Principal

PY

Principal Shareholder Yield Index ETF


The investment seeks to provide investment results that closely correspond, before expenses, to the performance of the Nasdaq US Shareholder Yield 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 (including value stock) of mid- to large-capitalization companies in the Nasdaq US Large Mid Cap Index (the "parent index") that exhibit high degrees of sustainable, shareholder yield.

Key features

Active index design
Seeks exposure to mid- and large-cap value opportunities with sustainable sources of return.


Rules-based framework
Identifies companies with strong cash generation, consistent cash deployment, and financial flexibility.


Strong factors, strong results
Portfolio construction favors companies with the strongest quality characteristics and goes beyond cap weighting for further diversification.

Index methodology**

Principal Shareholder Yield Index ETF Index Methodology

Daily as of 9/18/2020 unless otherwise stated


Benchmark

Nasdaq US Shareholder Yield Index


Net Asset Value (NAV)

$29.50

Price

$29.51


Net Assets

$14,749,351.36

NAV Per Share Ticker

PY.NV


Intraday NAV Ticker

PY.IV


Shares Outstanding Ticker

PY.SO


30 Day SEC Yield as of 8/31/2020

3.42%

Estimated Cash Ticker

PY.EU


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

3.42%

Total Cash Ticker

PY.TC


Distribution Yield as of 7/1/2020

2.66%


Investment Manager or Sub-advisor

Principal Global Investors, LLC

Portfolio Managers

Aaron Siebel since 3/3/2020

Jeffrey Schwarte since 3/21/2016

  • 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 4.88 10.36 -11.71 -0.06 3.27 N/A N/A 6.35
Market Price Return 5.96 11.10 -10.94 0.66 3.53 N/A N/A 6.62
Nasdaq US Shareholder Yield Index 4.91 10.44 -11.69 0.10 3.56 N/A N/A 6.70
Morningstar Category
Mid-Cap Value
3.90 8.66 -13.80 -3.71 0.99 4.73 9.52 N/A
# of Funds in Category 426 426 423 419 386 346 246 N/A
Morningstar Percentile Rankings 25 29 33 24 19 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 1.78 22.18 -18.58 -11.09 0.43 N/A N/A 4.62
Market Price Return 1.72 22.45 -18.46 -10.95 0.52 N/A N/A 4.71
Nasdaq US Shareholder Yield Index 1.81 22.42 -18.59 -10.95 0.72 N/A N/A 4.96
Calendar Year Total Returns 2019 2018 2017 2016 2015
Net Asset Value (NAV) Return 26.33 -12.51 19.07 N/A N/A
Market Price Return 26.34 -12.30 18.88 N/A N/A
Nasdaq US Shareholder Yield Index 26.83 -12.29 19.54 N/A N/A
Mid-Cap Value 25.18 -12.86 13.22 N/A N/A

*Inception date: 3/21/2016

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-Date7/1/2020 TypeIncome $ Per Share0.181044
Ex-Date4/1/2020 TypeIncome $ Per Share0.137111
Ex-Date12/27/2019 TypeIncome $ Per Share0.203333
Ex-Date10/1/2019 TypeIncome $ Per Share0.226571
Ex-Date7/1/2019 TypeIncome $ Per Share0.182889
Ex-Date4/1/2019 TypeIncome $ Per Share0.170667
Ex-Date12/27/2018 TypeIncome $ Per Share0.212092
Ex-Date10/1/2018 TypeIncome $ Per Share0.157556
Ex-Date7/2/2018 TypeIncome $ Per Share0.158
Ex-Date4/2/2018 TypeIncome $ Per Share0.120889
Ex-Date12/27/2017 TypeIncome $ Per Share0.1452
Ex-Date12/15/2017 TypeShort Term Capital Gain $ Per Share0.016352
Ex-Date12/15/2017 TypeLong Term Capital Gain $ Per Share0.000504
Ex-Date10/2/2017 TypeIncome $ Per Share0.1356

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 8/31/2020
3 Year 5 Year
Alpha
-1.98
--
Beta
1.27
--
Information Ratio
-0.18
--
Mean
--
--
R-Squared
0.96
--
Sharpe Ratio
0.07
--
Standard Deviation
23.37
--
Tracking Error
6.61
--


Inception Date: 3/21/2016



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

Fund Information

as of 8/31/2020
Average Market Cap (mil): $16,632.80
Price/Earnings Ratio: 13.95
Price/Book Ratio: 1.41
Price/Cash Flow Ratio: 4.20
# Stock Holdings: 129
# Bond Holdings: 0
# Other Holdings: 1
# Total Holdings: 130
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 HoldingsADT INC COMMON STOCK USD.01 Total Market Value619,268.24 % of Net Assets4.20%
Top 10 HoldingsVMWARE INC CLASS A COMMON STOCK USD.01 Total Market Value555,300.27 % of Net Assets3.76%
Top 10 HoldingsONEMAIN HOLDINGS INC COMMON STOCK USD.01 Total Market Value282,199.19 % of Net Assets1.91%
Top 10 HoldingsALTRIA GROUP INC COMMON STOCK USD.333 Total Market Value277,764.48 % of Net Assets1.88%
Top 10 HoldingsPACCAR INC COMMON STOCK USD1.0 Total Market Value244,380.24 % of Net Assets1.66%
Top 10 HoldingsHANOVER INSURANCE GROUP INC/ COMMON STOCK USD.01 Total Market Value240,537.55 % of Net Assets1.63%
Top 10 HoldingsCUBESMART REIT USD.01 Total Market Value232,556.20 % of Net Assets1.58%
Top 10 HoldingsWATSCO INC COMMON STOCK USD.5 Total Market Value227,699.50 % of Net Assets1.54%
Top 10 HoldingsPHILIP MORRIS INTERNATIONAL COMMON STOCK Total Market Value221,591.04 % of Net Assets1.50%
Top 10 HoldingsPROGRESSIVE CORP COMMON STOCK USD1.0 Total Market Value220,743.94 % of Net Assets1.50%

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 Net0.00% Short0.00% Long0.00%
Asset TypeNon-U.S. Bonds Net0.00% Short0.00% Long0.00%
Asset TypeU.S. Stocks Net99.17% Short0.00% Long99.17%
Asset TypeNon-U.S. Stocks Net0.45% Short0.00% Long0.45%
Asset TypePreferred Net0.00% Short0.00% Long0.00%
Asset TypeOther Net0.00% Short0.00% Long0.00%
Asset TypeCash Net0.38% Short0.00% Long0.38%
Asset TypeConvertibles Net0.00% Short0.00% Long0.00%
Total: 100.00%
as of 8/31/2020
Stock Sector Breakdown (% of Stocks)
% of stocks
Cyclical
51.06%
Basic Materials 5.79%
Consumer Cyclical 13.15%
Financial Services 28.10%
Real Estate 4.02%


Defensive
9.86%
Consumer Defensive 4.33%
Healthcare 5.52%
Utilities 0.00%


Sensitive
39.08%
Communication Services 2.85%
Energy 5.08%
Industrials 18.98%
Technology 12.17%


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 Principal Shareholder Yield Index ETF seeks to track the Nasdaq U.S. Shareholder Yield Index, a Nasdaq licensed index based on Principal’s intellectual property. The index provides exposure to equity securities of mid- and large capitalization U.S. issuers. The index focuses on U.S. companies with sustainable shareholder yield, strong cash flow generation, and capacity to increase dividends and/or buybacks.​

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.

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

Footnote

**During extraordinary market conditions, the index provider may delay the scheduled rebalancing of the index until a future date when conditions have changed. With the rebalance that occurred on 4/29/2020, the weighting methodology for the Nasdaq US Shareholder Yield Index was changed from a tiered equal weighting approach to an approach that weights companies in proportion to company dividend yield.