Principal

YLD

Principal Active Income ETF


The investment seeks to provide current income. The fund is an actively managed exchange-traded fund ("ETF") that seeks to achieve its investment objective by investing, under normal circumstances, its assets in investment grade and non-investment grade fixed income securities (commonly known as "junk bonds") and in equity securities. The fund's Sub-Advisors, actively and tactically allocates the fund's assets among fixed income securities and equity securities in an effort to take advantage of changing economic conditions that the Advisor believes favors one asset class over another.

Key features

Active management
An agile manager acting as an advocate for investor assets can make strategic or tactical changes to adapt to shifting market conditions or expectations.


Multi-asset approach
Assets are allocated across various income-producing asset classes to optimize portfolio stability, efficient growth, and income with a defensive quality bias.


A consistent approach aimed at consistent returns
A focus on long horizon, specialist managers to fulfill nuanced exposures while maintaining ETF transactional efficiency.

Daily as of 11/20/2019 unless otherwise stated


Benchmark

Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index

 LF89TRUU


Net Asset Value (NAV)

$40.23

Price

$40.40


Net Assets

$282,616,387.85

NAV Per Share Ticker

YLD.NV


Daily Volume

4,391

Intraday NAV Ticker

YLD.IV


Shares Outstanding

7,025,000

Shares Outstanding Ticker

YLD.SO


30 Day SEC Yield as of 10/31/2019

4.61%

Estimated Cash Ticker

YLD.EU


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

4.61%

Total Cash Ticker

YLD.TC


Distribution Yield as of 11/1/2019

3.95%


Investment Manager or Sub-advisor

Principal Global Investors, LLC

Portfolio Managers

Todd Jablonski since 7/8/2015

Gregory Tornga since 3/31/2017

Charles Averill since 7/8/2015

Daniela Spassova since 3/18/2016

Paul Kim since 7/8/2015

  • 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
0.46
1.07
11.86
8.02
5.63
N/A N/A
5.37
Market Price Return
0.76
1.29
11.03
8.25
5.79
N/A N/A
5.48
Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index
0.28
1.04
11.71
8.38
6.03
N/A N/A
6.03
Allocation--30% to 50% Equity
0.80
1.59
12.09
9.38
5.88
4.15
6.34
N/A
# of Funds in Category
568.00
566.00
559.00
558.00
491.00
399.00
263.00
N/A
Morningstar Percentile Rankings
83.00
83.00
59.00
80.00
64.00
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
1.32
1.76
11.35
4.96
5.33
N/A N/A
5.36
Market Price Return
1.12
1.59
10.19
4.54
5.20
N/A N/A
5.41
Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index
0.36
1.33
11.41
6.35
6.07
N/A N/A
6.09
Calendar Year Total Returns 2018 2017 2016 2015 2014
Net Asset Value (NAV) Return 2018-4.47 20178.33 201616.19 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Market Price Return 2018-3.43 20178.36 201615.11 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index 2018-2.08 20177.50 201617.13 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Allocation--30% to 50% Equity 2018-5.04 20179.86 20166.62 2015-2.32 20144.02

*Inception date: 7/8/2015

 

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 Share0.132242
Ex-Date10/1/2019 TypeIncome $ Per Share0.161978
Ex-Date9/3/2019 TypeIncome $ Per Share0.157181
Ex-Date8/1/2019 TypeIncome $ Per Share0.170765
Ex-Date7/1/2019 TypeIncome $ Per Share0.180553
Ex-Date6/3/2019 TypeIncome $ Per Share0.155564
Ex-Date5/1/2019 TypeIncome $ Per Share0.169426
Ex-Date4/1/2019 TypeIncome $ Per Share0.162906
Ex-Date3/1/2019 TypeIncome $ Per Share0.158476
Ex-Date2/1/2019 TypeIncome $ Per Share0.162061
Ex-Date12/27/2018 TypeIncome $ Per Share0.153003
Ex-Date12/14/2018 TypeLong Term Capital Gain $ Per Share0.339643
Ex-Date12/3/2018 TypeIncome $ Per Share0.145164
Ex-Date11/1/2018 TypeIncome $ Per Share0.167452
Ex-Date10/1/2018 TypeIncome $ Per Share0.163586
Ex-Date9/4/2018 TypeIncome $ Per Share0.167332
Ex-Date8/1/2018 TypeIncome $ Per Share0.158942
Ex-Date7/2/2018 TypeIncome $ Per Share0.154200
Ex-Date6/1/2018 TypeIncome $ Per Share0.151190
Ex-Date5/1/2018 TypeIncome $ Per Share0.153499
Ex-Date4/2/2018 TypeIncome $ Per Share0.143244
Ex-Date3/1/2018 TypeIncome $ Per Share0.149650
Ex-Date2/1/2018 TypeIncome $ Per Share0.162607
Ex-Date12/27/2017 TypeIncome $ Per Share0.164905
Ex-Date12/15/2017 TypeShort Term Capital Gain $ Per Share0.279052
Ex-Date12/15/2017 TypeLong Term Capital Gain $ Per Share0.171085
Ex-Date12/1/2017 TypeIncome $ Per Share0.155542
Ex-Date11/1/2017 TypeIncome $ Per Share0.148875
Ex-Date10/2/2017 TypeIncome $ Per Share0.161133
Ex-Date9/1/2017 TypeIncome $ Per Share0.159241
Ex-Date8/1/2017 TypeIncome $ Per Share0.160732
Ex-Date7/3/2017 TypeIncome $ Per Share0.157502

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
-0.82
--
Beta
0.70
--
Information Ratio
-1.01
--
Mean
0.47
--
R-Squared
83.80
--
Sharpe Ratio
0.77
--
Standard Deviation
5.17
--
Tracking Error
2.89
--

Inception Date: 7/8/2015



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): $27,321.86
Price/Earnings Ratio: 15.77
Price/Book Ratio: 2.05
Price/Cash Flow Ratio: 7.64
Turnover Ratio: 17.90%
# Stock Holdings: 60
# Bond Holdings: 68
# Other Holdings: 28
# Total Holdings: 156
as of 10/31/2019

as of 11/21/2019
Top 10 Holdings Total Market Value % of Net Assets
Top 10 HoldingsSTATE STREET INSTITUTIONAL US STATE ST INST US GOV MM PREM Total Market Value5,875,711.28 % of Net Assets2.08%
Top 10 HoldingsHCA INC COMPANY GUAR 09/28 5.625 Total Market Value5,671,781.25 % of Net Assets2.01%
Top 10 HoldingsBUCKEYE PARTNERS LP SR UNSECURED 12/26 3.95 Total Market Value5,668,979.94 % of Net Assets2.01%
Top 10 HoldingsPPL CAPITAL FUNDING INC COMPANY GUAR 03/67 VAR Total Market Value5,637,388.63 % of Net Assets1.99%
Top 10 HoldingsCOMMSCOPE TECH LLC COMPANY GUAR 144A 03/27 5 Total Market Value5,446,214.34 % of Net Assets1.93%
Top 10 HoldingsHLF FIN SARL LLC/HERBALI COMPANY GUAR 144A 08/26 7.25 Total Market Value5,307,073.61 % of Net Assets1.88%
Top 10 HoldingsHOLOGIC INC COMPANY GUAR 144A 02/28 4.625 Total Market Value5,302,552.08 % of Net Assets1.88%
Top 10 HoldingsMOBILE MINI INC COMPANY GUAR 07/24 5.875 Total Market Value5,302,552.07 % of Net Assets1.88%
Top 10 HoldingsWASTE PRO USA INC SR UNSECURED 144A 02/26 5.5 Total Market Value5,249,097.22 % of Net Assets1.86%
Top 10 HoldingsKRATON POLYMERS LLC/CAP COMPANY GUAR 144A 04/25 7 Total Market Value5,229,772.20 % of Net Assets1.85%

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 Net62.98% Short0.00% Long62.98%
Asset TypeNon-U.S. Bonds Net3.00% Short0.00% Long3.00%
Asset TypeU.S. Stocks Net18.78% Short0.00% Long18.78%
Asset TypeNon-U.S. Stocks Net1.01% Short0.00% Long1.01%
Asset TypePreferred Net8.92% Short0.00% Long8.92%
Asset TypeOther Net0.00% Short0.00% Long0.00%
Asset TypeCash Net3.48% Short0.00% Long3.48%
Asset TypeConvertibles Net1.82% Short0.00% Long1.82%
Total: 100.00%
as of 10/31/2019
Stock Sector Breakdown (% of Stocks)
% of stocks
Cyclical
47.45%
Basic Materials 1.49%
Consumer Cyclical 13.14%
Financial Services 22.62%
Real Estate 10.20%


Defensive
22.85%
Consumer Defensive 3.77%
Healthcare 11.94%
Utilities 7.13%


Sensitive
29.70%
Communication Services 4.19%
Energy 12.29%
Industrials 6.47%
Technology 6.76%


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

Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index ( LF89TRUU) is an unmanaged index comprised of fixed rate, non-investment grade debt securities that are dollar denominated. The index limits the maximum exposure to any one issuer to 2%. 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 investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investments are subject to interest rate risk; as interest rates rise, their value will decline. Lower-rated securities are subject to additional credit and default risks. REIT securities are subject to risk factors associated with the real estate industry and tax factors of REIT registration. A master limited partnership (MLP) that invests in a particular industry (e.g., oil and gas) may be harmed by detrimental economic events within that industry. As partnerships, MLPs may be subject to less regulation (and less protection for investors) under state laws than corporations. In addition, MLPs may be subject to state taxation in certain jurisdictions, which may reduce the amount of income paid by an MLP to its investors.

Unlike typical ETFs, there are no indices that the Principal Active Income 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.