SIXA vs USMC

SIXADETC 6 Meridian Mega Cap Equity ETF

USMCBPrincipal U.S. Mega-Cap ETF

In short

SIXA Most mega-cap funds just buy the biggest companies. SIXA is actively managed: it screens the largest 10% of the Russell 3000 on beta, momentum, yield, value and quality down to roughly 50 names, at 0.46% with no waiver in place.

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

SIXA The Fund seeks capital appreciation.

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

• SIXA Rules-driven stock picking inside the mega-cap universe: names are ranked on beta, momentum, yield, value and quality, then weighted by how many factors they score well on.sec.gov
• A low-beta tilt is written into the model, which ranks lower-beta stocks more favorably, so it leans toward steadier giants rather than the hottest ones.sec.gov
• Roughly 50 holdings, so each position actually matters, versus the hundreds of names in a cap-weighted mega-cap index. Distributions go out monthly.
• Live since 2020, which means several years of real-world record for an active strategy, not a backtest.

• 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

• SIXA At 0.46% with no waiver, it sits above the category median fee; index rivals cover mega caps for less, including MGC at 0.05% and OEF at 0.20%.
• Thinly traded next to its index peers, so bid-ask spreads can be wider and bigger orders can push the price around.
• Non-diversified and concentrated, with active turnover, so results can drift well away from a standard mega-cap index in either direction, and it ranks behind cheaper rivals in this small peer group.sec.gov

• 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 SIXA profile⁠

Full USMC profile⁠