NEW YORK, July 18, 2026, 14:17 EDT — The discount on Bill Ackman's Pershing Square USA (NYSE: PSUS) has reached a level that effectively wipes out more than a decade of management fees. The closed-end fund ended Friday's trading session at $37.02, representing a 22.6% discount to its most recently reported net asset value (NAV) of $47.81 as of July 14.
Discount Dynamics
The $10.79 gap between the share price and NAV equates to approximately 11.3 years of the fund's 2% annual management fee. Based on the latest NAV, the yearly fee amounts to roughly 96 cents per share, which represents 2.58% of Friday's closing price. The fund does not charge a performance fee. Notably, this calculation excludes additional fund expenses, which the prospectus projects at 0.20% per year but cautions may vary.
Comparative Costs
For context, the Vanguard Mega Cap ETF (NYSEARCA: MGC) has an expense ratio of just 0.05%, while the Vanguard Growth ETF (NYSEARCA: VUG) charges 0.03%. An investment of $10,000 in PSUS at Friday's close provides exposure to approximately $12,915 of NAV, but carries an estimated annual management fee of $258. In contrast, the same investment in MGC would incur roughly $5 in expenses, and VUG would cost about $3.
Portfolio Concentration
PSUS has allocated close to 85% of its capital across just 12 firms as of June 15, though specific weightings have not been disclosed. The most significant overlap with the ETFs includes Microsoft (NASDAQ: MSFT), Amazon.com (NASDAQ: AMZN), and Meta Platforms (NASDAQ: META). These three stocks represented 11.94% of MGC and 15.45% of VUG as of June 30. However, over 84% of each ETF is allocated beyond that trio, highlighting the stark difference in portfolio breadth: PSUS holds 12 companies, while MGC holds 183 stocks and VUG holds 151.
Recent Performance
In the latest Friday-to-Friday session, PSUS declined 2.2%, while MGC fell 1.7% and VUG slid 2.4%. The gap widened on Friday, with PSUS dropping 2.96%, compared to MGC's 1.09% loss and VUG's 1.49% decline. The discount has been persistent, and investors face the risk that it may remain or grow wider.
Investor Considerations
Investors in PSUS are subject to both the returns from the underlying portfolio and changes in the discount. CEO Bill Ackman stated in a June 15 regulatory filing that the fund acquired its reported stakes at "prices we believe to be extremely attractive." However, the concentrated holdings and potential use of leverage can amplify losses. The ETFs offer broad index exposure with minimal fee impact, but they cannot replicate Ackman's focused bets outside the index.
U.S. markets resume trading on Monday, July 20. PSUS plans to determine its next weekly NAV after the market close on Tuesday and expects to release the figure on Wednesday, which will serve as the next key indicator for the fund.
