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USMC - ETF AI Analysis
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Principal U.S. Mega-Cap ETF (USMC)
Rating:73Outperform
Price Target:―
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)
AUM3.30B
RegionNorth America
Expense Ratio0.12%
Beta1.00
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. Volume86,309
30 Day Avg. Volume170,073
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
79.82Price 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) 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 leans heavily on tech titans like Nvidia and Apple, which are driving performance with their focus on AI and services expansion, respectively. Alphabet is another standout, rising steadily thanks to its investments in AI and cloud services. However, Microsoft’s recent dip and Visa’s mixed signals are holding the fund back slightly. With over 30% of the portfolio in technology and a strong U.S. focus, this ETF is a bet on innovation and stability, though some names are showing signs of overvaluation.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Nvidia | 7.52% | $248.51M | $4.46T | 26.42% | 76 Outperform | |
| Apple | 7.29% | $240.83M | $4.15T | 15.50% | 79 Outperform | |
| Microsoft | 6.09% | $201.45M | $3.57T | 8.63% | 73 Outperform | |
| Alphabet Class A | 5.76% | $190.35M | $3.84T | 83.98% | 80 Outperform | |
| JPMorgan Chase | 4.69% | $154.87M | $860.51B | 28.77% | 72 Outperform | |
| Tesla | 4.61% | $152.44M | $1.51T | 23.02% | 73 Outperform | |
| Broadcom | 4.54% | $150.22M | $1.80T | 123.52% | 76 Outperform | |
| Costco | 4.28% | $141.42M | $397.02B | -8.80% | 68 Neutral | |
| Visa | 4.19% | $138.42M | $626.10B | 5.83% | 75 Outperform | |
| Mastercard | 4.11% | $135.94M | $486.99B | 3.34% | 69 Neutral |
USMC Technical Analysis
Positive
―
Price Trends
68.24
Positive
66.52
Positive
62.49
Positive
Market Momentum
0.13
Negative
55.43
Neutral
91.02
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 68.08, equal to the 50-day MA of 68.24, and equal to the 200-day MA of 62.49, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 55.43 is Neutral, neither overbought nor oversold. The STOCH value of 91.02 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
Performance Comparison
USMC
Principal U.S. Mega-Cap ETF
68.81
8.15
13.44%
QQQI
NEOS Nasdaq 100 High Income ETF
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―
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SPYI
NEOS S&P 500 High Income ETF
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TCAF
T. Rowe Price Capital Appreciation Equity ETF
―
―
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FELC
Fidelity Enhanced Large Cap Core ETF
―
―
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DIVO
Amplify CWP Enhanced Dividend Income ETF
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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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