Principal Spectrum Preferred Securities Active ETF

    Principal Spectrum Preferred Securities Active ETF

    Highlights

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

    • A 30-year history analyzing, managing, and pricing complex security structures across a variety of credit, interest rate, and regulatory conditions
    • Dedicated exposure to $1,000 par preferred securities, designed to offer attractive yields, diversification benefits,1 and reduced risk2 compared to other fixed income securities.
    • Fixed-to-float and fixed-to-variable securities may offer higher back-end spreads that may results in increased coupons to help manage interest rate risk.

    1Bloomberg, Barclays Live, and Spectrum Asset Management (Jan 2000 - September 2020).
    2Bloomberg. Callability in the next 12 months of the $25 par market versus the $1,000 par market, as if Dec 31, 2020.

    Fund details

    as of 10/10/2024 unless indicated otherwise
    Fund ticker
    PREF
    Benchmark
    ICE BofA U.S. Investment Grade Institutional Capital Securities Index
    NAV
    $18.64
    NAV change
    $0.01
    Premium/Discount to NAV
    0.40%
    Median bid ask spread
    as of 10/10/2024
    0.05%
    Price
    $18.71
    Price change
    -$0.03
    Daily volume
    100,114
    Total fund assets
    $985.8M
    Shares outstanding
    52,900,005
    Dividend frequency
    Monthly
    Inception date
    07/10/2017
    Morningstar category
    Preferred Stock
    Preliminary NAIC Designation
    NAIC 2.C
    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 at the time of purchase. Examples of preferred securities include preferred stock, certain depositary receipts, and various types of junior subordinated debt (such debt generally includes the contractual ability to defer payment of interest without accelerating an immediate default event). It concentrates its investments (invests more than 25% of its net assets) in securities in one or more industries within the financial services sector.
    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 54 46 57 60 58 62 63
    Days traded at discount 8 16 6 3 3 1 1
    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.
    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 Spectrum Preferred Securities 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 investment options are subject to interest rate risk, and their value will decline as interest rates rise. 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.
    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 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 ICE BofA US IG Institutional Capital Securities Index tracks the performance of US dollar denominated investment grade hybrid capital corporate and preferred securities publicly issued in the US domestic market.
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