Principal

PY

Principal Shareholder Yield Index ETF


The investment seeks to provide investment results that closely correspond, before expenses, to the performance of the Nasdaq U.S. Shareholder Yield Index. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies that compose the index at the time of purchase. The index uses a quantitative model designed to identify equity securities (including value stock) of mid- to large-capitalization companies in the Nasdaq US Large Mid Cap Index (the "parent index") that exhibit high degrees of sustainable, shareholder yield.

Key features

Active index design
Seeks exposure to mid- and large-cap value opportunities with sustainable sources of return.


Rules-based framework
Identifies companies with strong cash generation, consistent cash deployment, and financial flexibility.


Strong factors, strong results
Portfolio construction favors companies with the strongest quality characteristics and goes beyond cap weighting for further diversification.

Index methodology

Principal Shareholder Yield Index ETF Index Methodology

Daily as of 9/16/2019 unless otherwise stated


Benchmark

NASDAQ US Shareholder Yield Index

NQSHYL


Net Asset Value (NAV)

$32.58

Price

$32.62


Net Assets

$14,660,433.78

NAV Per Share Ticker

PY.NV


Daily Volume

5,653

Intraday NAV Ticker

PY.IV


Shares Outstanding Ticker

PY.SO


30 Day SEC Yield as of 8/31/2019

2.27%

Estimated Cash Ticker

PY.EU


30 Day SEC Yield (Unsubsidized) as of 8/31/2019

2.16%

Total Cash Ticker

PY.TC


Distribution Yield as of 7/1/2019

2.28%


Investment Manager or Sub-advisor

Principal Global Investors, LLC

Portfolio Managers

Mark Nebelung since 3/21/2016

Paul Kim since 3/21/2016

Jeffrey Schwarte since 3/21/2016

  • Monthlyas of 8/31/2019
  • Monthlyas of 8/31/2019
  • Quarterlyas of 6/30/2019
  • Calendar Year
Average Annual Total Returns 1 Month 3 Month YTD 1 Year 3 Year 5 Year 10 Year Since Inception*
Net Asset Value (NAV) Return
-5.43
5.43
11.59
-7.75
8.13
N/A N/A
8.29
Market Price Return
-5.30
5.76
11.78
-7.54
8.19
N/A N/A
8.41
NASDAQ US Shareholder Yield Index
-5.43
5.54
11.89
-7.49
8.53
N/A N/A
8.60
Mid-Cap Value
-4.48
3.20
11.66
-6.79
5.73
4.52
10.76
N/A
Morningstar Percentile Rankings
10.00
50.00
49.00
35.00
9.00
N/A N/A N/A
# of Funds in Category
423.00
422.00
418.00
414.00
364.00
322.00
223.00
N/A
Morningstar Percentile Rankings
73.00
17.00
56.00
57.00
14.00
N/A N/A N/A
# of Funds in Category
416.00
416.00
411.00
409.00
355.00
316.00
215.00
N/A
Morningstar Percentile Rankings
72.00
16.00
56.00
56.00
13.00
N/A N/A N/A
# of Funds in Category
431.00
430.00
425.00
423.00
368.00
329.00
227.00
N/A
Average Annual Total Returns 1 Month 3 Month YTD 1 Year 3 Year 5 Year 10 Year Since Inception*
Net Asset Value (NAV) Return
9.29
4.02
15.68
0.68
11.43
N/A N/A
9.94
Market Price Return
9.46
4.08
15.69
0.70
11.42
N/A N/A
10.02
NASDAQ US Shareholder Yield Index
9.36
4.12
15.94
1.00
11.86
N/A N/A
10.25
Calendar Year Total Returns 2018 2017 2016 2015 2014
Net Asset Value (NAV) Return 2018-12.51 201719.07 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Market Price Return 2018-12.30 201718.88 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
NASDAQ US Shareholder Yield Index 2018-12.29 201719.54 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Mid-Cap Value 2018-12.86 201713.22 201618.06 2015-5.41 20149.31

*Inception date: 3/21/2016

 

Morningstar percentile rankings are based on total returns. 


Investment results shown represent historical performance and do not guarantee future results. Investment returns and principal values fluctuate with changes in interest rates and other market conditions so the value, when redeemed, may be worth more or less than original costs. Current performance may be lower or higher than the performance data shown.

as of 8/31/2019
Rating # of Funds
3 Year Rating
# of Funds368
5 Year Rating

N/A

# of Funds329
Overall Rating
# of Funds425

Morningstar Category: Mid-Cap Value

Ratings reflect risk adjusted performance.

Ex-Date Type $ Per Share
Ex-Date7/1/2019 TypeIncome $ Per Share0.182889
Ex-Date4/1/2019 TypeIncome $ Per Share0.170667
Ex-Date12/27/2018 TypeIncome $ Per Share0.212092
Ex-Date10/1/2018 TypeIncome $ Per Share0.157556
Ex-Date7/2/2018 TypeIncome $ Per Share0.158000
Ex-Date4/2/2018 TypeIncome $ Per Share0.120889
Ex-Date12/27/2017 TypeIncome $ Per Share0.145200
Ex-Date12/15/2017 TypeShort Term Capital Gain $ Per Share0.016352
Ex-Date12/15/2017 TypeLong Term Capital Gain $ Per Share0.000504
Ex-Date10/2/2017 TypeIncome $ Per Share0.135600
Ex-Date7/3/2017 TypeIncome $ Per Share0.069200

Dividends are paid quarterly.

This information shows differences between the per share net asset value (NAV) of the Fund and the market trading price of shares. For these purposes, the market price is the midpoint of the highest bid and lowest offer for Fund shares as of close of trading on the exchange where Fund shares are listed. Timing discrepancies may exist between NAV and closing price. Shareholders may pay more than net asset value when they buy Fund shares and receive less than net asset value when they sell those shares, because shares are bought and sold at current market prices.

as of 8/31/2019
3 Year 5 Year
Alpha
-6.42
--
Beta
1.26
--
Information Ratio
-0.66
--
Mean
0.77
--
R-Squared
86.22
--
Sharpe Ratio
0.46
--
Standard Deviation
16.48
--
Tracking Error
6.88
--

Inception Date: 3/21/2016



Risk and return statistical data is calculated by Morningstar, Inc.


Excess Return is calculated by Principal.

Fund Information

as of 8/31/2019
Average Market Cap (mil): $17,493.06
Price/Earnings Ratio: 11.63
Price/Book Ratio: 2.01
Price/Cash Flow Ratio: 6.44
Turnover Ratio: 49.20%
# Stock Holdings: 136
# Bond Holdings: 0
# Other Holdings: 1
# Total Holdings: 137
as of 8/31/2019

as of 9/17/2019
Top 10 Holdings Total Market Value % of Net Assets
Top 10 HoldingsLAM RESEARCH CORP COMMON STOCK USD.001 Total Market Value181,608.62 % of Net Assets1.24%
Top 10 HoldingsAPPLIED MATERIALS INC COMMON STOCK USD.01 Total Market Value180,816.92 % of Net Assets1.23%
Top 10 HoldingsSANTANDER CONSUMER USA HOLDI COMMON STOCK USD.01 Total Market Value173,998.76 % of Net Assets1.19%
Top 10 HoldingsSTARBUCKS CORP COMMON STOCK USD.001 Total Market Value173,206.54 % of Net Assets1.18%
Top 10 HoldingsCELANESE CORP COMMON STOCK USD.0001 Total Market Value165,642.95 % of Net Assets1.13%
Top 10 HoldingsTEXAS INSTRUMENTS INC COMMON STOCK USD1.0 Total Market Value165,199.32 % of Net Assets1.13%
Top 10 HoldingsCDW CORP/DE COMMON STOCK USD.01 Total Market Value163,850.00 % of Net Assets1.12%
Top 10 HoldingsCOMCAST CORP CLASS A COMMON STOCK USD.01 Total Market Value162,962.94 % of Net Assets1.11%
Top 10 HoldingsDISCOVER FINANCIAL SERVICES COMMON STOCK USD.01 Total Market Value158,988.18 % of Net Assets1.08%
Top 10 HoldingsWILLIAMS SONOMA INC COMMON STOCK USD.01 Total Market Value157,780.54 % of Net Assets1.08%

Includes, but is not limited to, unsettled activity from creation/redemption transactions and portfolio security trades and accrued interest. Values may exceed 100% if both long and short positions are included in the portfolio.

as of 8/31/2019
Asset Type Net Short Long
Asset TypeU.S. Bonds Net0.00% Short0.00% Long0.00%
Asset TypeNon-U.S. Bonds Net0.00% Short0.00% Long0.00%
Asset TypeU.S. Stocks Net98.09% Short0.00% Long98.09%
Asset TypeNon-U.S. Stocks Net1.64% Short0.00% Long1.64%
Asset TypePreferred Net0.00% Short0.00% Long0.00%
Asset TypeOther Net0.00% Short0.00% Long0.00%
Asset TypeCash Net0.28% Short0.00% Long0.28%
Asset TypeConvertibles Net0.00% Short0.00% Long0.00%
Total: 100.00%
as of 8/31/2019
Stock Sector Breakdown (% of Stocks)
% of stocks
Cyclical
60.23%
Basic Materials 5.11%
Consumer Cyclical 19.60%
Financial Services 35.00%
Real Estate 0.51%


Defensive
4.90%
Consumer Defensive 1.46%
Healthcare 3.44%
Utilities 0.00%


Sensitive
34.87%
Communication Services 2.56%
Energy 2.29%
Industrials 16.68%
Technology 13.35%


Disclosures

Holding, portfolio and sector allocations are subject to change.

Returns shown for periods of less than one year are not annualized.

Investor shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Ordinary brokerage commissions apply.

The market price used to calculate the Market Price Return is the midpoint between the highest bid and the lowest offer on the exchange on which the shares of the Fund are listed for trading, as of the time that the Fund's NAV is calculated. If you trade your shares at another time, your return may differ.

Where gross and net expense ratios differ, the investment adviser has contractually agreed to limit the investment option's expenses. Differences also may be due to the investment adviser's decision to waive (through the same dates) certain expenses that would normally be payable by the fund. The net expense figure reflects the impact of any limits or waivers. Returns displayed are based on net total investment expense.

Performance data quoted represents past performance. Past performance is no guarantee of future results and investment returns, and principal value of the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted.

Investors should carefully consider a fund’s investment objectives, risks, charges, and expenses prior to investing.

© 2019 Morningstar, Inc. All Rights Reserved. Part of the data contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

The Morningstar Style Box is a nine-square grid that provides a graphical representation of the "investment style" of a fund. The Equity style box classifies securities by size along the vertical axis and by value and growth characteristics along the horizontal axis. The model for the fixed-income style box is based on the two pillars of fixed-incomeperformance: interest-rate sensitivity and credit quality. The three interest sensitivity groups are limited, moderate and extensive and the three credit quality groups are high, medium and low. These groupings display a portfolio’s effective duration and third party credit ratings to provide an overall representation of the fund’s risk orientation given the sensitivity to interest rate and credit rating of bonds in the portfolio.

The Morningstar RatingTM for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Morningstar ratings do not reflect the inclusion of sales charges. If sales charges were reflected, ratings could be lower.

Index

The Principal Shareholder Yield Index ETF seeks to track the Nasdaq U.S. Shareholder Yield Index, a Nasdaq licensed index based on Principal’s intellectual property. The index provides exposure to equity securities of mid- and large capitalization U.S. issuers. The index focuses on U.S. companies with sustainable shareholder yield, strong cash flow generation, and capacity to increase dividends and/or buybacks.​

Risks

Asset allocation and diversification do not ensure a profit or protect against a loss. Investing in ETFs involves risk, including possible loss of principal. ETFs are subject to risk similar to those of stocks, including those regarding short-selling and margin account maintenance.

Equity investments involve greater risk, including higher volatility, than fixed-income investment options.

Mid-cap stocks may have additional risks, including greater price volatility.