Principal

IG

Principal Investment Grade Corporate Active ETF


The investment seeks to provide current income and, as a secondary objective, capital appreciation. 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 corporate bonds and other fixed income securities at the time of purchase. "Investment grade" securities are rated BBB- or higher by S&P Global Ratings ("S&P Global") or Baa3 or higher by Moody's Investors Service, Inc. ("Moody's") or, if unrated, of comparable quality in the opinion of those selecting such investments.

Key features

Active management 
Combines bottom-up independent credit research with top-down strategy, seeking alpha through credit selection, industry rotation, and curve positioning
    

Straight forward process
Investment grade exposure, free of derivatives, unrated issues, and large duration bets
    

Strategic perspective 
Forward looking, iterative process seeks credits exhibiting stable-to-improving credit rating trajectory which may benefit from spread compression and income premiums

Portfolio construction framework

Principal Investment Grade Corporate Active ETF Index Methodology

Daily as of 11/20/2019 unless otherwise stated


Benchmark

Bloomberg Barclays U.S. Corporate Investment Grade Bond Index

LUACTRUU


Net Asset Value (NAV)

$26.74

Price

$26.77


Net Assets

$124,351,031.74

NAV Per Share Ticker

IG.NV


Intraday NAV Ticker

IG.IV


Shares Outstanding

4,650,001

Shares Outstanding Ticker

IG.SO


30 Day SEC Yield as of 10/31/2019

2.75%

Estimated Cash Ticker

IG.EU


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

2.75%

Total Cash Ticker

IG.TC


Distribution Yield as of 11/1/2019

3.29%


Investment Manager or Sub-advisor

Principal Global Investors, LLC

Portfolio Managers

John Friedl since 4/18/2018

Daniela Spassova since 4/18/2018

Paul Kim since 4/18/2018

Timothy Warrick since 4/18/2018

  • 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
0.53
3.00
14.95
15.39
N/A N/A N/A
8.54
Market Price Return
0.45
3.06
14.66
15.17
N/A N/A N/A
8.64
Bloomberg Barclays U.S. Corporate Investment Grade Bond Index
0.61
3.10
13.89
15.37
N/A N/A N/A
8.87
Corporate Bond
0.58
2.54
12.31
12.96
4.42
4.15
5.19
N/A
# of Funds in Category
221.00
221.00
217.00
216.00
169.00
130.00
81.00
N/A
Morningstar Percentile Rankings
68.00
30.00
9.00
18.00
N/A 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
-0.68
3.05
14.34
12.89
N/A N/A N/A
8.66
Market Price Return
-0.71
3.24
14.15
12.94
N/A N/A N/A
8.83
Bloomberg Barclays U.S. Corporate Investment Grade Bond Index
-0.65
3.05
13.20
13.00
N/A N/A N/A
8.96
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. Corporate Investment Grade Bond Index 2018N/A 2017N/A 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Corporate Bond 2018-2.49 20175.79 20166.51 2015-1.39 20146.93

*Inception date: 4/18/2018

 

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-Date11/1/2019 TypeIncome $ Per Share0.073218
Ex-Date10/1/2019 TypeIncome $ Per Share0.079718
Ex-Date9/3/2019 TypeIncome $ Per Share0.079435
Ex-Date8/1/2019 TypeIncome $ Per Share0.083718
Ex-Date7/1/2019 TypeIncome $ Per Share0.092066
Ex-Date6/3/2019 TypeIncome $ Per Share0.081399
Ex-Date5/1/2019 TypeIncome $ Per Share0.081441
Ex-Date4/1/2019 TypeIncome $ Per Share0.079388
Ex-Date3/1/2019 TypeIncome $ Per Share0.086635
Ex-Date2/1/2019 TypeIncome $ Per Share0.078914
Ex-Date12/27/2018 TypeIncome $ Per Share0.082410
Ex-Date12/14/2018 TypeShort Term Capital Gain $ Per Share0.021368
Ex-Date12/3/2018 TypeIncome $ Per Share0.080893
Ex-Date11/1/2018 TypeIncome $ Per Share0.082044
Ex-Date10/1/2018 TypeIncome $ Per Share0.080656
Ex-Date9/4/2018 TypeIncome $ Per Share0.081861
Ex-Date8/1/2018 TypeIncome $ Per Share0.082162
Ex-Date7/2/2018 TypeIncome $ Per Share0.077366
Ex-Date6/1/2018 TypeIncome $ Per Share0.077363

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 10/31/2019
3 Year 5 Year
Alpha -- --
Beta -- --
Information Ratio -- --
Mean -- --
R-Squared -- --
Sharpe Ratio -- --
Standard Deviation -- --
Tracking Error -- --

Inception Date: 4/18/2018



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): $0.00
Price/Earnings Ratio: 0.00
Price/Book Ratio: 0.00
Price/Cash Flow Ratio: N/A
Turnover Ratio: 92.80%
# Stock Holdings: 0
# Bond Holdings: 240
# Other Holdings: 4
# Total Holdings: 244
as of 10/31/2019

as of 11/21/2019
Top 10 Holdings Total Market Value % of Net Assets
Top 10 HoldingsSKANDINAVISKA ENSKILDA JR SUBORDINA REGS 11/49 VAR Total Market Value3,019,312.50 % of Net Assets2.43%
Top 10 HoldingsSTATE STREET INSTITUTIONAL US STATE ST INST US GOV MM PREM Total Market Value2,669,502.14 % of Net Assets2.15%
Top 10 HoldingsXLIT LTD COMPANY GUAR 03/25 4.45 Total Market Value1,948,745.36 % of Net Assets1.57%
Top 10 HoldingsNUVEEN FINANCE LLC SR UNSECURED 144A 11/24 4.125 Total Market Value1,917,344.85 % of Net Assets1.54%
Top 10 HoldingsSABINE PASS LIQUEFACTION SR SECURED 05/24 5.75 Total Market Value1,807,995.11 % of Net Assets1.45%
Top 10 HoldingsSYNCHRONY BANK SR UNSECURED 06/22 3 Total Market Value1,707,783.00 % of Net Assets1.37%
Top 10 HoldingsAT+T INC SR UNSECURED 12/23 4.05 Total Market Value1,574,766.71 % of Net Assets1.27%
Top 10 HoldingsCVS HEALTH CORP SR UNSECURED 03/23 3.7 Total Market Value1,390,913.29 % of Net Assets1.12%
Top 10 HoldingsROYAL BK SCOTLND GRP PLC SUBORDINATED 05/24 5.125 Total Market Value1,375,996.47 % of Net Assets1.11%
Top 10 HoldingsBANK OF AMERICA CORP SR UNSECURED 02/30 VAR Total Market Value1,347,407.47 % 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 10/31/2019
Asset Type Net Short Long
Asset TypeU.S. Bonds Net88.10% Short0.00% Long88.10%
Asset TypeNon-U.S. Bonds Net10.07% Short0.00% Long10.07%
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 Net1.06% Short0.00% Long1.06%
Asset TypeConvertibles Net0.77% Short0.00% Long0.77%
Total: 100.00%
as of 10/31/2019
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 U.S. Corporate Investment Grade Bond Index measures the investment grade, fixed-rate, taxable corporate bond market. It includes U.S. dollar-denominated securities publicly issued by U.S. and non-U.S. industrial, utility, and financial issuers.

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.

Fixed-income investments are subject to interest rate risk; as interest rates rise, their value will decline.

Lower-rated securities are subject to additional credit and default risks.

Unlike typical ETFs, there are no indices that the Principal Investment Grade Corporate Active 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.