PSET: PRINCIPAL QUALITY ETF
ETF Education Report: PRINCIPAL QUALITY ETF (PSET)
What this ETF is trying to do
The PRINCIPAL QUALITY ETF (PSET) is an exchange-traded fund listed on the NASDAQ. It holds a collection of different companies. Based on its top holdings, it includes large technology and service companies like NVIDIA, Apple, and Microsoft. This report uses data as of October 9, 2026.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return only measures how much the share price changed.
• Total Return includes both the price change and any cash distributions (dividends) paid out.
For PSET, the numbers show:
• Year-to-Date (YTD): The price return is approximately 5.17%, while the total return is approximately 5.83%.
• One-Year: The price return is approximately 4.86%, while the total return is approximately 5.71%.
• Three-Year: The price return is approximately 45.13%, while the total return is approximately 48.28%.
To visualize the price change, we can look at an estimated price from roughly one year ago. The price was approximately $76.53, and the current price is $80.25.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. PSET has a distribution yield of approximately 0.76%. This means the cash paid out is about 0.76% of the ETF's price. The trailing distributions were approximately $0.61. These payments usually happen quarterly, and over the last 12 months, there were four payouts.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases significantly. Investors often watch this because they want to know if their initial investment is staying stable. For PSET, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag.
Top Holdings
The following are the top holdings in this portfolio (note that this is a partial list):
• NVIDIA CORP: 6.70%
• APPLE INC: 6.15%
• MICROSOFT CORP: 4.30%
• ALPHABET INC CLASS C: 2.92%
• PALO ALTO NETWORKS INC: 2.84%
• AMAZON.COM INC: 2.29%
• VISA INC CLASS A: 2.26%
• NETAPP INC: 2.01%
• MASTERCARD INC CLASS A: 1.90%
• APPLIED MATERIALS INC: 1.89%
Pros
• The ETF has shown positive price returns and total returns over the one-year and three-year periods.
• The erosion-risk score suggests a stable trend.
Cons
• The distribution yield is relatively low at approximately 0.76%.
Beginner takeaway
When studying PSET, remember that price returns and total returns are different. Total return gives a fuller picture because it includes the cash distributions paid to you. Also, while an ETF might pay out cash, a high yield does not guarantee that the share price will stay the same. Always look at both the price movement and the distributions to understand how an ETF is performing.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | NVIDIA CORP | NVDA | 6.70% |
| 2 | APPLE INC | AAPL | 6.15% |
| 3 | MICROSOFT CORP | MSFT | 4.30% |
| 4 | ALPHABET INC CLASS C | GOOG | 2.92% |
| 5 | PALO ALTO NETWORKS INC | PANW | 2.84% |
| 6 | AMAZON.COM INC | AMZN | 2.29% |
| 7 | VISA INC CLASS A | V | 2.26% |
| 8 | NETAPP INC | NTAP | 2.01% |
| 9 | MASTERCARD INC CLASS A | MA | 1.90% |
| 10 | APPLIED MATERIALS INC | AMAT | 1.89% |