IG

Principal Investment Grade Corporate Active ETF

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Prospectus
Enhanced fact sheet

    Principal Investment Grade Corporate Active ETF

    Highlights

    Low-cost, actively managed, investment-grade corporate exposure

    • Alpha and risk mitigation potential for 19 basis points (expense ratio).
    • Portfolio construction anchored in belief that investment grade corporate market is inefficient.
    • Portfolio positioning driven by risk-based macro outlook.

    Fund details

    as of 12/12/2024 unless indicated otherwise
    Fund ticker
    IG
    Benchmark
    Bloomberg U.S. Corporate Investment Grade Bond Index
    NAV
    $20.75
    NAV change
    -$0.10
    Premium/Discount to NAV
    0.24%
    Median bid ask spread
    as of 12/12/2024
    0.10%
    Price
    $20.80
    Price change
    -$0.11
    Daily volume
    19,608
    Total fund assets
    $90.2M
    Shares outstanding
    4,350,001
    Dividend frequency
    Monthly
    Inception date
    04/18/2018
    Morningstar category
    Corporate Bond
    Investment approach
    The investment seeks to provide current income and, as a secondary objective, capital appreciation. The fund is an actively managed exchange-traded fund ("ETF") that seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets, plus any borrowings for investment purposes, in investment grade corporate bonds and other fixed income securities at the time of purchase. "Investment grade" securities are rated BBB- or higher by S&P Global Ratings ("S&P Global") or Baa3 or higher by Moody's Investors Service, Inc. ("Moody's").

    Performance & expenses

    As of 11/30/2024
    Name 1 month 3 month YTD 1-year 3-year 5-year 10-year Since inception Overall
    Net Asset Value (NAV) Return 1.38% 0.73% 4.43% 8.84% -2.34% 0.53% — 2.37% —
    Market Price Return 1.38% 0.67% 4.34% 8.84% -2.28% 0.54% — 2.40% —
    Benchmark performance
    Bloomberg U.S. Corporate Investment Grade Bond Index
    		 1.34% 0.63% 4.14% 8.66% -1.65% 0.76% — — —
    Morningstar category average
    Corporate Bond
    		 1.25% 0.60% 4.66% 8.78% -1.20% 1.02% 2.59% — —
    Morningstar percentile rankings — — — 53 91 83 — — —
    # of funds in category 195 194 190 189 180 160 100 — 180
    Morningstar rating — — — — — —
    30 Day SEC yield
    Unsubsidized as of 11/29/2024
    5.07%
    30 Day SEC yield
    Subsidized as of 11/29/2024
    5.07%
    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 09/30/2024
    As of 09/30/2024
    Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024
    Days traded at premium 52 56 63 61 56 50 59
    Days traded at discount 10 6 0 2 5 13 5
    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.

    Holdings

    Top 10

    as of 12/10/2024
    % of Assets
    % of Assets
    1. MORGAN STANLEY SR UNSECURED 01/35 VAR
    3.30%
    2. JPMORGAN CHASE + CO SR UNSECURED 10/34 VAR
    2.66%
    3. BANK OF AMERICA CORP SR UNSECURED 04/32 VAR
    2.18%
    4. WELLS FARGO + COMPANY SR UNSECURED 06/28 VAR
    2.08%
    5. VMWARE LLC SR UNSECURED 05/27 4.65
    1.65%
    6. AT+T INC SR UNSECURED 09/53 3.5
    1.59%
    7. UBS GROUP AG SR UNSECURED 144A 05/28 4.751
    1.56%
    8. PNC FINANCIAL SERVICES SR UNSECURED 01/35 VAR
    1.46%
    9. CENTENE CORP SR UNSECURED 07/28 2.45
    1.42%
    10. ENTERPRISE PRODUCTS OPER COMPANY GUAR 07/29 3.125
    1.41%
    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

    Average effective maturity
    as of 11/30/2024
    11.88
    # of holdings
    as of 11/30/2024
    205
    Average yield to maturity
    as of 11/30/2024
    5.28%
    Turnover ratio
    as of 06/30/2024
    123.00%
    Weighted avg duration
    as of 11/30/2024
    6.99
    Weighted avg life to worst
    as of 11/30/2024
    10.86
    Yield to worst
    as of 11/30/2024
    5.24%
    Sharpe ratio (5-year)
    as of 11/30/2024
    -0.21
    May not reflect current holdings or allocations.

    Portfolio management

    Jon Curran, CFA
    26 years of experience
    Steffany Young, CFA
    16 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 Investment Grade Corporate Active 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.
    Fixed-income investments are subject to interest rate risk; as interest rates rise, their value will decline. Unlike passive ETFs, there are no indices that the Principal Investment Grade Corporate Active 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.
    Fixed‐income investment options are subject to interest rate risk, and their value will decline as interest rates rise.
    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 Bloomberg US Corporate Bond Index measures the investment grade, fixed-rate, taxable corporate bond market. It includes USD denominated securities publicly issued by US and non-US industrial, utility and financial issuers. (Future Ticker: I02765US)
    © 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.
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