At a glance
PSC charges 0.38% a year, above the 0.14% average of the 8 funds most like it (the most expensive of 9). It has $2.33B in assets, the 5th largest of that group; it paid 0.6% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +19.6% with distributions reinvested (S&P 500: +11.5%), 3rd of those 9 funds; over three years it returned +22.8% a year. At its worst it fell 44.1% in the 2020 crash (S&P 500: 33.7%) and 23.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 17 months after the lows. Its ten largest positions make up 11.3% of the fund, out of 508 in all.
The short version
Principal U.S. Small-Cap ETF (PSC) is an actively managed fund from Principal. It holds about 500 smaller U.S. companies, chosen from the Russell 2000 Index by a quantitative (rules-based, computer-driven) model that favors value, quality and momentum. Its 0.38% expense ratio is well above the 0.14% average of similar funds. In return, it beat the Russell 2000 over the five years to December 31, 2025, at 10.91% a year versus 6.09%.
Price history
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PSC +19.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| PSC official prospectus, to Dec 31, 2025 | — | +13.39% | — | +10.91% | — | +10.76% |
| Russell 3000 Index (reflects no deductions for fees, expenses, or taxes) index, same period | — | +17.15% | — | +13.15% | — | +14.55% |
| Russell 2000 Index (reflects no deductions for fees, expenses, or taxes) index, same period | — | +12.81% | — | +6.09% | — | +9.19% |
| PSC price data to Oct 27, 2026 | +19.6% | +19.6% | +22.8% | +9.5% | +12.0% | +11.7% |
- Over the year to Oct 27, 2026, PSC returned +19.6%, 3rd of 9 among similar funds.
- Its 5-year annualized return was +9.5% and its 10-year +12.0%.
- In the 2020 COVID crash it fell 44.1% and regained its old high 8 months after the low.
- Its worst full calendar year was 2022 (-15.9%); its best was 2021 (+32.5%).
- The deepest fall in its price history was 46.7% (Aug 29, 2018 to Mar 18, 2020), recovered by Nov 24, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +19.6% | — |
| 2025 | +13.4% | +13.39% |
| 2024 | +12.4% | +12.35% |
| 2023 | +18.5% | +18.53% |
| 2022 | -15.9% | -15.99% |
| 2021 | +32.5% | +32.32% |
| 2020 | +13.3% | +13.45% |
| 2019 | +19.0% | +18.87% |
| 2018 | -11.4% | -9.23% |
| 2017 | +15.9% | +13.41% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 43.4% over that stretch · deepest drop along the way 44.1%, back to its old high 8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 20.8% over that stretch · deepest drop along the way 23.7%, back to its old high 16.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.3300 | |
| 2025 | $0.3800 | -2.6% |
| 2024 | $0.3900 | +14.7% |
| 2023 | $0.3400 | -54.7% |
| 2022 | $0.7500 | +8.7% |
| 2021 | $0.6900 | +53.3% |
| 2020 | $0.4500 | -6.2% |
| 2019 | $0.4800 | +33.3% |
| 2018 | $0.3600 | +20.0% |
| 2017 | $0.3000 |
What's inside
As of Jun 30, 2026, the fund held 508 securities; the ten largest made up 11.25% of assets.
| Holding | Weight | |
|---|---|---|
| Credo Technology Group Holding Ltd | 1.38% | |
| Hims & Hers Health Inc | 1.31% | |
| Sezzle Inc | 1.30% | |
| DigitalOcean Holdings Inc | 1.19% | |
| Sterling Infrastructure Inc | 1.17% | |
| Vicor Corp | 1.05% | |
| Argan Inc | 1.03% | |
| TTM Technologies Inc | 1.03% | |
| Bread Financial Holdings Inc | 0.92% | |
| Guardant Health Inc | 0.87% | |
| Planet Labs PBC | 0.84% | |
| Rambus Inc | 0.79% | |
| Zeta Global Holdings Corp | 0.78% | |
| Enova International Inc | 0.76% | |
| Powell Industries Inc | 0.75% |
By country
United States 90.31%Cayman Islands 2.93%Bermuda 1.49%Canada 1.08%United Kingdom 0.89%By asset type
Stocks 99.7%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $149.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +10.64%, +3.85%, +6.64%.
How it works
Principal U.S. Small-Cap ETF is actively managed and does not track an index. It normally keeps at least 80% of its net assets in stocks of small U.S. companies. The Russell 2000 Index sets the boundary: a company counts as small if its market capitalization (the total value of its shares) falls within that index's range, which topped out at about $12.6 billion as of September 30, 2026.
Principal Global Investors, the fund's manager, uses a proprietary computer model to rank Russell 2000 stocks on value (a low price relative to the business's fundamentals), quality (profitability, earnings quality and balance-sheet strength) and momentum (share prices and earnings trending upward). It weights stocks by those scores, then tilts toward shares that trade easily and swing less in price. Because a model does the picking, the fund may hold stocks a human analyst might avoid.
Holdings are expected to be rebalanced at least once a year, though the manager can adjust the model or portfolio at any time. The prospectus filed October 27, 2026, reports portfolio turnover (roughly the share of the portfolio replaced in a year) of 59.6%. As of June 30, 2026, the fund had 508 holdings and no derivatives. Its 10 largest positions, led by Credo Technology Group, Hims & Hers Health and Sezzle, made up just 11.25% of assets.
What it really costs
- PSC charges 0.38% a year, versus an average of 0.14% for the similar funds below (9th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $39 in the first year and $480 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| PSC | $39 | $122 | $213 | $480 |
In a retirement portfolio
PSC holds only small U.S. companies, chosen by a model, and it has fallen more than 40% in a single market crash, so it fits better as a smaller slice than as the base of a portfolio.
PSC adds smaller U.S. companies, which can behave differently from the large firms that dominate most stock funds. The trade-off is sharper swings. The fund launched in September 2016, so it has no record from the 2008 crisis. In early 2020 it fell 44.1% in less than a month. It recovered by November 16, 2020, about 8 months later. In 2022 it dropped 23.7% and did not regain its peak until February 9, 2024, about 16.5 months after its low. Its worst calendar year was 2022, at -15.99%. Anyone forced to sell shares in drops like these would lock in losses.
Income is small. The yield was 0.6% as of October 27, 2026, paid quarterly. In the SEC's standard example on $10,000, costs total about $39 in the first year and $480 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want small-cap stocks picked for value, quality and momentum rather than by plain index rules, and who accept a 0.38% expense ratio for it.
- People who weigh long-term records: PSC returned 10.91% a year over five years to December 31, 2025, versus 6.09% for the Russell 2000.
- Long-term holders who can sit through drops like the 44.1% fall in early 2020 without needing to sell.
Look elsewhere if
- Cost-focused investors: small-cap index funds such as IJR (0.06%) and SPSM (0.03%) charge a small fraction of PSC's 0.38%.
- Those seeking income: PSC's yield was 0.6% as of October 27, 2026, paid quarterly.
- Investors who want fixed, index-based rules: PGI can change PSC's model at its discretion, and turnover was 59.6%.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| PSC this fund | — | 0.38% | $2.33B | +19.6% | +22.8% |
| JPSE JPMorgan Diversified Return U.S. Small Cap … | 36% | 0.29% | $591.2M | +15.9% | +18.0% |
| SPSM SPDR Portfolio S&P 600 Small Cap ETF | 35% | 0.03% | $16.92B | +21.7% | +17.4% |
| XJR iShares ESG Select Screened S&P Small-Cap E… | 35% | 0.12% | $160.7M | +15.1% | +18.5% |
| IWO iShares Russell 2000 Growth ETF | 35% | 0.24% | $15.43B | +6.0% | +18.8% |
| IJR iShares Core S&P Small-Cap ETF | 34% | 0.06% | $111.32B | +21.7% | +17.4% |
| GSSC TR Activebeta US Small Cap Equity ETF | 34% | 0.2% | $1.08B | +15.6% | +20.5% |
| QVMS Invesco S&P SmallCap 600 QVM Multi-factor E… | 34% | 0.15% | $248.2M | +17.1% | +18.9% |
Questions investors ask
Is PSC good for retirement?
PSC may fit as a smaller, higher-risk slice of a retirement portfolio rather than a core holding. It owns about 500 small U.S. companies. It fell 44.1% during the 2020 COVID crash and 23.7% in the 2022 bear market, and it took until February 2024 to recover from the 2022 drop. Its yield was only 0.6% as of October 27, 2026, so it adds little income. A retiree who might need to sell during a downturn would feel these swings directly.
What's the difference between PSC and JPSE?
JPSE (JPMorgan Diversified Return U.S. Small Cap Equity ETF) costs less, 0.29% versus PSC's 0.38%. It is also smaller, with about $591 million in net assets as of July 31, 2026, against PSC's $2.33 billion as of June 30, 2026. JPSE shares more holdings with PSC than any other similar fund, but the overlap is only 36%, so the portfolios differ a lot. Through October 27, 2026, PSC returned 19.6% over one year and 22.8% a year over three years. JPSE returned 15.9% and 18%.
Does PSC pay dividends?
Yes, PSC pays dividends quarterly, but they are small. Over the 12 months to October 27, 2026, it paid about $0.41 per share, a yield of 0.6%. Small companies, and fast-growing ones in particular, often reinvest their profits instead of paying them out. So a fund like this mostly offers potential price growth rather than income. Investors looking for steady cash payments would get little from PSC on its own.
What is PSC's expense ratio?
PSC's expense ratio is 0.38% a year, according to its prospectus filed October 27, 2026. That makes it the most expensive of nine small-cap funds compared: PSC and eight similar funds, which average 0.14%. Index funds such as IJR (0.06%) and SPSM (0.03%) cost far less. In the SEC's standard example ($10,000 invested, 5% annual return), PSC's costs total about $39 after one year, $213 after five years and $480 after 10 years.
Has PSC beaten the Russell 2000?
Yes, over the periods shown in its prospectus. Through December 31, 2025, PSC returned 13.39% over one year, 10.91% a year over five years and 10.76% a year since it launched in September 2016. The Russell 2000 Index returned 12.81%, 6.09% and 9.19% over the same periods. PSC trailed the broader Russell 3000 Index, which includes large companies, at 17.15%, 13.15% and 14.55%. Index returns exclude fees, and past results don't predict future returns.