PSET vs USMC
Principal Quality ETF vs Principal U.S. Mega-Cap ETF
Which is better, PSET or USMC?
USMC has been ahead.
USMC has a lower expense ratio. USMC led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.93. PSET is less concentrated, with 34.2% of the fund in its ten largest positions against 55.3%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PSET | USMC |
|---|---|---|
| Expense Ratio | 0.15% | 0.12%Best |
| AUM | $26M | $5.2B |
| Dividend Yield | 0.69% | 0.74% |
| Holdings | 150 | 58 |
| YTD Return | +5.26% | +13.98%Best |
| 1Y Return | +6.00% | +14.91%Best |
| 3Y Return (annualized) | +13.51% | +22.22%Best |
| 5Y Return (annualized) | +8.64% | +14.81%Best |
| Volatility (annualized) | 16.2% | 15.3%Best |
| Max Drawdown | -34.8% | -30.0%Best |
| $10,000 over 5 years | $15,134 | $19,948Best |
| Top 10 Weight | 34.2%Best | 55.3% |
| Fund Family | Principal Funds | Principal Funds |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Mar 21, 2016 | Oct 11, 2017 |
Volatility and max drawdown are measured over the window both funds cover: Oct 12, 2017 to Oct 14, 2026 (9 years).
PSET vs USMC growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9 years both funds cover.
PSET vs USMC Performance
Principal Quality ETF (PSET) is an ETF from Principal Funds and Principal U.S. Mega-Cap ETF (USMC) is an ETF from Principal Funds. Over the past year PSET returned +6.00% while USMC returned +14.91%. Year to date, PSET is up 5.26% versus a gain of 13.98% for USMC.
Over three years, PSET compounded at +13.51% per year against +22.22% for USMC; over five years the annualized figures are +8.64% and +14.81% respectively. Across the full 9-year window we track, USMC has the edge at +14.29% annualized vs +11.97%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PSET has been the more volatile fund, with annualized monthly volatility of 16.2% compared with 15.3% for USMC. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -34.8% for PSET and -30.0% for USMC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
PSET charges 0.15% per year while USMC charges 0.12%. On a $10,000 position that is $15 vs $12 annually, a gap of $3 per year that compounds over a long holding period. On income, PSET currently yields 0.69% against 0.74% for USMC.
Holdings Overlap
29.3% of PSET's money is in holdings USMC also owns. 52.3% of USMC's money is in holdings PSET also owns.
The two portfolios partly overlap.
12 positions in common, counted across the 73 positions we hold weights for in PSET and 27 in USMC, against full books of 150 and 58.
What only one of them owns
Our book lists 15 positions for USMC that do not appear in our book for PSET (47.6% of the fund), and 59 for PSET that do not appear in USMC (68.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in PSET | Weight in USMC | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 7.13% | 7.99% | 0.86% |
| AAPLApple, Inc | 6.11% | 7.40% | 1.29% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 4.38% | 5.55% | 1.17% |
| VVisa Inc-class A Shares | 2.14% | 4.54% | 2.40% |
| GOOGLAlphabet Inc Cap Stk Cl A | 1.28% | 5.33% | 4.05% |
| MAMastercard Inc | 1.81% | 4.32% | 2.51% |
| AMZNAmazon.Com Inc | 2.27% | 3.77% | 1.50% |
| AVGOBroadcom Inc | 1.19% | 4.44% | 3.25% |
| METAMeta Platform Inc | 0.97% | 3.92% | 2.95% |
| GEGeneral Electric Co. | 1.52% | 2.87% | 1.35% |
52.3% of USMC is already inside PSET.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PSET or USMC?
PSET has an expense ratio of 0.15% while USMC charges 0.12%. USMC is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, PSET or USMC?
Over the past year PSET returned +6.00% vs +14.91% for USMC, so USMC leads on 1-year performance. Over the longest common window we track (9 years), PSET annualized +11.97% vs +14.29% for USMC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PSET or USMC?
PSET has been the more volatile fund at 16.2% annualized versus 15.3% for USMC. Worst drawdown: PSET -34.8% vs USMC -30.0%.
Should I hold both PSET and USMC?
PSET and USMC have a monthly-return correlation of 0.93, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between PSET and USMC?
52.3% of USMC's money is in holdings PSET also owns. 52.3% of USMC's is in holdings PSET also owns. They hold 12 positions in common, counted across the 73 positions we hold weights for in PSET and 27 in USMC.
Which pays a higher dividend, PSET or USMC?
PSET yields 0.69% while USMC yields 0.74%, so USMC currently pays the higher dividend yield.
Is USMC better than PSET?
USMC has a lower expense ratio. USMC led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.93. PSET is less concentrated, with 34.2% of the fund in its ten largest positions against 55.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.