Principal U.S. Mega-Cap Multi-Factor Index
ALTAR
Score™
5.4% info Recommen-
dation
NEUTRAL
2019E    2020E
P/E
ratio
20.1x P/Sales
ratio
2.8x
P/BV
ratio
4.0x Div.
yield
2.0%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
The investment seeks to provide investment results that closely correspond, before expenses, to the performance of the Nasdaq U.S. Mega Cap Select Leaders Index. The index uses a quantitative model designed to identify equity securities of companies with the largest market capitalizations in the Nasdaq US 500 Large Cap Index, with higher weights given to securities that are less volatile.

FUND BASICS
Category US Equities
Fund Sponsor The Principal Financial Group
Website www.principalfunds.com
Inception date Oct 12, 2017
Assets (mns) $1,505
Currency USD
Expense ratio 12 bp
Distributions Quarterly

FUND STRUCTURE
Regulation Open-Ended Fund
Custodian
Weighting Tiered
Index replication
Uses derivatives No
Options available Yes

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 48
Wgt avg mkt cap (mns) $352,880
Large cap (>$10bn) 100.0%
Mid cap ($2-10bn) 0.0%
Small cap (<$2bn) 0.0%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
APPLE INC 4.3 %
MICROSOFT CORP 4.2 %
JOHNSON & JOHNSON 3.1 %
BERKSHIRE HATHAWAY INC-CL B 3.0 %
MEDTRONIC PLC 3.0 %
CHEVRON CORP 2.9 %
VERIZON COMMUNICATIONS INC 2.9 %
PEPSICO INC 2.8 %
COCA-COLA CO/THE 2.8 %
PROCTER & GAMBLE CO/THE 2.8 %
Total 31.8 %

TOP COUNTRY EXPOSURE
UNITED STATES 94.6 %
IRELAND 5.0 %









HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru November 30)
Year-to-date 1 year 5 years 10 years Since Incep.
24.2% 13.9% -- -- 12.3%

Market Correlations
versus... Beta R-squared
S&P500 0.86 96%
MSCI EAFE 0.84 69%
MSCI Emg. Mkts. 0.60 54%

Technical Indicators
Recent close $30.49
30d moving avg. $30.16
Annualized volatility 12.6%
Short interest (ETF) 0.1%
Relative strength (RSI) 72

Liquidity measures
Avg. volume (thou.) 17
Turnover 0.0%
Bid/Ask (% of price) 0.13%
ADV underlying (mns) $54,089

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Principal U.S. Mega-Cap Multi-Factor Index ETF based on the alternatives' overlap in portfolio holdings with USMC. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: USMC Expense: 12 bp ALTAR Score™: 5.4%


ALTERNATIVE ETFs BASED ON OVERLAP WITH USMC
Ticker Fund
Name
Overlap1
vs USMC
(%)
Expense
ratio
(bp)
Savings
vs USMC
(bp)
ALTAR
Score™
(%)
ALTAR
vs USMC
(%)
XLG Invesco S&P Top 50 73.6 20 -8 5.2 -0.2
OEF iShares S&P 100 63.5 20 -8 5.5 +0.1
IWL iShares Russell Top 200 55.0 15 -3 5.7 +0.3
PRID InsightShares LGBT Employment Equality 54.0 65 -53 5.4 -0.1
OVOL Invesco Russell 1000 Low Volatility Factor ETF 53.7 19 -7 5.6 +0.2
EDOW First Trust Dow 30 Equal Weight 52.8 50 -38 6.2 +0.8
MGC Vanguard Mega Cap 300 ETF 52.4 7 5 5.8 +0.4
WOMN Impact Shares YWCA Women's Empowerment 49.6 75 -63 5.4 +0.0
JUST Goldman Sachs JUST U.S. Large Cap Equity 49.1 20 -8 5.6 +0.2
ESG FlexShares STOXX US ESG Impact Index Fund 48.4 32 -20 5.4 +0.0
DIA SPDR Dow Jones Industrial Average 48.3 17 -5 6.1 +0.7
MGV Vanguard Mega Cap 300 Value 48.3 7 5 7.1 +1.6
PLC Principal U.S. Large-Cap Multi-Factor Core Index 47.7 15 -3 5.6 +0.2
PBP Invesco S&P 500 Buy/Write 47.6 49 -37 5.5 +0.1
HSPX Global X S&P 500 Covered Call 47.1 65 -53 5.3 -0.1
SPY S&P 500 SPDR 47.0 9 3 5.9 +0.5
IVV iShares Core S&P 500 47.0 4 8 5.9 +0.5
VOO Vanguard S&P 500 ETF 46.9 3 9 6.0 +0.6
SPXN ProShares S&P 500 Ex-Financials 46.9 27 -15 5.9 +0.5
DIVO Amplify YieldShares CWP Dividend & Option Income 46.8 49 -37 5.1 -0.3

1Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

Content on this tab for subscribers only**

RESULTS & ESTIMATES

  2014 2015 2016 2017 2018 2019E 2020E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
Book value per share ** ** ** ** ** ** **

 

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est. **%   Debt-to-equity **x
Asset turnover **%   Assets-to-equity **x

Return on equity

Revision activity*
*Six months ago = 100

Net margins

Compound annual growth rates

Content on this tab for subscribers only

VALUATION METRICS
  2018 2019E 2020E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:
Principal U.S. Mega-Cap Multi-Factor Index
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 19.5 %
Divided by: Fwd. P/BV 3.5 x
Less: Expense ratio 12 bp
Equals: ALTAR Score 5.4 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.44 CATEGORY
AVERAGE
1.56
 
The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale:

BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3.

Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.