Veracity’s Small-Cap Flutter

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The fourth quarter of 2025 witnessed a curious aviary maneuver from Veracity Capital LLC, a firm whose name, one suspects, hints at a dedication to truth—or perhaps a shrewd marketing department. They alighted upon 264,512 shares of the Principal U.S. Small-Cap ETF (PSC), a transaction amounting to approximately $15.27 million, a sum that, when considered in the grand calculus of capital, feels less monumental than, say, the price of a particularly flamboyant Fabergé egg, but is nonetheless a signal, however faint, in the restless currents of the market. It’s a purchase, one observes, not of titans, but of fledglings.

A Peculiar Nest Egg

The SEC filing of January 29, 2026, confirms this initial foray into the world of diminutive equities. The $15.27 million expenditure, meticulously calculated based on the quarter’s average pricing, appears to have been a singular act of acquisition, a clean, decisive stroke—unlike, one imagines, the haphazard accumulation of pebbles by a magpie. The fund’s value remained steadfast at that same $15.27 million, suggesting that any subsequent market fluctuations were, for the moment, inconsequential to Veracity’s initial investment – a rather uncharacteristic stillness in the generally frantic dance of speculation.

The Portfolio’s Proportions

This new position represents 4.49% of Veracity’s 13F reportable assets under management as of December 31, 2025—a fraction, admittedly, but one that, when viewed through the lens of portfolio allocation, hints at a calculated risk, a deliberate tilt towards the smaller, more volatile segments of the market. The firm’s broader holdings, as of that date, reveal a preference for the predictably ponderous: $42.85 million in iShares Core S&P Small-Cap (IUSG), $41.52 million in iShares Core S&P 500 (IUSV), and a substantial $21.57 million in Vanguard Total Stock Market ETF (VO). PSC, at $15.27 million, now joins this company, a modest but noticeable addition to the flock. A further glance reveals a small stake in Apple ($9.32 million), a predictable indulgence for any firm navigating the capricious tides of modern finance.

  • NASDAQ: IUSG: $42.85 million (12.6% of AUM)
  • NASDAQ: IUSV: $41.52 million (12.2% of AUM)
  • NYSEMKT: VO: $21.57 million (6.4% of AUM)
  • NASDAQ: PSC: $15.27 million (4.5% of AUM)
  • NASDAQ: AAPL: $9.32 million (2.7% of AUM)

As of January 28, 2026, PSC shares were trading at $60.57, a 14.4% ascent over the preceding year. However, this performance, while respectable, falls a mere 0.59 percentage points short of the S&P 500’s own trajectory – a subtle reminder that even the most agile of fledglings sometimes struggle to match the soaring heights of the established eagles.

Anatomy of a Small-Cap Fund

The Principal U.S. Small-Cap Multi-Factor ETF (PSC), a fund with a market capitalization of $1.717 billion, occupies a peculiar niche in the financial ecosystem – a realm where statistical probabilities and algorithmic calculations attempt to decipher the potential of companies whose names rarely grace the headlines. It’s a fund that, in essence, wagers on the unproven, the nascent, the companies that might, with a little luck and a favorable wind, blossom into something substantial.

Metric Value
AUM $1.717 billion
Price (as of market close 1/28/26) $60.57
Dividend Yield 0.64%
1-Year Total Return 14.41%

Its investment strategy, we are informed, focuses on U.S. small-cap equities, employing a “multi-factor approach” – a phrase that, while undeniably technical, conjures images of analysts meticulously dissecting balance sheets and calculating beta coefficients. The portfolio, largely comprised of companies within the Russell 2000 Index, is diversified across sectors, selected based on “quantitative factors” – a euphemism, one suspects, for the relentless application of statistical modeling. It’s a fund, in short, designed for investors seeking exposure to the unpredictable currents of the small-cap market.

The Implications for the Discerning Investor

Veracity Capital, an Atlanta-based Registered Investment Advisor, has, with this $15 million+ foray into PSC, signaled a willingness to navigate the treacherous waters of small-cap investing. But what does this mean for the retail investor, the individual who lacks the resources of a sophisticated firm? PSC, it must be acknowledged, has generated a total return of 63% over the past five years, equating to a compound annual growth rate (CAGR) of 10.3%. A respectable figure, certainly, but one that pales in comparison to the S&P 500’s own impressive performance – a total return of 98% and a CAGR of 14.7%. The comparison, while perhaps unfair, serves as a sobering reminder that the pursuit of higher returns often entails accepting a commensurately higher degree of risk.

Nonetheless, PSC, with its expense ratio of 0.38%, remains a viable option for investors seeking targeted exposure to the U.S. small-cap market. While the dividend yield of 0.6% is admittedly meager, it’s a small price to pay for the potential rewards that this fund might offer. In summary, PSC is not a must-own for every portfolio, but it is, for the discerning investor, a name worth considering – a small-cap fund with a modest expense ratio and a potential for growth that, while not guaranteed, is certainly worth exploring.

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2026-01-29 22:16