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 because it is built around high-quality leaders like Alphabet, Apple, Microsoft, and Nvidia, all showing strong financial performance, positive earnings commentary, and promising growth in areas like AI, cloud, and services. The rating is held back somewhat by holdings such as Costco, Visa, and Mastercard, where bearish technical trends and rich valuations introduce more uncertainty. The main risk is that the fund is heavily exposed to a concentrated group of large U.S. growth and tech-oriented companies, so weakness in this segment of the market could weigh on the ETF.

Positive Factors

Low Expense Ratio

The fund charges relatively low fees, which helps investors keep more of their returns over time.

Exposure to Leading Mega-Cap Companies

The ETF holds many of the largest and most established U.S. companies, which can provide stability and strong business fundamentals.

Broad Sector Diversification

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

Negative Factors

Recent Weak Performance

The ETF has shown negative returns over the past month, three months, and year to date, which may concern investors looking for near-term strength.

Concentration in a Few Large Stocks

A significant portion of the fund is invested in a small group of mega-cap names, so poor results from these companies could weigh heavily on the ETF.

Heavy U.S.-Only Exposure

With almost all assets in U.S. companies, the fund offers little geographic diversification and is highly tied to the U.S. market’s fortunes.

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

AUM3.10B

RegionNorth America

Expense Ratio0.12%

Beta1.01

IssuerPrincipal

Inception DateOct 12, 2017

Dividend Yield0.8%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume122,828

30 Day Avg. Volume127,716

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

82.59

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering25

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

USMC Summary

The Principal U.S. Mega-Cap ETF (USMC) focuses on the biggest and most established U.S. companies, aiming to give investors broad exposure to America’s corporate giants rather than tracking a specific index. It holds well-known names like Apple, Microsoft, Nvidia, and JPMorgan Chase, spread across technology, finance, health care, and consumer sectors. Someone might invest in this ETF to seek long-term growth and stability from leading blue-chip companies while getting diversification in a single fund. A key risk is that it is heavily tilted toward large U.S. stocks, especially tech, so its value can rise and fall 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 leaning heavily on U.S. mega-cap tech and communication giants, with Nvidia and Alphabet doing much of the heavy lifting as their AI and cloud stories keep momentum rising. Costco and Exxon Mobil add a steady, defensive backbone, quietly supporting returns from retail strength and energy resilience. On the flip side, Apple, Microsoft, and Tesla have been losing steam lately, acting as a drag just when tech leadership matters most. Overall, this is a U.S.-only, Big Tech–tilted fund where a handful of household names largely set the tone.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
NVDA	Nvidia	8.10%	$249.71M	$4.62T	40.48%	76 Outperform
AAPL	Apple	7.19%	$221.73M	$4.04T	14.06%	79 Outperform
GOOGL	Alphabet Class A	5.70%	$175.85M	$3.76T	67.06%	85 Outperform
MSFT	Microsoft	5.25%	$161.91M	$3.00T	-1.50%	79 Outperform
XOM	Exxon Mobil	5.00%	$154.01M	$656.02B	43.86%	74 Outperform
JPM	JPMorgan Chase	4.77%	$146.95M	$846.13B	12.48%	72 Outperform
COST	Costco	4.62%	$142.41M	$434.17B	-9.17%	72 Outperform
TSLA	Tesla	4.50%	$138.77M	$1.61T	20.32%	73 Outperform
V	Visa	4.26%	$131.30M	$627.53B	-7.42%	70 Outperform
AVGO	Broadcom	4.17%	$128.48M	$1.63T	45.36%	76 Outperform

USMC Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

68.23

Negative

100DMA

68.14

Negative

200DMA

65.04

Positive

Market Momentum

MACD

-0.12

Negative

RSI

48.09

Neutral

STOCH

71.84

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For USMC, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 67.72, equal to the 50-day MA of 68.23, and equal to the 200-day MA of 65.04, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 71.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for USMC.

USMC Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
USMC	―	―	$3.10B	0.12%	―
QQQI	―	―	$8.54B	0.68%	―
SPYI	―	―	$7.78B	0.68%	―
FELC	―	―	$6.51B	0.18%	―
DIVO	―	―	$6.49B	0.56%	―
TCAF	―	―	$6.39B	0.31%	―

Performance Comparison

USMC

Principal U.S. Mega-Cap ETF

67.73

5.35

8.58%

QQQI

NEOS Nasdaq 100 High Income ETF

―

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

―

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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