Principal

USMC

Principal U.S. Mega-Cap ETF


The investment seeks to provide investment results that closely correspond, before expenses, to the performance of the Nasdaq US Mega Cap Select Leaders Index (the "index"). Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities that compose the index at the time of purchase. The index uses a quantitative model designed to identify equity securities of companies in the Nasdaq US 500 Large Cap Index (the "parent index") that have the largest market capitalizations, with higher weights given to less volatile securities.

Key features

Active index design
Purposely deviates from passive large-cap weighted indices with a goal to provide better outcomes during down markets while participating in up markets.


Rules-based framework
A rules-based framework ensures that a consistent approach is taken by the ETF throughout different market cycles.


Low-volatility tilt
Seeking to help investors keep more of what they earn by mitigating portfolio volatility.

Index methodology**

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

Daily as of 12/4/2020 unless otherwise stated


Benchmark

Nasdaq US Mega Cap Select Leaders Index


Net Asset Value (NAV)

$35.08

Price

$35.18


Net Assets

$1,712,118,852.52

Median Bid-Ask Spread as of 12/3/2020

0.15%


NAV Per Share Ticker

USMC.NV


Shares Outstanding

48,800,001

Intraday NAV Ticker

USMC.IV


30 Day SEC Yield as of 10/31/2020

1.64%

Shares Outstanding Ticker

USMC.SO


30 Day SEC Yield (Unsubsidized) as of 10/31/2020

1.62%

Estimated Cash Ticker

USMC.EU


Distribution Yield as of 10/1/2020

1.69%

Total Cash Ticker

USMC.TC


Investment Manager or Sub-advisor

Principal Global Investors, LLC

Portfolio Managers

Aaron Siebel since 3/3/2020

Jeffrey Schwarte since 10/11/2017

  • Monthlyas of 10/31/2020
  • Monthlyas of 10/31/2020
  • Quarterlyas of 9/30/2020
  • 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 -4.18 -0.07 1.65 7.81 9.94 N/A N/A 9.86
Market Price Return -4.02 0.03 1.66 7.87 9.94 N/A N/A 9.90
Nasdaq US Mega Cap Select Leaders Index -4.19 -0.04 1.82 8.06 10.15 N/A N/A 10.07
Morningstar Category
Large Blend
11.08 5.24 11.40 14.42 10.90 12.06 12.54 N/A
# of Funds in Category 1479 1432 1368 1355 1223 1056 812 N/A
Morningstar Percentile Rankings 80 94 53 54 43 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 -3.42 9.99 6.08 14.42 N/A N/A N/A 11.75
Market Price Return -3.45 9.90 5.91 14.18 N/A N/A N/A 11.72
Nasdaq US Mega Cap Select Leaders Index -3.43 10.05 6.27 14.72 N/A N/A N/A 11.97
Calendar Year Total Returns 2019 2018 2017 2016 2015
Net Asset Value (NAV) Return 27.43 -1.78 N/A N/A N/A
Market Price Return 27.25 -1.73 N/A N/A N/A
Nasdaq US Mega Cap Select Leaders Index 27.73 -1.63 N/A N/A N/A
Large Blend 28.78 -6.27 N/A N/A N/A

*Inception date: 10/11/2017

Some data is provided by Morningstar and is the most current information available. As of 11/30/2020

 

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.

as of 11/30/2020
Rating # of Funds
3 Year Rating
# of Funds1223
5 Year Rating

N/A

# of Funds1056
Overall Rating
# of Funds1368

Morningstar Category: Large Blend

Ratings reflect risk adjusted performance.

Ex-Date Type $ Per Share
Ex-Date10/1/2020 TypeIncome $ Per Share0.139272
Ex-Date7/1/2020 TypeIncome $ Per Share0.138597
Ex-Date4/1/2020 TypeIncome $ Per Share0.146815
Ex-Date12/27/2019 TypeIncome $ Per Share0.159114
Ex-Date10/1/2019 TypeIncome $ Per Share0.165843
Ex-Date7/1/2019 TypeIncome $ Per Share0.162401
Ex-Date4/1/2019 TypeIncome $ Per Share0.15192
Ex-Date12/27/2018 TypeIncome $ Per Share0.171323
Ex-Date10/1/2018 TypeIncome $ Per Share0.168358
Ex-Date7/2/2018 TypeIncome $ Per Share0.13218
Ex-Date4/2/2018 TypeIncome $ Per Share0.099869
Ex-Date12/27/2017 TypeIncome $ Per Share0.062758

Dividends are paid quarterly.


Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020
Days Traded At Premium Q1 201952 Q2 201949 Q3 201950 Q4 201963 Q1 202046 Q2 202057 Q3 202038
Days Traded At Discount Q1 20198 Q2 201914 Q3 201914 Q4 20191 Q1 202016 Q2 20206 Q3 202026

Inception: 10/11/2017

This information shows differences between the per share net asset value (NAV) of the Fund and the market price of shares. For premiums and discounts reflected for dates prior to 11/02/2020, the market price utilized 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. For premiums and discounts reflected for dates beginning on 11/02/2020, the market price utilized is the official closing price of the Fund shares, or if it more accurately reflects the market value of the Fund shares at the time as of which the Fund share’s NAV is calculated, the price that is the midpoint between the national best bid and national best offer as of that time. 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 10/31/2020
3 Year 5 Year
Alpha
0.32
--
Beta
0.91
--
Information Ratio
-0.15
--
Mean
--
--
R-Squared
0.97
--
Sharpe Ratio
0.51
--
Standard Deviation
16.27
--
Tracking Error
3.18
--


Inception Date: 10/11/2017



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

Fund Information

as of 11/30/2020
Average Market Cap (mil): $329,988.28
Price/Earnings Ratio: 20.75
Price/Book Ratio: 4.12
Price/Cash Flow Ratio: 13.66
# Stock Holdings: 39
# Bond Holdings: 0
# Other Holdings: 1
# Total Holdings: 40
as of 11/30/2020
Investment Style
Large
Medium
Small
Interest-Rate Sensitivity
High
Medium
Low

as of 12/4/2020
Top 10 Holdings Total Market Value % of Net Assets
Top 10 HoldingsAPPLE INC COMMON STOCK USD.00001 Total Market Value109,196,783.28 % of Net Assets6.41%
Top 10 HoldingsBERKSHIRE HATHAWAY INC CL B COMMON STOCK USD.0033 Total Market Value60,232,458.48 % of Net Assets3.54%
Top 10 HoldingsPEPSICO INC COMMON STOCK USD.017 Total Market Value57,843,269.10 % of Net Assets3.40%
Top 10 HoldingsVERIZON COMMUNICATIONS INC COMMON STOCK USD.1 Total Market Value57,605,395.68 % of Net Assets3.38%
Top 10 HoldingsAT+T INC COMMON STOCK USD1.0 Total Market Value56,895,785.78 % of Net Assets3.34%
Top 10 HoldingsJOHNSON + JOHNSON COMMON STOCK USD1.0 Total Market Value55,557,481.00 % of Net Assets3.26%
Top 10 HoldingsPROCTER + GAMBLE CO/THE COMMON STOCK Total Market Value54,857,166.84 % of Net Assets3.22%
Top 10 HoldingsMCDONALD S CORP COMMON STOCK USD.01 Total Market Value53,489,821.45 % of Net Assets3.14%
Top 10 HoldingsJPMORGAN CHASE + CO COMMON STOCK USD1.0 Total Market Value49,836,429.44 % of Net Assets2.93%
Top 10 HoldingsALPHABET INC CL A COMMON STOCK USD.001 Total Market Value49,224,294.96 % of Net Assets2.89%

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 11/30/2020
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 Net99.78% Short0.00% Long99.78%
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 Net0.22% Short0.00% Long0.22%
Asset TypeConvertibles Net0.00% Short0.00% Long0.00%
Total: 100.00%
as of 11/30/2020
Stock Sector Breakdown (% of Stocks)
% of stocks
Cyclical
28.03%
Basic Materials 0.00%
Consumer Cyclical 11.44%
Financial Services 16.58%
Real Estate 0.00%


Defensive
35.20%
Consumer Defensive 14.46%
Healthcare 20.74%
Utilities 0.00%


Sensitive
36.78%
Communication Services 17.76%
Energy 0.00%
Industrials 0.00%
Technology 19.02%


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.

Prior to 11/02/2020, the market price used to disclose the daily price and calculate daily premiums and discounts was 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.  Beginning on 11/02/2020, the market price used to disclose the daily price and calculate daily premiums and discounts is the official closing price of the Fund, or if it more accurately reflects the market value of the Fund share at the time as of which the Fund’s NAV is calculated, the price that is the midpoint between the national best bid and national best offer as of that time.  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

USMC Principal U.S. Mega-Cap ETF seeks to track the Nasdaq US Mega Cap Select Leaders IndexSM, which provides exposure to the largest U.S. companies within the Nasdaq US 500 Large Cap IndexSM with a tilt to lower volatility companies. Investors cannot invest directly in an index.

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.

Footnote

**During extraordinary market conditions, the index provider may delay the scheduled rebalancing of the index until a future date when conditions have changed.

Effective September 30, 2020, the Principal U.S. Mega-Cap Multi-Factor Index ETF renamed to the Principal U.S. Mega-Cap ETF.