Principal U.S. Mega-Cap Multi-Factor Index ETF
ALTAR
Score™
4.9% info Recommen-
dation
UNDERWEIGHT
2020E    2021E
P/E
ratio
24.7x P/Sales
ratio
3.0x
P/BV
ratio
3.8x Div.
yield
2.1%


  • 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) $1,496
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 41
Wgt avg mkt cap (mns) $387,056
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
MICROSOFT CORP 5.3 %
AMAZON.COM INC 3.7 %
PFIZER INC 3.4 %
JOHNSON & JOHNSON 3.3 %
WAL-MART STORES INC 3.2 %
COSTCO WHOLESALE CORP 3.2 %
VERIZON COMMUNICATIONS INC 3.1 %
COCA-COLA CO/THE 3.1 %
MERCK & CO. INC. 3.1 %
FACEBOOK 2.8 %
Total 34.0 %

TOP COUNTRY EXPOSURE
UNITED STATES 97.2 %
IRELAND 2.2 %









HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru May 31)
Year-to-date 1 year 5 years 10 years Since Incep.
-3.9% 12.0% -- -- 9.2%

Market Correlations
versus... Beta R-squared
S&P500 0.88 97%
MSCI EAFE 0.87 80%
MSCI Emg. Mkts. 0.65 67%

Technical Indicators
Recent close $30.07
30d moving avg. $29.11
Annualized volatility 16.4%
Short interest (ETF) 0.0%
Relative strength (RSI) 62

Liquidity measures
Avg. volume (thou.) 60
Turnover 0.1%
Bid/Ask (% of price) 0.22%
ADV underlying (mns) $97,996

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 100 potential alternatives to the Principal U.S. Mega-Cap Multi-Factor Index ETF 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™: 4.9%


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 500 Top 50 ETF 65.5 20 -8 4.7 -0.2
OEF iShares S&P 100 ETF 59.8 20 -8 4.9 +0.1
IWL iShares Russell Top 200 ETF 51.3 15 -3 5.1 +0.3
MGC Vanguard Mega Cap Index Fund 49.4 7 5 5.3 +0.4
SNPE Xtrackers S&P 500 ESG ETF 48.0 11 1 5.2 +0.3
PBP Invesco S&P 500 BuyWrite ETF 47.4 49 -37 5.1 +0.3
HSPX Global X S&P 500 Covered Call ETF 47.3 65 -53 4.9 +0.1
NACP Impact Shares NAACP Minority Empowerment ETF 46.7 75 -63 4.5 -0.4
EDOW First Trust Dow 30 Equal Weight ETF 45.9 50 -38 5.7 +0.8
JUST Goldman Sachs JUST U.S. Large Cap Equity ETF 45.8 20 -8 5.0 +0.2
ESG FlexShares STOXX US ESG Impact Index Fund 45.5 32 -20 5.2 +0.3
FMK First Trust Mega Cap AlphaDEX Fund 45.3 70 -58 5.2 +0.4
SPXN ProShares S&P 500 Ex-Financials ETF 45.2 27 -15 5.1 +0.3
SPLG SPDR Portfolio Large Cap ETF 44.7 3 9 5.5 +0.6
IVV iShares Core S&P 500 ETF 44.6 4 8 5.5 +0.6
SPY SPDR S&P 500 ETF Trust 44.6 9 3 5.4 +0.6
PLC Principal U.S. Large-Cap Multi-Factor Core Index ETF 44.4 15 -3 6.2 +1.4
VOO VANGUARD S&P 500 ETF 44.4 3 9 5.5 +0.6
SPYX SPDR S&P 500 Fossil Fuel Reserves Free ETF 44.2 20 -8 5.5 +0.6
SPXE ProShares S&P 500 Ex-Energy ETF 44.1 27 -15 5.4 +0.5
ADME Aptus Drawdown Managed Equity ETF 44.0 81 -69 3.9 -1.0
CCOR Core Alternative ETF 44.0 123 -111 4.2 -0.6
ACIO Aptus Collared Income Opportunity ETF 44.0 79 -67 4.5 -0.3
MGV Vanguard Mega Cap Value ETF 43.7 7 5 7.0 +2.1
VV Vanguard Large-Cap Index Fund 43.7 4 8 5.3 +0.5
DLN WisdomTree U.S. LargeCap Dividend Fund 43.3 28 -16 6.3 +1.4
SPUS SP Funds S&P 500 Sharia Industry Exclusions ETF 43.1 49 -37 4.2 -0.7
BBUS JP Morgan Betabuilders U.S. Equity ETF 43.0 2 10 5.4 +0.6
PBUS Invesco PureBeta MSCI USA ETF 42.7 4 8 5.3 +0.5
XOUT GraniteShares XOUT U.S. Large Cap ETF 42.5 60 -48 4.6 -0.3
DGRO iShares Core Dividend Growth ETF 42.4 8 4 6.4 +1.5
DJD Invesco Dow Jones Industrial Average Dividend ETF 42.3 7 5 6.5 +1.7
SCHX Schwab U.S. Large-Cap ETF 42.0 3 9 5.4 +0.5
SPXV ProShares S&P 500 Ex-Health Care ETF 42.0 27 -15 5.1 +0.3
SPTM SPDR Portfolio Total Stock Market ETF 41.8 3 9 5.6 +0.7
ESGU iShares MSCI USA ESG Optimized ETF 41.8 15 -3 5.1 +0.3
IWY iShares Russell Top 200 Growth ETF 41.6 20 -8 4.3 -0.5
EPS WisdomTree U.S. Earnings 500 Fund 41.6 8 4 6.4 +1.5
MMTM SPDR S&P 1500 Momentum Tilt ETF 41.4 12 0 5.1 +0.3
IQSU IQ Candriam ESG US Equity ETF 41.4 9 3 5.3 +0.4
PFM Invesco Dividend Achievers ETF 41.2 54 -42 5.3 +0.5
IWB iShares Russell 1000 ETF 41.1 15 -3 5.2 +0.4
VONE Vanguard Russell 1000 ETF 40.8 8 4 5.3 +0.5
SCHK Schwab 1000 Index ETF 40.7 5 7 5.3 +0.5
FVAL Fidelity Value Factor ETF 40.4 29 -17 8.0 +3.1
IYY iShares Dow Jones U.S. ETF 40.3 20 -8 5.2 +0.4
OUSA O'Shares FTSE US Quality Dividend ETF 40.2 48 -36 5.7 +0.8
WOMN Impact Shares YWCA Women's Empowerment ETF 40.1 75 -63 4.5 -0.3
VTV Vanguard Value Index Fund 39.9 4 8 7.1 +2.3
QUS SPDR MSCI USA StrategicFactors ETF 39.9 15 -3 5.8 +0.9
FQAL Fidelity Quality Factor ETF 39.9 29 -17 5.4 +0.6
EQWL Invesco Russell Top 200 Equal Weight ETF 39.8 25 -13 5.9 +1.0
VOOG Vanguard S&P 500 Growth ETF 39.6 10 2 4.4 -0.4
SPYG SPDR Portfolio S&P 500 Growth ETF 39.5 4 8 4.5 -0.4
IVW iShares S&P 500 Growth ETF 39.5 18 -6 4.3 -0.5
QVM Arrow QVM Equity Factor ETF 39.5 65 -53 4.9 +0.0
SFY SoFi Select 500 ETF 39.4 0 12 5.3 +0.5
DTD WisdomTree U.S.Total Dividend Fund 39.2 28 -16 6.5 +1.6
FDLO Fidelity Low Volatility Factor ETF 39.2 29 -17 5.2 +0.3
LRGE ClearBridge Large Cap Growth ESG ETF 39.2 60 -48 4.0 -0.9
ESGV Vanguard ESG U.S. Stock ETF 39.1 12 0 5.3 +0.4
DIA SPDR Dow Jones Industrial Average ETF Trust 39.1 16 -4 5.5 +0.7
IWX iShares Russell Top 200 Value ETF 39.0 20 -8 6.9 +2.0
VTI Vanguard Total Stock Market Index Fund 39.0 3 9 5.2 +0.4
SCHB Schwab U.S. Broad Market ETF 38.8 3 9 5.3 +0.5
IWV iShares Russell 3000 ETF 38.8 20 -8 5.1 +0.2
CATH Global X S&P 500 Catholic Values Custom ETF 38.7 29 -17 5.3 +0.5
PWB Invesco Dynamic Large Cap Growth ETF 38.7 55 -43 3.5 -1.3
FDMO Fidelity Momentum Factor ETF 38.7 29 -17 4.0 -0.9
ITOT iShares Core S&P Total U.S. Stock Market ETF 38.7 3 9 5.2 +0.4
RFDA RiverFront Dynamic US Dividend Advantage ETF 38.6 52 -40 5.9 +1.1
VTHR Vanguard Russell 3000 Index Fund 38.6 10 2 5.2 +0.3
SPXT ProShares S&P 500 Ex-Technology ETF 38.5 27 -15 5.6 +0.7
TMFC Motley Fool 100 Index ETF 38.3 50 -38 4.0 -0.9
BVAL Brand Value ETF 38.3 65 -53 5.9 +1.0
RECS Columbia Research Enhanced Core ETF 38.2 15 -3 5.6 +0.8
IUS Invesco Strategic US ETF 38.2 19 -7 6.2 +1.3
IUSG iShares Core S&P US Growth ETF 38.2 4 8 4.5 -0.4
OMFL Oppenheimer Russell 1000 Dynamic Multifactor ETF 37.9 29 -17 4.3 -0.5
JQUA JPMorgan U.S. Quality Factor ETF 37.8 12 0 5.2 +0.4
VYM Vanguard High Dividend Yield Index ETF 37.8 6 6 7.1 +2.2
DIVB iShares U.S. Dividend & Buyback ETF 37.5 25 -13 6.3 +1.5
YLDE ClearBridge Dividend Strategy ESG ETF 37.2 60 -48 4.9 +0.1
RAFE PIMCO RAFI ESG U.S. ETF 37.1 29 -17 7.5 +2.7
FDRR Fidelity Dividend ETF for Rising Rates 37.1 29 -17 6.9 +2.0
VONG Vanguard Russell 1000 Growth Index Fund 37.0 8 4 4.4 -0.4
IWF iShares Russell 1000 Growth ETF 37.0 19 -7 4.3 -0.5
QLC FlexShares US Quality Large Cap Index Fund 36.5 32 -20 5.5 +0.7
HDIV QRAFT AI-Enhanced U.S. High Dividend ETF 36.3 75 -63 6.0 +1.2
VEGN US Vegan Climate ETF 36.1 60 -48 5.3 +0.4
QDEF FlexShares Quality Dividend Defensive Index Fund 35.9 37 -25 6.2 +1.4
SPHQ Invesco S&P 500 Quality ETF 35.9 15 -3 5.1 +0.3
MTUM iShares Edge MSCI USA Momentum Factor ETF 35.7 15 -3 4.8 -0.0
ECOZ TrueMark ESG Active Opportunities ETF 35.5 58 -46 4.5 -0.4
EXT WisdomTree U.S. Total Earnings Fund 35.5 28 -16 5.7 +0.9
FNDX Schwab Fundamental U.S. Large Co. Index ETF 35.4 25 -13 6.4 +1.6
DSI iShares MSCI KLD 400 Social ETF 35.4 25 -13 5.2 +0.4
SCHV Schwab U.S. Large-Cap Value ETF 35.2 4 8 6.9 +2.1
PRF Invesco FTSE RAFI US 1000 ETF 35.1 39 -27 6.6 +1.8
GSLC Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF 35.1 9 3 5.6 +0.7

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%.

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RESULTS & ESTIMATES

  2015 2016 2017 2018 2019 2020E 2021E
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

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VALUATION METRICS
  2019 2020E 2021E
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 ETF
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 17.9 %
Divided by: Fwd. P/BV 3.6 x
Less: Expense ratio 12 bp
Equals: ALTAR Score 4.9 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.42 CATEGORY
AVERAGE
1.53
 
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.