Principal Value ETF

Highlights

Targets growth of income by investing in companies that grow dividends, increase cash flows, and engage in buybacks over time

  • Invests primarily in dividend-paying stocks with the financial flexibility to grow dividends and engage in share buybacks over time.
  • Driven by companies with strong cash flow generation and prudent payout policies.
  • Active, rules-based framework helps ensure a consistent approach is implemented through different market cycles.

Fund details

as of 03/24/2023 unless indicated otherwise
Fund ticker
PY
Benchmark
S&P 500 Index
NAV
$38.84
NAV change
$0.35
Premium/Discount to NAV
-0.04%
Median bid ask spread
as of 03/24/2023
0.17%
Price
$38.83
Price change
$0.30
Daily volume
4,390
Total fund assets
$31.0M
Shares outstanding
800,001
Dividend frequency
Quarterly
Inception date
03/21/2016
Morningstar category
Mid Cap Value
Investment approach
The investment seeks long-term growth of capital. Under normal circumstances, the fund primarily invests in equity securities, focusing on value stocks. For security selection and portfolio construction, Principal Global Investors, LLC ("PGI") uses a proprietary quantitative model designed to identify equity securities of mid- to large-capitalization companies in the S&P 500 Index that exhibit higher degrees of shareholder yield (meaning how much money a company distributes to shareholders through dividends and share repurchases).

Performance & expenses

As of 02/28/2023
Name 1 month 3 month YTD 1 year 3 year 5 year 10 year Since inception Overall
Net Asset Value (NAV) Return -2.75% -4.10% 0.33% -0.75% 15.18% 7.58% — 10.20% —
Market Price Return -2.56% -4.02% 0.47% -0.69% 15.22% 7.59% — 10.25% —
Benchmark performance
S&P 500 Index
 -2.44% -2.28% 3.69% -7.69% 12.15% 9.82% — — —
Morningstar category average
Mid Cap Value
 -2.72% 0.38% 5.27% -1.04% 13.77% 7.45% 9.34% — —
Morningstar percentile rankings — — — 33 14 50 — — —
# of funds in category 1,265 1,257 1,264 1,233 1,149 1,100 818 — 1,149
Morningstar rating — — — — — —
30 Day SEC yield
Unsubsidized as of 02/28/2023
2.46%
30 Day SEC yield
Subsidized as of 02/28/2023
2.46%
Returns represent past performance and do not guarantee future results. Share price, principal value, and return will vary and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted.
Returns shown for periods of less than one year are not annualized.
Index performance information: no deductions for fees, expenses or taxes. Indices are unmanaged and individuals cannot invest directly in an index.
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. For the purpose of calculating Market Price Return, a market price prior to 02/01/2021 is defined as 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, while a market price on or after 02/01/2021 is defined as the official close price as of the time that the Fund's NAV is calculated. If you trade your shares at another time, your return may differ.
Prior to June 24, 2022, the objective and strategy of Fund differed from its current objective and strategy. Accordingly, performance of the Fund for periods prior to that date may not be representative of the performance the Fund would have achieved had the Fund been following its current objective and strategy.
Premium / Discount to NAV
as of 12/31/2022
As of 12/31/2022
Q1 2022 Q2 2022 Q3 2022 Q4 2022
Days traded at premium 32 23 33 29
Days traded at discount 30 39 31 34
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.

Ratings

Morningstar Star Ratings

as of 02/28/2023  |  Category: Mid Cap Value
3 year
1,149 funds
5 year
1,100 funds
Overall
1,149 funds
3 year | 1,149 funds
5 year | 1,100 funds
Overall | 1,149 funds

Holdings

Top 10

as of 03/27/2023
% of Assets
% of Assets
1. APPLE INC COMMON STOCK USD.00001
4.19%
2. MICROSOFT CORP COMMON STOCK USD.00000625
3.26%
3. JOHNSON + JOHNSON COMMON STOCK USD1.0
2.13%
4. CHEVRON CORP COMMON STOCK USD.75
1.97%
5. MCDONALD S CORP COMMON STOCK USD.01
1.77%
6. COCA COLA CO/THE COMMON STOCK USD.25
1.74%
7. TEXAS INSTRUMENTS INC COMMON STOCK USD1.0
1.69%
8. RAYTHEON TECHNOLOGIES CORP COMMON STOCK USD1.0
1.51%
9. DEERE + CO COMMON STOCK USD1.0
1.51%
10. ACCENTURE PLC CL A COMMON STOCK USD.0000225
1.50%
Portfolio Holdings
Basket
The holdings listed do not constitute a recommendation to purchase or sell a particular security. Cash and/or derivative positions that are not part of the core investment strategy will not be reflected in the top holdings list.
May not reflect current holdings or allocations.
Includes, but is not limited to, unsettled activity from creation/redemption transactions and portfolio security trades and accrued interest.

Portfolio characteristics

# of holdings
as of 02/28/2023
80
Active share
as of 02/28/2023
79.57%
Turnover ratio
as of 12/31/2022
0.90%
Weighted avg mark cap
as of 02/28/2023
207,206.72
R-squared (5-year)
as of 02/28/2023
0.84
Sharpe ratio (5-year)
as of 02/28/2023
0.28
Standard deviation (5-year)
as of 02/28/2023
22.63
May not reflect current holdings or allocations.

Portfolio management

Jeffrey Schwarte, CFA
30 years of experience
Aaron Siebel, CFA
18 years of experience

Literature

Portfolio holdings

Investment materials

Disclosures
Principal Funds are distributed by Principal Funds Distributor, Inc. ALPS Distributors, Inc. is the distributor of the Principal ETFs. ALPS Distributors, Inc. and the Principal Funds are not affiliated.
Equity investments involve greater risk, including heightened volatility, than fixed-income investments. Mid-cap stocks may have additional risks, including greater price volatility.
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. Investor shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Ordinary brokerage commissions apply.
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.
Investor shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Ordinary brokerage commissions may apply.
The holdings listed do not constitute a recommendation to purchase or sell a particular security. Cash and/or derivative positions that are not part of the core investment strategy will not be reflected in the top holdings list.
NOT FDIC INSURED - MAY LOSE VALUE - NO BANK GUARANTEE
Morningstar percentile rankings are based on total returns and do not reflect the inclusion of sales charges. If sales charges were reflected, rankings could be lower.
Performance assumes reinvestment of all dividends and capital gains.
Includes, but is not limited to, unsettled activity from creation/redemption transactions and portfolio security trades and accrued interest.
To obtain a prospectus, download or call Customer Service at 1.800.222.5852. Carefully consider a fund’s objectives, risks, charges, and expenses. The prospectus, or summary prospectus if available, contains this and other information. Please read it carefully before investing.
S&P 500 Equal Weighted USD Total Return Index
The Morningstar Analyst Rating™ is not a credit or risk rating. It is a subjective evaluation performed by Morningstar’s manager research group, which consists of various Morningstar, Inc. subsidiaries (“Manager Research Group”). In the United States, that subsidiary is Morningstar Research Services LLC, which is registered with and governed by the U.S. Securities and Exchange Commission. The Manager Research Group evaluates funds based on five key pillars, which are process, performance, people, parent, and price. The Manager Research Group uses this five-pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark over the long term on a risk adjusted basis. They consider quantitative and qualitative factors in their research. For actively managed strategies, people and process each receive a 45% weighting in their analysis, while parent receives a 10% weighting. For passive strategies, process receives an 80% weighting, while people and parent each receive a 10% weighting. For both active and passive strategies, performance has no explicit weight as it is incorporated into the analysis of people and process; price at the share-class level (where applicable) is directly subtracted from an expected gross alpha estimate derived from the analysis of the other pillars. The impact of the weighted pillar scores for people, process and parent on the final Analyst Rating is further modified by a measure of the dispersion of historical alphas among relevant peers. For certain peer groups where standard benchmarking is not applicable, primarily peer groups of funds using alternative investment strategies, the modification by alpha dispersion is not used.
The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. For active funds, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that an active fund will be able to deliver positive alpha net of fees relative to the standard benchmark index assigned to the Morningstar category. The level of the rating relates to the level of expected positive net alpha relative to Morningstar category peers for active funds. For passive funds, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that a fund will be able to deliver a higher alpha net of fees than the lesser of the relevant Morningstar category median or 0. The level of the rating relates to the level of expected net alpha relative to Morningstar category peers for passive funds. For certain peer groups where standard benchmarking is not applicable, primarily peer groups of funds using alternative investment strategies, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that a fund will deliver a weighted pillar score above a predetermined threshold within its peer group. Analyst Ratings ultimately reflect the Manager Research Group’s overall assessment, are overseen by an Analyst Rating Committee, and are continuously monitored and reevaluated at least every 14 months.
For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to https://shareholders.morningstar.com/investor-relations/governance/Compliance--Disclosure/default.aspx.
The Morningstar Analyst Rating (i) should not be used as the sole basis in evaluating a fund, (ii) involves unknown risks and uncertainties which may cause the Manager Research Group’s expectations not to occur or to differ significantly from what they expected, and (iii) should not be considered an offer or solicitation to buy or sell the fund.