Funds - Principal International Multi-Factor Core Index ETF

Principal Exchange-Traded Funds - Principal U.S. Large-Cap Multi-Factor Core Index ETF

Principal Exchange-Traded Funds - Principal U.S. Small-MidCap Multi-Factor Core Index ETF

One timely way to de-risk client portfolios is by allocating U.S. equity investments to lower volatility companies.

De-Risk U.S. Equities with a Unique Low-Volatility Approach

iSh Russell1000 Shs

iShares Core Dividend Growth ETF

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JPMorgan Chase believes that the stock selloff is overdone. One can buy beaten-down ETFs with strong Zacks ranks, benchmark-beating yields and beta less than one.

Is the Virus-Induced Stock Selloff Overdone? ETFs to Buy Now

Prncpl SusMmnt Shs

Principal U.S. Small-Cap Multi-Factor Index ETF

Principal Quality ETF

Putnam Focused Large Cap Value ETF

Principal Value ETF

As investors consider incorporating smart beta exchange traded funds into a diversified investment portfolio, it is important to look at foundational concepts and the innovative approaches to make a more informed decision in factor allocation. On the recent webcast, Factor Investing 101: An Actionable Guide for Every Investor, Matthew Cohen, Senior ETF Specialist, Principal Global [.

News for Principal U.S. Mega-Cap ETF ETF (USMC)