Principal

USI

Principal Ultra-Short Active Income ETF


The investment seeks to provide current income. The fund is an actively managed exchange-traded fund ("ETF") that seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets, plus any borrowings for investment purposes, in investment-grade bonds and other debt securities. The fund invests in fixed- and floating-rate securities. Under normal circumstances, the fund maintains an average effective maturity of three years or less and an average portfolio duration of one year or less.

Key features

Active management
Combines bottom-up independent credit research with top-down strategy, supported by rigorous risk mitigation at each step.


Straight forward process
Investment process is free of derivatives, duration bets, and unrated issues.


Strategic perspective
Biased towards issuers with traits like stable cash flows, hard assets, and the potential to benefit from demographic trends.

Portfolio construction framework

Principal Ultra-Short Active Income ETF Portfolio construction framework

Daily as of 9/16/2019 unless otherwise stated


Benchmark

Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index

I00078US


Net Asset Value (NAV)

$25.03

Price

$25.04


Net Assets

$12,515,151.95

NAV Per Share Ticker

USI.NV


Intraday NAV Ticker

USI.IV


Shares Outstanding Ticker

USI.SO


30 Day SEC Yield as of 8/31/2019

2.46%

Estimated Cash Ticker

USI.EU


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

2.46%

Total Cash Ticker

USI.TC


Distribution Yield as of 9/3/2019

3.14%


Investment Manager or Sub-advisor

Principal Global Investors, LLC

Portfolio Managers

John Friedl since 4/24/2019

Scott Peterson since 4/24/2019

Daniela Spassova since 4/24/2019

Paul Kim since 4/24/2019

  • 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
0.28
0.79
N/A N/A N/A N/A N/A
1.10
Market Price Return
0.30
0.74
N/A N/A N/A N/A N/A
1.15
Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index
0.18
0.57
N/A N/A N/A N/A N/A
0.82
Ultrashort Bond
0.28
0.77
2.35
2.81
1.91
1.40
1.34
N/A
Morningstar Percentile Rankings
68.00
40.00
N/A N/A N/A N/A N/A N/A
# of Funds in Category
212.00
209.00
203.00
197.00
151.00
129.00
57.00
N/A
Morningstar Percentile Rankings
42.00
38.00
N/A N/A N/A N/A N/A N/A
# of Funds in Category
206.00
202.00
196.00
192.00
147.00
125.00
56.00
N/A
Morningstar Percentile Rankings
44.00
40.00
N/A N/A N/A N/A N/A N/A
# of Funds in Category
213.00
209.00
202.00
198.00
152.00
130.00
57.00
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
0.31
N/A N/A N/A N/A N/A
0.62
Market Price Return
0.24
N/A N/A N/A N/A N/A
0.64
Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index
0.21
N/A N/A N/A N/A N/A N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Net Asset Value (NAV) Return 2018N/A 2017N/A 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Market Price Return 2018N/A 2017N/A 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index 2018N/A 2017N/A 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Ultrashort Bond 20181.61 20171.44 20161.41 20150.17 20140.34

*Inception date: 4/24/2019

 

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.

Ex-Date Type $ Per Share
Ex-Date9/3/2019 TypeIncome $ Per Share0.065400
Ex-Date8/1/2019 TypeIncome $ Per Share0.066200
Ex-Date7/1/2019 TypeIncome $ Per Share0.060000
Ex-Date6/3/2019 TypeIncome $ Per Share0.069111

Dividends are paid monthly.

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 9/18/2019
3 Year 5 Year
Alpha -- --
Beta -- --
Information Ratio -- --
Mean -- --
R-Squared -- --
Sharpe Ratio -- --
Standard Deviation -- --
Tracking Error -- --

Inception Date: 4/24/2019



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): $0.00
Price/Earnings Ratio: 0.00
Price/Book Ratio: 0.00
Price/Cash Flow Ratio: N/A
Turnover Ratio: 0.00%
# Stock Holdings: 0
# Bond Holdings: 42
# Other Holdings: 8
# Total Holdings: 50
as of 8/31/2019

as of 9/17/2019
Top 10 Holdings Total Market Value % of Net Assets
Top 10 HoldingsSTATE STREET INSTITUTIONAL US STATE ST INST US GOV MM PREM Total Market Value542,485.62 % of Net Assets4.33%
Top 10 HoldingsLG+E AND KU ENERGY LLC SR UNSECURED 11/20 3.75 Total Market Value430,448.24 % of Net Assets3.44%
Top 10 HoldingsIBM CORP SR UNSECURED 11/19 8.375 Total Market Value430,057.39 % of Net Assets3.44%
Top 10 HoldingsFORD CREDIT AUTO OWNER TRUST/F FORDR 2015 2 A 144A Total Market Value400,691.97 % of Net Assets3.20%
Top 10 HoldingsNEXTERA ENERGY CAPITAL COMPANY GUAR 05/21 VAR Total Market Value375,593.03 % of Net Assets3.00%
Top 10 HoldingsDOMINION ENERGY INC JR SUBORDINA 07/20 2.579 Total Market Value352,552.20 % of Net Assets2.82%
Top 10 HoldingsCREDIT SUISSE NEW YORK SUBORDINATED 01/20 5.4 Total Market Value340,366.37 % of Net Assets2.72%
Top 10 HoldingsVOLVO FINANCIAL EQUIPMENT MAST VMOT 2018 A A 144A Total Market Value325,527.26 % of Net Assets2.60%
Top 10 HoldingsPNC FINANCIAL SERVICES SR UNSECURED 02/20 5.125 Total Market Value319,228.65 % of Net Assets2.55%
Top 10 HoldingsWESTLAKE AUTOMOBILE RECEIVABLE WLAKE 2018 1A C 144A Total Market Value300,912.31 % of Net Assets2.40%

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 Net76.64% Short0.00% Long76.64%
Asset TypeNon-U.S. Bonds Net10.38% Short0.00% Long10.38%
Asset TypeU.S. Stocks Net0.00% Short0.00% Long0.00%
Asset TypeNon-U.S. Stocks Net0.00% Short0.00% Long0.00%
Asset TypePreferred Net0.00% Short0.00% Long0.00%
Asset TypeOther Net0.00% Short0.00% Long0.00%
Asset TypeCash Net12.98% Short0.00% Long12.98%
Asset TypeConvertibles Net0.00% Short0.00% Long0.00%
Total: 100.00%
as of 8/31/2019
Stock Sector Breakdown (% of Stocks)
% of stocks
Cyclical
0.00%
Basic Materials 0.00%
Consumer Cyclical 0.00%
Financial Services 0.00%
Real Estate 0.00%


Defensive
0.00%
Consumer Defensive 0.00%
Healthcare 0.00%
Utilities 0.00%


Sensitive
0.00%
Communication Services 0.00%
Energy 0.00%
Industrials 0.00%
Technology 0.00%


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 Bloomberg Barclays 1-3 Month U.S. Treasury Bill Index is designed to measure the performance of public obligations of the U.S. Treasury with maturities of 1-3 months, including securities that roll up to the U.S. Aggregate, U.S. Universal, and Global Aggregate Indices.

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.

International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards.

Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Neither the principal of bond investment options nor their yields are guaranteed by the U.S. government.

Unlike passive ETFs, there are no indices that the Principal Ultra Short Active Income ETF attempts to track or replicate. Thus, the ability of the Fund to achieve its objectives will depend on the effectiveness of the portfolio manager.