Principal Value ETF (PY)

US ETF Principal Value ETF - Summary Overview

Profile:

The Principal U.S. Large-Cap Multi-Factor Core Index ETF (USMV) is an exchange-traded fund that invests in large-cap U.S. stocks based on a multi-factor approach. The fund seeks to track the performance of the Nasdaq US Large-Mid Cap Multi-Factor Core Index.

Objective:

The primary objective of USMV is to provide long-term capital appreciation through investment in large-cap U.S. stocks selected based on fundamental factors such as value, growth, momentum, and quality.

Issuer:

USMV is issued by Principal Global Investors, a subsidiary of Principal Financial Group. Principal Financial Group is a Fortune 500 company with over 130 years of experience in the financial services industry.

Market Share:

USMV is a relatively new ETF with a market share of 0.1% in the large-cap multi-factor ETF space.

Total Net Assets:

As of November 10, 2023, USMV has total net assets of approximately $200 million.

Moat:

USMV's competitive advantage lies in its low-cost structure, multi-factor approach, and access to the expertise of Principal Global Investors. The fund has an expense ratio of 0.15%, which is significantly lower than many actively managed large-cap funds.

Financial Performance:

USMV's financial performance has been strong since its inception in November 2021. The fund has outperformed its benchmark index by 0.7% on an annualized basis.

Benchmark Comparison:

The fund has consistently outperformed its benchmark index, the Nasdaq US Large-Mid Cap Multi-Factor Core Index. This indicates that the fund's multi-factor approach is effective in generating alpha.

Growth Trajectory:

The multi-factor ETF market is expected to grow at a healthy pace in the coming years. This growth is being driven by the increasing demand for low-cost, passively managed investment solutions.

Liquidity:

USMV has an average daily trading volume of over 50,000 shares, which indicates good liquidity. The bid-ask spread is relatively tight, indicating low transaction costs.

Market Dynamics:

The performance of USMV is influenced by various factors, including economic conditions, interest rates, and investor sentiment. The fund is also sensitive to changes in the performance of its underlying holdings.

Competitors:

Key competitors in the large-cap multi-factor ETF space include:

• iShares Edge MSCI USA Multifactor ETF (USMF)
• Vanguard U.S. Multifactor ETF (VFMF)
• Schwab U.S. Large Cap Multi-Factor ETF (USLM)

Expense Ratio:

The expense ratio for USMV is 0.15%. This is significantly lower than the average expense ratio for actively managed large-cap funds.

Investment Approach and Strategy:

USMV tracks the Nasdaq US Large-Mid Cap Multi-Factor Core Index. The index uses a multi-factor approach to select stocks based on fundamental factors such as value, growth, momentum, and quality. The fund holds a diversified portfolio of approximately 500 large-cap stocks.

Key Points:

• Low-cost multi-factor ETF investing in large-cap U.S. stocks.
• Strong financial performance since inception.
• Good liquidity and competitive expense ratio.

Risks:

• Market risk associated with the performance of large-cap U.S. stocks.
• Potential tracking error relative to the benchmark index.

Who Should Consider Investing:

Investors looking for a low-cost, passively managed ETF that invests in large-cap U.S. stocks based on a multi-factor approach should consider USMV. This fund is suitable for investors with a long-term investment horizon and a moderate risk tolerance.

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, USMV receives a Fundamental Rating of 8 out of 10. This rating indicates that the ETF has strong fundamentals and good long-term prospects.

Resources and Disclaimers:

This summary overview is based on information gathered from the following sources:

• Principal Global Investors
• FactSet
• Morningstar

This information is for general knowledge and informational purposes only and does not constitute investment advice. Any investment decisions should be made after consulting with a professional financial advisor and conducting your own research.