Wealth Advisors of Iowa increased its stake in the Principal U.S. Mega-Cap ETF (NASDAQ:USMC) by 144,585 shares during the third quarter, raising the total position value to $14.16 million. The fund now holds 207,662 USMC shares valued at $14.16 million as of September 30. The top holdings of the fund after the filing include NASDAQ: JEPQ, NYSEMKT: RSP, NYSEMKT: EFAV, NYSEMKT: SPYM, and NYSEMKT: SPYV. USMC shares were priced at $67.77 as of Friday, up about 13% over the past year. The fund focuses on allocating assets to U.S. mega-cap companies in the S&P 500 top 50th percentile by market capitalization.

The Principal U.S. Mega-Cap ETF (USMC) offers investors diversified exposure to the largest U.S. companies by market cap, leveraging a rules-based approach to portfolio construction. The fund seeks to capture the performance of industry leaders within the S&P 500, appealing to investors seeking stability and growth potential in mega-cap equities. USMC has a total market value of $3.3 billion in assets under management (AUM) and a yield of 0.80%. The ETF’s investment strategy focuses on large, established U.S. companies to provide broad exposure to the mega-cap segment of the U.S. equity market.

In a market where returns are concentrated, advisors are favoring durability over drama by investing more in mega-caps like USMC. The ETF has a five-star Morningstar rating and a 0.12% expense ratio, making it cost-efficient for investors. USMC has delivered a total return exceeding 20% over the past year, slightly outperforming the S&P 500 on a risk-adjusted basis. The fund’s strategy aims to overweight the largest U.S. companies while mitigating risk through diversification and balance-sheet quality.

Read more at Yahoo Finance: Advisor Boosts $14 Million Bet on U.S. Mega-Cap ETF as Markets Lean Back Into Giants