Principal

BTEC

Principal Healthcare Innovators Index ETF


The investment seeks to provide investment results that closely correspond, before expenses, to the performance of the Nasdaq Healthcare Innovators Index (the "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 in the Nasdaq US Benchmark Index (including growth and value stock) that are small and medium capitalization U.S. healthcare companies.

Key features

High-growth potential
Seeks to tap into the increasing demand for healthcare solutions as demographic trends have driven healthcare spending to more than double in the last 20 years.1


Specialized healthcare solution 
Brings an efficient, systematic approach to identifying and selecting smaller healthcare companies that many investors neglect.


Early-stage access 
Seeking to help investors keep more of what they earn by mitigating portfolio volatility.


1 "How Has U.S. Spending on Healthcare Changed over Time?" Peterson-Kaiser Health System Tracker

Index methodology

Principal Healthcare Innovators Index ETF Index Methodology

Daily as of 11/20/2019 unless otherwise stated


Benchmark

NASDAQ US Health Care Innovators Index

 NQHCIN


Net Asset Value (NAV)

$35.52

Price

$35.50


Net Assets

$56,825,499.33

NAV Per Share Ticker

BTEC.NV


Daily Volume

6,088

Intraday NAV Ticker

BTEC.IV


Shares Outstanding

1,600,001

Shares Outstanding Ticker

BTEC.SO


30 Day SEC Yield as of 10/31/2019

-0.39%

Estimated Cash Ticker

BTEC.EU


30 Day SEC Yield (Unsubsidized) as of 10/31/2019

-0.39%

Total Cash Ticker

BTEC.TC


Distribution Yield as of 11/21/2019

N/A


Investment Manager or Sub-advisor

Principal Global Investors, LLC

Portfolio Managers

Mark Nebelung since 8/19/2016

Paul Kim since 8/19/2016

Jeffrey Schwarte since 8/19/2016

  • Monthlyas of 10/31/2019
  • Monthlyas of 10/31/2019
  • Quarterlyas of 9/30/2019
  • 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
5.81
-5.12
16.33
3.00
12.98
N/A N/A
8.39
Market Price Return
5.80
-5.18
16.40
2.80
12.95
N/A N/A
8.38
NASDAQ US Health Care Innovators Index
5.83
-5.04
16.77
3.46
13.50
N/A N/A
8.89
Health
5.51
-0.18
12.35
4.98
12.80
6.99
14.93
N/A
# of Funds in Category
160.00
160.00
146.00
146.00
136.00
122.00
103.00
N/A
Morningstar Percentile Rankings
42.00
87.00
19.00
66.00
53.00
N/A N/A 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
-6.11
-11.18
9.94
-17.45
5.28
N/A N/A
6.68
Market Price Return
-6.18
-11.20
10.02
-17.45
5.22
N/A N/A
6.67
NASDAQ US Health Care Innovators Index
-6.07
-11.10
10.34
-17.10
5.75
N/A N/A
7.17
Calendar Year Total Returns 2018 2017 2016 2015 2014
Net Asset Value (NAV) Return 2018-11.20 201736.31 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Market Price Return 2018-11.47 201736.53 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
NASDAQ US Health Care Innovators Index 2018-10.82 201736.99 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Health 2018-0.40 201724.31 2016-10.60 20158.05 201427.25

*Inception date: 8/19/2016

 

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.

Ex-Date Type $ Per Share
Ex-Date12/15/2017 TypeShort Term Capital Gain $ Per Share0.041551
Ex-Date12/15/2017 TypeLong Term Capital Gain $ Per Share0.009789

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 10/31/2019
3 Year 5 Year
Alpha
-0.54
--
Beta
1.43
--
Information Ratio
0.09
--
Mean
1.25
--
R-Squared
44.97
--
Sharpe Ratio
0.56
--
Standard Deviation
24.06
--
Tracking Error
18.52
--

Inception Date: 8/19/2016



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


Excess Return is calculated by Principal.

Fund Information

as of 10/31/2019
Average Market Cap (mil): $3,198.71
Price/Earnings Ratio: 12.96
Price/Book Ratio: 2.66
Price/Cash Flow Ratio: 5.25
# Stock Holdings: 188
# Bond Holdings: 0
# Other Holdings: 1
# Total Holdings: 189
as of 10/31/2019

as of 11/21/2019
Top 10 Holdings Total Market Value % of Net Assets
Top 10 HoldingsDEXCOM INC COMMON STOCK USD.001 Total Market Value2,209,758.72 % of Net Assets3.89%
Top 10 HoldingsSEATTLE GENETICS INC COMMON STOCK USD.001 Total Market Value2,108,295.48 % of Net Assets3.71%
Top 10 HoldingsALNYLAM PHARMACEUTICALS INC COMMON STOCK USD.01 Total Market Value1,827,558.69 % of Net Assets3.22%
Top 10 HoldingsBIOMARIN PHARMACEUTICAL INC COMMON STOCK USD.001 Total Market Value1,711,745.01 % of Net Assets3.01%
Top 10 HoldingsAVANTOR INC COMMON STOCK USD.01 Total Market Value1,387,584.00 % of Net Assets2.44%
Top 10 HoldingsEXACT SCIENCES CORP COMMON STOCK USD.01 Total Market Value1,383,837.84 % of Net Assets2.44%
Top 10 HoldingsNOVOCURE LTD COMMON STOCK Total Market Value1,348,311.30 % of Net Assets2.37%
Top 10 HoldingsMYLAN NV COMMON STOCK EUR.01 Total Market Value1,298,671.96 % of Net Assets2.29%
Top 10 HoldingsIONIS PHARMACEUTICALS INC COMMON STOCK USD.001 Total Market Value1,273,665.22 % of Net Assets2.24%
Top 10 HoldingsSAGE THERAPEUTICS INC COMMON STOCK USD.0001 Total Market Value1,188,674.40 % of Net Assets2.09%

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 10/31/2019
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 Net96.20% Short0.00% Long96.20%
Asset TypeNon-U.S. Stocks Net3.59% Short0.00% Long3.59%
Asset TypePreferred Net0.00% Short0.00% Long0.00%
Asset TypeOther Net0.00% Short0.00% Long0.00%
Asset TypeCash Net0.20% Short0.00% Long0.20%
Asset TypeConvertibles Net0.00% Short0.00% Long0.00%
Total: 100.00%
as of 10/31/2019
Stock Sector Breakdown (% of Stocks)
% of stocks
Cyclical
2.47%
Basic Materials 2.47%
Consumer Cyclical 0.00%
Financial Services 0.00%
Real Estate 0.00%


Defensive
97.53%
Consumer Defensive 0.00%
Healthcare 97.53%
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 Principal Healthcare Innovators Index ETF seeks to track the Nasdaq U.S. Healthcare Innovators Index, a Nasdaq-licensed index based on Principal’s intellectual property. The Nasdaq U.S. Healthcare Innovators Index is designed to provide exposure to U.S. companies that are early stage healthcare companies.

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.

Small and mid-cap stocks may have additional risks including greater price volatility.

Investments concentrated in the healthcare industry may be adversely impacted by sector specific market shocks, unforeseen rate controls or regulations, higher than expected costs, or inability to bring new products to market.