USMC - ETF AI Analysis

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

Rating:76Outperform

Price Target:

$77.00

The Principal U.S. Mega-Cap ETF (USMC) has a strong overall rating, reflecting the solid performance of its top holdings. Key contributors include Nvidia and Microsoft, which benefit from robust financial growth and strategic investments in AI and cloud services, positioning them well for future success. However, holdings like JPMorgan Chase and Costco have lower scores due to challenges such as credit costs and bearish market momentum, which slightly weigh on the fund’s overall rating. Investors should note the ETF's concentration in large-cap tech stocks, which could pose risks if the sector faces volatility.

Positive Factors

Strong Top Holdings

Several of the ETF's largest positions, including Nvidia, Alphabet, and Netflix, have delivered strong year-to-date performance, driving overall returns.

Sector Diversification

The fund is spread across multiple sectors like technology, financials, and consumer industries, reducing reliance on any single sector.

Low Expense Ratio

With a low expense ratio of 0.12%, this ETF is cost-efficient compared to many other funds, maximizing investor returns.

Negative Factors

High Concentration in Technology

Over 32% of the portfolio is allocated to technology stocks, making the fund vulnerable to downturns in this sector.

Limited Geographic Exposure

The ETF is almost entirely focused on U.S. companies, offering little diversification across global markets.

Recent Short-Term Weakness

The fund's one-month performance has been slightly negative, indicating potential short-term volatility.

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

AUM3.24B

RegionNorth America

Expense Ratio0.12%

Beta1.00

IssuerPrincipal

Inception DateOct 12, 2017

Dividend Yield0.79%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume82,007

30 Day Avg. Volume172,066

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

78.75

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering26

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

USMC Summary

The Principal U.S. Mega-Cap ETF (USMC) is an investment fund that focuses on the largest and most influential companies in the U.S. stock market. It includes well-known names like Microsoft and Apple, along with other major players across sectors like technology, finance, and healthcare. This ETF is designed for investors who want stability and potential long-term growth by investing in established, high-quality companies that drive the U.S. economy. However, since it primarily invests in large-cap stocks, its performance can be heavily influenced by market trends, meaning it may go up or down depending on the overall economy.

How much will it cost me?The Principal U.S. Mega-Cap ETF (USMC) has an expense ratio of 0.12%, meaning you’ll pay $1.20 per year for every $1,000 invested. This is lower than average because it’s passively managed, focusing on tracking large-cap stocks rather than actively picking investments.

What would affect this ETF?The Principal U.S. Mega-Cap ETF (USMC) could benefit from continued growth in the technology sector, which makes up a significant portion of its holdings, as well as strong consumer spending and innovation from companies like Apple and Nvidia. However, it may face challenges if interest rates rise, potentially impacting financial stocks, or if regulatory scrutiny increases for major tech firms like Microsoft and Alphabet. Economic conditions in the U.S., where the ETF is focused, will also play a key role in its performance.

USMC Top 10 Holdings

The Principal U.S. Mega-Cap ETF (USMC) leans heavily into technology, with Nvidia and Microsoft leading the charge thanks to their strong performance in AI and cloud services. Alphabet and Tesla are also rising stars, bolstered by bullish momentum and growth in AI and energy sectors, respectively. However, financial names like JPMorgan Chase and Visa are showing mixed signals, with challenges in credit costs and neutral market momentum holding them back. With a clear focus on U.S. mega-cap stocks, this fund is riding the wave of tech innovation while navigating headwinds in other sectors.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
NVDA	Nvidia	8.00%	$258.40M	$4.57T	37.03%	85 Outperform
AAPL	Apple	6.99%	$225.84M	$3.97T	20.16%	80 Outperform
MSFT	Microsoft	6.44%	$207.93M	$3.69T	21.05%	82 Outperform
GOOGL	Alphabet Class A	5.10%	$164.81M	$3.37T	60.85%	80 Outperform
JPM	JPMorgan Chase	4.79%	$154.74M	$855.36B	32.43%	72 Outperform
TSLA	Tesla	4.50%	$145.46M	$1.43T	27.21%	73 Outperform
COST	Costco	4.35%	$140.43M	$408.94B	-1.86%	68 Neutral
V	Visa	4.33%	$140.06M	$647.37B	7.70%	75 Outperform
AVGO	Broadcom	4.24%	$136.88M	$1.65T	100.32%	76 Outperform
MA	Mastercard	4.16%	$134.49M	$495.67B	4.31%	69 Neutral

USMC Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

67.94

Positive

100DMA

65.58

Positive

200DMA

62.01

Positive

Market Momentum

MACD

0.30

Positive

RSI

56.99

Neutral

STOCH

58.83

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For USMC, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 68.65, equal to the 50-day MA of 67.94, and equal to the 200-day MA of 62.01, indicating a bullish trend. The MACD of 0.30 indicates Positive momentum. The RSI at 56.99 is Neutral, neither overbought nor oversold. The STOCH value of 58.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for USMC.

USMC Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
USMC	―	―	$3.24B	0.12%	76 Outperform
DUHP	―	―	$9.89B	0.21%	75 Outperform
QQQI	―	―	$6.02B	0.68%	77 Outperform
TCAF	―	―	$6.02B	0.31%	73 Outperform
SPYI	―	―	$5.89B	0.68%	75 Outperform
FELC	―	―	$5.56B	0.18%	75 Outperform

Performance Comparison

USMC

Principal U.S. Mega-Cap ETF

69.26

10.50

17.87%

DUHP

Dimensional US High Profitability ETF

―

QQQI

NEOS Nasdaq 100 High Income ETF

―

TCAF

T. Rowe Price Capital Appreciation Equity ETF

―

SPYI

NEOS S&P 500 High Income ETF

―

FELC

Fidelity Enhanced Large Cap Core 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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