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PSC - ETF AI Analysis

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PSC

Principal U.S. Small-Cap Multi-Factor ETF (PSC)

Rating:70Outperform
Price Target:
PSC, the Principal U.S. Small-Cap Multi-Factor ETF, has a solid overall rating that reflects a mix of strong growth stories and some financial and valuation risks among its small-cap holdings. Standout positions like Sezzle and TTM Technologies support the fund’s quality with strong financial performance, positive earnings calls, and bullish technical trends, while names like Guardant Health and Hims & Hers Health introduce more risk due to financial instability, high leverage, or overvaluation. The main risk factor is the fund’s exposure to smaller companies where high valuations and weaker balance sheets can make returns more volatile.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year, showing solid momentum in its small-cap strategy.
Well-Diversified Across Sectors
Holdings are spread across many industries like health care, financials, technology, and industrials, which helps reduce the impact of weakness in any one sector.
Multiple Strong Top Holdings
Several of the largest positions, including companies like WisdomTree, BrightSpring Health Services, and Marex Group, have shown strong performance, supporting the fund’s overall results.
Negative Factors
Single-Country Focus
Almost all assets are invested in U.S. companies, so the fund offers little geographic diversification if the U.S. market struggles.
Exposure to Underperforming Stock
One of the top holdings, Freshworks, has shown weak performance this year, which can drag on the ETF’s returns if it continues to lag.
Moderate Expense Ratio
The fund’s expense ratio is not especially low for an ETF, meaning fees may slightly reduce long-term returns compared with cheaper options.

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

PSC Summary

PSC, the Principal U.S. Small-Cap Multi-Factor ETF, invests in a wide mix of smaller U.S. companies and does not track a single index, but instead follows a rules-based “multi-factor” approach that looks for quality, value, momentum, and stability. It spreads money across many sectors like health care, financials, and technology, with holdings such as Brinker International and Freshworks. Someone might invest in PSC to seek long-term growth and diversify beyond large, well-known stocks. A key risk is that small-cap stocks can be more volatile, so the ETF’s value can rise and fall more sharply than the overall market.
How much will it cost me?The Principal U.S. Small-Cap Multi-Factor ETF (PSC) has an expense ratio of 0.38%, which means you’ll pay $3.80 per year for every $1,000 invested. This cost is slightly higher than average for ETFs because it uses an active multi-factor strategy to select stocks, rather than passively tracking an index.
What would affect this ETF?The Principal U.S. Small-Cap Multi-Factor ETF (PSC) could benefit from economic growth and innovation in the U.S., particularly in sectors like Technology and Health Care, which are heavily weighted in the fund. However, it may face challenges from rising interest rates or economic slowdowns, which can negatively impact small-cap companies and sectors like Consumer Cyclical and Financials. Regulatory changes or shifts in market sentiment toward small-cap stocks could also influence its performance.

PSC Top 10 Holdings

PSC is leaning into U.S. small caps with a clear tilt toward health care and financial names, and that’s where much of the action is. High-flyers like 10x Genomics and BrightSpring Health are giving the fund a real growth kick, riding strong momentum despite shakier fundamentals. Marex Group and Bread Financial are also pulling their weight, adding steady support from the financial side. On the flip side, MYR Group has been wobbling lately, and Zeta Global is losing steam, modestly dragging on an otherwise broadly diversified, U.S.-focused lineup.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Zeta Global Holdings Corp0.89%$20.65M$6.64B52.83%
67
Neutral
Brinker International0.88%$20.31M$9.66B49.61%
70
Neutral
WisdomTree0.82%$18.85M$3.22B67.98%
71
Outperform
Freshworks0.76%$17.44M$3.09B-2.60%
72
Outperform
Bread Financial Holdings0.74%$17.00M$4.16B85.76%
72
Outperform
Twist Bioscience0.73%$16.85M$7.25B351.97%
43
Neutral
10x Genomics0.71%$16.39M$6.61B375.79%
60
Neutral
Black Hills0.70%$16.20M$5.69B22.06%
74
Outperform
CareTrust REIT0.69%$15.85M$9.74B22.97%
80
Outperform
Marex Group plc0.67%$15.57M$4.37B73.05%
73
Outperform

PSC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
68.28
Positive
100DMA
65.22
Positive
200DMA
61.84
Positive
Market Momentum
MACD
0.67
Negative
RSI
64.59
Neutral
STOCH
86.99
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PSC, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 68.99, equal to the 50-day MA of 68.28, and equal to the 200-day MA of 61.84, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 64.59 is Neutral, neither overbought nor oversold. The STOCH value of 86.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSC.

PSC Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.45B0.38%
70
Outperform
$8.40B0.18%
73
Outperform
$8.33B0.30%
68
Neutral
$6.38B0.28%
64
Neutral
$3.15B0.25%
67
Neutral
$2.46B0.45%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PSC
Principal U.S. Small-Cap Multi-Factor ETF
70.76
16.92
31.43%
FELC
Fidelity Enhanced Large Cap Core ETF
DFSV
Dimensional US Small Cap Value ETF
FESM
Fidelity Enhanced Small Cap ETF
AVSC
Avantis U.S Small Cap Equity ETF
BSVO
EA Bridgeway Omni Small-Cap Value 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.
DisclaimerThis 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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