Principal

PSM

Principal U.S. Small-MidCap Multi-Factor Core Index ETF


The investment seeks to provide investment results that closely correspond, before expenses, to the performance of the Nasdaq US Small Mid Cap Select Leaders Core Index. Under normal circumstances, the fund invests at least 80% of its net assets in equity securities of U.S. companies with small- to medium-market capitalizations that compose the index at the time of purchase. The index uses a quantitative model designed to identify equity securities of companies in the Nasdaq US Small Cap Index and Nasdaq US Mid Cap Index that exhibit potential for high degrees of sustainable shareholder value, growth and strong momentum.

Key features

Index aware design1
Deviates from traditional cap-weighted indexes, applying a multifactor model and modified weighting process.


Rules-based framework
Selects securities with high factor scores while diversifying through industry neutrality and mitigating excess liquidity and volatility risks.


Multi-factor construction
Combines three distinct factors - shareholder yield, momentum, and quality growth.


Index aware is a measure of the fund’s consistency versus a benchmark over a given period of time.

Index methodology

Principal U.S. Small-MidCap Multi-Factor Core Index ETF Index Methodology

Daily as of 8/22/2019 unless otherwise stated


Benchmark

Nasdaq US Small Mid Cap Select Leaders Core Index

NQUSSLSMC


Net Asset Value (NAV)

$24.32

Price

$24.37


Net Assets

$9,728,385.73

NAV Per Share Ticker

PSM.NV


Intraday NAV Ticker

PSM.IV


Shares Outstanding Ticker

PSM.SO


30 Day SEC Yield as of 7/31/2019

0.00%

Estimated Cash Ticker

PSM.EU


30 Day SEC Yield (Unsubsidized) as of 7/31/2019

0.00%

Total Cash Ticker

PSM.TC


Distribution Yield as of 8/25/2019

N/A


Investment Manager or Sub-advisor

Principal Global Investors, LLC

Portfolio Managers

Mark Nebelung since 7/23/2019

Paul Kim since 7/23/2019

Jeffrey Schwarte since 7/23/2019

  • 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*
Nasdaq US Small Mid Cap Select Leaders Core Index N/A N/A N/A N/A N/A N/A N/A N/A
Net Asset Value (NAV) Return N/A N/A N/A N/A N/A N/A N/A
0.54
Market Price Return N/A N/A N/A N/A N/A N/A N/A
0.66
Morningstar Percentile Rankings N/A N/A N/A N/A N/A N/A N/A N/A
# of Funds in Category
445.00
441.00
439.00
435.00
359.00
312.00
233.00
N/A
Mid-Cap Blend
1.06
0.42
18.83
1.15
8.90
7.02
12.08
N/A
Average Annual Total Returns 1 Month 3 Month YTD 1 Year 3 Year 5 Year 10 Year Since Inception*
Nasdaq US Small Mid Cap Select Leaders Core Index N/A N/A N/A N/A N/A N/A N/A
Net Asset Value (NAV) Return N/A N/A N/A N/A N/A N/A N/A
Market Price Return N/A N/A N/A N/A N/A N/A N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Net Asset Value (NAV) Return 2018N/A 2017N/A 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Market Price Return 2018N/A 2017N/A 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Nasdaq US Small Mid Cap Select Leaders Core Index 2018N/A 2017N/A 2016N/A 2015N/A 2014N/A
Calendar Year Total Returns 2018 2017 2016 2015 2014
Mid-Cap Blend 2018-11.15 201715.93 201614.14 2015-4.75 20147.80

*Inception date: 7/23/2019

 

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.


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 8/25/2019
3 Year 5 Year
Alpha -- --
Beta -- --
Information Ratio -- --
Mean -- --
R-Squared -- --
Sharpe Ratio -- --
Standard Deviation -- --
Tracking Error -- --

Inception Date: 7/23/2019



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


Excess Return is calculated by Principal.

Fund Information

as of 7/31/2019
Average Market Cap (mil): $4,881.42
Price/Earnings Ratio: 15.94
Price/Book Ratio: 2.08
Price/Cash Flow Ratio: 6.49
Turnover Ratio: 0.00%
# Stock Holdings: 592
# Bond Holdings: 0
# Other Holdings: 1
# Total Holdings: 593
as of 7/31/2019

as of 8/23/2019
Top 10 Holdings Total Market Value % of Net Assets
Top 10 HoldingsOKTA INC COMMON STOCK Total Market Value80,322.00 % of Net Assets0.83%
Top 10 HoldingsMARKETAXESS HOLDINGS INC COMMON STOCK USD.003 Total Market Value78,508.00 % of Net Assets0.81%
Top 10 HoldingsTERADYNE INC COMMON STOCK USD.125 Total Market Value66,526.00 % of Net Assets0.68%
Top 10 HoldingsCHEMED CORP COMMON STOCK USD1.0 Total Market Value65,887.44 % of Net Assets0.68%
Top 10 HoldingsLEIDOS HOLDINGS INC COMMON STOCK USD.0001 Total Market Value65,710.08 % of Net Assets0.68%
Top 10 HoldingsWEST PHARMACEUTICAL SERVICES COMMON STOCK USD.25 Total Market Value65,345.28 % of Net Assets0.67%
Top 10 HoldingsBOOZ ALLEN HAMILTON HOLDINGS COMMON STOCK USD.01 Total Market Value63,574.56 % of Net Assets0.65%
Top 10 HoldingsSUN COMMUNITIES INC REIT USD.01 Total Market Value61,592.96 % of Net Assets0.63%
Top 10 HoldingsCROWN HOLDINGS INC COMMON STOCK USD5.0 Total Market Value60,278.72 % of Net Assets0.62%
Top 10 HoldingsENTEGRIS INC COMMON STOCK USD.01 Total Market Value59,733.44 % of Net Assets0.61%

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 7/31/2019
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 Net99.06% Short0.00% Long99.06%
Asset TypeNon-U.S. Stocks Net0.77% Short0.00% Long0.77%
Asset TypePreferred Net0.00% Short0.00% Long0.00%
Asset TypeOther Net0.00% Short0.00% Long0.00%
Asset TypeCash Net0.17% Short0.00% Long0.17%
Asset TypeConvertibles Net0.00% Short0.00% Long0.00%
Total: 100.00%
as of 7/31/2019
Stock Sector Breakdown (% of Stocks)
% of stocks
Cyclical
47.59%
Basic Materials 5.14%
Consumer Cyclical 16.10%
Financial Services 15.06%
Real Estate 11.29%


Defensive
16.97%
Consumer Defensive 2.89%
Healthcare 10.91%
Utilities 3.17%


Sensitive
35.44%
Communication Services 1.87%
Energy 3.20%
Industrials 14.47%
Technology 15.90%


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 U.S. Small-MidCap Multi-Factor Core Index ETF seeks to track the Nasdaq US Small Mid Cap Select Leaders Core IndexSM, a Nasdaq-licensed index based on the intellectual property of Principal. The index is designed to provide exposure to companies within the Nasdaq US Small Cap Index and Nasdaq US Mid Cap Index that exhibit high degrees of sustainable shareholder yield, pricing power, and strong momentum.

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 investment options involve greater risk, including heightened volatility, than fixed-income investment options.

Small and mid-cap stocks may have additional risks including greater price volatility. Equities considered to be growth or value stocks may not perform as expected. Stocks that previously exhibited high momentum characteristics may not experience positive momentum or may experience more volatility than the market as a whole.