BCHP

Principal Focused Blue Chip ETF

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Prospectus
Enhanced fact sheet

    Principal Focused Blue Chip ETF

    Highlights

    Highly active approach focused on owner-operators

    • A wide latitude to depart from index weights results in higher active share and more concentrated top holdings than peers.
    • Aligned incentives: Owner-operators tend to be passionate and cost conscious. We believe they have longer-term outlooks and are better capital allocators.
    • An experienced team with a history of delivering risk-adjusted returns over market cycles.
    This ETF is different from traditional ETFs.

    Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. For example:
    • You may have to pay more money to trade the ETF's shares. This ETF will provide less information to traders, who tend to charge more for trades when they have less information.
    • The price you pay to buy ETF shares on an exchange may not match the value of the ETF's Portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders.
    • These additional risks may be even greater in bad or uncertain market conditions.
    • The ETF will publish on its website each day a "Tracking Basket" designed to help trading in shares of the ETF. While the Tracking Basket includes some of the ETF's holding, it is not the ETF's actual portfolio.
    The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF secret, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF's performance. If other traders are able to copy or predict the ETF's investment strategy, however, this may hurt the ETF's performance.

    For additional information regarding the unique attributes and risks of this ETF, see the additional risk discussion at the end of this material.

    Fund details

    as of 04/25/2024 unless indicated otherwise
    Fund ticker
    BCHP
    Benchmark
    Russell 1000® Growth Index
    NAV
    $30.35
    NAV change
    -$0.28
    Premium/Discount to NAV
    0.05%
    Median bid ask spread
    as of 04/25/2024
    0.16%
    Price
    $30.36
    Price change
    -$0.30
    Daily volume
    6,785
    Total fund assets
    $40.0M
    Shares outstanding
    1,320,001
    Dividend frequency
    Annually
    Inception date
    07/12/2023
    Morningstar category
    Large Growth
    Tracking Basket Weight Overlap
    as of 04/25/2024
    96.63%
    Investment approach
    The investment seeks long-term growth of capital. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies with large market capitalizations at the time of purchase that, in the opinion of Principal Global Investors, LLC (“PGI”), the fund’s investment advisor, display characteristics of a “blue chip” company. Blue chip companies are firms that, in PGI’s view, are well established in their industries and have the potential for growth of capital and an expectation for above-average earnings. The fund is non-diversified.

    Performance & expenses

    As of 03/31/2024
    Name 1 month 3 month YTD 1 year 3 year 5 year 10 year Since inception Overall
    Net Asset Value (NAV) Return 2.33% 9.65% 9.65% — — — — 25.16% —
    Market Price Return 2.39% 9.65% 9.65% — — — — 25.20% —
    Benchmark performance
    Russell 1000® Growth Index
    		 1.76% 11.41% 11.41% — — — — — —
    Morningstar category average
    Large Growth
    		 2.11% 11.92% 11.92% 36.45% 7.95% 14.89% 13.24% — —
    Morningstar percentile rankings — — — — — — — — —
    # of funds in category 1,216 1,214 1,214 1,191 1,111 1,037 807 — 1,111
    Morningstar rating — — — — — — — — —
    30 Day SEC yield
    Unsubsidized as of 03/28/2024
    -0.10%
    30 Day SEC yield
    Subsidized as of 03/28/2024
    -0.10%
    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.
    Premium / Discount to NAV
    as of 03/31/2024
    As of 03/31/2024
    Q3 2023 Q4 2023 Q1 2024
    Days traded at premium 36 48 37
    Days traded at discount 20 15 24
    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 Medalist Rating™

    as of 02/29/2024  |  Analyst-Driven %: 55  |  Data Coverage %: 86

    Holdings

    Top 10

    as of 03/28/2024
    % of Assets
    % of Assets
    1. MICROSOFT CORP COMMON STOCK USD.00000625
    13.83%
    2. AMAZON.COM INC COMMON STOCK USD.01
    11.84%
    3. ALPHABET INC CL C COMMON STOCK USD.001
    11.10%
    4. MASTERCARD INC A COMMON STOCK USD.0001
    7.21%
    5. TRANSDIGM GROUP INC COMMON STOCK USD.01
    4.71%
    6. PROGRESSIVE CORP COMMON STOCK USD1.0
    4.70%
    7. BROOKFIELD CORP COMMON STOCK
    4.60%
    8. DANAHER CORP COMMON STOCK USD.01
    4.43%
    9. VISA INC CLASS A SHARES COMMON STOCK USD.0001
    4.36%
    10. INTUIT INC COMMON STOCK USD.01
    3.51%
    Portfolio Holdings
    Basket
    Custom Baskets to be reported
    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.
    The Tracking Basket methodology maintains confidentiality of a portfolio's securities and trading strategies by disclosing a "tracking basket" composed of select recently disclosed portfolio holdings, liquid U.S. ETFs that convey information about the types of instruments in which the fund invests, and cash and cash equivalents. This Tracking Basket is disclosed daily and is used to facilitate the creation and redemption process with Authorized Participants (APs). Actual portfolio holdings will be disclosed on principaletfs.com on the thirteenth business day of the following month.

    Portfolio characteristics

    # of holdings
    as of 03/31/2024
    22
    Active share
    as of 03/31/2024
    71.18%
    Turnover ratio
    as of 12/31/2023
    9.00%
    Weighted avg mark cap
    as of 03/31/2024
    980,334.01
    May not reflect current holdings or allocations.

    Portfolio management

    K. William Nolin, CFA
    35 years of experience
    Thomas Rozycki, CFA
    24 years of experience

    Literature

    Investment materials

    Portfolio holdings

    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.
    Unlike typical ETFs, there are no indices that the Principal Focused Blue Chip 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.
    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.
    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.
    The Tracking Basket methodology maintains confidentiality of a portfolio's securities and trading strategies by disclosing a "tracking basket" composed of select recently disclosed portfolio holdings, liquid U.S. ETFs that convey information about the types of instruments in which the fund invests, and cash and cash equivalents. This Tracking Basket is disclosed daily and is used to facilitate the creation and redemption process with Authorized Participants (APs). Actual portfolio holdings will be disclosed on principaletfs.com on the thirteenth business day of the following month.
    Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The index was developed with a base value of 200 as of August 31, 1992.
    The fund is non-diversified, so it may invest a high percentage of its assets in the securities of a small number of issuers and is more likely than diversified funds to be significantly affected by a specific security's poor performance.
    © 2024 Morningstar, Inc. All rights reserved. The information 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. Past performance is no guarantee of future results.
    The Morningstar Medalist Rating™ is the summary expression of Morningstar’s forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Investment products are evaluated on three key pillars (People, Parent, and Process) which, when coupled with a fee assessment, forms the basis for Morningstar’s conviction in those products’ investment merits and determines the Medalist Rating they’re assigned. Pillar ratings take the form of Low, Below Average, Average, Above Average, and High. Pillars may be evaluated via an analyst’s qualitative assessment (either directly to a vehicle the analyst covers or indirectly when the pillar ratings of a covered vehicle are mapped to a related uncovered vehicle) or using algorithmic techniques. Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a vehicle, they assign the three pillar ratings based on their qualitative assessment, subject to the oversight of the Analyst Rating Committee, and monitor and reevaluate them at least every 14 months. When the vehicles are covered either indirectly by analysts or by algorithm, the ratings are assigned monthly. For more detailed information about these ratings, including their methodology, please go to https://shareholders.morningstar.com/investor-relations/governance/Compliance--Disclosure/default.aspx.
    The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. The Morningstar Medalist Rating (i) should not be used as the sole basis in evaluating an investment product, (ii) involves unknown risks and uncertainties which may cause expectations not to occur or to differ significantly from what was expected, (iii) are not guaranteed to be based on complete or accurate assumptions or models when determined algorithmically, (iv) involve the risk that the return target will not be met due to such things as unforeseen changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rates, exchange rate changes, and/or changes in political and social conditions, and (v) should not be considered an offer or solicitation to buy or sell the investment product. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate.
    Equity investments involve greater risk, including higher volatility, than fixed-income investments.
    The Analyst-Driven % data point displays the weighted percentage of a vehicle’s pillar ratings assigned directly or indirectly by analysts.
    The Data Coverage % data point is a summary metric describing the level of data completeness used to generate the overall rating.