Principal launched a cheap way for ETF investors to gain exposure to some of the largest U.S. companies on the market.
On Thursday, Principal added the Principal U.S. Mega-Cap Multi-Factor Index ETF (NasdaqGM: USMC). USMC comes with a 0.12% expense ratio.
The new U.S. Mega-Cap Multi-Factor Index ETF tries to reflect the performance of the Nasdaq U.S. Mega Cap Select Leaders Index, which is comprised of companies with the largest market capitalization taken from the Nasdaq U.S. 500 Large Cap Index and screened based on a quantitative model.
“With their global scale and strong brand recognition, mega-cap companies tend to retain the potential to deliver long-term growth to investors when other companies may not,” according to Principal.
The mega-cap companies are taken from the top 50th percentile from the Nasdaq U.S. 500 Large Cap Index. As of September 22, the market capitalization range of companies in the index was between approximately $83.9 billion and $784.6 billion.
Related: A Low-Cost ETF to Track the 1,000 Largest U.S. Companies