Parnassus Core Select ETF (PRCS)

Overview

The Parnassus Core Equity ETF (PRBL) seeks long-term capital appreciation by investing in a concentrated portfolio of undervalued, high-quality U.S. companies with sustainable competitive advantages and positive ESG (Environmental, Social, and Governance) factors. The fund focuses on companies with strong management teams and attractive long-term growth prospects.

Reputation and Reliability

Parnassus Investments is a well-regarded investment firm known for its sustainable and responsible investing approach.

Management Expertise

The management team has extensive experience in value investing and ESG analysis.

Goal

To seek long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF employs a fundamental, bottom-up approach to identify undervalued companies with strong ESG profiles. It does not track a specific index.

Composition The ETF primarily holds U.S. large-cap stocks.

Market Share: The ETF's market share within the large-cap core equity category is relatively small compared to larger, more established ETFs.

Total Net Assets (AUM): 121000000

Key Competitors

• SPDR S&P 500 ETF Trust (SPY)
• iShares Core S&P 500 ETF (IVV)
• Vanguard S&P 500 ETF (VOO)

Competitive Landscape

The ETF industry is highly competitive. Parnassus Core Select ETF differentiates itself through its focus on ESG factors and a concentrated portfolio. However, it faces strong competition from larger, passively managed ETFs with lower expense ratios and broader market exposure. Parnassus Core Select ETF advantages lie in its ESG integration and active management, while disadvantages include a higher expense ratio and potential for underperformance relative to the broader market.

Historical Performance: Historical performance data should be sourced from official fund documents. As of October 26, 2024, PRBL had a YTD return of 14.69%.

Benchmark Comparison: Benchmark comparison requires specific index or peer group data. Compare performance against S&P 500 total return index for broader market context.

Expense Ratio: 0.49

Average Trading Volume

The ETF's average trading volume is moderate, suggesting adequate liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is typically tight, indicating relatively low transaction costs.

Market Environment Factors

Economic indicators, sector growth prospects (particularly in sectors favored by the ETF's holdings), and overall market sentiment influence the ETF's performance. Increasing investor interest in ESG investing may positively impact the ETF.

Growth Trajectory

The ETF's growth depends on its ability to attract assets and generate positive returns. Strategy shifts will be disclosed in fund prospectuses.

Competitive Edge

Parnassus Core Select ETF's competitive edge lies in its commitment to responsible investing, concentrated portfolio, and active management style. The fund's focus on ESG factors resonates with investors seeking socially responsible investments. Its concentrated portfolio allows for potentially higher returns but also increases risk. Parnassus's experience in sustainable investing adds credibility to its investment process, attracting investors who prioritize both financial and social returns.

Volatility

Volatility depends on market conditions and the specific holdings. A concentrated portfolio will have a higher volatility. Please refer to the official documents for historical volatility figures.

Market Risk

Market risk is tied to the performance of the underlying stocks, and the ETF is susceptible to market downturns, economic slowdowns, and sector-specific risks, as well as company-specific events. The ETF's focus on ESG may lead it to exclude certain sectors or companies, impacting its diversification.

Ideal Investor Profile

The ideal investor is one seeking long-term capital appreciation with a preference for socially responsible investments. Investors comfortable with potentially higher volatility due to the fund's concentrated portfolio would be a good fit.

Market Risk

The ETF is suitable for long-term investors who prioritize ESG factors and are willing to accept a higher expense ratio for active management.

Parnassus Core Select ETF is a actively managed ETF that focuses on long-term capital appreciation through investments in undervalued, high-quality companies with strong ESG profiles. While it distinguishes itself through responsible investing principles and a concentrated portfolio, the fund faces strong competition from passive ETFs with lower costs. The investor profile is best suited for those seeking to align their investments with ESG values and comfortable with a concentrated approach. The success of the ETF depends on its ability to effectively select stocks with positive ESG attributes that will also generate favorable returns.

Data Sources:

• Parnassus Investments Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor. Market data is subject to change.