Principal Funds, begun trading 2 new ETFs, the Principal Shareholder Yield Index ETF (Nasdaq: PY) and the Principal Price Setters Index ETF (Nasdaq: PSET) on Monday, March 21, 2016. Here is a synopsis of the new ETFs:
1.
FUND INFORMATION:
| Symbol: PY | Exchange: NASDAQ |
| Name: Principal Shareholder Yield Index ETF | Net Expense Ratio: 0.40% |
FUND OBJECTIVE:
The Principal Shareholder Yield Index ETF seeks to provide investment results that closely correspond, before expenses, to the performance of the Nasdaq U.S. Shareholder Yield Index.
REFERENCE INDEX:
The Nasdaq U.S. Shareholder Yield Index is designed to provide exposure to equity securities of mid- to large-capitalization U.S. companies within the Nasdaq U.S. Large Mid Cap Index which exhibit high degrees of sustainable, shareholder yield. “Shareholder yield” refers to the collective financial impact on a company’s shareholders from the return of free cash flow through cash dividends, stock repurchases, and debt reduction.
The Fund employs a passive investment approach designed to attempt to track the performance of the Index. In seeking its objective, the Fund typically employs a “full replication” strategy which involves all the securities that make up the Index.
The Fund can, however, use a “sampling” methodology to purchase a subset of the securities in the Index in an effort to hold a portfolio of securities with generally the same risk and return characteristics of the Index, as well as securities not included in the Index that the Principal Global Investors, LLC (Sub-Advisor) believes will help the fund track the Index.
Fund Top 10 Holdings (03/24/16):
| LINCOLN NATIONAL CORP COMMON STOCK | 1.32% |
| OCEANEERING INTL INC COMMON STOCK USD.25 | 1.01% |
| HESS CORP COMMON STOCK USD1. | 1.00% |
| INVESCO LTD COMMON STOCK USD.2 | 0.96% |
| ALLISON TRANSMISSION HOLDING COMMON STOCK USD.01 | 0.96% |
| TESORO CORP COMMON STOCK USD.167 | 0.95% |
| LANDSTAR SYSTEM INC COMMON STOCK USD.01 | 0.95% |
| COMMUNICATIONS SALES + LE REIT USD.0001 | 0.95% |
| HARLEY DAVIDSON INC COMMON STOCK USD.01 | 0.95% |
Fund Sector Weights (03/24/16):
| Financials | 27.3% |
| Industrials | 18.0% |
| Consumer Services | 13.6% |
| Consumer Goods | 12.2% |
| Technology | 11.5% |
| Oil &Gas | 6.5% |
| Health Care | 5.9% |
| Basic Materials | 5.0% |
Useful Links:
PY Home Page
Category: Equities>
2.
FUND INFORMATION:
| Symbol: PSET | Exchange: NASDAQ |
| Name: Principal Price Setters Index ETF | Net Expense Ratio: 0.40% |
FUND OBJECTIVE:
The Principal Price Setters Index ETF seeks to provide investment results that closely correspond, before expenses, to the performance of the Nasdaq U.S. Price Setters Index.
REFERENCE INDEX:
The Nasdaq U.S. Price Setters Index is designed to provide exposure to equity securities of mid- to large-capitalization U.S. companies within the Nasdaq U.S. Large Mid Cap Index which exhibit high degrees of pricing power. “Pricing power” refers the extent to which a company can raise the prices of its products without reducing the demand for them. The Fund employs a passive investment approach designed to attempt to track the performance of the Index. In seeking its objective, the Fund typically employs a “full replication” strategy which involves all the securities that make up the Index. The Fund can, however, use a “sampling” methodology to purchase a subset of the securities in the Index in an effort to hold a portfolio of securities with generally the same risk and return characteristics of the Index, as well as securities not included in the Index that the Sub-Advisor believes will help the fund track the Index.
Fund Top 10 Holdings (03/24/16):
| AFFILIATED MANAGERS GROUP COMMON STOCK USD.01 | 1.05% |
| SKYWORKS SOLUTIONS INC COMMON STOCK USD.25 | 1.05% |
| UNITED PARCEL SERVICE CL B COMMON STOCK USD.01 | 1.00% |
| WATERS CORP COMMON STOCK USD.01 | 1.00% |
| AIR PRODUCTS + CHEMICALS INC COMMON STOCK USD1. | 1.00% |
| PUBLIC STORAGE REIT USD.1 | 0.98% |
| METTLER TOLEDO INTERNATIONAL COMMON STOCK USD.01 | 0.98% |
| O REILLY AUTOMOTIVE INC COMMON STOCK USD.01 | 0.98% |
| AMPHENOL CORP CL A COMMON STOCK USD.001 | 0.98% |
Fund Sector Weights (03/07/16):
| Industrials | 24.9% |
| Consumer Goods | 21.1% |
| Health Care | 15.3% |
| Consumer Services | 14.4% |
| Financials | 12.9% |
| Technology | 6.5% |
| Basic Materials | 2.6% |
| Utilities | 2.1% |
Useful Links:
PSET Home Page
Category: Equities>