PY, PSET: New Strategic Beta ETFs by Principal

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>

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