USMC - ETF AI Analysis

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

Rating:74Outperform

Price Target:―

USMC, the Principal U.S. Mega-Cap ETF, earns a solid overall rating largely because it is built around high-quality leaders like Alphabet, Apple, Microsoft, and Nvidia, which all show strong financial performance, positive earnings commentary, and promising growth in areas like AI, cloud, and services. Some holdings such as Costco, Visa, and Netflix face bearish technical trends or rich valuations, which slightly weigh on the fund’s rating. The main risk is that many of its biggest positions are expensive and exposed to similar themes like AI and U.S. mega-cap growth, so a downturn in these areas could impact the ETF more sharply.

Positive Factors

Leading Mega-Cap Holdings

The ETF is built around many of the largest and most established U.S. companies, several of which have shown strong recent performance and help support the fund’s returns.

Sector Diversification Across the U.S. Economy

Holdings spread across technology, financials, communication services, consumer sectors, health care, and more help reduce the impact if any one industry struggles.

Low Expense Ratio

The fund’s relatively low annual fee means less of your return is eaten up by costs compared with many actively managed alternatives.

Negative Factors

Heavy U.S.-Only Exposure

With almost all assets in U.S. stocks, the ETF offers little protection if the U.S. market underperforms other regions.

Concentration in a Handful of Tech and Financial Giants

A significant portion of the portfolio is tied up in a small group of large technology and financial stocks, which increases the impact if those specific companies or sectors decline.

Mixed Performance Among Top Holdings

While some major positions have been strong performers, others have recently lagged, which can create uneven results for the fund.

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

AUM3.26B

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. Volume181,299

30 Day Avg. Volume131,295

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

83.12

Price Target Upside― Downside

Rating ConsensusStrong Buy

Number of Analyst Covering27

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

USMC Summary

The Principal U.S. Mega-Cap ETF (USMC) invests in many of the biggest and most powerful U.S. companies, aiming to capture the strength of mega-cap stocks across the market. It doesn’t track a specific index, but follows a large-cap, broad-based theme with heavy exposure to technology, finance, and communication services. Well-known holdings include Apple, Microsoft, Nvidia, and JPMorgan Chase. Someone might invest in this ETF for long-term growth and diversification in leading U.S. businesses. A key risk is that it is heavily tilted toward large tech-related companies, so its value can rise and fall sharply with that part of the market.

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

USMC is riding a powerful U.S. mega-cap wave, with Nvidia and Broadcom doing much of the heavy lifting as AI-focused chip demand keeps their shares rising. Big Tech remains the fund’s heartbeat: Alphabet and Meta are adding steady fuel, while Apple is perking up after a softer stretch. Microsoft and Mastercard, however, look more like brakes than engines lately, with performance still mixed to lagging. With all holdings rooted in the U.S. and heavily tilted toward technology and communication services, the fund’s fortunes are closely tied to America’s biggest digital powerhouses.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
NVDA	Nvidia	7.88%	$255.87M	$4.82T	74.38%	76 Outperform
AAPL	Apple	6.68%	$217.02M	$4.06T	39.19%	79 Outperform
GOOGL	Alphabet Class A	6.55%	$212.73M	$4.62T	133.39%	85 Outperform
AVGO	Broadcom	5.54%	$180.10M	$1.97T	107.50%	76 Outperform
MSFT	Microsoft	5.02%	$163.09M	$3.07T	-5.17%	79 Outperform
MU	Micron	4.60%	$149.56M	$650.08B	616.80%	79 Outperform
JPM	JPMorgan Chase	4.36%	$141.56M	$824.35B	21.81%	72 Outperform
V	Visa	4.34%	$141.08M	$615.83B	-6.25%	70 Outperform
AMZN	Amazon	4.32%	$140.40M	$2.93T	45.99%	71 Outperform
COST	Costco	4.26%	$138.45M	$449.33B	-0.21%	72 Outperform

USMC Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

66.84

Positive

100DMA

67.34

Positive

200DMA

66.84

Positive

Market Momentum

MACD

1.14

Negative

RSI

67.78

Neutral

STOCH

80.79

Negative

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 68.84, equal to the 50-day MA of 66.84, and equal to the 200-day MA of 66.84, indicating a bullish trend. The MACD of 1.14 indicates Negative momentum. The RSI at 67.78 is Neutral, neither overbought nor oversold. The STOCH value of 80.79 is Negative, 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	―	―	$3.26B	0.12%	74 Outperform
SPYI	―	―	$9.21B	0.68%	74 Outperform
FELC	―	―	$7.09B	0.18%	74 Outperform
DIVO	―	―	$6.96B	0.56%	70 Neutral
TCAF	―	―	$6.91B	0.31%	71 Outperform
GRNY	―	―	$4.36B	0.75%	73 Outperform

Performance Comparison

USMC

Principal U.S. Mega-Cap ETF

70.37

13.47

23.67%

SPYI

NEOS S&P 500 High Income ETF

―

FELC

Fidelity Enhanced Large Cap Core ETF

―

DIVO

Amplify CWP Enhanced Dividend Income ETF

―

TCAF

T. Rowe Price Capital Appreciation Equity ETF

―

GRNY

Fundstrat Granny Shots US Large Cap 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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