Navigating Market Dynamics with Prudent Investment Choices

First Quarter Performance Review: Unpacking the Numbers

The Parnassus Value Select ETF registered a net asset value (NAV) return of -1.45% for the first quarter of 2026. This figure notably lagged behind the Russell 1000 Value Index, which posted a positive return of 2.10% during the same period. This differential in performance warrants a closer examination of the underlying factors.

Sectoral Influence on Portfolio Returns: Energy, Healthcare, and Financials

A significant contributor to the ETF's underperformance was its strategic underweighting in the Energy sector. This sector experienced a robust period of growth, largely propelled by geopolitical tensions and an uptick in oil prices. Consequently, the fund missed out on these gains. Furthermore, positions within the Health Care and Financials sectors also faced headwinds, impacting overall portfolio returns.

Strategic Resilience: Upholding Quality Amidst Volatility

Despite the heightened market volatility observed throughout the first quarter, the investment team at Parnassus Investments remains committed to its core investment principles. The portfolio continues to emphasize a quality-oriented approach, meticulously balancing exposure across traditional value investments and forward-looking secular themes. This strategy aims to foster long-term growth while maintaining a robust and resilient portfolio structure.

Key Operational Details of the Fund

The Parnassus Value Select ETF operates under the ticker PRVS, with a total expense ratio of 0.59%. Launched on December 11, 2024, the fund's benchmark is the Russell 1000 Value Index. Classified as a U.S. large-cap value asset, its primary objective is capital appreciation, achieved through careful selection of financially sound companies that demonstrate strong stewardship of human and natural resources.