PDARX | Principal Diversified Real Asset Fund

PDARX

Principal Diversified Real Asset Fund

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Prospectus

Overview

Performance

As of 12/31/2025

YTD

14.71%

1-year

14.71%

3-year

6.91%

5-year

6.14%

10-year

5.65%

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.

Highlights

Dynamic real asset exposure, balanced risk profile, more consistent outcome

Strategically allocate among real return and real asset securities, beyond TIPS, commodities, and REITs.
Blends multiple strategies to help mitigate undesired risk; designed to offer real return with lower-than-market volatility.
Specialist managers within each asset class exploit opportunities and deliver a more consistent real asset outcome.

Fund details

as of 01/16/2026 unless indicated otherwise

Fund ticker

PDARX

CUSIP

742537467

Benchmark

Diversified Real Asset Index (Linked)

Extended performance inception date

03/16/2010

NAV

$12.69

Total fund assets

$2.41B

Dividend frequency

Quarterly

Minimum investment

—

Inception date

12/31/2014

Morningstar category

Global Moderate Allocation

Investment approach

The investment seeks a long-term total return in excess of inflation. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in investments related to real assets and real asset companies. It allocates its assets among general investment categories related to real assets, which include tangible assets and investments that are expected to perform well in periods of rising or high inflation, such as the following: infrastructure, natural resources, commodities, and real estate.

Performance & expenses

As of 12/31/2025

Month end Quarter end

Name	1 month	3 month	YTD	1-year	3-year	5-year	10-year	Since inception	Overall
Name	1 month	3 month	YTD	1-year	3-year	5-year	10-year	Since inception	Overall	Total return	-0.04%	2.52%	14.71%	14.71%	6.91%	6.14%	5.65%	4.68%	—
Benchmark performance Diversified Real Asset Index (Linked)	-0.11%	2.37%	16.54%	16.54%	8.20%	6.85%	6.51%	—	—
Morningstar category average Global Moderate Allocation	0.68%	2.63%	16.15%	16.15%	12.29%	6.54%	7.02%	—	—
Morningstar percentile rankings	—	—	—	63	98	51	90	—	—
# of funds in category	416	415	414	414	407	394	320	—	407
Morningstar rating Morningstar ratings disclosure Morningstar ratings are based on risk-adjusted returns. The Morningstar Rating™ 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.	—	—	—	—				—

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.

Name	1 month	3 month	YTD	1-year	3-year	5-year	10-year	Since inception	Overall
Name	1 month	3 month	YTD	1-year	3-year	5-year	10-year	Since inception	Overall	Total return	-0.04%	2.52%	14.71%	14.71%	6.91%	6.14%	5.65%	4.68%	—
Benchmark performance Diversified Real Asset Index (Linked)	-0.11%	2.37%	16.54%	16.54%	8.20%	6.85%	6.51%	—	—
Morningstar category average Global Moderate Allocation	0.68%	2.63%	16.15%	16.15%	12.29%	6.54%	7.02%	—	—

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.

Data	2025	2024	2023	2022	2021
Total return	14.71%	3.14%	3.30%	-6.11%	17.42%
Morningstar category average Global Moderate Allocation	16.15%	8.79%	12.16%	-13.20%	12.01%

Date	Type	Dollar per share
12/29/2025	Income	0.1750
09/18/2025	Income	0.2052
06/18/2025	Income	0.0966
03/19/2025	Income	0.0412
12/27/2024	Income	0.0597
09/19/2024	Income	0.0588
06/20/2024	Income	0.0925
03/19/2024	Income	0.0653
12/27/2023	Income	0.0740
09/20/2023	Income	0.0702
06/20/2023	Income	0.0848
03/17/2023	Income	0.0566

Ratings

Morningstar ratings

Morningstar ratings disclosure

Overall Morningstar Rating™ as of 12/31/25 among Global Moderate Allocation Funds. Morningstar ratings are based on risk-adjusted returns.

The Morningstar Rating™ 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.

as of 12/31/2025

3-year

407 funds

5-year

394 funds

10-year

320 funds

Overall

407 funds

3 year | 407 funds

5 year | 394 funds

10 year | 320 funds

Overall | 407 funds

Holdings

Top 10

as of 11/30/2025

% of Assets

1. DRA Cayman Corporation

7.34%

2. DRA Cayman Corporation

4.56%

3. DRA Cayman Corporation

3.87%

4. Welltower Inc

2.21%

5. Prologis Inc

1.78%

6. Principal Government Money Mar

1.50%

7. NextEra Energy Inc

1.37%

8. Enbridge Inc

1.36%

9. Global X US Infrastructure Dev

1.28%

10. Equinix Inc

1.16%

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.

Portfolio characteristics

# of holdings

as of 12/31/2025

807

Turnover ratio

as of 08/31/2025

85.90%

R-squared (3-year)

as of 12/31/2025

—

Standard deviation (3-year)

as of 12/31/2025

—

May not reflect current holdings or allocations.

Portfolio management

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.

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.

Fixed-income investments are subject to interest rate risk; as interest rates rise their value will decline. The U.S. government does not guarantee the principal or coupon payments of non-U.S. Treasury bonds. Investments in natural resource industries can be affected by disease, embargoes, international/political/economic developments, variations in the commodities markets/weather and other factors. Investing in derivatives entails specific risks regarding liquidity, leverage and credit that may reduce returns and/or increase volatility.

Principal Global Investors is the Investment Adviser of all funds included in the Principal Funds, Inc. Principal Funds are managed by Principal Global Investors, its boutique affiliates, and by many leading sub-advisors.

To obtain a prospectus, download prospectus online 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.

Effective January 1, 2022, the Diversified Real Asset Index (Linked) blend is 15% Bloomberg U.S. Treasury TIPS Index, 30% S&P Global Infrastructure Index, 15% S&P Global Natural Resources Index, 15% Bloomberg Commodity Index, and 25% FTSE EPRA/NAREIT Developed Markets Index. Prior to January 1, 2022, the blend consisted of 35% Bloomberg U.S. Treasury TIPS Index, 20% S&P Global Infrastructure Index, 20% S&P Global Natural Resources Index, 15% Bloomberg Commodity Index, and 10% FTSE EPRA/NAREIT Developed Markets Index.

© 2026 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 refer to the Morningstar shareholder disclosures .

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.

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.

These calculated returns reflect the historical performance of the oldest share class of the Fund, adjusted to reflect the fees and expenses of the share class shown. Please see the Fund's prospectus for more information on specific expenses and see the Fund's most recent shareholder report for the actual date of first sale. Expenses are deducted from income earned by the Fund. As a result, dividends and investment results will differ for each share class.