Advisor Boosts $14 Million Bet on U.S. Mega-Cap ETF as Markets Lean Back Into Giants

Core Insights - Wealth Advisors of Iowa significantly increased its stake in the Principal U.S. Mega-Cap ETF by 144,585 shares, raising the total position value to $14.16 million, which now represents 4.82% of the fund's reportable U.S. equity assets [2][4] ETF Overview - The Principal U.S. Mega-Cap ETF (USMC) has an Assets Under Management (AUM) of $3.3 billion and is priced at $67.77, with a yield of 0.80% [4][5] - The ETF targets large U.S. companies by market capitalization, focusing on established industry leaders within the S&P 500, appealing to investors seeking stability and growth potential [5][8] Performance Metrics - Over the past year, shares of USMC have increased by approximately 13%, slightly underperforming the S&P 500, which rose by about 16.5% [3] - The ETF delivered a total return exceeding 20% over the past year, modestly outperforming the S&P 500 on a risk-adjusted basis [9] Investment Strategy - The fund allocates at least 80% of its assets to equity securities of U.S. mega-cap companies, primarily focusing on firms in the top 50th percentile of the S&P 500 by market capitalization [8] - The ETF employs a rules-based approach to portfolio construction, designed to capture performance while mitigating risk through diversification and balance-sheet quality [6][8] Long-term Investment Perspective - For long-term investors, the focus is on controlling downside risk rather than chasing upside potential, as mega-caps tend to perform better during periods of liquidity tightening [10]