Elevation Capital Advisory Loads Up Principal U.S. Mega-Cap ETF Shares in Q3
Key Points
The firm initiated a new position with 128,122 shares acquired.
The fund's transaction represents 3.5% of reported 13F assets under management.
Its position is outside the fund’s top five holdings.
- These 10 stocks could mint the next wave of millionaires ›
Elevation Capital Advisory, LLC disclosed a new position in the Principal U.S. Mega-Cap ETF (NASDAQ:USMC), 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 (NASDAQ:USMC) 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.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,072%* — a market-crushing outperformance compared to 194% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
See the stocks »
*Stock Advisor returns as of October 27, 2025
Lawrence Rothman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
