Principal

PSET

Principal Price Setters Index ETF


The investment seeks to provide investment results that closely correspond, before expenses, to the performance of the Nasdaq U.S. Price Setters Index. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies that compose the index at the time of purchase. The index uses a quantitative model designed to identify equity securities of mid- to large-capitalization companies in the Nasdaq US Large Mid Cap Index (the "parent index") that exhibit high degrees of pricing power.

Key features

Active index design
Seeks to identify price-setting companies with the ability to maintain margins through market cycles


Rules-based framework
Scores and ranks companies – aiming to overcome the tendency of investing in familiar and well-known companies, a common pitfall for active large-cap investors.


Strong factors, strong results
Portfolio construction favors companies with the strongest quality characteristics and goes beyond cap weighting for further diversification.

Index methodology

Principal Price Setters Index ETF Index Methodology

Daily as of 9/12/2019 unless otherwise stated


Benchmark

NASDAQ US Price Setters Index

 NQPRCE


Net Asset Value (NAV)

$38.64

Price

$38.64


Net Assets

$27,048,620.80

NAV Per Share Ticker

PSET.NV


Daily Volume

4,682

Intraday NAV Ticker

PSET.IV


Shares Outstanding Ticker

PSET.SO


30 Day SEC Yield as of 8/31/2019

1.31%

Estimated Cash Ticker

PSET.EU


30 Day SEC Yield (Unsubsidized) as of 8/31/2019

1.20%

Total Cash Ticker

PSET.TC


Distribution Yield as of 7/1/2019

0.94%


Investment Manager or Sub-advisor

Principal Global Investors, LLC

Portfolio Managers

Mark Nebelung since 3/21/2016

Paul Kim since 3/21/2016

Jeffrey Schwarte since 3/21/2016

  • Monthlyas of 7/31/2019
  • Monthlyas of 7/31/2019
  • Quarterlyas of 6/30/2019
  • Calendar Year
Average Annual Total Returns 1 Month 3 Month YTD 1 Year 3 Year 5 Year 10 Year Since Inception*
Net Asset Value (NAV) Return
1.42
2.80
23.30
13.22
14.46
N/A N/A
14.93
Market Price Return
1.45
2.83
23.31
13.18
14.45
N/A N/A
14.91
NASDAQ US Price Setters Index
1.45
2.88
23.63
13.61
14.90
N/A N/A
15.35
Large Growth
-1.57
6.73
21.16
2.69
15.09
10.73
13.69
N/A
Morningstar Percentile Rankings
63.00
26.00
47.00
16.00
66.00
N/A N/A N/A
# of Funds in Category
1425.00
1416.00
1400.00
1386.00
1237.00
1108.00
819.00
N/A
Morningstar Percentile Rankings
24.00
31.00
36.00
9.00
58.00
N/A N/A N/A
# of Funds in Category
1387.00
1380.00
1361.00
1348.00
1211.00
1086.00
800.00
N/A
Morningstar Percentile Rankings
24.00
31.00
36.00
9.00
58.00
N/A N/A N/A
# of Funds in Category
1423.00
1416.00
1395.00
1382.00
1236.00
1110.00
819.00
N/A
Average Annual Total Returns 1 Month 3 Month YTD 1 Year 3 Year 5 Year 10 Year Since Inception*
Net Asset Value (NAV) Return
6.79
5.92
21.57
15.03
14.70
N/A N/A
14.85
Market Price Return
6.79
5.90
21.54
14.93
14.67
N/A N/A
14.81
NASDAQ US Price Setters Index
6.84
6.02
21.86
15.43
15.14
N/A N/A
15.27
Calendar Year Total Returns 2018 2017 2016 2015 2014
Net Asset Value (NAV) Return 2018-1.44 201724.46 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Market Price Return 2018-1.47 201724.40 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
NASDAQ US Price Setters Index 2018-1.17 201724.97 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Large Growth 2018-2.09 201727.67 20163.23 20153.60 201410.00

*Inception date: 3/21/2016

 

Morningstar percentile rankings are based on total returns. 


Investment results shown represent historical performance and do not guarantee future results. Investment returns and principal values fluctuate with changes in interest rates and other market conditions so the value, when redeemed, may be worth more or less than original costs. Current performance may be lower or higher than the performance data shown.

Ex-Date Type $ Per Share
Ex-Date7/1/2019 TypeIncome $ Per Share0.089091
Ex-Date4/1/2019 TypeIncome $ Per Share0.157000
Ex-Date12/27/2018 TypeIncome $ Per Share0.121315
Ex-Date10/1/2018 TypeIncome $ Per Share0.101693
Ex-Date7/2/2018 TypeIncome $ Per Share0.093077
Ex-Date4/2/2018 TypeIncome $ Per Share0.096000
Ex-Date12/27/2017 TypeIncome $ Per Share0.072572
Ex-Date12/15/2017 TypeLong Term Capital Gain $ Per Share0.000149
Ex-Date12/15/2017 TypeShort Term Capital Gain $ Per Share0.027525
Ex-Date10/2/2017 TypeIncome $ Per Share0.071334
Ex-Date7/3/2017 TypeIncome $ Per Share0.031400

Dividends are paid quarterly.

This information shows differences between the per share net asset value (NAV) of the Fund and the market trading price of shares. For these purposes, the market price 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. 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.

as of 8/31/2019
3 Year 5 Year
Alpha
2.28
--
Beta
0.93
--
Information Ratio
0.56
--
Mean
1.18
--
R-Squared
93.64
--
Sharpe Ratio
1.08
--
Standard Deviation
11.70
--
Tracking Error
3.08
--

Inception Date: 3/21/2016



Risk and return statistical data is calculated by Morningstar, Inc.


Excess Return is calculated by Principal.

Fund Information

as of 8/31/2019
Average Market Cap (mil): $37,130.96
Price/Earnings Ratio: 19.65
Price/Book Ratio: 4.84
Price/Cash Flow Ratio: 13.37
Turnover Ratio: 40.40%
# Stock Holdings: 148
# Bond Holdings: 0
# Other Holdings: 1
# Total Holdings: 149
as of 8/31/2019

as of 9/13/2019
Top 10 Holdings Total Market Value % of Net Assets
Top 10 HoldingsHERSHEY CO/THE COMMON STOCK USD1.0 Total Market Value345,326.58 % of Net Assets1.28%
Top 10 HoldingsRESMED INC COMMON STOCK USD.004 Total Market Value330,613.28 % of Net Assets1.22%
Top 10 HoldingsZOETIS INC COMMON STOCK USD.01 Total Market Value326,372.58 % of Net Assets1.21%
Top 10 HoldingsHOME DEPOT INC COMMON STOCK USD.05 Total Market Value319,370.80 % of Net Assets1.18%
Top 10 HoldingsMSCI INC COMMON STOCK USD.01 Total Market Value318,141.91 % of Net Assets1.18%
Top 10 HoldingsESTEE LAUDER COMPANIES CL A COMMON STOCK USD.01 Total Market Value314,565.90 % of Net Assets1.16%
Top 10 HoldingsLOCKHEED MARTIN CORP COMMON STOCK USD1.0 Total Market Value312,783.67 % of Net Assets1.16%
Top 10 HoldingsMOODY S CORP COMMON STOCK USD.01 Total Market Value310,950.80 % of Net Assets1.15%
Top 10 HoldingsMASTERCARD INC A COMMON STOCK USD.0001 Total Market Value310,950.00 % of Net Assets1.15%
Top 10 HoldingsMICROSOFT CORP COMMON STOCK USD.00000625 Total Market Value310,382.64 % of Net Assets1.15%

Includes, but is not limited to, unsettled activity from creation/redemption transactions and portfolio security trades and accrued interest. Values may exceed 100% if both long and short positions are included in the portfolio.

as of 8/31/2019
Asset Type Net Short Long
Asset TypeU.S. Bonds Net0.00% Short0.00% Long0.00%
Asset TypeNon-U.S. Bonds Net0.00% Short0.00% Long0.00%
Asset TypeU.S. Stocks Net99.03% Short0.00% Long99.03%
Asset TypeNon-U.S. Stocks Net0.64% Short0.00% Long0.64%
Asset TypePreferred Net0.00% Short0.00% Long0.00%
Asset TypeOther Net0.00% Short0.00% Long0.00%
Asset TypeCash Net0.33% Short0.00% Long0.33%
Asset TypeConvertibles Net0.00% Short0.00% Long0.00%
Total: 100.00%
as of 8/31/2019
Stock Sector Breakdown (% of Stocks)
% of stocks
Cyclical
32.04%
Basic Materials 2.24%
Consumer Cyclical 5.35%
Financial Services 22.07%
Real Estate 2.38%


Defensive
25.50%
Consumer Defensive 10.70%
Healthcare 13.92%
Utilities 0.88%


Sensitive
42.47%
Communication Services 0.00%
Energy 0.51%
Industrials 23.54%
Technology 18.42%


Disclosures

Holding, portfolio and sector allocations are subject to change.

Returns shown for periods of less than one year are not annualized.

Investor shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Ordinary brokerage commissions apply.

The market price used to calculate the Market Price Return is 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. If you trade your shares at another time, your return may differ.

Where gross and net expense ratios differ, the investment adviser has contractually agreed to limit the investment option's expenses. Differences also may be due to the investment adviser's decision to waive (through the same dates) certain expenses that would normally be payable by the fund. The net expense figure reflects the impact of any limits or waivers. Returns displayed are based on net total investment expense.

Performance data quoted represents past performance. Past performance is no guarantee of future results and investment returns, and principal value of the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted.

Investors should carefully consider a fund’s investment objectives, risks, charges, and expenses prior to investing.

© 2019 Morningstar, Inc. All Rights Reserved. Part of the data 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.

The Morningstar Style Box is a nine-square grid that provides a graphical representation of the "investment style" of a fund. The Equity style box classifies securities by size along the vertical axis and by value and growth characteristics along the horizontal axis. The model for the fixed-income style box is based on the two pillars of fixed-incomeperformance: interest-rate sensitivity and credit quality. The three interest sensitivity groups are limited, moderate and extensive and the three credit quality groups are high, medium and low. These groupings display a portfolio’s effective duration and third party credit ratings to provide an overall representation of the fund’s risk orientation given the sensitivity to interest rate and credit rating of bonds in the portfolio.

The Morningstar RatingTM 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.

Index

The Principal Price Setters Index ETF seeks to track the Nasdaq U.S. Price Setters Index, a Nasdaq-licensed index based on Principal’s intellectual property. The index provides exposure to equity securities of large capitalization U.S. issuers. The index focuses on U.S. companies with sustainable pricing power, consistent sales growth, high/stable margins, quality earnings, low volatility, and high levels of profitability.

Risks

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.

Equity investments involve greater risk, including higher volatility, than fixed-income investment options.

Mid-cap stocks may have additional risks, including greater price volatility.