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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 driven by several strong small-cap holdings like Sezzle, Credo Technology Group, and Fabrinet, which show robust financial performance, positive earnings outlooks, and generally supportive technical trends. However, holdings such as Planet Labs and Chart Industries, which face profitability, valuation, and legal or operational challenges, likely weigh on the fund’s rating, and investors should note the risk that many top positions share issues around high valuations or leverage within the small-cap space.
Positive Factors
Strong Recent Performance
The ETF has shown steady gains over the past month, three months, and year-to-date, indicating positive recent momentum.
Leading Holdings Showing Solid Gains
Several of the top positions, such as TTM Technologies, Coeur Mining, and Centrus Energy, have delivered strong year-to-date performance, helping support the fund’s returns.
Broad Sector Diversification Within Small Caps
The fund spreads its investments across many sectors, including technology, health care, industrials, and financials, which helps reduce the impact if any one industry struggles.
Negative Factors
Higher Expense Ratio Than Some Broad ETFs
The fund’s expense ratio is meaningfully higher than many low-cost index ETFs, which can slightly reduce net returns over time.
Heavy Focus on U.S. Market
With almost all assets in U.S. stocks, the ETF offers little geographic diversification and is highly tied to the U.S. economic cycle.
Small-Cap Volatility Risk
Because it invests in smaller companies, the fund may experience larger price swings and higher risk during market downturns compared with large-cap funds.

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 across many sectors like technology, health care, and industrials. It doesn’t track a single index, but instead picks stocks using a rules-based approach that looks for traits such as strong business quality and attractive prices. Top holdings include companies like TTM Technologies and Guardant Health. An investor might choose PSC to seek long-term growth and diversify beyond large, well-known stocks. However, small-cap stocks can be more volatile, so the ETF’s price can move up and down 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 tech-and-health tilt, and a few fast movers are setting the tone. DigitalOcean and Planet Labs have been rising, giving the fund a lift as investors warm to smaller, growthy tech names. Hims & Hers has bounced recently but remains a bit of a roller coaster, adding volatility more than steady support. Fabrinet and Argan are steadier contributors, while Bread Financial and American Healthcare REIT look more mixed, occasionally dragging on returns. Overall, it’s a U.S.-only, small-cap growth story with a tech-heavy accent.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Planet Labs PBC1.00%$17.65M$9.65B725.15%
57
Neutral
Hims & Hers Health0.96%$16.83M$4.28B-36.45%
68
Neutral
Fabrinet0.83%$14.61M$17.62B149.04%
78
Outperform
DigitalOcean Holdings0.79%$13.93M$7.21B134.56%
73
Outperform
Bread Financial Holdings0.78%$13.81M$3.15B45.83%
72
Outperform
Zeta Global Holdings Corp0.78%$13.69M$3.62B9.22%
67
Neutral
Nextpower Inc0.77%$13.56M$16.71B166.99%
78
Outperform
Chart Industries0.75%$13.19M$9.90B43.25%
58
Neutral
Patterson-UTI0.72%$12.72M$4.19B34.43%
56
Neutral
BridgeBio Pharma0.72%$12.71M$13.45B100.64%
59
Neutral

PSC Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
59.46
Negative
100DMA
58.65
Negative
200DMA
56.70
Negative
Market Momentum
MACD
-0.84
Positive
RSI
36.35
Neutral
STOCH
27.08
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PSC, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 57.66, equal to the 50-day MA of 59.46, and equal to the 200-day MA of 56.70, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 36.35 is Neutral, neither overbought nor oversold. The STOCH value of 27.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSC.

PSC Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.76B0.38%
70
Outperform
$9.24B0.68%
74
Outperform
$6.79B0.30%
68
Neutral
$4.14B0.28%
65
Neutral
$2.42B0.25%
66
Neutral
$2.05B0.45%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PSC
Principal U.S. Small-Cap Multi-Factor ETF
55.66
6.53
13.29%
QQQI
NEOS Nasdaq 100 High Income 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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