Principal Funds begun trading the Principal EDGE Active Income ETF (NYSEArca: YLD) on Thursday, July 09, 2015.
FUND INFORMATION:
| Symbol: YLD | Exchange: NYSE Arca |
| Name: Principal EDGE Active Income ETF | Net Expense Ratio: 0.85% |
FUND OBJECTIVE:
The Principal EDGE Active Income ETF is an actively managed ETF that seeks to achieve its investment objective by investing, under normal circumstances, its assets in investment grade and non-investment grade fixed income securities (commonly known as “junk bonds”) and in equity securities. In pursuing its strategies, the Fund invests in a diversified portfolio of a broad range of instruments. Edge Asset Management, Inc., one of the Fund’s Sub-Advisors, actively and tactically allocates the Fund’s assets among fixed income securities and equity securities in an effort to take advantage of changing economic conditions that Edge believes favors one asset class over another. Based on the analysis of various economic indicators, Edge will increase the allocation to the asset class that it believes will have a higher probability of achieving the Fund’s objective of providing current income. The Fund actively trades portfolio securities.
Fixed Income: A portion of the Fund’s net assets will be invested in a diversified portfolio of investment grade securities and non-investment grade fixed income securities (commonly known as “junk bonds”) issued by U.S., supranational and non-U.S. issuers (including issuers located in emerging markets) including investments in convertible bonds, inverse floating rate instruments, U.S. government and agency securities, asset-backed securities and mortgage-backed securities (including commercial mortgage-backed securities) and sovereign debt. “Investment grade” securities are rated BBB- or higher by S&P or Baa3 or higher by Moody’s or, if unrated, of comparable quality in the opinion of one of the Sub-Advisors. “Non-investment grade” securities arerated Ba1 or lower by Moody’s and BB+ or lower by S&P. If the security has been rated by only one of those agencies, that rating will determine whether the security is below investment grade. If the security has not been rated by either of those agencies, one of the Sub-Advisors will determine whether the security is of a quality comparable to those rated below investment grade. The fixed income portfolio is not managed to a particular average duration or maturity.
Equity Securities: A portion of the Fund’s net assets will be invested in a diversified portfolio of dividend paying equity securities issued by companies located in the U.S. and/or foreign countries, including emerging markets, which trade on a U.S. or foreign exchange. The equity securities will be common stocks and preferred stocks as well as master limited partnerships (MLPs) and real estate investment trusts (REITs). Although not a factor in the selection of the equity securities, such securities generally have a medium market capitalization.
Top 10 Holdings:
| TENET HEALTHCARE CORP | 2.98% |
| INNOVATION VENTURES LLC | 2.82% |
| ARCELORMITTAL | 2.78% |
| FIRST DATA CORP | 2.76% |
| CDW LLC | 2.64% |
| AVIS BUDGET CAR RENTAL LLC | 2.64% |
| JPMBB COMMERCIAL MORTGAGE SECURITIES TR | 2.60% |
| JEFFERIES GROUP LLC | 2.56% |
| VANTAGE ONCOLOGY LLC | 2.54% |
| CITIGROUP COMMERCIAL MORTGAGE TRUST 201 | 2.52% |
Asset Allocation Target:
| US High Yield Corporate Bonds | 41% |
| N.American Dividend Equities | 20% |
| US CMBS | 12% |
| US Preferred Equities | 12% |
| US REITs | 10% |
Useful Links:
YLD Home Page
Category: Multi Asset> Multi Asset Income