BCHP - ETF AI Analysis

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Principal Focused Blue Chip ETF (BCHP)

Rating:73Outperform

Price Target:―

The Principal Focused Blue Chip ETF (BCHP) benefits from strong contributions by top holdings like Microsoft and Alphabet, which are supported by robust financial performance, strategic investments in AI and cloud, and positive long-term growth prospects. However, the ETF's overall rating is tempered by holdings such as Brookfield Corporation, which faces challenges from high leverage and valuation concerns. A key risk for the fund is its concentration in a few high-weighted holdings, which could amplify the impact of any underperformance in these stocks.

Positive Factors

Strong Top Holdings

Several key positions, such as Nvidia, Broadcom, and Alphabet, have delivered strong year-to-date performance, boosting the ETF’s overall returns.

Sector Diversification

The ETF spreads investments across multiple sectors, including Technology, Financials, and Consumer Cyclical, reducing reliance on any single industry.

Healthy Year-to-Date Performance

The fund has shown solid year-to-date gains, indicating resilience despite short-term fluctuations.

Negative Factors

High Geographic Concentration

With nearly all assets invested in U.S. companies, the ETF lacks exposure to international markets, limiting diversification.

Expense Ratio Above Average

The ETF’s expense ratio is higher than many low-cost alternatives, which could eat into long-term returns.

Short-Term Underperformance

Recent one-month performance has been negative, signaling potential volatility or short-term challenges.

BCHP vs. SPDR S&P 500 ETF (SPY)

AUM196.31M

RegionGlobal

Expense Ratio0.58%

Beta0.98

IssuerPrincipal

Inception DateJul 13, 2023

Dividend Yield0.92%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume26,285

30 Day Avg. Volume28,266

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

45.94

Price Target Upside― Downside

Rating ConsensusStrong Buy

Number of Analyst Covering22

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

BCHP Summary

The Principal Focused Blue Chip ETF (BCHP) is an investment fund that focuses on large, well-established companies with strong growth potential, often referred to as 'blue-chip' stocks. It includes industry leaders like Microsoft and Amazon, making it a great option for investors who want to invest in stable, high-performing businesses. With a focus on technology, financials, and consumer cyclical sectors, this ETF is designed for those seeking growth and diversification in their portfolio. However, new investors should be aware that the ETF’s performance is closely tied to the stock market, meaning its value can rise or fall depending on market conditions.

How much will it cost me?The Principal Focused Blue Chip ETF (BCHP) has an expense ratio of 0.58%, which means you’ll pay $5.80 per year for every $1,000 invested. This is higher than average because it is actively managed, focusing on selecting top-performing large-cap growth stocks rather than tracking an index.

What would affect this ETF?The Principal Focused Blue Chip ETF (BCHP) could benefit from continued innovation and growth in the technology sector, which makes up a significant portion of its holdings, as well as strong consumer spending trends that support its exposure to consumer cyclical stocks. However, rising interest rates or regulatory changes could negatively impact financial and technology companies, and global economic uncertainty might affect the performance of its multinational holdings. Diversification across sectors and geographic regions provides some resilience, but sector-specific risks remain important to monitor.

BCHP Top 10 Holdings

The Principal Focused Blue Chip ETF leans heavily into technology and consumer cyclical sectors, with names like Amazon, Microsoft, and Alphabet driving its performance. Alphabet stands out as a rising star, fueled by strong growth in AI and cloud services, while Microsoft shows mixed signals, balancing robust cloud momentum with recent stock weakness. Amazon is steady but losing steam due to valuation concerns. Brookfield Corporation, a financial heavyweight, adds global diversification but faces leverage risks. Overall, the fund’s tech-heavy tilt positions it for growth, though some holdings are grappling with valuation challenges.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
AMZN	Amazon	14.61%	$28.69M	$2.44T	-0.27%	71 Outperform
MSFT	Microsoft	14.00%	$27.48M	$3.60T	10.82%	79 Outperform
BN	Brookfield Corporation	10.13%	$19.88M	$114.94B	20.73%	65 Neutral
TDG	Transdigm Group	6.36%	$12.49M	$73.31B	0.99%	69 Neutral
GOOG	Alphabet Class C	5.36%	$10.52M	$3.75T	58.85%	82 Outperform
NVDA	Nvidia	4.81%	$9.44M	$4.46T	34.94%	76 Outperform
MA	Mastercard	4.74%	$9.31M	$516.98B	7.59%	75 Outperform
V	Visa	4.62%	$9.06M	$673.28B	10.21%	70 Outperform
CDNS	Cadence Design	4.49%	$8.81M	$86.44B	2.70%	78 Outperform
AVGO	Broadcom	3.99%	$7.84M	$1.62T	42.46%	76 Outperform

BCHP Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

37.52

Positive

100DMA

37.59

Positive

200DMA

36.03

Positive

Market Momentum

MACD

-0.06

Negative

RSI

55.60

Neutral

STOCH

70.69

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For BCHP, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 37.48, equal to the 50-day MA of 37.52, and equal to the 200-day MA of 36.03, indicating a bullish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 55.60 is Neutral, neither overbought nor oversold. The STOCH value of 70.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BCHP.

BCHP Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
BCHP	―	―	$196.31M	0.58%	―
FFLC	―	―	$922.31M	0.38%	―
TGRW	―	―	$919.38M	0.52%	―
FHEQ	―	―	$759.32M	0.48%	―
FFLG	―	―	$517.40M	0.38%	―
PCGG	―	―	$185.65M	0.85%	―

Performance Comparison

BCHP

Principal Focused Blue Chip ETF

37.76

2.82

8.07%

FFLC

Fidelity Fundamental Large Cap Core ETF

―

TGRW

T. Rowe Price Growth Stock ETF

―

FHEQ

Fidelity Hedged Equity ETF

―

FFLG

Fidelity Fundamental Large Cap Growth ETF

―

PCGG

Polen Capital Global Growth ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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