Principal

PREF

Principal Spectrum Preferred Securities 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 preferred securities at the time of purchase. Examples of preferred securities include preferred stock, certain depositary receipts, and various types of junior subordinated debt (such debt generally includes the contractual ability to defer payment of interest without accelerating an immediate default event). It concentrates its investments (invests more than 25% of its net assets) in securities in one or more industries within the financial services sector.

Key features

Deep and broad experience 
A 30-year history analyzing,managing, and pricing complex security structures across a
variety of credit, interest rate, and regulatory conditions


Precise focus
Dedicated exposure to $1,000 par preferred securities, designed to offer attractive yields, diversification benefits, and reduced risk compared to other fixed income securities


Unique security structures
Fixed-to-float and fixed-to-variable securities offer potential for higher back-end spreads that may result in increased coupons to help manage interest rate risk

Daily as of 11/20/2019 unless otherwise stated


Benchmark

The BofA Merrill Lynch US Investment Grade Institutional Capital Securities Index

CIPS


Net Asset Value (NAV)

$99.99

Price

$100.55


Net Assets

$94,993,441.55

NAV Per Share Ticker

PREF.NV


Intraday NAV Ticker

PREF.IV


Shares Outstanding Ticker

PREF.SO


30 Day SEC Yield as of 10/31/2019

3.80%

Estimated Cash Ticker

PREF.EU


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

3.80%

Total Cash Ticker

PREF.TC


Distribution Yield as of 11/1/2019

4.10%


Investment Manager or Sub-advisor

Principal Global Investors, LLC

Portfolio Managers

Manu Krishnan since 7/10/2017

Roberto Giangregorio since 7/10/2017

Daniela Spassova since 7/10/2017

Paul Kim since 7/10/2017

Mark Lieb since 7/10/2017

L. Jacoby since 7/10/2017

  • 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
1.48
3.60
16.38
13.09
N/A N/A N/A
5.06
Market Price Return
1.49
3.84
16.05
13.31
N/A N/A N/A
5.29
The BofA Merrill Lynch US Investment Grade Institutional Capital Securities Index
1.45
3.29
17.03
13.91
N/A N/A N/A
5.97
Preferred Stock
1.00
2.68
15.88
11.30
5.31
4.96
8.11
N/A
# of Funds in Category
68.00
67.00
66.00
64.00
53.00
43.00
20.00
N/A
Morningstar Percentile Rankings
25.00
19.00
38.00
19.00
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
0.83
3.59
14.68
10.29
N/A N/A N/A
4.56
Market Price Return
1.02
3.47
14.34
10.39
N/A N/A N/A
4.79
The BofA Merrill Lynch US Investment Grade Institutional Capital Securities Index
0.57
3.11
15.35
10.81
N/A N/A N/A
5.52
Calendar Year Total Returns 2018 2017 2016 2015 2014
Net Asset Value (NAV) Return 2018-5.62 2017N/A 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Market Price Return 2018-5.47 2017N/A 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
The BofA Merrill Lynch US Investment Grade Institutional Capital Securities Index 2018-4.51 2017N/A 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Preferred Stock 2018-5.49 20179.78 20165.66 20153.18 201411.44

*Inception date: 7/10/2017

 

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 Share0.341263
Ex-Date10/1/2019 TypeIncome $ Per Share0.349882
Ex-Date9/3/2019 TypeIncome $ Per Share0.416533
Ex-Date8/1/2019 TypeIncome $ Per Share0.377000
Ex-Date7/1/2019 TypeIncome $ Per Share0.419143
Ex-Date6/3/2019 TypeIncome $ Per Share0.358000
Ex-Date5/1/2019 TypeIncome $ Per Share0.400000
Ex-Date4/1/2019 TypeIncome $ Per Share0.406666
Ex-Date3/1/2019 TypeIncome $ Per Share0.413454
Ex-Date2/1/2019 TypeIncome $ Per Share0.403454
Ex-Date12/27/2018 TypeIncome $ Per Share0.453080
Ex-Date12/3/2018 TypeIncome $ Per Share0.430182
Ex-Date11/1/2018 TypeIncome $ Per Share0.439091
Ex-Date10/1/2018 TypeIncome $ Per Share0.438000
Ex-Date9/4/2018 TypeIncome $ Per Share0.437818
Ex-Date8/1/2018 TypeIncome $ Per Share0.365818
Ex-Date7/2/2018 TypeIncome $ Per Share0.365818
Ex-Date6/1/2018 TypeIncome $ Per Share0.387091
Ex-Date5/1/2018 TypeIncome $ Per Share0.402000
Ex-Date4/2/2018 TypeIncome $ Per Share0.422666
Ex-Date3/1/2018 TypeIncome $ Per Share0.438999
Ex-Date2/1/2018 TypeIncome $ Per Share0.362250
Ex-Date12/27/2017 TypeIncome $ Per Share0.413999
Ex-Date12/15/2017 TypeShort Term Capital Gain $ Per Share0.023260
Ex-Date12/1/2017 TypeIncome $ Per Share0.425332
Ex-Date11/1/2017 TypeIncome $ Per Share0.436332
Ex-Date10/2/2017 TypeIncome $ Per Share0.464666
Ex-Date9/1/2017 TypeIncome $ Per Share0.454666
Ex-Date8/1/2017 TypeIncome $ Per Share0.136800

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: 7/10/2017



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: 27.60%
# Stock Holdings: 0
# Bond Holdings: 29
# Other Holdings: 7
# Total Holdings: 36
as of 10/31/2019

as of 11/21/2019
Top 10 Holdings Total Market Value % of Net Assets
Top 10 HoldingsTRANSCANADA TRUST COMPANY GUAR 09/79 VAR Total Market Value4,624,309.72 % of Net Assets4.87%
Top 10 HoldingsCLOVERIE PLC ZURICH INS SUBORDINATED REGS 06/46 VAR Total Market Value4,341,678.60 % of Net Assets4.57%
Top 10 HoldingsSUMITOMO LIFE INSUR SUBORDINATED 144A 09/73 VAR Total Market Value4,322,288.83 % of Net Assets4.55%
Top 10 HoldingsBANK OF AMERICA CORP JR SUBORDINA 12/49 VAR Total Market Value4,248,984.80 % of Net Assets4.47%
Top 10 HoldingsARGENTUM (SWISS RE LTD) SUBORDINATED REGS 08/52 VAR Total Market Value4,242,343.75 % of Net Assets4.47%
Top 10 HoldingsMETLIFE INC JR SUBORDINA 144A 04/38 9.25 Total Market Value4,221,720.80 % of Net Assets4.44%
Top 10 HoldingsDUKE ENERGY CORP JR SUBORDINA 12/99 VAR Total Market Value4,016,520.83 % of Net Assets4.23%
Top 10 HoldingsBB+T CORPORATION JR SUBORDINA 12/99 VAR Total Market Value3,933,253.32 % of Net Assets4.14%
Top 10 HoldingsAXA SA JR SUBORDINA 144A 12/49 VAR Total Market Value3,668,990.16 % of Net Assets3.86%
Top 10 HoldingsHSBC CAPITAL FUNDING USD COMPANY GUAR REGS 12/49 VAR Total Market Value3,496,662.73 % of Net Assets3.68%

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 Net49.65% Short0.00% Long49.65%
Asset TypeNon-U.S. Bonds Net32.18% Short0.00% Long32.18%
Asset TypeU.S. Stocks Net0.00% Short0.00% Long0.00%
Asset TypeNon-U.S. Stocks Net0.00% Short0.00% Long0.00%
Asset TypePreferred Net3.44% Short0.00% Long3.44%
Asset TypeOther Net0.00% Short0.00% Long0.00%
Asset TypeCash Net1.19% Short0.00% Long1.19%
Asset TypeConvertibles Net13.55% Short0.00% Long13.55%
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 ICE BofA Merrill Lynch U.S. Investment Grade Institutional Capital Securities Index tracks the performance of U.S. dollar denominated investment grade hybrid capital corporate and preferred securities publicly issued in the U.S. domestic market.

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.

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.

Unlike typical ETFs, there are no indices that the Principal Spectrum Preferred Securities 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.