An ETF is an investment product that holds multiple underlying assets. Unlike a mutual fund, ETFs are bought and sold on exchanges, much like an individual stock. ETFs can hold a variety of holdings and are available across asset classes.
Investments into ETF vehicles continue to grow rapidly, with actively managed strategies of particular interest. Investors continue to seek solutions that help diversify their portfolio while aiming to manage both risk and cost.
Tax efficiency
ETF vehicles typically have fewer taxable distributions due to an in-kind creation/redemption process. This leads to higher after-tax return potential with more control of managing the tax base of a portfolio.
Lower cost
Due to generally lower portfolio turnover and rebalancing, fewer operating and trading expenses are passed along to investors as compared with mutual funds.
Trading flexibility
ETFs trade on market exchanges, similar to stocks, allowing investors to trade intra-day at market prices.
Transparency
Most ETFs are fully transparent, meaning that their holdings are disclosed daily, giving investors a clearer view of their investment.
PSC | Principal U.S. Small-Cap ETF
Category: Small Blend | Expense ratio: 0.38%
Designed to capitalize on small-cap pricing inefficiencies and deliver alpha through disciplined, rules-based selection.
YLD | Principal Active High Yield ETF
Category: High Yield Bond | Expense ratio: 0.39%
YLD uses quantitative tools, proprietary research, and disciplined exit strategies to capture high yield opportunities in a benchmark agnostic portfolio while managing overall risk.
PIEQ | Principal International Equity ETF
Category: Foreign Large Blend | Expense ratio: 0.48%
PIEQ is a core, all-weather international ETF, built with a focus on companies where forward free cash flow growth is underestimated by the market.
USMC | Principal U.S. Mega Cap ETF
Category: Large Blend | Expense ratio: 0.12%
Built as a complement to large-cap allocations to enhance both growth and stability, as active large-cap managers tend to be underweight mega-caps.
vs. Russell 2000 Index
Ranked 14th percentile1
1As of 3/31/2026. Source: Morningstar. Foreign Large Blend category: 1-year (14/685 funds), 5-,10-year not yet availabile.Morningstar percentile rankings based on total returns.
Constructed with conviction, managed with intent:
We’re stock pickers who take a high-conviction, core approach. We look across developed markets outside the U.S., as well as emerging markets, to invest in our “best ideas” wherever they arise.
Forward-focused and research-driven, we combine extensive experience and local insight with deep proprietary analysis.
Disciplined and risk-managed, our portfolio construction process emphasizes uncorrelated stock selection to generate all-weather outcomes.
PIEQ stands out amongst its peers; it is in the top quartile with a 14th percentile ranking in Morningstar’s foreign large blend category.1
Carefully consider a fund’s objectives, risks, charges, and expenses. For a prospectus, or summary prospectus if available, containing this and other information, visit PrincipalAM.com or call sales support at 800-787-1621. Please read it carefully before investing.
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.
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.
Individual product risks:
Principal Active High Yield ETF:
Fixed income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Neither the principal bond investment options nor their yields are guaranteed by the U.S. government. Lower-rated securities are subject to additional credit and default risk.
International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards. Investing in derivates entails specific risks relating to liquidity, leverage and credit, which may reduce returns and/or increase volatility.
Principal U.S. Small Cap ETF Principal U.S. Mega-Cap ETF:
Equity investments involve greater risk, including heightened volatility, than fixed-income investments.
Small-cap stocks may have additional risks including greater price volatility.
Principal International Equity ETF:
International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards. These risks are magnified in emerging markets. Small- and mid-cap stocks may have additional risks including greater price volatility.
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Principal Asset Management is a trade name of Principal Global Investors, LLC. Principal Global Investors leads global asset management at Principal®.
MM14376-05 | 05/2026 | 5426918-082026 | PRI002134-052027