The Parnassus Core Select ETF recorded a return of 14.98% during the second quarter of 2026, narrowly missing the S&P 500 Index's 15.20% gain. This performance was influenced by various sector allocations: investments in the Communication Services sector positively impacted returns, as did the deliberate absence of exposure to the Energy, Consumer Staples, and Utilities sectors. Conversely, positions within the Financials and Industrials sectors experienced declines that offset some of the gains.
The strategy centers on constructing a focused portfolio of approximately 25 high-caliber, attractively valued U.S. large-cap equities. These selections are based on the investment team's strongest convictions, prioritizing companies that are not only financially robust but also adept at managing human and natural resources sustainably, thereby pursuing enduring value. The fund is strategically aligned to capitalize on the foundational infrastructure of the future, emphasizing quality compounding assets expected to perform well during market downturns and emerge stronger afterward.
The outlook on U.S. equities remains cautiously optimistic, with an ongoing commitment to selective, value-driven, and high-quality portfolio construction through active stock selection. This disciplined approach is designed to enhance portfolio resilience and capture growth opportunities while managing risks effectively in a dynamic market environment.
This steadfast commitment to high-quality, attractively priced investments demonstrates a forward-thinking investment philosophy. By prioritizing companies with strong fundamentals and a responsible approach to resources, the fund aims to deliver consistent long-term performance and contribute positively to both investor returns and broader market stability.
