Principal

PQDI

Principal Spectrum Tax-Advantaged Dividend Active ETF


The investment seeks to provide current income. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in dividend-paying securities at the time of purchase. Such securities include, without limitation, preferred securities and capital securities of U.S. and non-U.S. issuers. The fund invests significantly in securities that, at the time of issuance, are eligible to pay dividends that qualify for favorable U.S. federal income tax treatment, such as dividends treated as “qualified dividend income” (“QDI”) or qualified dividends from real estate investment trusts (“REITS”).

Key features

Tax-advantaged income
Targeted exposure to qualified dividends designed to help U.S. taxpayers boost their after-tax income


Focused on quality
Selecting higher-quality preferred and capital securities with improving credits and seeking to avoid speculative risks may deliver attractive risk-adjusted returns


Active management expertise
Spectrum has a 30-year history analyzing, managing, and pricing complex security structures across a variety of credit, interest rate, and regulatory conditions

Daily as of 9/21/2020 unless otherwise stated


Benchmark

ICE BofA 7% Constrained DRD Eligible Preferred Securities Index


Net Asset Value (NAV)

$20.79

Price

$20.86


Net Assets

$21,824,892.68

NAV Per Share Ticker

PQDI.NV


Intraday NAV Ticker

PQDI.IV


Shares Outstanding

1,050,001

Shares Outstanding Ticker

PQDI.SO


30 Day SEC Yield as of 8/31/2020

3.66%

Estimated Cash Ticker

PQDI.EU


30 Day SEC Yield (Unsubsidized) as of 8/31/2020

3.66%

Total Cash Ticker

PQDI.TC


Distribution Yield as of 9/1/2020

4.18%


Investment Manager or Sub-advisor

Principal Global Investors, LLC

Portfolio Managers

Manu Krishnan since 6/16/2020

Roberto Giangregorio since 6/16/2020

Kevin Nugent since 6/16/2020

Fernando Diaz since 6/16/2020

Mark Lieb since 6/16/2020

L. Jacoby since 6/16/2020

  • Monthlyas of 8/31/2020
  • Monthlyas of 8/31/2020
  • Quarterlyas of 6/30/2020
  • Calendar Yearas of 2019
Average Annual Total Returns 1 Month 3 Month YTD 1 Year 3 Year 5 Year 10 Year Since Inception*
Net Asset Value (NAV) Return 2.11 N/A N/A N/A N/A N/A N/A 5.55
Market Price Return 1.78 N/A N/A N/A N/A N/A N/A 5.90
ICE BofA 7% Constrained DRD Eligible Preferred Securities Index 1.53 5.71 N/A N/A N/A N/A N/A N/A
Morningstar Category
Preferred Stock
2.63 7.46 -1.42 2.21 3.14 4.70 6.31 N/A
# of Funds in Category 70 67 67 66 57 45 23 N/A
Morningstar Percentile Rankings 58 N/A N/A N/A 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 N/A N/A N/A N/A N/A N/A N/A N/A
Market Price Return N/A N/A N/A N/A N/A N/A N/A -0.26
ICE BofA 7% Constrained DRD Eligible Preferred Securities Index -0.26 N/A N/A N/A N/A N/A N/A N/A
Calendar Year Total Returns 2019 2018 2017 2016 2015
Net Asset Value (NAV) Return N/A N/A N/A N/A N/A
Market Price Return N/A N/A N/A N/A N/A
ICE BofA 7% Constrained DRD Eligible Preferred Securities Index N/A N/A N/A N/A N/A
Preferred Stock N/A N/A N/A N/A N/A

*Inception date: 6/16/2020

Some data is provided by Morningstar and is the most current information available. As of 8/31/2020

 

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-Date9/1/2020 TypeIncome $ Per Share0.072953
Ex-Date8/3/2020 TypeIncome $ Per Share0.127048

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 N/A
3 Year 5 Year


Inception Date: 6/16/2020



Risk and return statistical data is calculated by Principal Global Investors.

Fund Information

as of 8/31/2020
Average Market Cap (mil): $N/A
Price/Earnings Ratio: N/A
Price/Book Ratio: N/A
Price/Cash Flow Ratio: N/A
Turnover Ratio: 6.30%
# Stock Holdings: 0
# Bond Holdings: 20
# Other Holdings: 24
# Total Holdings: 44
as of 8/31/2020
Investment Style
Large
Medium
Small
Interest-Rate Sensitivity
High
Medium
Low

as of 9/21/2020
Top 10 Holdings Total Market Value % of Net Assets
Top 10 HoldingsNORDEA BANK ABP JR SUBORDINA 144A 12/99 VAR Total Market Value911,848.80 % of Net Assets4.15%
Top 10 HoldingsNATWEST GROUP PLC JR SUBORDINA 12/49 VAR Total Market Value899,715.89 % of Net Assets4.09%
Top 10 HoldingsCREDIT AGRICOLE SA JR SUBORDINA REGS 12/49 VAR Total Market Value894,873.10 % of Net Assets4.07%
Top 10 HoldingsLLOYDS BANKING GROUP PLC JR SUBORDINA 12/99 VAR Total Market Value864,880.21 % of Net Assets3.94%
Top 10 HoldingsSOCIETE GENERALE JR SUBORDINA REGS 12/49 VAR Total Market Value862,207.68 % of Net Assets3.92%
Top 10 HoldingsUBS GROUP AG JR SUBORDINA REGS 12/99 VAR Total Market Value862,009.84 % of Net Assets3.92%
Top 10 HoldingsHSBC HOLDINGS PLC JR SUBORDINA 12/49 VAR Total Market Value858,190.70 % of Net Assets3.91%
Top 10 HoldingsSTANDARD CHARTERED PLC JR SUBORDINA REGS 12/49 VAR Total Market Value848,336.16 % of Net Assets3.86%
Top 10 HoldingsING GROEP NV JR SUBORDINA VAR Total Market Value843,172.13 % of Net Assets3.84%
Top 10 HoldingsAT+T INC PREFERRED STOCK 4.75 Total Market Value651,581.61 % of Net Assets2.97%

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 08/31/2020
Asset Type Net Short Long
Asset TypeU.S. Bonds Net37.01% Short0.00% Long37.01%
Asset TypeNon-U.S. Bonds Net12.22% Short0.00% Long12.22%
Asset TypeU.S. Stocks Net0.00% Short0.00% Long0.00%
Asset TypeNon-U.S. Stocks Net0.00% Short0.00% Long0.00%
Asset TypePreferred Net17.86% Short0.00% Long17.86%
Asset TypeOther Net0.00% Short0.00% Long0.00%
Asset TypeCash Net0.34% Short0.00% Long0.34%
Asset TypeConvertibles Net32.57% Short0.00% Long32.57%
Total: 100.00%
as of 8/31/2020
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.

© 2020 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 ICE BofA 7% Constrained DRD Eligible Preferred Securities Index (P0DC) tracks the performance of investment-grade preferred securities that are DRD eligible, but caps issuer exposure at 7%.

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 investment options are subject to interest rate risk, and their value will decline as interest rates rise. Risks of preferred securities differ from risks inherent in other investments. In particular, in a bankruptcy preferred securities are senior to common stock but subordinate to other corporate debt. Contingent capital securities (CoCos) may have substantially greater risk than other securities in times of financial stress. An issuer or regulators decision to write down, write off or convert a CoCo may result in complete loss on an investment. Real estate investment options are subject to risks associated with credit, liquidity, interest rate fluctuation, adverse general and local economic conditions, and decreases in real estate values and occupancy rates.

There can be no assurance as to the portion of the Fund’s distributions that will qualify for favorable federal income tax treatment. The Fund may make investments and pay dividends that are ineligible for favorable tax treatment or that otherwise do not meet the requirements for such treatment, and shareholders must satisfy certain requirements to take advantage of beneficial tax treatment.

Unlike typical ETFs, there are no indices that the Principal Spectrum Tax-Advantaged Dividend 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.