Principal

PSC

Principal U.S. Small-Cap Multi-Factor Index ETF


The investment seeks investment results that closely correspond, before expenses, to the performance of the Nasdaq US Small Cap Select Leaders Index. 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. The index uses a quantitative model designed to identify equity securities (including growth and value stock) of small-capitalization companies in the Nasdaq US Small Cap Index (the "parent index") that exhibit potential for high degrees of sustainable shareholder yield, pricing power and strong momentum, while adjusting for liquidity and quality.

Key features

Active index design
Seeks long-term growth by exploiting value, quality, and momentum factor anomalies in small-cap stocks.


Rules-based framework
Helps diversify and reduce unintended risks, favoring more liquid, less volatile companies, while also mitigating sector concentration risks.


Small-cap exposure across market cycles
Combines multiple innovative factors that can help avoid fundamentally distressed small-cap companies to find long-term growth potential.

Index methodology

Principal U.S. Small-Cap Multi-Factor Index ETF Index Methodology

Daily as of 11/13/2019 unless otherwise stated


Benchmark

NASDAQ US Small Cap Select Leaders Index

 NQUSSL


Net Asset Value (NAV)

$31.46

Price

$31.49


Net Assets

$382,218,643.71

NAV Per Share Ticker

PSC.NV


Daily Volume

7,348

Intraday NAV Ticker

PSC.IV


Shares Outstanding

12,150,001

Shares Outstanding Ticker

PSC.SO


30 Day SEC Yield as of 10/31/2019

1.56%

Estimated Cash Ticker

PSC.EU


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

1.56%

Total Cash Ticker

PSC.TC


Distribution Yield as of 10/1/2019

1.48%


Investment Manager or Sub-advisor

Principal Global Investors, LLC

Portfolio Managers

Mark Nebelung since 9/21/2016

Paul Kim since 9/21/2016

Jeffrey Schwarte since 9/21/2016

  • 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
1.77
-1.15
12.87
1.39
10.04
N/A N/A
8.44
Market Price Return
1.78
-1.08
13.03
1.30
10.05
N/A N/A
8.45
NASDAQ US Small Cap Select Leaders Index
1.83
-1.03
13.33
1.84
10.53
N/A N/A
8.92
Small Blend
1.95
-0.02
16.52
4.42
9.27
6.20
11.55
N/A
# of Funds in Category
738.00
735.00
725.00
721.00
640.00
510.00
371.00
N/A
Morningstar Percentile Rankings
60.00
82.00
86.00
79.00
43.00
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
1.94
-2.31
10.91
-11.59
7.93
N/A N/A
8.06
Market Price Return
1.98
-2.28
11.06
-11.63
7.96
N/A N/A
8.07
NASDAQ US Small Cap Select Leaders Index
2.00
-2.21
11.30
-11.26
8.41
N/A N/A
8.53
Calendar Year Total Returns 2018 2017 2016 2015 2014
Net Asset Value (NAV) Return 2018-9.23 201713.41 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Market Price Return 2018-9.35 201713.44 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
NASDAQ US Small Cap Select Leaders Index 2018-8.89 201713.91 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Small Blend 2018-12.72 201712.28 201620.78 2015-5.38 20143.79

*Inception date: 9/21/2016

 

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-Date10/1/2019 TypeIncome $ Per Share0.110521
Ex-Date7/1/2019 TypeIncome $ Per Share0.075470
Ex-Date4/1/2019 TypeIncome $ Per Share0.108658
Ex-Date12/27/2018 TypeIncome $ Per Share0.134874
Ex-Date10/1/2018 TypeIncome $ Per Share0.087371
Ex-Date7/2/2018 TypeIncome $ Per Share0.056572
Ex-Date4/2/2018 TypeIncome $ Per Share0.083439
Ex-Date12/27/2017 TypeIncome $ Per Share0.080629
Ex-Date12/15/2017 TypeShort Term Capital Gain $ Per Share0.015422
Ex-Date10/2/2017 TypeIncome $ Per Share0.053592
Ex-Date7/3/2017 TypeIncome $ Per Share0.078723

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
-6.55
--
Beta
1.22
--
Information Ratio
-0.54
--
Mean
0.92
--
R-Squared
74.60
--
Sharpe Ratio
0.55
--
Standard Deviation
17.08
--
Tracking Error
9.04
--

Inception Date: 9/21/2016



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): $2,013.74
Price/Earnings Ratio: 13.86
Price/Book Ratio: 1.82
Price/Cash Flow Ratio: 5.19
Turnover Ratio: 81.90%
# Stock Holdings: 465
# Bond Holdings: 0
# Other Holdings: 1
# Total Holdings: 466
as of 10/31/2019

as of 11/14/2019
Top 10 Holdings Total Market Value % of Net Assets
Top 10 HoldingsESSENTIAL PROPERTIES REALTY REIT USD.01 Total Market Value3,022,961.81 % of Net Assets0.79%
Top 10 HoldingsTCF FINANCIAL CORP COMMON STOCK USD1.0 Total Market Value2,913,116.51 % of Net Assets0.76%
Top 10 HoldingsUNITED THERAPEUTICS CORP COMMON STOCK USD.01 Total Market Value2,898,666.93 % of Net Assets0.76%
Top 10 HoldingsARROWHEAD PHARMACEUTICALS IN COMMON STOCK USD.001 Total Market Value2,844,820.44 % of Net Assets0.74%
Top 10 HoldingsVIAVI SOLUTIONS INC COMMON STOCK USD.001 Total Market Value2,795,892.99 % of Net Assets0.73%
Top 10 HoldingsWEINGARTEN REALTY INVESTORS REIT USD.03 Total Market Value2,781,565.99 % of Net Assets0.73%
Top 10 HoldingsUNIFIRST CORP/MA COMMON STOCK USD.1 Total Market Value2,751,609.83 % of Net Assets0.72%
Top 10 HoldingsCIRRUS LOGIC INC COMMON STOCK USD.001 Total Market Value2,746,547.35 % of Net Assets0.72%
Top 10 HoldingsTANGER FACTORY OUTLET CENTER REIT USD.01 Total Market Value2,693,077.75 % of Net Assets0.70%
Top 10 HoldingsPENNYMAC MORTGAGE INVESTMENT REIT USD.01 Total Market Value2,670,400.77 % of Net Assets0.70%

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 Net98.97% Short0.00% Long98.97%
Asset TypeNon-U.S. Stocks Net0.80% Short0.00% Long0.80%
Asset TypePreferred Net0.00% Short0.00% Long0.00%
Asset TypeOther Net0.00% Short0.00% Long0.00%
Asset TypeCash Net0.24% Short0.00% Long0.24%
Asset TypeConvertibles Net0.00% Short0.00% Long0.00%
Total: 100.00%
as of 10/31/2019
Stock Sector Breakdown (% of Stocks)
% of stocks
Cyclical
47.28%
Basic Materials 3.90%
Consumer Cyclical 13.82%
Financial Services 18.64%
Real Estate 10.92%


Defensive
19.91%
Consumer Defensive 3.08%
Healthcare 14.70%
Utilities 2.14%


Sensitive
32.81%
Communication Services 4.15%
Energy 3.15%
Industrials 15.10%
Technology 10.41%


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 U.S. Small Cap Index ETF seeks to track the Nasdaq U.S. Small Cap Select Leaders IndexSM, a Nasdaq-licensed index based on Principal’s intellectual property. The Nasdaq U.S. Small Cap Select Leaders Index is designed to provide exposure to companies within the Nasdaq U.S. Small Cap Index that exhibit high degrees of sustainable shareholder yield, pricing power, and strong momentum.​

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.

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