PQDI

Principal Spectrum Preferred and Income ETF

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Prospectus
Enhanced fact sheet

    Principal Spectrum Preferred and Income ETF

    Highlights

    Active management based on specialized research and dynamic security selection to manage complex global markets

    • Targeted exposure to qualified dividends designed to help U.S. taxpayers boost their after-tax income.
    • Selecting higher-quality preferred and capital securities with improving credits and seeking to avoid speculative risks may deliver attractive risk-adjusted returns.
    • Active management expertise analyzing, managing, and pricing complex security structures across a variety of credit, interest rate, and regulatory conditions.

    Fund details

    as of 12/03/2025 unless indicated otherwise
    Fund ticker
    PQDI
    Benchmark
    ICE BofA 7% Constrained DRD Eligible Preferred Securities Index
    NAV
    $19.49
    NAV change
    $0.02
    Premium/Discount to NAV
    0.37%
    Median bid ask spread
    as of 12/03/2025
    0.10%
    Price
    $19.56
    Price change
    $0.02
    Daily volume
    3,182
    Total fund assets
    $65.2M
    Shares outstanding
    3,350,001
    Dividend frequency
    Monthly
    Inception date
    06/16/2020
    Morningstar category
    Preferred Stock
    Investment approach
    The investment seeks to provide current income. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in preferred securities and other income-producing securities. The fund also invests in other income-producing securities that include securities that have a stated coupon rate which expects to pay interest or dividends. The fund invests in income-producing securities, including but not limited to contingent convertible securities (“Cocos”) and other types of capital securities.

    Performance & expenses

    As of 11/30/2025
    Name 1 month 3 month YTD 1-year 3-year 5-year 10-year Since inception Overall
    Net asset value (NAV) return 0.31% 2.19% 7.95% 8.03% 8.22% 3.56% — 4.83% —
    Market price return 0.33% 2.20% 7.76% 7.69% 8.13% 3.54% — 4.87% —
    Benchmark performance
    ICE BofA 7% Constrained DRD Eligible Preferred Securities Index
    		 -0.59% 0.86% 4.83% 3.56% 6.26% 1.61% — — —
    Morningstar category average — — — — — — — — —
    Morningstar percentile rankings — — — 25 49 42 — — —
    # of funds in category 71 70 70 69 66 59 — — 66
    Morningstar rating — — — — — —
    30-Day SEC yield
    Unsubsidized as of 10/31/2025
    5.13%
    30-Day SEC yield
    Subsidized as of 10/31/2025
    5.13%
    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 09/30/2025
    As of 09/30/2025
    Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025
    Days traded at premium 61 63 64 64 59 62 64
    Days traded at discount 0 0 0 0 1 0 0
    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 ratings

    as of 10/31/2025
    3-year
    66 funds
    5-year
    59 funds
    Overall
    66 funds
    3 year | 66 funds
    5 year | 59 funds
    Overall | 66 funds

    Holdings

    Top 10

    as of 12/04/2025
    % of Assets
    % of Assets
    1. STATE STREET CORP JR SUBORDINA 12/99 VAR
    3.65%
    2. DOMINION ENERGY INC JR SUBORDINA 12/99 VAR
    3.18%
    3. NORDEA BANK ABP JR SUBORDINA 144A 12/99 VAR
    2.98%
    4. CITIGROUP INC JR SUBORDINA 12/99 VAR
    2.91%
    5. BANK OF MONTREAL JR SUBORDINA 11/84 VAR
    2.60%
    6. BANK OF AMERICA CORP JR SUBORDINA 12/99 VAR
    2.55%
    7. CREDIT AGRICOLE SA JR SUBORDINA 144A 12/99 VAR
    2.54%
    8. ING GROEP NV JR SUBORDINA 12/99 VAR
    2.43%
    9. HSBC HOLDINGS PLC JR SUBORDINA 12/99 VAR
    2.30%
    10. BANK OF NOVA SCOTIA JR SUBORDINA 10/82 VAR
    2.28%
    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

    Qualified dividend income
    as of 09/30/2025
    96.23%
    # of holdings
    as of 09/30/2025
    84
    Average yield to maturity
    as of 09/30/2025
    7.36%
    Turnover ratio
    as of 06/30/2025
    17.60%
    Weighted avg duration
    as of 09/30/2025
    4.33
    Yield to worst
    as of 09/30/2025
    5.82%
    Sharpe ratio (5-year)
    as of 11/30/2025
    0.05
    May not reflect current holdings or allocations.

    Portfolio management

    Fred Diaz
    33 years of experience
    Bob Giangregorio
    22 years of experience
    L. Phillip Jacoby, IV
    43 years of experience
    Manu Krishnan, CFA
    21 years of experience
    Kevin Nugent
    41 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.
    Contingent Capital Securities carry greater risk compared to other securities in times of credit stress. An issuer or regulator’s decision to write down, write off or convert a CoCo may result in complete loss on an investment.
    Unlike typical ETFs, there are no indices that the Principal Spectrum Preferred and Income 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. Risks of preferred securities differ from risks inherent in other investments. In particular, in a bankruptcy preferred securities are senior to common stock but subordinate to other corporate debt. Contingent capital securities (CoCos) may have substantially greater risk than other securities in times of financial stress. An issuer or regulators decision to write down, write off or convert a CoCo may result in complete loss on an investment. Real estate investment options are subject to risks associated with credit, liquidity, interest rate fluctuation, adverse general and local economic conditions, and decreases in real estate values and occupancy rates.
    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.
    Spectrum Asset Management, Inc. is an affiliate of Principal Global Investors. Spectrum is a leading manager of institutional and retail preferred securities portfolios and manages portfolios for an international universe of corporate, insurance, and endowment clients.
    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.
    Risks of preferred securities differ from risks inherent in other investments. In particular, in a bankruptcy preferred securities are senior to common stock but subordinate to other corporate debt.
    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 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.
    ICE BofA 7% Constrained DRD Eligible Preferred Securities Index contains all securities in the ICE BofA Fixed Rate Preferred Securities Index that are DRD (dividends received deduction) eligible, but caps issuer exposure at 7%.
    © 2025 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.
    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.