Principal U.S. Mega-Cap ETF

Frequently Asked Questions About USMC

What does USMC invest in?

The investment seeks long-term growth of capital. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of U.S. companies with very large ("mega") market capitalizations at the time of purchase. For this fund, companies with mega capitalizations are those with market capitalizations in the top 50th percentile of the S&P 500 Index at the time of purchase. The fund is non-diversified.

What is the expense ratio of USMC?

Principal U.S. Mega-Cap ETF (USMC) charges an expense ratio of 0.12%. This is the annual fee deducted from fund assets to cover management and operations.

How big is USMC?

Principal U.S. Mega-Cap ETF (USMC) manages $3.50B in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is USMC actively managed or an index fund?

USMC is a passive index fund — it tracks a published benchmark by holding the constituents in their published weights. Index funds typically charge low expense ratios (USMC's is 0.12%) because there's no security selection cost.

When was USMC launched?

Principal U.S. Mega-Cap ETF (USMC) launched in October 2017 and is managed by Principal Funds.

How has USMC performed?

USMC's total return — price change plus reinvested distributions — is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.