BBLU vs USMC

BBLUBEA Bridgeway Blue Chip ETF

USMCBPrincipal U.S. Mega-Cap ETF

In short

BBLU Active stock picking at index-fund prices: Bridgeway's blue chip mandate in an ETF wrapper for 0.15% a year, a fraction of what the typical active US equity fund charges.

USMC Own the giants without letting the giants run the show. USMC follows a Nasdaq index that market-cap-weights only the very largest slice of US mega-caps, equal-weights the rest, and leans toward the calmer names, all for 0.12% a year.

Stated mandate

BBLU The Fund seeks long-term total return, primarily through capital appreciation and secondarily through income.

USMC The Fund seeks investment results that closely correspond, before expenses, to the performance of the Nasdaq U.S. Mega Cap Select Leaders Index.

Why people hold it

• BBLU 0.15% a year against a 0.65% median for active US equity funds. Most stock pickers in this group charge roughly four times as much.
• Priced level with the cheapest active large-cap peers (AVLC, also 0.15%) and well under factor-rotation rivals like DYNF at 0.26%.
• One stated job, plainly written: long-term total return, mostly capital appreciation with income second, in US stocks, inside a standard 1940 Act fund.
• Stands among the stronger active US equity funds in its peer group, with the fee doing much of the heavy lifting.

• USMC Costs 0.12% a year, a fraction of the typical fee among active US equity funds and level with the cheapest strong names in that group, like DFAU.
• The rules do the work: cap-weight the top 10% of aggregate market value, equal-weight the rest, nudge weight toward lower-volatility deciles, reset each April and October.nasdaq.com
• Trading since 2017 and now a multi-billion-dollar fund, it ranks among the strongest overall builds in its US equity peer group.
• Distributions arrive quarterly, and the fund sees steady enough trading volume for ordinary retail-sized orders.

Worth knowing

• BBLU Moderately traded rather than a tape-topper, so spreads can run wider than on the giant core index funds.
• Cheap, not the floor. Broad core peers such as DFAU come in at 0.12%.
• Cash goes out annually or semiannually, not monthly, and income ranks second to appreciation in the mandate.

• USMC Concentrated by design: a few dozen mega-caps, so one company's stumble lands harder here than in a 500-stock index fund.
• By capping how much the biggest names dominate, it deliberately holds a different mix than a cap-weighted S&P fund, and its results diverge accordingly.nasdaq.com
• Weights reset only twice a year, in April and October, so drift between reviews comes with the strategy.nasdaq.com

Full BBLU profile⁠

Full USMC profile⁠