Elevation Capital Advisory, LLC disclosed a new position in the Principal U.S. Mega-Cap ETF (USMC +0.10%), acquiring 128,122 shares valued at $8.7 million as of Sept. 30, according to its Oct. 30 SEC filing.
What happened
Elevation Capital Advisory, LLC established a new stake in Principal U.S. Mega-Cap ETF (USMC +0.10%) during the third quarter, as reported in its Oct. 30 filing with the U.S. Securities and Exchange Commission (SEC filing). The fund purchased 128,122 shares, valued at $8.7 million at the end of the quarter.
What else to know
This is a new position for Elevation Capital Advisory, LLC, representing 3.49% of its reported $250.39 million in U.S. equity assets.
Top holdings after the filing:
- NYSEMKT: MFUL: $19.7 million (7.9% of AUM) as of 2025-09-30
- NYSEMKT: IWY: $14.2 million (5.7% of AUM) as of 2025-09-30
- NASDAQ: VONG: $11 million (4.4% of AUM) as of 2025-09-30
- NYSEMKT: MGK: $11 million (4.4% of AUM) as of 2025-09-30
- NYSE: MKTOEF: $9.9 million (4% of AUM) as of 2025-09-30
As of Oct. 29, the Principal U.S. Mega-Cap ETF shares were priced at $69.85, up 20.7% over the past year, outperforming the S&P 500 by 2.6 percentage points.
The ETF’s annualized dividend yield is 0.79% as of Oct. 30.
Company overview
| Metric | Value |
|---|---|
| AUM | 3.3 Billion |
| Price (as of market close 2025-10-29) | $69.85 |
| Dividend yield | 0.79% |
| 1-year total return | 20.74% |
Company snapshot
The ETF's investment strategy focuses on tracking U.S. mega-cap equities by allocating at least 80% of assets to companies in the top 50th percentile of the S&P 500 Index by market capitalization.
Underlying holdings are large, established U.S. companies, providing broad exposure to the mega-cap segment.
The ETF is designed for investors seeking targeted exposure to the largest U.S. companies through a rules-based approach.
Principal U.S. Mega-Cap ETF offers investors targeted exposure to the largest U.S. companies, leveraging a rules-based approach to capture the performance of mega-cap equities.
Foolish take
Over the last three months, Elevation Capital Advisory built a sizeable position in the Principal U.S. Mega-Cap ETF. At the end of the quarter, it was valued at $8.7 million, representing 3.5% of the firm's equity assets.
The ETF seeks very large capitalization stocks, defined as the top 50th percentile of the S&P 500 index. Notably, the fund has concentrated holdings.
It only has 24 stocks in the portfolio. The largest 10 positions account for 53.5% of the assets, as of Nov. 3. Hence, it doesn't have a very diversified portfolio.
They include companies like Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Tesla (NASDAQ: TSLA), Microsoft (NASDAQ: MSFT), and Costco (NASDAQ: COST). Clearly, these companies have mega capitalizations due to their success, and an investment in the ETF is an expectation that will continue.
The information technology sector has the largest allocation, 32.3%. That's followed by financials' 19.8% and communication services' 13.3%. Energy, with a 3.6% weight, has the lowest allocation.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
AUM (Assets Under Management): The total market value of assets a fund or investment manager oversees on behalf of clients.
13F: A quarterly report filed by institutional investment managers to the SEC, disclosing their equity holdings.
Dividend yield: Annual dividends paid by an investment, expressed as a percentage of its current price.
Mega-cap: Companies with extremely large market capitalizations, typically among the largest publicly traded firms.
Rules-based approach: An investment strategy that follows predefined, systematic criteria rather than discretionary decisions.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Stake: The ownership interest or position an investor holds in a particular security or fund.
Outperforming: Achieving a higher return compared to a specific benchmark or index over a given period.
Underlying holdings: The individual securities or assets that make up a fund or ETF's portfolio.
Annualized: A figure (such as a return or yield) expressed as if it were earned or paid over a full year.
Percentile: A statistical measure indicating the value below which a given percentage of observations fall.
