UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTEREDMANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-23029
Principal Exchange-Traded Funds
(Exact name of registrant as specified in charter)
801 Grand Avenue, Des Moines, IA | 50309 |
(Address of principal executive offices) | (Zip code) |
Principal Global Investors, LLC, 801 Grand Avenue, Des Moines, IA 50309 (Name and address of agent for service)
Registrant’s telephone number, including area code: | 515-248-0156 | |
Date of fiscal year end: | June 30, 2019 | |
Date of reporting period: | December 31, 2018 |
ITEM 1 – REPORT TO STOCKHOLDERS
EE11865PFI
Table of Contents
Financial Statements | 1 |
Notes to Financial Statements | 24 |
Schedules of Investments | 34 |
Financial Highlights (Includes performance information) | 67 |
Shareholder Expense Example | 80 |
Supplemental Information | 82 |
Not FDIC or NCUA insured
May lose value • Not a deposit • No bank or credit union guarantee Not insured by any Federal government agency
Statements of Assets and Liabilities | ||||||||||
Principal Exchange-Traded Funds | ||||||||||
December 31, 2018 (unaudited) | ||||||||||
Principal | Principal | |||||||||
Active Global | Contrarian | Principal EDGE | ||||||||
Dividend | Value | Active Income | ||||||||
Income ETF | Index ETF | ETF | ||||||||
Investments in securities — at cost | $ | 666,860,085 | $ | 3,940,525 | $ | 279,857,038 | ||||
Assets | ||||||||||
Investments in securities — at value | $ | 624,393,424 | $ | 3,347,253 | $ | 270,230,009 | ||||
Cash | 5,797,390 | 13,783 | 7,780,390 | |||||||
Receivables: | ||||||||||
Dividends and interest | 2,080,098 | 5,362 | 3,323,068 | |||||||
Investment securities sold | — | 10,457 | 321,351 | |||||||
Total Assets | 632,270,912 | 3,376,855 | 281,654,818 | |||||||
Liabilities | ||||||||||
Accrued management and investment advisory fees | 328,255 | 892 | 162,662 | |||||||
Accrued income distribution | 3,745,303 | 17,296 | 1,151,348 | |||||||
Total Liabilities | 4,073,558 | 18,188 | 1,314,010 | |||||||
Net Assets Applicable to Outstanding Shares | $ | 628,197,354 | $ | 3,358,667 | $ | 280,340,808 | ||||
Net Assets Consist of: | ||||||||||
Capital shares and additional paid-in-capital | $ | 670,579,518 | $ | 3,993,175 | $ | 294,127,562 | ||||
Total distributable earnings (loss) | (42,382,164 | ) | (634,508 | ) | (13,786,754 | ) | ||||
Total Net Assets | $ | 628,197,354 | $ | 3,358,667 | $ | 280,340,808 | ||||
Net Asset Value Per Share: | ||||||||||
Net Assets | $ | 628,197,354 | $ | 3,358,667 | $ | 280,340,808 | ||||
Shares Issued and Outstanding | 25,850,001 | 150,001 | 7,525,000 | |||||||
Net Asset Value per share | $ | 24.30 | $ | 22.39 | $ | 37.25 |
See accompanying notes.
1
Statements of Assets and Liabilities | ||||||||||
Principal Exchange-Traded Funds | ||||||||||
December 31, 2018 (unaudited) | ||||||||||
Principal | ||||||||||
Principal | Principal | Investment | ||||||||
Healthcare | International | Grade | ||||||||
Innovators | Multi-Factor | Corporate | ||||||||
Index ETF | Index ETF | Active ETF | ||||||||
Investments in securities — at cost | $ | 51,101,956 | $ | 14,272,550 | $ | 221,646,710 | ||||
Assets | ||||||||||
Investments in securities — at value | $ | 44,327,004 | $ | 12,662,330 | $ | 216,865,042 | ||||
Cash | 113,417 | 51,058 | 4,913,084 | |||||||
Receivables: | ||||||||||
Dividends and interest | 2,817 | 27,157 | 2,260,973 | |||||||
Investment securities sold | — | 18,203 | — | |||||||
Total Assets | 44,443,238 | 12,758,748 | 224,039,099 | |||||||
Liabilities | ||||||||||
Cash overdraft | — | 1,341 | — | |||||||
Accrued management and investment advisory fees | 16,755 | 4,427 | 50,910 | |||||||
Accrued income distribution | — | 42,860 | 766,413 | |||||||
Payables: | ||||||||||
Investment securities purchased | — | 102 | — | |||||||
Total Liabilities | 16,755 | 48,730 | 817,323 | |||||||
Net Assets Applicable to Outstanding Shares | $ | 44,426,483 | $ | 12,710,018 | $ | 223,221,776 | ||||
Net Assets Consist of: | ||||||||||
Capital shares and additional paid-in-capital | $ | 51,741,671 | $ | 15,000,100 | $ | 229,064,950 | ||||
Total distributable earnings (loss) | (7,315,188 | ) | (2,290,082 | ) | (5,843,174 | ) | ||||
Total Net Assets | $ | 44,426,483 | $ | 12,710,018 | $ | 223,221,776 | ||||
Net Asset Value Per Share: | ||||||||||
Net Assets | $ | 44,426,483 | $ | 12,710,018 | $ | 223,221,776 | ||||
Shares Issued and Outstanding | 1,600,001 | 150,001 | 9,300,001 | |||||||
Net Asset Value per share | $ | 27.77 | $ | 84.73 | $ | 24.00 |
See accompanying notes.
2
Statements of Assets and Liabilities | ||||||||||
Principal Exchange-Traded Funds | ||||||||||
December 31, 2018 (unaudited) | ||||||||||
Principal | Principal Price | Principal | ||||||||
Millennials | Setters Index | Shareholder | ||||||||
Index ETF | ETF | Yield Index ETF | ||||||||
Investments in securities — at cost | $ | 16,058,347 | $ | 18,418,942 | $ | 13,379,312 | ||||
Assets | ||||||||||
Investments in securities — at value | $ | 14,097,265 | $ | 17,126,981 | $ | 11,083,054 | ||||
Cash | 44,851 | 63,664 | 58,141 | |||||||
Receivables: | ||||||||||
Dividends and interest | 5,873 | 13,485 | 18,052 | |||||||
Investment securities sold | 21,121 | 38,490 | 48,800 | |||||||
Expense reimbursement from Manager | — | 1,576 | 1,239 | |||||||
Total Assets | 14,169,110 | 17,244,196 | 11,209,286 | |||||||
Liabilities | ||||||||||
Accrued management and investment advisory fees | 6,275 | 5,729 | 4,506 | |||||||
Accrued income distribution | 35,077 | 66,724 | 84,837 | |||||||
Total Liabilities | 41,352 | 72,453 | 89,343 | |||||||
Net Assets Applicable to Outstanding Shares | $ | 14,127,758 | $ | 17,171,743 | $ | 11,119,943 | ||||
Net Assets Consist of: | ||||||||||
Capital shares and additional paid-in-capital | $ | 15,545,706 | $ | 18,088,557 | $ | 13,448,657 | ||||
Total distributable earnings (loss) | (1,417,948 | ) | (916,814 | ) | (2,328,714 | ) | ||||
Total Net Assets | $ | 14,127,758 | $ | 17,171,743 | $ | 11,119,943 | ||||
Net Asset Value Per Share: | ||||||||||
Net Assets | $ | 14,127,758 | $ | 17,171,743 | $ | 11,119,943 | ||||
Shares Issued and Outstanding | 450,001 | 550,001 | 400,001 | |||||||
Net Asset Value per share | $ | 31.39 | $ | 31.22 | $ | 27.80 |
See accompanying notes.
3
Statements of Assets and Liabilities | ||||||||||
Principal Exchange-Traded Funds | ||||||||||
December 31, 2018 (unaudited) | ||||||||||
Principal | ||||||||||
Spectrum | Principal | Principal U.S. | ||||||||
Preferred | Sustainable | Mega-Cap | ||||||||
Securities | Momentum | Multi-Factor | ||||||||
Active ETF | Index ETF | Index ETF | ||||||||
Investments in securities — at cost | $ | 53,035,637 | $ | 5,384,420 | $ | 1,479,414,517 | ||||
Assets | ||||||||||
Investments in securities — at value | $ | 48,008,367 | $ | 4,882,569 | $ | 1,420,865,270 | ||||
Cash | 796,215 | 16,305 | 4,726,022 | |||||||
Receivables: | ||||||||||
Dividends and interest | 570,521 | 4,005 | 1,849,148 | |||||||
Investment securities sold | — | 5,241 | 7,552,024 | |||||||
Expense reimbursement from Manager | — | — | 38,643 | |||||||
Total Assets | 49,375,103 | 4,908,120 | 1,435,031,107 | |||||||
Liabilities | ||||||||||
Accrued management and investment advisory fees | 23,954 | 1,274 | 193,214 | |||||||
Accrued income distribution | 249,194 | 12,107 | 9,722,580 | |||||||
Total Liabilities | 273,148 | 13,381 | 9,915,794 | |||||||
Net Assets Applicable to Outstanding Shares | $ | 49,101,955 | $ | 4,894,739 | $ | 1,425,115,313 | ||||
Net Assets Consist of: | ||||||||||
Capital shares and additional paid-in-capital | $ | 54,527,568 | $ | 5,482,190 | $ | 1,482,307,888 | ||||
Total distributable earnings (loss) | (5,425,613 | ) | (587,451 | ) | (57,192,575 | ) | ||||
Total Net Assets | $ | 49,101,955 | $ | 4,894,739 | $ | 1,425,115,313 | ||||
Net Asset Value Per Share: | ||||||||||
Net Assets | $ | 49,101,955 | $ | 4,894,739 | $ | 1,425,115,313 | ||||
Shares Issued and Outstanding | 550,001 | 200,001 | 56,750,001 | |||||||
Net Asset Value per share | $ | 89.28 | $ | 24.47 | $ | 25.11 |
See accompanying notes.
4
Statement of Assets and Liabilities | |||||
Principal Exchange-Traded Funds | |||||
December 31, 2018 (unaudited) | |||||
Principal U.S. | |||||
Small-Cap | |||||
Multi-Factor | |||||
Index ETF | |||||
Investments in securities — at cost | $ | 344,170,357 | |||
Assets | |||||
Investments in securities — at value | $ | 312,826,670 | |||
Cash | 1,359,452 | ||||
Receivables: | |||||
Dividends and interest | 543,896 | ||||
Investment securities sold | 853,245 | ||||
Total Assets | 315,583,263 | ||||
Liabilities | |||||
Accrued management and investment advisory fees | 109,205 | ||||
Accrued income distribution | 1,524,076 | ||||
Total Liabilities | 1,633,281 | ||||
Net Assets Applicable to Outstanding Shares | $ | 313,949,982 | |||
Net Assets Consist of: | |||||
Capital shares and additional paid-in-capital | $ | 347,630,885 | |||
Total distributable earnings (loss) | (33,680,903 | ) | |||
Total Net Assets | $ | 313,949,982 | |||
Net Asset Value Per Share: | |||||
Net Assets | $ | 313,949,982 | |||
Shares Issued and Outstanding | 11,300,001 | ||||
Net Asset Value per share | $ | 27.78 |
See accompanying notes.
5
Statements of Operations | |||||||||
Principal Exchange-Traded Funds | |||||||||
Six months ended December 31, 2018 (unaudited) | |||||||||
Principal | Principal | ||||||||
Active Global | Contrarian | Principal EDGE | |||||||
Dividend | Value | Active Income | |||||||
Income ETF | Index ETF | ETF | |||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividend income | $ | 9,477,945 | $ | 36,879 | $ | 1,543,441 | |||
Withholding tax | (408,419 | ) | — | (15,022 | ) | ||||
Interest | 48,410 | — | 11,822,589 | ||||||
Total Income | 9,117,936 | 36,879 | 13,351,008 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 2,067,418 | 5,699 | 968,294 | ||||||
Total Expenses | 2,067,418 | 5,699 | 968,294 | ||||||
Net Investment Income (Loss) | 7,050,518 | 31,180 | 12,382,714 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments: | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 2,589,874 | 26,229 | (8,495,918 | ) | |||||
In-kind redemptions | 1,309,464 | — | — | ||||||
Foreign currency transactions | (61,324 | ) | — | (361 | ) | ||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | (74,104,861 | ) | (571,889 | ) | (15,735,569 | ) | |||
Foreign currency transactions | 2,675 | — | (215 | ) | |||||
Net Realized and Unrealized Gain (Loss) on Investments | (70,264,172 | ) | (545,660 | ) | (24,232,063 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (63,213,654 | ) | $ | (514,480 | ) | $ | (11,849,349 | ) |
See accompanying notes.
6
Statements of Operations | |||||||||
Principal Exchange-Traded Funds | |||||||||
Six months ended December 31, 2018 (unaudited) | |||||||||
Principal | |||||||||
Principal | Principal | Investment | |||||||
Healthcare | International | Grade | |||||||
Innovators | Multi-Factor | Corporate | |||||||
Index ETF | Index ETF | Active ETF | |||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividend income | $ | 11,379 | $ | 150,207 | $ | — | |||
Withholding tax | — | (10,986 | ) | — | |||||
Interest | — | — | 4,846,601 | ||||||
Total Income | 11,379 | 139,221 | 4,846,601 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 111,045 | 27,848 | 299,263 | ||||||
Total Expenses | 111,045 | 27,848 | 299,263 | ||||||
Net Investment Income (Loss) | (99,666 | ) | 111,373 | 4,547,338 | |||||
Net Realized and Unrealized Gain (Loss) on Investments: | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | (764,387 | ) | (526,974 | ) | (898,891 | ) | |||
In-kind redemptions | 1,237,354 | — | — | ||||||
Foreign currency transactions | — | (755 | ) | — | |||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | (11,127,038 | ) | (1,494,373 | ) | (3,661,148 | ) | |||
Foreign currency transactions | — | 157 | — | ||||||
Net Realized and Unrealized Gain (Loss) on Investments | (10,654,071 | ) | (2,021,945 | ) | (4,560,039 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (10,753,737 | ) | $ | (1,910,572 | ) | $ | (12,701 | ) |
See accompanying notes.
7
Statements of Operations | |||||||||
Principal Exchange-Traded Funds | |||||||||
Six months ended December 31, 2018 (unaudited) | |||||||||
Principal | Principal Price | Principal | |||||||
Millennials | Setters Index | Shareholder | |||||||
Index ETF | ETF | Yield Index ETF | |||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividend income | $ | 104,070 | $ | 163,933 | $ | 180,187 | |||
Withholding tax | (4,702 | ) | — | (165 | ) | ||||
Total Income | 99,368 | 163,933 | 180,022 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 43,861 | 42,157 | 29,192 | ||||||
Total Gross Expenses | 43,861 | 42,157 | 29,192 | ||||||
Less: Reimbursement from Manager | — | (11,593 | ) | (8,028 | ) | ||||
Total Expenses | 43,861 | 30,564 | 21,164 | ||||||
Net Investment Income (Loss) | 55,507 | 133,369 | 158,858 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments: | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 1,091 | (321 | ) | (9,071 | ) | ||||
In-kind redemptions | 801,988 | 570,818 | (5,599 | ) | |||||
Foreign currency transactions | (21 | ) | — | — | |||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | (3,652,676 | ) | (1,522,608 | ) | (2,024,453 | ) | |||
Foreign currency transactions | (15 | ) | — | — | |||||
Net Realized and Unrealized Gain (Loss) on Investments | (2,849,633 | ) | (952,111 | ) | (2,039,123 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (2,794,126 | ) | $ | (818,742 | ) | $ | (1,880,265 | ) |
See accompanying notes.
8
Statements of Operations | |||||||||
Principal Exchange-Traded Funds | |||||||||
Six months ended December 31, 2018 (unaudited) | |||||||||
Principal | |||||||||
Spectrum | Principal | Principal U.S. | |||||||
Preferred | Sustainable | Mega-Cap | |||||||
Securities | Momentum | Multi-Factor | |||||||
Active ETF | Index ETF | Index ETF | |||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividend income | $ | — | $ | 27,410 | $ | 20,223,414 | |||
Interest | 1,504,148 | — | — | ||||||
Total Income | 1,504,148 | 27,410 | 20,223,414 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 143,174 | 8,197 | 1,227,594 | ||||||
Total Gross Expenses | 143,174 | 8,197 | 1,227,594 | ||||||
Less: Reimbursement from Manager | — | — | (245,519 | ) | |||||
Total Expenses | 143,174 | 8,197 | 982,075 | ||||||
Net Investment Income (Loss) | 1,360,974 | 19,213 | 19,241,339 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments: | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | (68,902 | ) | (12,177 | ) | (18,433,703 | ) | |||
In-kind redemptions | — | — | 42,417,398 | ||||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | (2,527,890 | ) | (687,204 | ) | (52,045,574 | ) | |||
Net Realized and Unrealized Gain (Loss) on Investments | (2,596,792 | ) | (699,381 | ) | (28,061,879 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (1,235,818 | ) | $ | (680,168 | ) | $ | (8,820,540 | ) |
See accompanying notes.
9
Statement of Operations | |||
Principal Exchange-Traded Funds | |||
Six months ended December 31, 2018 (unaudited) | |||
Principal U.S. | |||
Small-Cap | |||
Multi-Factor | |||
Index ETF | |||
Net Investment Income (Loss) | |||
Income: | |||
Dividend income | $ | 3,218,106 | |
Total Income | 3,218,106 | ||
Expenses: | |||
Management and investment advisory fees | 677,930 | ||
Total Expenses | 677,930 | ||
Net Investment Income (Loss) | 2,540,176 | ||
Net Realized and Unrealized Gain (Loss) on Investments: | |||
Net realized gain (loss) from: | |||
Investment transactions | (13,268,058 | ) | |
In-kind redemptions | 21,254,241 | ||
Change in unrealized appreciation/depreciation of: | |||
Investments | (69,921,356 | ) | |
Net Realized and Unrealized Gain (Loss) on Investments | (61,935,173 | ) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (59,394,997 | ) |
See accompanying notes.
10
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Active Global Dividend | ||||||
Income ETF | ||||||
Period ended | Year ended | |||||
December 31, 2018 | June 30, 2018 | |||||
Operations | ||||||
Net investment income (loss) | $ | 7,050,518 | $ | 14,790,307 | ||
Net realized gain (loss) on investments | 3,838,014 | 6,620,794 | ||||
Change in unrealized appreciation/depreciation of investments and foreign currency | (74,102,186 | ) | 29,433,500 | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | (63,213,654 | ) | 50,844,601 | |||
Dividends and Distributions to Shareholders(a) | ||||||
From net investment income and net realized gain on investments | (21,288,698 | ) | (13,283,286 | ) | ||
Total Dividends and Distributions | (21,288,698 | ) | (13,283,286 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 7,264,504 | 239,306,479 | ||||
Total Increase (Decrease) in Net Assets | (77,237,848 | ) | 276,867,794 | |||
Net Assets(b) | ||||||
Beginning of period | 705,435,202 | 428,567,408 | ||||
End of period | $ | 628,197,354 | $ | 705,435,202 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 17,013,447 | $ | 239,306,479 | ||
Redeemed | (9,748,943 | ) | — | |||
Net Increase (Decrease) | $ | 7,264,504 | $ | 239,306,479 | ||
Shares: | ||||||
Sold | 600,000 | 8,700,000 | ||||
Redeemed | (350,000 | ) | — | |||
Net Increase (Decrease) | 250,000 | 8,700,000 |
(a) | For the year ended June 30, 2018, dividends and distributions to shareholders totaled $10,404,928 from net investment income and $2,878,358 from net realized gain on investments. |
(b) | As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $6,617,701. |
See accompanying notes.
11
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Contrarian Value Index ETF | ||||||
Period ended | Period ended | |||||
December 31, 2018 | June 30, 2018(a) | |||||
Operations | ||||||
Net investment income (loss) | $ | 31,180 | $ | 43,859 | ||
Net realized gain (loss) on investments | 26,229 | 188,232 | ||||
Change in unrealized appreciation/depreciation of investments and foreign currency | (571,889 | ) | (21,383 | ) | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | (514,480 | ) | 210,708 | |||
Dividends and Distributions to Shareholders(b) | ||||||
From net investment income and net realized gain on investments | (44,896 | ) | (28,200 | ) | ||
Total Dividends and Distributions | (44,896 | ) | (28,200 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | — | 3,735,535 | ||||
Total Increase (Decrease) in Net Assets | (559,376 | ) | 3,918,043 | |||
Net Assets(c) | ||||||
Beginning of period | 3,918,043 | — | ||||
End of period | $ | 3,358,667 | $ | 3,918,043 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | — | $ | 6,395,207 | ||
Redeemed | — | (2,659,672 | ) | |||
Net Increase (Decrease) | $ | — | $ | 3,735,535 | ||
Shares: | ||||||
Sold | — | 250,001 | ||||
Redeemed | — | (100,000 | ) | |||
Net Increase (Decrease) | — | 150,001 |
(a) | Period from October 18, 2017, date operations commenced, through June 30, 2018. |
(b) | For the year ended June 30, 2018, dividends and distributions to shareholders totaled $28,200 from net investment income. |
(c) | As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $15,659. |
See accompanying notes.
12
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal EDGE Active Income ETF | ||||||
Period ended | Year ended | |||||
December 31, 2018 | June 30, 2018 | |||||
Operations | ||||||
Net investment income (loss) | $ | 12,382,714 | $ | 12,661,124 | ||
Net realized gain (loss) on investments | (8,496,279 | ) | 3,699,713 | |||
Change in unrealized appreciation/depreciation of investments and foreign currency | (15,735,784 | ) | (7,458,891 | ) | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | (11,849,349 | ) | 8,901,946 | |||
Dividends and Distributions to Shareholders(a) | ||||||
From net investment income and net realized gain on investments | (10,753,603 | ) | (16,412,761 | ) | ||
Total Dividends and Distributions | (10,753,603 | ) | (16,412,761 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 9,977,017 | 14,393,113 | ||||
Total Increase (Decrease) in Net Assets | (12,625,935 | ) | 6,882,298 | |||
Net Assets(b) | ||||||
Beginning of period | 292,966,743 | 286,084,445 | ||||
End of period | $ | 280,340,808 | $ | 292,966,743 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 9,977,017 | $ | 14,393,113 | ||
Net Increase (Decrease) | $ | 9,977,017 | $ | 14,393,113 | ||
Shares: | ||||||
Sold | 250,000 | 350,000 | ||||
Net Increase (Decrease) | 250,000 | 350,000 |
(a) | For the year ended June 30, 2018, dividends and distributions to shareholders totaled $13,250,549 from net investment income and $3,162,212 from net realized gain on investments. |
(b) | As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $174,409. |
See accompanying notes.
13
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Healthcare Innovators Index | ||||||
ETF | ||||||
Period ended | Year ended | |||||
December 31, 2018 | June 30, 2018 | |||||
Operations | ||||||
Net investment income (loss) | $ | (99,666 | ) | $ | (141,135 | ) |
Net realized gain (loss) on investments | 472,967 | 4,422,410 | ||||
Change in unrealized appreciation/depreciation of investments and foreign currency | (11,127,038 | ) | 3,811,547 | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | (10,753,737 | ) | 8,092,822 | |||
Dividends and Distributions to Shareholders(a) | ||||||
From net investment income and net realized gain on investments | — | (79,577 | ) | |||
Total Dividends and Distributions | — | (79,577 | ) | |||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 3,076,447 | 36,950,430 | ||||
Total Increase (Decrease) in Net Assets | (7,677,290 | ) | 44,963,675 | |||
Net Assets(b) | ||||||
Beginning of period | 52,103,773 | 7,140,098 | ||||
End of period | $ | 44,426,483 | $ | 52,103,773 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 7,780,545 | $ | 53,405,667 | ||
Redeemed | (4,704,098 | ) | (16,455,237 | ) | ||
Net Increase (Decrease) | $ | 3,076,447 | $ | 36,950,430 | ||
Shares: | ||||||
Sold | 250,000 | 1,750,000 | ||||
Redeemed | (150,000 | ) | (500,000 | ) | ||
Net Increase (Decrease) | 100,000 | 1,250,000 |
(a) | For the year ended June 30, 2018, dividends and distributions to shareholders totaled $79,577 from net realized gain on investments. |
(b) | As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $ (102,816). |
See accompanying notes.
14
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal International Multi-Factor | ||||||
Index ETF | ||||||
Period ended | Period ended | |||||
December 31, 2018 | June 30, 2018(a) | |||||
Operations | ||||||
Net investment income (loss) | $ | 111,373 | $ | 269,246 | ||
Net realized gain (loss) on investments | (527,729 | ) | (146,369 | ) | ||
Change in unrealized appreciation/depreciation of investments and foreign currency | (1,494,216 | ) | (116,227 | ) | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | (1,910,572 | ) | 6,650 | |||
Dividends and Distributions to Shareholders(b) | ||||||
From net investment income and net realized gain on investments | (280,560 | ) | (105,600 | ) | ||
Total Dividends and Distributions | (280,560 | ) | (105,600 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | — | 15,000,100 | ||||
Total Increase (Decrease) in Net Assets | (2,191,132 | ) | 14,901,150 | |||
Net Assets(c) | ||||||
Beginning of period | 14,901,150 | — | ||||
End of period | $ | 12,710,018 | $ | 14,901,150 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | — | $ | 15,000,100 | ||
Net Increase (Decrease) | $ | — | $ | 15,000,100 | ||
Shares: | ||||||
Sold | — | 150,001 | ||||
Net Increase (Decrease) | — | 150,001 |
(a) | Period from November 8, 2017, date operations commenced, through June 30, 2018. |
(b) | For the year ended June 30, 2018, dividends and distributions to shareholders totaled $105,600 from net investment income. |
(c) | As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $165,846. |
See accompanying notes.
15
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Investment Grade Corporate | ||||||
Active ETF | ||||||
Period ended | Period ended | |||||
December 31, 2018 | June 30, 2018(a) | |||||
Operations | ||||||
Net investment income (loss) | $ | 4,547,338 | $ | 1,197,951 | ||
Net realized gain (loss) on investments | (898,891 | ) | 186,469 | |||
Change in unrealized appreciation/depreciation of investments and foreign currency | (3,661,148 | ) | (1,120,520 | ) | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | (12,701 | ) | 263,900 | |||
Dividends and Distributions to Shareholders(b) | ||||||
From net investment income and net realized gain on investments | (5,475,469 | ) | (618,904 | ) | ||
Total Dividends and Distributions | (5,475,469 | ) | (618,904 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | — | 229,064,950 | ||||
Total Increase (Decrease) in Net Assets | (5,488,170 | ) | 228,709,946 | |||
Net Assets(c) | ||||||
Beginning of period | 228,709,946 | — | ||||
End of period | $ | 223,221,776 | $ | 228,709,946 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | — | $ | 229,064,950 | ||
Net Increase (Decrease) | $ | — | $ | 229,064,950 | ||
Shares: | ||||||
Sold | — | 9,300,001 | ||||
Net Increase (Decrease) | — | 9,300,001 |
(a) | Period from April 18, 2018, date operations commenced, through June 30, 2018. |
(b) | For the year ended June 30, 2018, dividends and distributions to shareholders totaled $618,904 from net investment income. |
(c) | As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $579,166. |
See accompanying notes.
16
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Millennials Index ETF | ||||||
Period ended | Year ended | |||||
December 31, 2018 | June 30, 2018 | |||||
Operations | ||||||
Net investment income (loss) | $ | 55,507 | $ | 86,576 | ||
Net realized gain (loss) on investments | 803,058 | 1,031,588 | ||||
Change in unrealized appreciation/depreciation of investments and foreign currency | (3,652,691 | ) | 1,259,349 | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | (2,794,126 | ) | 2,377,513 | |||
Dividends and Distributions to Shareholders(a) | ||||||
From net investment income and net realized gain on investments | (107,378 | ) | (88,747 | ) | ||
Total Dividends and Distributions | (107,378 | ) | (88,747 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | (3,187,767 | ) | 10,698,562 | |||
Total Increase (Decrease) in Net Assets | (6,089,271 | ) | 12,987,328 | |||
Net Assets(b) | ||||||
Beginning of period | 20,217,029 | 7,229,701 | ||||
End of period | $ | 14,127,758 | $ | 20,217,029 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 1,766,928 | $ | 14,219,990 | ||
Redeemed | (4,954,695 | ) | (3,521,428 | ) | ||
Net Increase (Decrease) | $ | (3,187,767 | ) | $ | 10,698,562 | |
Shares: | ||||||
Sold | 50,000 | 400,000 | ||||
Redeemed | (150,000 | ) | (100,000 | ) | ||
Net Increase (Decrease) | (100,000 | ) | 300,000 |
(a) | For the year ended June 30, 2018, dividends and distributions to shareholders totaled $66,800 from net investment income and $21,947 from net realized gain on investments. |
(b) | As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $53,354. |
See accompanying notes.
17
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Price Setters Index ETF | ||||||
Period ended | Year ended | |||||
December 31, 2018 | June 30, 2018 | |||||
Operations | ||||||
Net investment income (loss) | $ | 133,369 | $ | 187,597 | ||
Net realized gain (loss) on investments | 570,497 | 2,147,776 | ||||
Change in unrealized appreciation/depreciation of investments and foreign currency | (1,522,608 | ) | (154,823 | ) | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | (818,742 | ) | 2,180,550 | |||
Dividends and Distributions to Shareholders(a) | ||||||
From net investment income and net realized gain on investments | (193,324 | ) | (152,223 | ) | ||
Total Dividends and Distributions | (193,324 | ) | (152,223 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | (3,470,993 | ) | 12,369,418 | |||
Total Increase (Decrease) in Net Assets | (4,483,059 | ) | 14,397,745 | |||
Net Assets(b) | ||||||
Beginning of period | 21,654,802 | 7,257,057 | ||||
End of period | $ | 17,171,743 | $ | 21,654,802 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 4,841,853 | $ | 25,876,656 | ||
Redeemed | (8,312,846 | ) | (13,507,238 | ) | ||
Net Increase (Decrease) | $ | (3,470,993 | ) | $ | 12,369,418 | |
Shares: | ||||||
Sold | 150,000 | 800,000 | ||||
Redeemed | (250,000 | ) | (400,000 | ) | ||
Net Increase (Decrease) | (100,000 | ) | 400,000 |
(a) | For the year ended June 30, 2018, dividends and distributions to shareholders totaled $132,851 from net investment income and $19,372 from net realized gain on investments. |
(b) | As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $62,809. |
See accompanying notes.
18
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Shareholder Yield Index ETF | ||||||
Period ended | Year ended | |||||
December 31, 2018 | June 30, 2018 | |||||
Operations | ||||||
Net investment income (loss) | $ | 158,858 | $ | 199,903 | ||
Net realized gain (loss) on investments | (14,670 | ) | 1,002,526 | |||
Change in unrealized appreciation/depreciation of investments and foreign currency | (2,024,453 | ) | (358,383 | ) | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | (1,880,265 | ) | 844,046 | |||
Dividends and Distributions to Shareholders(a) | ||||||
From net investment income and net realized gain on investments | (226,838 | ) | (146,115 | ) | ||
Total Dividends and Distributions | (226,838 | ) | (146,115 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | (1,395,058 | ) | 6,633,709 | |||
Total Increase (Decrease) in Net Assets | (3,502,161 | ) | 7,331,640 | |||
Net Assets(b) | ||||||
Beginning of period | 14,622,104 | 7,290,464 | ||||
End of period | $ | 11,119,943 | $ | 14,622,104 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 1,572,464 | $ | 13,234,720 | ||
Redeemed | (2,967,522 | ) | (6,601,011 | ) | ||
Net Increase (Decrease) | $ | (1,395,058 | ) | $ | 6,633,709 | |
Shares: | ||||||
Sold | 50,000 | 400,000 | ||||
Redeemed | (100,000 | ) | (200,000 | ) | ||
Net Increase (Decrease) | (50,000 | ) | 200,000 |
(a) | For the year ended June 30, 2018, dividends and distributions to shareholders totaled $141,901 from net investment income and $4,214 from net realized gain on investments. |
(b) | As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $71,481. |
See accompanying notes.
19
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Spectrum Preferred Securities | ||||||
Active ETF | ||||||
Period ended | Period ended | |||||
December 31, 2018 | June 30, 2018(a) | |||||
Operations | ||||||
Net investment income (loss) | $ | 1,360,974 | $ | 1,787,217 | ||
Net realized gain (loss) on investments | (68,902 | ) | (220,092 | ) | ||
Change in unrealized appreciation/depreciation of investments and foreign currency | (2,527,890 | ) | (2,499,380 | ) | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | (1,235,818 | ) | (932,255 | ) | ||
Dividends and Distributions to Shareholders(b) | ||||||
From net investment income and net realized gain on investments | (1,611,397 | ) | (1,646,143 | ) | ||
Total Dividends and Distributions | (1,611,397 | ) | (1,646,143 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | — | 54,527,568 | ||||
Total Increase (Decrease) in Net Assets | (2,847,215 | ) | 51,949,170 | |||
Net Assets(c) | ||||||
Beginning of period | 51,949,170 | — | ||||
End of period | $ | 49,101,955 | $ | 51,949,170 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | — | $ | 54,527,568 | ||
Net Increase (Decrease) | $ | — | $ | 54,527,568 | ||
Shares: | ||||||
Sold | — | 550,001 | ||||
Net Increase (Decrease) | — | 550,001 |
(a) | Period from July 10, 2017, date operations commenced, through June 30, 2018. |
(b) | For the year ended June 30, 2018, dividends and distributions to shareholders totaled $1,638,002 from net investment income and $8,141 from net realized gain on investments. |
(c) | As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $127,978. |
See accompanying notes.
20
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Sustainable Momentum Index | ||||||
ETF | ||||||
Period ended | Period ended | |||||
December 31, 2018 | June 30, 2018(a) | |||||
Operations | ||||||
Net investment income (loss) | $ | 19,213 | $ | 31,402 | ||
Net realized gain (loss) on investments | (12,177 | ) | 267,364 | |||
Change in unrealized appreciation/depreciation of investments and foreign currency | (687,204 | ) | 185,353 | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | (680,168 | ) | 484,119 | |||
Dividends and Distributions to Shareholders(b) | ||||||
From net investment income and net realized gain on investments | (27,807 | ) | (22,700 | ) | ||
Total Dividends and Distributions | (27,807 | ) | (22,700 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | — | 5,141,295 | ||||
Total Increase (Decrease) in Net Assets | (707,975 | ) | 5,602,714 | |||
Net Assets(c) | ||||||
Beginning of period | 5,602,714 | — | ||||
End of period | $ | 4,894,739 | $ | 5,602,714 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | — | $ | 7,943,624 | ||
Redeemed | — | (2,802,329 | ) | |||
Net Increase (Decrease) | $ | — | $ | 5,141,295 | ||
Shares: | ||||||
Sold | — | 300,001 | ||||
Redeemed | — | (100,000 | ) | |||
Net Increase (Decrease) | — | 200,001 |
(a) | Period from October 18, 2017, date operations commenced, through June 30, 2018. |
(b) | For the year ended June 30, 2018, dividends and distributions to shareholders totaled $22,700 from net investment income. |
(c) | As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $8,702. |
See accompanying notes.
21
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal U.S. Mega-Cap Multi-Factor | ||||||
Index ETF | ||||||
Period ended | Period ended | |||||
December 31, 2018 | June 30, 2018(a) | |||||
Operations | ||||||
Net investment income (loss) | $ | 19,241,339 | $ | 16,854,431 | ||
Net realized gain (loss) on investments | 23,983,695 | (7,524,427 | ) | |||
Change in unrealized appreciation/depreciation of investments and foreign currency | (52,045,574 | ) | (6,503,673 | ) | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | (8,820,540 | ) | 2,826,331 | |||
Dividends and Distributions to Shareholders(b) | ||||||
From net investment income and net realized gain on investments | (27,709,355 | ) | (8,361,236 | ) | ||
Total Dividends and Distributions | (27,709,355 | ) | (8,361,236 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | (204,880,068 | ) | 1,672,060,181 | |||
Total Increase (Decrease) in Net Assets | (241,409,963 | ) | 1,666,525,276 | |||
Net Assets(c) | ||||||
Beginning of period | 1,666,525,276 | — | ||||
End of period | $ | 1,425,115,313 | $ | 1,666,525,276 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 111,245,217 | $ | 1,909,927,244 | ||
Redeemed | (316,125,285 | ) | (237,867,063 | ) | ||
Net Increase (Decrease) | $ | (204,880,068 | ) | $ | 1,672,060,181 | |
Shares: | ||||||
Sold | 4,200,000 | 73,450,001 | ||||
Redeemed | (11,500,000 | ) | (9,400,000 | ) | ||
Net Increase (Decrease) | (7,300,000 | ) | 64,050,001 |
(a) | Period from October 11, 2017, date operations commenced, through June 30, 2018. |
(b) | For the year ended June 30, 2018, dividends and distributions to shareholders totaled $8,361,236 from net investment income. |
(c) | As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $8,493,195. |
See accompanying notes.
22
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal U.S. Small-Cap Multi-Factor | ||||||
Index ETF | ||||||
Period ended | Year ended | |||||
December 31, 2018 | June 30, 2018 | |||||
Operations | ||||||
Net investment income (loss) | $ | 2,540,176 | $ | 3,022,452 | ||
Net realized gain (loss) on investments | 7,986,183 | 26,142,347 | ||||
Change in unrealized appreciation/depreciation of investments and foreign currency | (69,921,356 | ) | 23,950,375 | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | (59,394,997 | ) | 53,115,174 | |||
Dividends and Distributions to Shareholders(a) | ||||||
From net investment income and net realized gain on investments | (3,048,584 | ) | (3,208,941 | ) | ||
Total Dividends and Distributions | (3,048,584 | ) | (3,208,941 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 25,217,933 | 25,803,832 | ||||
Total Increase (Decrease) in Net Assets | (37,225,648 | ) | 75,710,065 | |||
Net Assets(b) | ||||||
Beginning of period | 351,175,630 | 275,465,565 | ||||
End of period | $ | 313,949,982 | $ | 351,175,630 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 112,276,823 | $ | 259,486,789 | ||
Redeemed | (87,058,890 | ) | (233,682,957 | ) | ||
Net Increase (Decrease) | $ | 25,217,933 | $ | 25,803,832 | ||
Shares: | ||||||
Sold | 3,600,000 | 8,450,000 | ||||
Redeemed | (2,800,000 | ) | (7,500,000 | ) | ||
Net Increase (Decrease) | 800,000 | 950,000 |
(a) | For the year ended June 30, 2018, dividends and distributions to shareholders totaled $3,049,323 from net investment income and $159,618 from net realized gain on investments. |
(b) | As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $633,577. |
See accompanying notes.
23
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)
1. Organization
The Principal Exchange-Traded Funds (the “Trust”) is a statutory trust organized under the laws of the State of Delaware in 2013 and is authorized to have multiple series or portfolios. The Trust is an open-end management investment company, registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently consists of thirteen series, the Principal Active Global Dividend Income ETF, Principal Contrarian Value Index ETF, Principal EDGE Active Income ETF, Principal Healthcare Innovators Index ETF, Principal International Multi-Factor Index ETF, Principal Investment Grade Corporate Active ETF, Principal Millennials Index ETF, Principal Price Setters Index ETF, Principal Shareholder Yield Index ETF, Principal Spectrum Preferred Securities Active ETF, Principal Sustainable Momentum Index ETF, Principal U.S. Mega-Cap Multi-Factor Index ETF, and Principal U.S. Small-Cap Multi-Factor Index ETF (the “Funds”). The Funds are “diversified”, and as such, the Funds’ investments are required to meet certain diversification requirements under the 1940 Act. The shares of the Funds are referred to herein as “Shares”.
Each of the Funds is an investment company and applies specialized accounting and reporting under Accounting Standards Codification Topic 946,Financial Services — Investment Companies.The Funds have not provided financial support, and are not contractually required to provide financial support to any investee.
The Trust issues and redeems Shares at net asset value (“NAV”) only with Authorized Participants (“APs”) and only in aggregations of 50,000 Shares (each a “Creation Unit” or a “Creation Unit Aggregation”), which is subject to change. Each Fund issues and redeems Creation Units in exchange for portfolio securities and/or cash, plus a fixed and/or variable transaction fee.
Shares of the Principal Active Global Dividend Income ETF and Principal Spectrum Preferred Securities Active ETF are listed on the Bats BZX Exchange (“Bats” or the “Exchange”). Shares of the Principal EDGE Active Income ETF and Principal Investment Grade Corporate Active EFT are listed on the NYSE Arca, Inc. (“NYSE Arca” or the “Exchange”). Shares of the Principal Contrarian Value Index ETF, Principal Healthcare Innovators Index ETF, Principal International Multi-Factor Index ETF, Principal Millennials Index ETF, Principal Price Setters Index ETF, Principal Shareholder Yield Index ETF, Principal Sustainable Momentum Index ETF, Principal U.S. Mega-Cap Multi-Factor Index ETF, and Principal U.S. Small-Cap Multi-Factor Index ETF are listed on The National Association of Securities Dealers Automated Quotation System (“NASDAQ” or the “Exchange”). Shares trade on the Exchange at market prices that may be below, at, or above NAV.
Principal Active Global Dividend Income ETF initial investment and commencement of operations was on May 9, 2017. Principal Spectrum Preferred Securities Active ETF initial investment and commencement of operations was July 10, 2017. Principal U.S. Mega-Cap Multi-Factor Index ETF initial investment and commencement of operations was October 11, 2017. Principal Contrarian Value Index ETF and Principal Sustainable Momentum Index ETF initial investment and commencement of operations was October 18, 2017. Principal International Multi-Factor Index ETF initial investment and commencement of operations was November 8, 2017 Principal Investment Grade Corporate Active ETF initial investment and commencement of operations was April 18, 2018.
2. Significant Accounting Policies
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Funds:
Security Valuation.The Funds value securities for which market quotations are readily available at fair value, which is determined using the last reported sale price. If no sales are reported, as is regularly the case for some securities traded over-the-counter, securities are valued using the last reported bid price or an evaluated bid price provided by a pricing service. Pricing services use modeling techniques that incorporate security characteristics, market conditions and dealer-supplied valuations to determine an evaluated bid price. When reliable market quotations are not considered to be readily available, which may be the case, for example, with respect to restricted securities, certain debt securities, preferred stocks, and foreign securities, the investments are valued at their fair value as determined in good faith by the Principal Global Investors, LLC (“the Advisor”) under procedures established and periodically reviewed by the Trust’s Board of Trustees.
24
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)
2. Significant Accounting Policies (continued)
The value of foreign securities used in computing the NAV per share is generally determined as of the close of the foreign exchange where the security is principally traded. Significant events that occur after the close of the applicable foreign market or exchange but prior to the calculation of the Funds’ NAV are reflected in the Funds’ NAV and these securities are valued at fair value as determined in good faith by the Principal Global Investors, LLC (“the Advisor”) under procedures established and periodically reviewed by the Trust’s Board of Trustees.
Many factors, provided by independent pricing services, are reviewed in the course of making a good faith determination of a security’s fair value, including, but not limited to, price movements in American Depository Receipts (“ADRs”), futures contracts, industry indices, general indices, and foreign currencies.
To the extent the Funds invest in foreign securities listed on foreign exchanges which trade on days on which the Funds do not determine NAV, for example weekends and other customary national U.S. holidays, the Funds’ NAV could be significantly affected on days when shares are able to be issued or redeemed by APs.
Certain securities issued by companies in emerging market countries may have more than one quoted valuation at any given point in time, sometimes referred to as a “local” price and a “premium” price. The premium price is often a negotiated price, which may not consistently represent a price at which a specific transaction can be effected. It is the policy of the Funds to value such securities at prices at which it is expected those shares may be sold, and the Advisor or any sub-advisor is authorized to make such determinations subject to such oversight by the Trust’s Board of Trustees as may occasionally be necessary.
Income and Investment Transactions.The Funds record investment transactions on a trade date basis. The identified cost basis has been used in determining the net realized gain or loss from investment transactions and unrealized appreciation or depreciation of investments. The Funds record dividend income on the ex-dividend date, except dividend income from foreign securities whereby the ex-dividend date has passed; such dividends are recorded as soon as the Funds are informed of the ex-dividend date. Interest income is recognized on an accrual basis. Discounts and premiums on securities are accreted/amortized, respectively, on the level yield method over the expected lives of the respective securities.
Capital Share Transactions.Capital shares are issued and redeemed by the Funds only in Creation Units or multiples thereof. Except when aggregated in Creation Units, shares of the Funds are not redeemable. Transactions in capital shares for the Funds are disclosed in detail in the statements of changes in net assets.
The consideration for the purchase of Creation Units of a Fund generally consists of a basket of cash and/or securities that the Fund specifies each business day. To offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, APs are subject to standard creation and redemption transaction fees.
Expenses.For all Funds, a unitary investment management and advisory fee is charged.
Distributions to Shareholders.Dividends and distributions to shareholders of the Funds are recorded on the ex-dividend date. Dividends and distributions to shareholders from net investment income and net realized gain from investments and foreign currency transactions are determined in accordance with federal tax regulations, which may differ from U.S. GAAP. These differences are primarily due to differing treatments for foreign currency transactions, losses deferred due to wash sales, tax straddles, mortgage-backed securities, certain preferred securities, redemptions-in-kind, Real Estate Investment Trust’s, utilization of earnings and profits distributed to shareholders on redemption of shares, and limitations imposed by Sections 381-384 of the Internal Revenue Code. Permanent book and tax basis differences are reclassified within the capital accounts based on federal tax-basis treatment; temporary differences do not require reclassification. To the extent dividends and distributions exceed current and accumulated earnings and profits for federal income tax purposes, they are reported as return of capital distributions.
Federal Income Taxes.No provision for federal income taxes is considered necessary because the Funds intend to qualify as a “regulated investment company” under the Internal Revenue Code and they intend to distribute each year substantially all of their net investment income and realized capital gains to shareholders.
25
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)
2. Significant Accounting Policies (continued)
Management evaluates tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more likely than not” that each tax position would be sustained upon examination by a taxing authority based on the technical merits of their position. Tax positions not deemed to meet the more likely than not threshold would be recorded as a tax benefit or expense in the current year. During the year ended June 30, 2018, the Funds did not record any such tax benefit or expense in the accompanying financial statements. The statute of limitations remains open for the last three years, once a return is filed. No examinations are in progress at this time.
Foreign Taxes.Certain Funds are subject to foreign income taxes imposed by certain countries in which they invest. Foreign income taxes are accrued by the Funds as a reduction of income. These amounts are shown as withholding tax on foreign dividends on the statement of operations.
Recent Accounting Pronouncements.In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-08Premium Amortization on Purchased Callable Debt Securities,which amends the accounting standards to shorten the amortization period of certain purchased callable debt securities to the earliest call date. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods thereafter. The Funds will adopt the new amendments for periods beginning after December 15, 2018.
In August 2018, the FASB issued ASU No. 2018-13Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement,which amends and eliminates certain disclosure requirements for fair value as part of its framework project. The ASU is effective for annual and interim periods beginning after December 15, 2019. The early adoption of the removal or modification of disclosures and delay of adoption of the additional disclosures is permitted. As of December 31, 2018, the Funds have adopted the removal of certain disclosures.
In August 2018, the Securities and Exchange Commission (“SEC”) approved a final rule,Disclosure Update and Simplification.The SEC adopted amendments to certain disclosures that have become redundant or superseded in light of other SEC disclosure requirements, U.S. GAAP or changes in the information environment. As of December 31, 2018, the Funds have adopted the new amendments.
3. Operating Policies
Indemnifications.In a normal course of business, the Funds enter into contracts that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve potential future claims against the Funds that have not yet occurred. Based on management’s experience, the risk of loss would be remote.
Restricted Securities.The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult.
Underlying Funds.Series of Principal Funds, Inc. and Principal Variable Contracts Funds, Inc., affiliates of the Advisor, may invest in certain of the Funds (the “underlying funds”).
An underlying fund may experience relatively large redemptions or purchases as the investee fund periodically reallocates or rebalances its assets. These transactions may accelerate the realization of taxable income if sales of portfolio securities result in gains and could increase transaction costs.
The Advisor is the advisor to Principal Funds, Inc. and Principal Variable Contracts Funds, Inc. and the underlying funds. The Advisor is committed to minimizing the potential impact of underlying fund risk on underlying funds to the extent consistent with pursuing the investment objectives of the investee funds which it manages. Each may face conflicts of interest in fulfilling its responsibilities to all such funds.
26
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)
3. Operating Policies (continued)
As of December 31, 2018, Principal Funds, Inc. and Principal Variable Contracts Funds, Inc. owned the following percentages, in the aggregate, of the outstanding shares of the underlying funds listed below:
Total Percentage of | ||
Fund | Outstanding Shares Owned | |
Principal Active Global Dividend Income ETF | 99.61 | % |
Principal EDGE Active Income ETF | 92.32 | % |
Principal Investment Grade Corporate Active ETF | 99.46 | % |
Principal U.S. Mega-Cap Multi-Factor Index ETF | 96.71 | % |
Principal U.S. Small-Cap Multi-Factor Index ETF | 95.85 | % |
U.S. Government Agencies or Government-Sponsored Enterprises.Certain of the Funds may invest in U.S. Government agencies or government-sponsored enterprises. U.S. Government securities are obligations of, and in certain cases, guaranteed by, the U.S. Government or its agencies. The U.S. Government does not guarantee the NAV of the Funds’ shares. Some U.S. Government securities such as treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA”) are supported by the full faith and credit of the U.S. Government. Other securities, such as those of the Federal Home Loan Bank are supported by the right of the issuer to borrow from the U.S. Department of the Treasury. Still other securities, such as those of the Federal National Mortgage Association (“FNMA”) are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations.
Government related guarantors (those not backed by the full faith and credit of the United States Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC”). FNMA is a government sponsored corporation, the common stock of which is owned entirely by private stockholders. FNMA purchases conventional residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks, credit unions, and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to the timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but Participation Certificates are not backed by the full faith and credit of the U.S. Government.
4. Fair Valuation
Fair value is defined as the price that the Funds would receive upon selling a security in a timely transaction to an independent buyer in the principal or most advantageous market of the security at the measurement date. In determining fair value, the Funds may use one or more of the following techniques: market, income and/or cost. A hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Funds. Unobservable inputs are inputs that reflect the Fund’s own estimates about the estimates market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
Level 1 — Quoted prices are available in active markets for identical securities as of the reporting date. The type of securities included in Level 1 includes listed equities and listed derivatives.
Level 2 — Other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.). Investments which are generally included in this category include corporate bonds and municipal bonds.
Level 3 — Significant unobservable inputs (including the Funds’ assumptions in determining the fair value of investments). Investments which are generally included in this category include certain corporate bonds and certain mortgage backed securities.
27
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)
4. Fair Valuation (continued)
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the market place, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Funds in determining fair value is greatest for instruments categorized in Level 3.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Fair value is a market based measure considered from the perspective of a market participant who holds the asset rather than an entity specific measure. Therefore, even when market assumptions are not readily available, the Funds’ own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Funds use prices and inputs that are current as of the measurement date, to the extent available.
Investments which are included in the Level 3 Category may be valued using quoted prices from brokers & dealers participating in the market for these investments. These investments are classified as Level 3 investments due to the lack of market transparency and market corroboration to support these quoted prices.
Valuation models may be used as the pricing source for other investments classified as Level 3. Valuation models rely on one or more significant unobservable inputs such as prepayment rates, probability of default, or loss severity in the event of default. Significant increases in any of those inputs in isolation would result in a significantly lower fair value measurement.
The fair values of these entities are dependent on economic, political and other considerations. The values of the underlying investee entities may be affected by significant changes in the economic conditions, changes in government policies, and other factors (e.g., natural disasters, accidents, conflicts, etc.).
Fair value of these investments is determined in good faith by the Advisor under procedures established and periodically reviewed by the Fund’s Board of Trustees. The Advisor has established a valuation committee (“Valuation Committee”) of senior officers and employees, with the responsibility of overseeing the pricing and valuation of all securities, including securities where market quotations are not readily available. The Valuation Committee meets at least monthly and reports directly to the Board of Trustees. A pricing group (the “Pricing Group”) who reports to the Valuation Committee relies on the established pricing policies to determine fair valuation. Included in the pricing policies is an overview of the approved valuation approaches established for each asset class. The Pricing Group will consider all appropriate information when determining fair valuation.
The Pricing Group relies on externally provided valuation inputs to determine the value of Level 3 securities. Security values are updated as new information becomes available. Valuation data and changes in valuation amounts are reviewed on a daily basis based on specified criteria for the security, asset class, and other factors. In addition, valuation data is periodically compared to actual transactions executed by the Funds (i.e., purchases/sales) and differences between transaction prices and prior period valuation data are investigated based on specific tolerances.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those instruments.
There were no significant purchases, sales, or transfers into or out of Level 3.
28
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)
4. Fair Valuation (continued)
The following is a summary of the inputs used as of December 31, 2018 in valuing the Funds’ securities carried at value:
Level 2 — | ||||||||||
Other | Level 3 — | |||||||||
Level 1 — | Significant | Significant | ||||||||
Quoted | Observable | Unobservable | Totals | |||||||
Fund | Prices | Inputs | Inputs | (Level 1,2,3) | ||||||
Principal Active Global Dividend Income ETF | ||||||||||
Common Stocks* | $ | 624,393,424 | $ | — | $ | — | $ | 624,393,424 | ||
Total investments in securities | $ | 624,393,424 | $ | — | $ | — | $ | 624,393,424 | ||
Principal Contrarian Value Index ETF | ||||||||||
Common Stocks* | $ | 3,347,253 | $ | — | $ | — | $ | 3,347,253 | ||
Total investments in securities | $ | 3,347,253 | $ | — | $ | — | $ | 3,347,253 | ||
Principal EDGE Active Income ETF | ||||||||||
Common Stocks | ||||||||||
Basic Materials | $ | 786,905 | $ | — | $ | — | $ | 786,905 | ||
Communications | 1,365,010 | — | — | 1,365,010 | ||||||
Consumer, Cyclical | 1,172,977 | — | — | 1,172,977 | ||||||
Consumer, Non-cyclical | 8,901,019 | — | — | 8,901,019 | ||||||
Energy | 9,391,692 | — | — | 9,391,692 | ||||||
Financial | 22,586,738 | — | — | 22,586,738 | ||||||
Industrial | 1,409,541 | — | — | 1,409,541 | ||||||
Technology | 2,100,160 | — | — | 2,100,160 | ||||||
Utilities | 4,992,652 | — | 1,176,123 | 6,168,775 | ||||||
Preferred Stocks* | 13,735,386 | — | — | 13,735,386 | ||||||
Bonds* | — | 202,611,806 | — | 202,611,806 | ||||||
Total investments in securities | $ | 66,442,080 | $ | 202,611,806 | $ | 1,176,123 | $ | 270,230,009 | ||
Principal Healthcare Innovators Index ETF | ||||||||||
Common Stocks* | $ | 44,327,004 | $ | — | $ | — | $ | 44,327,004 | ||
Total investments in securities | $ | 44,327,004 | $ | — | $ | — | $ | 44,327,004 | ||
Principal International Multi-Factor Index ETF | ||||||||||
Common Stocks* | $ | 12,613,799 | $ | — | $ | — | $ | 12,613,799 | ||
Preferred Stocks* | 48,531 | — | — | 48,531 | ||||||
Total investments in securities | $ | 12,662,330 | $ | — | $ | — | $ | 12,662,330 | ||
Principal Investment Grade Corporate Active ETF | ||||||||||
Bonds* | $ | — | $ | 216,865,042 | $ | — | $ | 216,865,042 | ||
Total investments in securities | $ | — | $ | 216,865,042 | $ | — | $ | 216,865,042 | ||
Principal Millennials Index ETF | ||||||||||
Common Stocks* | $ | 14,097,265 | $ | — | $ | — | $ | 14,097,265 | ||
Total investments in securities | $ | 14,097,265 | $ | — | $ | — | $ | 14,097,265 | ||
Principal Price Setters Index ETF | ||||||||||
Common Stocks* | $ | 17,126,981 | $ | — | $ | — | $ | 17,126,981 | ||
Total investments in securities | $ | 17,126,981 | $ | — | $ | — | $ | 17,126,981 | ||
Principal Shareholder Yield Index ETF | ||||||||||
Common Stocks* | $ | 11,083,054 | $ | — | $ | — | $ | 11,083,054 | ||
Total investments in securities | $ | 11,083,054 | $ | — | $ | — | $ | 11,083,054 | ||
Principal Spectrum Preferred Securities Active ETF | ||||||||||
Bonds* | $ | — | $ | 48,008,367 | $ | — | $ | 48,008,367 | ||
Total investments in securities | $ | — | $ | 48,008,367 | $ | — | $ | 48,008,367 | ||
Principal Sustainable Momentum Index ETF | ||||||||||
Common Stocks* | $ | 4,882,569 | $ | — | $ | — | $ | 4,882,569 | ||
Total investments in securities | $ | 4,882,569 | $ | — | $ | — | $ | 4,882,569 | ||
Principal U.S. Mega-Cap Multi-Factor Index ETF | ||||||||||
Common Stocks* | $ | 1,420,865,270 | $ | — | $ | — | $ | 1,420,865,270 | ||
Total investments in securities | $ | 1,420,865,270 | $ | — | $ | — | $ | 1,420,865,270 | ||
Principal U.S. Small-Cap Multi-Factor Index ETF | ||||||||||
Common Stocks* | $ | 312,826,670 | $ | — | $ | — | $ | 312,826,670 | ||
Total investments in securities | $ | 312,826,670 | $ | — | $ | — | $ | 312,826,670 | ||
* For additional detail regarding sector classifications, please see the Schedules of Investments. |
29
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)
5. Management Agreement and Transactions with Affiliates
Management Services.The Funds have agreed to pay investment advisory and management fees to the Advisor computed at an annual percentage rate of each of the Funds’ average daily net assets. A portion of the management fee is paid by the Advisor to the sub-advisor of the Funds, some of which are affiliates of the Advisor. The management fee schedule for the Funds is as follows:
First | Next | Next | Over | |||||
Fund | $500 Million | $500 Million | $500 Million | $1.5 Billion | ||||
Principal Healthcare Innovators Index ETF | 0.42 | % | 0.40 | % | 0.38 | % | 0.37 | % |
Principal Millennials Index ETF | 0.45 | % | 0.43 | % | 0.41 | % | 0.40 | % |
Principal Price Setters Index ETF | 0.40 | % | 0.38 | % | 0.36 | % | 0.35 | % |
Principal Shareholder Yield Index ETF | 0.40 | % | 0.38 | % | 0.36 | % | 0.35 | % |
Fund | All Assets | |
Principal Active Global Dividend Income ETF | 0.58 | % |
Principal Contrarian Value Index ETF | 0.29 | % |
Principal EDGE Active Income ETF | 0.65 | % |
Principal International Multi-Factor Index ETF | 0.39 | % |
Principal Investment Grade Corporate Active ETF | 0.26 | % |
Fund | All Assets | |
Principal Spectrum Preferred Securities Active ETF | 0.55 | % |
Principal Sustainable Momentum Index ETF | 0.29 | % |
Principal U.S. Mega-Cap Multi-Factor Index ETF | 0.15 | % |
Principal U.S. Small-Cap Multi-Factor Index ETF | 0.38 | % |
In addition, the Advisor has contractually agreed to limit the expenses (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, and other extraordinary expenses) for certain of the Funds. The reductions and reimbursements are in amounts that maintain total operating expenses at or below certain limits.
The limits are expressed as a percentage of average daily net assets attributable to each Fund on an annualized basis during the reporting period. The expense limits will expire on October 31, 2019.
Principal Price Setters Index ETF | 0.29 | % |
Principal Shareholder Yield Index ETF | 0.29 | % |
Principal U.S. Mega-Cap Multi-Factor Index ETF | 0.12 | % |
Affiliated Ownership.At December 31, 2018, Principal Financial Services, Inc., Principal Funds, Inc., Principal Variable Contracts Funds, Inc., (each an affiliate of the Advisor) owned shares of the Funds as follows (amounts in thousands):
Fund | Shares |
Principal Contrarian Value Index ETF | 119,905 |
Principal International Multi-Factor Index ETF | 140,015 |
Principal Millennials Index ETF | 200,001 |
Principal Price Setters Index ETF | 200,001 |
Principal Shareholder Yield Index ETF | 200,001 |
Principal Spectrum Preferred Securities Active ETF | 249,004 |
Principal Sustainable Momentum Index ETF | 119,905 |
6. Investment Transactions
For the period ended December 31, 2018, the cost of investment securities purchased and proceeds from investment securities sold (not including short-term investments and in-kind transactions) by the Funds were as follows:
Non-U.S. Government | U.S. Government | |||||||
Fund | Purchases | Sales | Purchases | Sales | ||||
Principal Active Global Dividend Income ETF | $ | 128,077,146 | $ | 136,399,431 | $ | — | $ | — |
Principal Contrarian Value Index ETF | 168,601 | 172,324 | — | — | ||||
Principal EDGE Active Income ETF | 39,552,951 | 32,291,455 | — | — | ||||
Principal Healthcare Innovators Index ETF | 7,303,964 | 7,940,795 | — | — | ||||
Principal International Multi- Factor Index ETF | 3,841,535 | 3,905,991 | — | — | ||||
Principal Investment Grade Corporate Active ETF | 89,383,237 | 91,776,868 | — | — |
30
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)
6. Investment Transactions (continued)
Non-U.S. Government | U.S. Government | |||||||
Fund | Purchases | Sales | Purchases | Sales | ||||
Principal Millennials Index ETF | $ | 222,469 | $ | 208,241 | $ | — | $ | — |
Principal Price Setters Index ETF | 36,563 | 41,952 | — | — | ||||
Principal Shareholder Yield Index ETF | 49,970 | 76,305 | — | — | ||||
Principal Spectrum Preferred Securities Active ETF | 3,300,000 | 3,414,400 | — | — | ||||
Principal Spectrum Preferred Securities Active ETF | 3,300,000 | 3,414,400 | — | — | ||||
Principal Sustainable Momentum Index ETF | 45,249 | 41,788 | — | — | ||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 288,297,196 | 498,726,916 | — | — | ||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 136,651,528 | 136,325,506 | — | — | ||||
For the period ended December 31, 2018, in-kind transactions were as follows: | ||||||||
Fund | Purchases | Sales | ||||||
Principal Active Global Dividend Income ETF | $ | 19,374,136 | $ | 12,591,860 | ||||
Principal EDGE Active Income ETF | 1,599,474 | 2,607,579 | ||||||
Principal Healthcare Innovators Index ETF | 7,780,833 | 4,181,794 | ||||||
Principal International Multi-Factor Index ETF | 39,486 | 72,674 | ||||||
Principal Investment Grade Corporate Active ETF | 4,687,532 | 4,689,437 | ||||||
Principal Millennials Index ETF | 1,777,638 | 4,986,844 | ||||||
Principal Price Setters Index ETF | 4,840,520 | 8,311,458 | ||||||
Principal Shareholder Yield Index ETF | 1,572,084 | 2,967,624 | ||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 111,219,896 | 316,843,551 | ||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 112,251,340 | 87,000,639 |
7. Federal Tax Information
Distributions to Shareholders.The federal income tax character of distributions paid to shareholders for the periods ended June 30, 2018, and December 31, 2018 was as follows:
Ordinary Income | Long-Term Capital Gain* | |||||||
Period ended | Year ended | Period ended | Year ended | |||||
Fund | December 31, 2018 | June 30, 2018 | December 31, 2018 | June 30, 2018 | ||||
Principal Active Global Dividend Income ETF | $ | 16,316,502 | $ | 13,248,973 | $ | 4,972,196 | $ | 34,313 |
Principal Contrarian Value Index ETF | 44,896 | 28,200 | — | — | ||||
Principal EDGE Active Income ETF | 8,214,772 | 15,210,889 | 2,538,831 | 1,201,872 | ||||
Principal Healthcare Innovators Index ETF | — | 64,403 | — | 15,174 | ||||
Principal International Multi-Factor Index ETF | 280,560 | 105,600 | — | — | ||||
Principal Investment Grade Corporate Active ETF | 5,475,469 | 618,904 | — | — | ||||
Principal Millennials Index ETF | 107,378 | 88,655 | — | 92 | ||||
Principal Price Setters Index ETF | 193,324 | 152,119 | — | 104 | ||||
Principal Shareholder Yield Index ETF | 226,838 | 145,989 | — | 126 | ||||
Principal Spectrum Preferred Securities Active ETF | 1,611,397 | 1,646,143 | — | — | ||||
Principal Sustainable Momentum Index ETF | 27,807 | 22,700 | — | — | ||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 27,709,355 | 8,361,236 | — | — | ||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 3,048,584 | 3,208,941 | — | — |
* | The Funds designate these distributions as long-term capital gain dividends per IRC Sec. 852(b)(3)(C) in the 20-percent group (which may be taxed at a 20-percent rate, a 15-percent rate or a 0-percent rate, depending on the shareholder’s taxable income). |
For U.S. federal income tax purposes, short-term capital gain distributions are considered ordinary income distributions.
Distributable Earnings.As of June 30, 2018, the components of distributable earnings on a federal income tax basis were:
Late Year | ||||||||||||||||
Ordinary and | ||||||||||||||||
Undistributed | Undistributed | Unrealized | Post Oct | Other | ||||||||||||
Ordinary | Long-Term | Appreciation/ | Capital Loss | Temporary | Capital Loss | |||||||||||
Fund | Income | Capital Gains | (Depreciation) | Deferrals | Differences* | Carryforward | ||||||||||
Principal Active Global Dividend Income ETF | $ | 9,346,182 | $ | 1,264,493 | $ | 31,509,513 | $ | — | $ | — | $ | — | ||||
Principal Contrarian Value Index ETF | 15,659 | — | (21,524 | ) | — | — | (69,267 | ) | ||||||||
Principal EDGE Active Income ETF | 1,031,288 | 2,538,828 | 5,615,133 | — | (369,051 | ) | — | |||||||||
Principal Healthcare Innovators Index ETF | — | — | 4,344,350 | (905,801 | ) | — | — | |||||||||
Principal International Multi-Factor Index ETF | 169,110 | — | (120,536 | ) | — | — | (147,524 | ) | ||||||||
Principal Investment Grade Corporate Active ETF | 845,301 | — | (1,200,305 | ) | — | — | — |
31
Notes to Financial Statements | |||||||||||||||
Principal Exchange-Traded Funds | |||||||||||||||
December 31, 2018 (unaudited) | |||||||||||||||
7. Federal Tax Information (continued) | |||||||||||||||
Late Year | |||||||||||||||
Ordinary and | |||||||||||||||
Undistributed | Undistributed | Unrealized | Post Oct | Other | |||||||||||
Ordinary | Long-Term | Appreciation/ | Capital Loss | Temporary | Capital Loss | ||||||||||
Fund | Income | Capital Gains | (Depreciation) | Deferrals | Differences* | Carryforward | |||||||||
Principal Millennials Index ETF | $ | 53,354 | $ | — | $ | 1,688,913 | $ | (258,711 | ) | $ | — | $ | — | ||
Principal Price Setters Index ETF | 62,809 | — | 227,062 | (194,619 | ) | — | — | ||||||||
Principal Shareholder Yield Index ETF | 71,481 | — | (275,213 | ) | (17,879 | ) | — | — | |||||||
Principal Spectrum Preferred Securities Active ETF | 241,166 | — | (2,581,141 | ) | (238,423 | ) | — | — | |||||||
Principal Sustainable Momentum Index ETF | 8,702 | — | 185,278 | — | — | (73,456 | ) | ||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 8,493,195 | — | (6,533,906 | ) | — | — | (22,621,969 | ) | |||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 633,577 | — | 38,529,245 | — | — | (10,400,144 | ) | ||||||||
* Represents book-to-tax accounting differences related to defaulted securities. |
Capital Loss Carryforwards.As of June 30, 2018, the following Fund had net realized capital loss carryforwards, for U.S. federal income tax purposes, available to be used to offset future realized capital gains:
No Expiration | No Expiration | Annual | ||||||
Fund | Short-Term | Long-Term | Total | Limitations* | ||||
Principal Contrarian Value Index ETF | $ | 69,267 | $ | — | $ | 69,267 | $ | — |
Principal International Multi-Factor Index ETF | 147,524 | — | 147,524 | — | ||||
Principal Sustainable Momentum Index ETF | 73,456 | — | 73,456 | — | ||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 22,621,969 | — | 22,621,969 | 72,515 | ||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 7,275,696 | 3,124,448 | 10,400,144 | — | ||||
* In accordance with Sections 381-384 of the Internal Revenue Code, a portion of certain Fund’s losses have been subjected to an annual limitation. |
Late-Year Losses.A regulated investment company may elect to treat any portion of its qualified late-year loss as arising on the first day of the next taxable year. Qualified late-year losses are certain capital and ordinary losses which occur during the portion of the Fund’s taxable year subsequent to October 31 and December 31, respectively.
For the taxable period ended June 30, 2018, the Funds had late-year capital and ordinary losses as follows: | ||||
Fund | Late Year Ordinary Loss | Post October Loss Capital Loss | ||
Principal Healthcare Innovators Index ETF | $ | 102,816 | $ | 802,985 |
Principal Millennials Index ETF | — | 258,711 | ||
Principal Price Setters Index ETF | �� | — | 194,619 | |
Principal Shareholder Yield Index ETF | — | 17,879 | ||
Principal Spectrum Preferred Securities Active ETF | — | 238,423 |
Reclassification of Capital Accounts.The Funds may record reclassifications in their capital accounts. These reclassifications have no impact on the total net assets of the Funds. The reclassifications are a result of permanent differences between U.S. GAAP and tax accounting. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Funds’ distributions may be shown in the accompanying statement of changes in net assets as from net investment income and net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the year ended June 30, 2018, the Funds recorded reclassifications as follows:
Accumulated | Accumulated | |||||||
Undistributed Net | Net Realized Gain | |||||||
Fund | Investment Income (Loss) | (Loss) on Investment | Paid In Capital | |||||
Principal Active Global Dividend Income ETF | $ | (134,613 | ) | $ | 134,613 | $ | — | |
Principal Contrarian Value Index ETF | — | (257,640 | ) | 257,640 | ||||
Principal EDGE Active Income ETF | (55,535 | ) | 55,535 | — | ||||
Principal Healthcare Innovators Index ETF | 38,319 | (5,217,585 | ) | 5,179,266 | ||||
Principal International Multi-Factor Index ETF | 2,200 | (2,200 | ) | — | ||||
Principal Investment Grade Corporate Active ETF | 119 | (119 | ) | — | ||||
Principal Millennials Index ETF | 7,163 | (1,270,655 | ) | 1,263,492 | ||||
Principal Price Setters Index ETF | (1 | ) | (2,326,287 | ) | 2,326,288 | |||
Principal Shareholder Yield Index ETF | — | (1,019,042 | ) | 1,019,042 | ||||
Principal Spectrum Preferred Securities Active ETF | (21,237 | ) | 21,237 | — | ||||
Principal Sustainable Momentum Index ETF | — | (340,895 | ) | 340,895 | ||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | — | (15,127,775 | ) | 15,127,775 | ||||
Principal U.S. Small-Cap Multi-Factor Index ETF | (3 | ) | (36,589,814 | ) | 36,589,817 |
32
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)
7. Federal Tax Information (continued)
Federal Income Tax Basis.As of December 31, 2018, the net federal income tax unrealized appreciation (depreciation) and federal tax cost of investments held by each Fund were as follows:
Net | Cost for | |||||||||
Unrealized | Federal | |||||||||
Unrealized | Unrealized | Appreciation | Income Tax | |||||||
Fund | Appreciation | Depreciation | (Depreciation) | Purposes | ||||||
Principal Active Global Dividend Income ETF | $ | 30,772,634 | $ | (73,239,295 | ) | $ | (42,466,661 | ) | $ | 666,860,085 |
Principal Contrarian Value Index ETF | 76,524 | (669,796 | ) | (593,272 | ) | 3,940,525 | ||||
Principal EDGE Active Income ETF | 8,641,629 | (18,268,658 | ) | (9,627,029 | ) | 279,857,038 | ||||
Principal Healthcare Innovators Index ETF | 4,339,636 | (11,114,588 | ) | (6,774,952 | ) | 51,101,956 | ||||
Principal International Multi-Factor Index ETF | 197,287 | (1,807,507 | ) | (1,610,220 | ) | 14,272,550 | ||||
Principal Investment Grade Corporate Active ETF | 754,811 | (5,536,479 | ) | (4,781,668 | ) | 221,646,710 | ||||
Principal Millennials Index ETF | 577,560 | (2,538,642 | ) | (1,961,082 | ) | 16,058,347 | ||||
Principal Price Setters Index ETF | 466,805 | (1,758,766 | ) | (1,291,961 | ) | 18,418,942 | ||||
Principal Shareholder Yield Index ETF | 154,312 | (2,450,570 | ) | (2,296,258 | ) | 13,379,312 | ||||
Principal Spectrum Preferred Securities Active ETF | — | (5,027,270 | ) | (5,027,270 | ) | 53,035,637 | ||||
Principal Sustainable Momentum Index ETF | 230,056 | (731,907 | ) | (501,851 | ) | 5,384,420 | ||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 60,880,081 | (119,429,328 | ) | (58,549,247 | ) | 1,479,414,517 | ||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 12,037,242 | (43,380,929 | ) | (31,343,687 | ) | 344,170,357 |
8. Subsequent Events
Management has evaluated events or transactions that have occurred through the date the financial statements were issued that would merit recognition or disclosure in the financial statements. There were no items requiring adjustment of the financial statements or additional disclosure.
33
Schedule of Investments
Principal Active Global Dividend Income ETF
December 31, 2018 (unaudited)
COMMON STOCKS — 99.39% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | |||
Aerospace & Defense — 1.77% | Insurance (continued) | |||||||
Boeing Co/The | 34,515 | $ | 11,131,087 | Swiss Re AG | 103,342 | $ | 9,475,207 | |
Airlines — 0.88% | $ | 25,185,365 | ||||||
Alaska Air Group Inc | 90,668 | 5,517,148 | Media — 1.10% | |||||
Apparel — 2.09% | Walt Disney Co/The | 63,000 | 6,907,950 | |||||
LVMH Moet Hennessy Louis Vuitton SE | 44,504 | 13,165,732 | Metal Fabrication & Hardware — 1.26% | |||||
Auto Manufacturers — 3.79% | Norma Group SE | 159,952 | 7,913,381 | |||||
Nissan Motor Co Ltd | 1,078,400 | 8,661,243 | Multi-National — 1.94% | |||||
PACCAR Inc | 265,426 | 15,166,441 | Banco Latinoamericano de Comercio Exterior | |||||
$ | 23,827,684 | SA | 705,023 | 12,196,898 | ||||
Auto Parts & Equipment — 3.91% | Oil & Gas — 6.23% | |||||||
Autoliv Inc | 91,536 | 6,428,573 | Chevron Corp | 141,477 | 15,391,283 | |||
Bridgestone Corp | 297,400 | 11,493,877 | Royal Dutch Shell PLC, Class B | 473,961 | 14,136,187 | |||
Magna International Inc | 146,094 | 6,631,589 | Vermilion Energy Inc | 454,962 | 9,584,462 | |||
$ | 24,554,039 | $ | 39,111,932 | |||||
Banks — 8.85% | Oil & Gas Services — 0.97% | |||||||
Banco Bilbao Vizcaya Argentaria SA | 799,838 | 4,248,038 | Core Laboratories NV | 101,988 | 6,084,604 | |||
BNP Paribas SA | 179,423 | 8,115,028 | ||||||
ING Groep NV | 833,878 | 8,990,459 | Pharmaceuticals — 8.14% | |||||
JPMorgan Chase & Co | 157,391 | 15,364,509 | GlaxoSmithKline PLC | 189,612 | 3,603,924 | |||
Nordea Bank Abp | 700,000 | 5,890,364 | Novo Nordisk A/S, Class B | 277,353 | 12,679,116 | |||
PacWest Bancorp | 390,689 | 13,002,130 | Pfizer Inc | 394,634 | 17,225,774 | |||
Roche Holding AG | 71,134 | 17,615,236 | ||||||
$ | 55,610,528 | |||||||
$ | 51,124,050 | |||||||
Beverages — 4.15% | ||||||||
Ambev SA ADR | 3,616,080 | 14,175,033 | Real Estate — 1.80% | |||||
Diageo PLC | 333,207 | 11,870,521 | Daito Trust Construction Co Ltd | 82,400 | 11,288,135 | |||
$ | 26,045,554 | REITs — 1.63% | ||||||
Keppel DC REIT | 6,700,000 | 6,636,340 | ||||||
Biotechnology — 1.41% | Omega Healthcare Investors Inc | 102,849 | 3,615,143 | |||||
CSL Ltd | 68,139 | 8,886,512 | ||||||
$ | 10,251,483 | |||||||
Chemicals — 5.00% | ||||||||
Albemarle Corp | 99,493 | 7,667,925 | Retail — 1.25% | |||||
Croda International PLC | 140,120 | 8,367,266 | Nordstrom Inc | 168,689 | 7,862,594 | |||
Givaudan SA | 3,600 | 8,336,148 | Semiconductors — 7.25% | |||||
Petronas Chemicals Group Bhd | 3,144,900 | 7,069,842 | Lam Research Corp | 68,000 | 9,259,560 | |||
$ | 31,441,181 | Microchip Technology Inc | 215,687 | 15,512,209 | ||||
Commercial Services — 2.73% | Taiwan Semiconductor Manufacturing Co Ltd ADR | 562,348 | 20,756,265 | |||||
Experian PLC | 300,067 | 7,285,965 | ||||||
Ritchie Bros Auctioneers Inc | 301,635 | 9,869,497 | $ | 45,528,034 | ||||
$ | 17,155,462 | Software — 5.69% | ||||||
Broadridge Financial Solutions Inc | 87,741 | 8,445,072 | ||||||
Computers — 2.59% | Microsoft Corp | 174,767 | 17,751,084 | |||||
Apple Inc | 103,000 | 16,247,220 | SAP SE | 95,639 | 9,525,646 | |||
Construction Materials — 0.99% | $ | 35,721,802 | ||||||
James Hardie Industries PLC | 582,398 | 6,202,405 | ||||||
Telecommunications — 3.56% | ||||||||
Diversified Financial Services — 2.14% | BCE Inc | 323,374 | 12,774,363 | |||||
Deutsche Boerse AG | 111,761 | 13,438,861 | Telenor ASA | 314,155 | 6,085,811 | |||
Electric — 1.30% | Vodacom Group Ltd | 384,105 | 3,524,021 | |||||
CLP Holdings Ltd | 725,000 | 8,193,921 | $ | 22,384,195 | ||||
Electronics — 1.74% | Toys, Games & Hobbies — 2.02% | |||||||
TE Connectivity Ltd | 144,250 | 10,909,627 | Hasbro Inc | 156,269 | 12,696,856 | |||
Food — 2.84% | Transportation — 1.87% | |||||||
B&G Foods Inc | 91,346 | 2,640,813 | Union Pacific Corp | 85,024 | 11,752,868 | |||
BIM Birlesik Magazalar AS | 337,745 | 5,551,973 | ||||||
Danone SA | 137,124 | 9,663,822 | TOTAL COMMON STOCKS | $ | 624,393,424 | |||
$ | 17,856,608 | Total Investments | $ | 624,393,424 | ||||
Other Assets and Liabilities — 0.61% | $ | 3,803,930 | ||||||
Gas — 1.94% | ||||||||
Rubis SCA | 226,760 | 12,179,902 | TOTAL NET ASSETS — 100.00% | $ | 628,197,354 | |||
Household Products/Wares — 2.55% | ||||||||
Avery Dennison Corp | 40,000 | 3,593,200 | Portfolio Summary (unaudited) | |||||
Reckitt Benckiser Group PLC | 162,139 | 12,426,606 | Country | Percent | ||||
$ | 16,019,806 | United States | 35.52 | % | ||||
Insurance — 4.01% | Switzerland | 8.58 | % | |||||
Beazley PLC | 1,266,586 | 8,128,455 | United Kingdom | 8.23 | % | |||
Chubb Ltd | 58,691 | 7,581,703 | France | 6.86 | % | |||
Canada | 6.19 | % |
See accompanying notes.
34
Schedule of Investments | ||
Principal Active Global Dividend Income ETF | ||
December 31, 2018 (unaudited) | ||
Portfolio Summary (unaudited) (continued) | ||
Country | Percent | |
Japan | 5.01 | % |
Germany | 4.92 | % |
Netherlands | 4.65 | % |
Taiwan | 3.30 | % |
Brazil | 2.26 | % |
Denmark | 2.02 | % |
Panama | 1.94 | % |
Australia | 1.41 | % |
Hong Kong | 1.30 | % |
Malaysia | 1.13 | % |
Singapore | 1.06 | % |
Ireland | 0.99 | % |
Norway | 0.97 | % |
Finland | 0.94 | % |
Turkey | 0.88 | % |
Spain | 0.68 | % |
South Africa | 0.55 | % |
Other Assets and liabilities | 0.61 | % |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
35
Schedule of Investments Principal Contrarian Value Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS — 99.66% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Advertising — 0.20% | Commercial Services (continued) | ||||||
Interpublic Group of Cos Inc/The | 331 | $ | 6,829 | CoreLogic Inc(a) | 168 | $ | 5,615 |
CoStar Group Inc(a) | 22 | 7,421 | |||||
Aerospace & Defense — 1.37% | |||||||
Deluxe Corp | 102 | 3,921 | |||||
Curtiss-Wright Corp | 54 | 5,515 | Euronet Worldwide Inc(a) | 87 | 8,907 | ||
L3 Technologies Inc | 85 | 14,761 | |||||
Teledyne Technologies Inc(a) | 95 | 19,672 | ManpowerGroup Inc | 149 | 9,655 | ||
Quanta Services Inc | 738 | 22,214 | |||||
United Technologies Corp | 57 | 6,069 | WEX Inc(a) | 51 | 7,143 | ||
$ | 46,017 | ||||||
$ | 89,156 | ||||||
Agriculture — 0.74% | |||||||
Computers — 2.19% | |||||||
Archer-Daniels-Midland Co | 611 | 25,033 | |||||
Cognizant Technology Solutions Corp, Class A | 89 | 5,650 | |||||
Airlines — 0.76% | Conduent Inc(a) | 1,342 | 14,266 | ||||
JetBlue Airways Corp(a) | 1,202 | 19,304 | DXC Technology Co | 290 | 15,419 | ||
Southwest Airlines Co | 134 | 6,228 | Hewlett Packard Enterprise Co | 1,360 | 17,966 | ||
$ | 25,532 | Leidos Holdings Inc | 281 | 14,814 | |||
Lumentum Holdings Inc(a) | 126 | 5,293 | |||||
Apparel — 2.67% | |||||||
Columbia Sportswear Co | 234 | 19,677 | $ | 73,408 | |||
PVH Corp | 176 | 16,359 | Construction Materials — 2.36% | ||||
Ralph Lauren Corp | 242 | 25,037 | Eagle Materials Inc | 78 | 4,760 | ||
Skechers U.S.A. Inc, Class A(a) | 432 | 9,889 | Fortune Brands Home & Security Inc | 120 | 4,559 | ||
Under Armour Inc, Class A(a) | 1,052 | 18,589 | Johnson Controls International PLC | 689 | 20,429 | ||
$ | 89,551 | Louisiana-Pacific Corp | 891 | 19,798 | |||
Martin Marietta Materials Inc | 87 | 14,953 | |||||
Auto Manufacturers — 0.43% | Vulcan Materials Co | 149 | 14,721 | ||||
PACCAR Inc | 254 | 14,514 | |||||
$ | 79,220 | ||||||
Auto Parts & Equipment — 0.90% | Distribution/Wholesale — 0.31% | ||||||
BorgWarner Inc | 356 | 12,368 | LKQ Corp(a) | 446 | 10,584 | ||
Goodyear Tire & Rubber Co/The | 874 | 17,838 | |||||
$ | 30,206 | Diversified Financial Services — 1.02% | |||||
Jefferies Financial Group Inc | 1,074 | 18,645 | |||||
Banks — 6.54% | Legg Mason Inc | 477 | 12,168 | ||||
Associated Banc-Corp | 787 | 15,575 | Stifel Financial Corp | 83 | 3,438 | ||
Bank of America Corp | 591 | 14,562 | |||||
Bank of New York Mellon Corp/The | 227 | 10,685 | $ | 34,251 | |||
BankUnited Inc | 319 | 9,551 | Electric — 0.69% | ||||
BB&T Corp | 238 | 10,310 | MDU Resources Group Inc | 966 | 23,029 | ||
Chemical Financial Corp | 232 | 8,493 | |||||
Electronics — 5.28% | |||||||
Citigroup Inc | 252 | 13,119 | |||||
Avnet Inc | 597 | 21,552 | |||||
Fifth Third Bancorp | 392 | 9,224 | |||||
Corning Inc | 876 | 26,464 | |||||
First Citizens BancShares Inc, Class A | 32 | 12,066 | |||||
FLIR Systems Inc | 155 | 6,749 | |||||
First Hawaiian Inc | 191 | 4,299 | |||||
Garmin Ltd | 295 | 18,680 | |||||
First Horizon National Corp | 279 | 3,672 | |||||
Gentex Corp | 767 | 15,501 | |||||
FNB Corp | 1,352 | 13,304 | |||||
Jabil Inc | 937 | 23,228 | |||||
Hancock Whitney Corp | 250 | 8,662 | Keysight Technologies Inc(a) | 372 | 23,094 | ||
Huntington Bancshares Inc | 339 | 4,041 | |||||
PerkinElmer Inc | 233 | 18,302 | |||||
JPMorgan Chase & Co | 46 | 4,490 | |||||
TE Connectivity Ltd | 75 | 5,672 | |||||
KeyCorp | 251 | 3,710 | |||||
Woodward Inc | 246 | 18,275 | |||||
Morgan Stanley | 231 | 9,159 | |||||
PNC Financial Services Group Inc/The | 82 | 9,587 | $ | 177,517 | |||
Regions Financial Corp | 666 | 8,911 | Engineering & Construction — 1.57% | ||||
SunTrust Banks Inc | 185 | 9,331 | EMCOR Group Inc | 231 | 13,788 | ||
UMB Financial Corp | 73 | 4,451 | Fluor Corp | 450 | 14,490 | ||
Umpqua Holdings Corp | 913 | 14,517 | Jacobs Engineering Group Inc | 421 | 24,612 | ||
Wells Fargo & Co | 91 | 4,193 | |||||
Wintrust Financial Corp | 63 | 4,189 | $ | 52,890 | |||
Zions Bancorp NA | 236 | 9,615 | Entertainment — 0.44% | ||||
$ | 219,716 | Cinemark Holdings Inc | 410 | 14,678 | |||
Biotechnology — 1.58% | Environmental Control — 0.56% | ||||||
Alexion Pharmaceuticals Inc(a) | 148 | 14,409 | Republic Services Inc | 260 | 18,743 | ||
Bio-Rad Laboratories Inc, Class A(a) | 94 | 21,829 | Food — 2.73% | ||||
United Therapeutics Corp(a) | 154 | 16,771 | Conagra Brands Inc | 212 | 4,528 | ||
$ | 53,009 | Flowers Foods Inc | 841 | 15,533 | |||
Hain Celestial Group Inc/The(a) | 726 | 11,514 | |||||
Chemicals — 1.46% | |||||||
Hormel Foods Corp | 235 | 10,030 | |||||
Air Products & Chemicals Inc | 47 | 7,522 | |||||
Ingredion Inc | 56 | 5,118 | |||||
Albemarle Corp | 75 | 5,780 | |||||
JM Smucker Co/The | 201 | 18,792 | |||||
Cabot Corp | 293 | 12,582 | |||||
Kroger Co/The | 284 | 7,810 | |||||
Eastman Chemical Co | 251 | 18,351 | |||||
Univar Inc(a) | 268 | 4,754 | Tyson Foods Inc, Class A | 342 | 18,263 | ||
$ | 91,588 | ||||||
$ | 48,989 | ||||||
Food Service — 0.16% | |||||||
Commercial Services — 2.65% | |||||||
Aramark | 185 | 5,359 | |||||
AMERCO | 74 | 24,280 |
See accompanying notes.
36
Schedule of Investments Principal Contrarian Value Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Forest Products & Paper — 0.15% | Leisure Time — 0.99% | ||||||
International Paper Co | 122 | $ | 4,924 | Brunswick Corp | 311 | $ | 14,446 |
Carnival Corp | 381 | 18,783 | |||||
Hand/Machine Tools — 1.38% | |||||||
Regal Beloit Corp | 352 | 24,658 | $ | 33,229 | |||
Snap-on Inc | 112 | 16,272 | Machinery — Construction & Mining — 0.75% | ||||
Stanley Black & Decker Inc | 46 | 5,508 | Oshkosh Corp | 223 | 13,672 | ||
$ | 46,438 | Terex Corp | 420 | 11,580 | |||
Healthcare — Products — 6.12% | $ | 25,252 | |||||
Abbott Laboratories | 290 | 20,976 | Machinery — Diversified — 2.16% | ||||
Baxter International Inc | 113 | 7,438 | AGCO Corp | 385 | 21,433 | ||
Cooper Cos Inc/The | 76 | 19,342 | Cummins Inc | 44 | 5,880 | ||
Danaher Corp | 263 | 27,120 | Dover Corp | 95 | 6,740 | ||
DENTSPLY SIRONA Inc | 451 | 16,782 | Flowserve Corp | 420 | 15,969 | ||
Henry Schein Inc(a) | 114 | 8,951 | |||||
Roper Technologies Inc | 27 | 7,196 | |||||
Hill-Rom Holdings Inc | 92 | 8,146 | Wabtec Corp | 217 | 15,244 | ||
Hologic Inc(a) | 190 | 7,809 | |||||
ICU Medical Inc(a) | 76 | 17,452 | $ | 72,462 | |||
Medtronic PLC | 318 | 28,925 | Media — 2.71% | ||||
NuVasive Inc(a) | 157 | 7,781 | |||||
Comcast Corp, Class A | 482 | 16,412 | |||||
Patterson Cos Inc | 801 | 15,748 | Discovery Inc, Class A(a) | 1,047 | 25,903 | ||
Thermo Fisher Scientific Inc | 85 | 19,022 | DISH Network Corp, Class A(a) | 420 | 10,487 | ||
$ | 205,492 | Liberty Broadband Corp, Class C(a) | 61 | 4,394 | |||
Liberty Media Corp-Liberty Braves, Series C(a) | 320 | 7,965 | |||||
Healthcare — Services — 4.34% | |||||||
Anthem Inc | 109 | 28,627 | News Corp, Class A | 1,567 | 17,785 | ||
Centene Corp(a) | 253 | 29,171 | Walt Disney Co/The | 74 | 8,114 | ||
Humana Inc | 28 | 8,021 | $ | 91,060 | |||
Laboratory Corp of America Holdings(a) | 147 | 18,575 | |||||
Metal Fabrication & Hardware — 1.04% | |||||||
Molina Healthcare Inc(a) | 105 | 12,203 | |||||
Timken Co/The | 582 | 21,720 | |||||
Quest Diagnostics Inc | 170 | 14,156 | Valmont Industries Inc | 118 | 13,092 | ||
Universal Health Services Inc, Class B | 223 | 25,993 | |||||
WellCare Health Plans Inc(a) | 39 | 9,207 | $ | 34,812 | |||
$ | 145,953 | Mining — 1.61% | |||||
Home Builders — 0.62% | Freeport-McMoRan Inc | 390 | 4,021 | ||||
DR Horton Inc | 604 | 20,935 | Newmont Mining Corp | 663 | 22,973 | ||
Royal Gold Inc | 315 | 26,980 | |||||
Household Products — 0.57% | $ | 53,974 | |||||
Edgewell Personal Care Co(a) | 511 | 19,086 | |||||
Miscellaneous Manufacture — 4.55% | |||||||
Insurance — 7.37% | AptarGroup Inc | 85 | 7,996 | ||||
Alleghany Corp | 32 | 19,946 | Carlisle Cos Inc | 169 | 16,988 | ||
Arch Capital Group Ltd(a) | 180 | 4,810 | Colfax Corp(a) | 810 | 16,929 | ||
Assurant Inc | 224 | 20,035 | Crane Co | 84 | 6,063 | ||
Athene Holding Ltd, Class A(a) | 403 | 16,051 | |||||
Eaton Corp PLC | 314 | 21,559 | |||||
Axis Capital Holdings Ltd | 386 | 19,933 | Hexcel Corp | 115 | 6,594 | ||
Berkshire Hathaway Inc, Class B(a) | 62 | 12,659 | |||||
Ingersoll-Rand PLC | 200 | 18,246 | |||||
Cincinnati Financial Corp | 71 | 5,497 | ITT Inc | 347 | 16,749 | ||
CNO Financial Group Inc | 864 | 12,856 | Textron Inc | 424 | 19,500 | ||
Enstar Group Ltd(a) | 65 | 10,892 | |||||
Trinity Industries Inc | 1,081 | 22,258 | |||||
Hanover Insurance Group Inc/The | 53 | 6,189 | |||||
Hartford Financial Services Group Inc/The | 101 | 4,489 | $ | 152,882 | |||
Lincoln National Corp | 249 | 12,776 | Oil & Gas — 1.55% | ||||
Loews Corp | 386 | 17,571 | Continental Resources Inc(a) | 160 | 6,430 | ||
MetLife Inc | 417 | 17,122 | EOG Resources Inc | 75 | 6,541 | ||
MGIC Investment Corp(a) | 385 | 4,027 | |||||
Exxon Mobil Corp | 335 | 22,844 | |||||
Old Republic International Corp | 951 | 19,562 | Occidental Petroleum Corp | 266 | 16,327 | ||
Radian Group Inc | 259 | 4,237 | |||||
Travelers Cos Inc/The | 38 | 4,550 | $ | 52,142 | |||
Unum Group | 257 | 7,551 | Oil & Gas Services — 1.18% | ||||
White Mountains Insurance Group Ltd | 24 | 20,585 | Baker Hughes a GE Co | 974 | 20,941 | ||
WR Berkley Corp | 83 | 6,135 | National Oilwell Varco Inc | 726 | 18,658 | ||
$ | 247,473 | $ | 39,599 | ||||
Internet — 0.92% | Packaging & Containers — 1.66% | ||||||
Expedia Group Inc | 72 | 8,111 | Ball Corp | 185 | 8,506 | ||
Symantec Corp | 296 | 5,593 | Bemis Co Inc | 175 | 8,033 | ||
TripAdvisor Inc(a) | 191 | 10,302 | Graphic Packaging Holding Co | 474 | 5,043 | ||
Twitter Inc(a) | 243 | 6,984 | |||||
Sonoco Products Co | 367 | 19,499 | |||||
$ | 30,990 | Westrock Co | 387 | 14,613 | |||
Iron & Steel — 1.54% | $ | 55,694 | |||||
Nucor Corp | 387 | 20,051 | Pharmaceuticals — 2.91% | ||||
Reliance Steel & Aluminum Co | 284 | 20,212 | Cardinal Health Inc | 365 | 16,279 | ||
Steel Dynamics Inc | 377 | 11,325 | Cigna Corp | 39 | 7,407 | ||
$ | 51,588 | CVS Health Corp | 376 | 24,636 |
See accompanying notes.
37
Schedule of Investments Principal Contrarian Value Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | |||
Pharmaceuticals (continued) | Transportation (continued) | |||||||
Jazz Pharmaceuticals PLC(a) | 121 | $ | 14,999 | XPO Logistics Inc(a) | 177 | $ | 10,096 | |
McKesson Corp | 118 | 13,035 | $ | 103,285 | ||||
Pfizer Inc | 489 | 21,345 | ||||||
$ | 97,701 | TOTAL COMMON STOCKS | $ | 3,347,253 | ||||
REITs — 4.54% | Total Investments | $ | 3,347,253 | |||||
American Campus Communities Inc | 146 | 6,043 | Other Assets and Liabilities — 0.34% | $ | 11,414 | |||
American Homes 4 Rent, Class A | 993 | 19,711 | TOTAL NET ASSETS — 100.00% | $ | 3,358,667 | |||
Apple Hospitality REIT Inc | 761 | 10,852 | ||||||
Cousins Properties Inc | 1,549 | 12,237 | (a)Non-income producing security | |||||
Equity Commonwealth | 702 | 21,067 | ||||||
Hudson Pacific Properties Inc | 409 | 11,886 | ||||||
Invitation Homes Inc | 594 | 11,928 | Portfolio Summary (unaudited) | |||||
Kimco Realty Corp | 856 | 12,540 | Sector | Percent | ||||
Omega Healthcare Investors Inc | 212 | 7,452 | Industrial | 25.76 | % | |||
Senior Housing Properties Trust | 845 | 9,903 | Consumer, Non-cyclical | 21.65 | % | |||
SL Green Realty Corp | 55 | 4,349 | Financial | 20.59 | % | |||
Sunstone Hotel Investors Inc | 368 | 4,788 | Consumer, Cyclical | 9.43 | % | |||
VEREIT Inc | 2,780 | 19,877 | Technology | 7.80 | % | |||
$ | 152,633 | Communications | 6.26 | % | ||||
Retail — 2.15% | Basic Materials | 4.75 | % | |||||
CarMax Inc(a) | 123 | 7,716 | Energy | 2.73 | % | |||
Casey’s General Stores Inc | 66 | 8,457 | Utilities | 0.69 | % | |||
Genuine Parts Co | 83 | 7,970 | Other Assets and Liabilities | 0.34 | % | |||
Target Corp | 231 | 15,267 | TOTAL NET ASSETS | 100.00 | % | |||
Walgreens Boots Alliance Inc | 258 | 17,629 | ||||||
Walmart Inc | 82 | 7,638 | ||||||
Williams-Sonoma Inc | 147 | 7,416 | ||||||
$ | 72,093 | |||||||
Savings & Loans — 1.12% | ||||||||
Investors Bancorp Inc | 959 | 9,973 | ||||||
New York Community Bancorp Inc | 1,412 | 13,287 | ||||||
People’s United Financial Inc | 993 | 14,329 | ||||||
$ | 37,589 | |||||||
Semiconductors — 3.48% | ||||||||
Analog Devices Inc | 193 | 16,565 | ||||||
Cypress Semiconductor Corp | 996 | 12,669 | ||||||
Intel Corp | 354 | 16,613 | ||||||
Marvell Technology Group Ltd | 1,098 | 17,777 | ||||||
MKS Instruments Inc | 158 | 10,208 | ||||||
ON Semiconductor Corp(a) | 731 | 12,069 | ||||||
Qorvo Inc(a) | 315 | 19,130 | ||||||
QUALCOMM Inc | 118 | 6,715 | ||||||
Teradyne Inc | 160 | 5,021 | ||||||
$ | 116,767 | |||||||
Software — 2.14% | ||||||||
Akamai Technologies Inc(a) | 258 | 15,759 | ||||||
Fidelity National Information Services Inc | 181 | 18,561 | ||||||
j2 Global Inc | 103 | 7,146 | ||||||
Oracle Corp | 152 | 6,863 | ||||||
SS&C Technologies Holdings Inc | 351 | 15,834 | ||||||
Synopsys Inc(a) | 91 | 7,666 | ||||||
$ | 71,829 | |||||||
Telecommunications — 2.43% | ||||||||
AT&T Inc | 697 | 19,893 | ||||||
Cisco Systems Inc | 389 | 16,855 | ||||||
Juniper Networks Inc | 989 | 26,614 | ||||||
LogMeIn Inc | 223 | 18,190 | ||||||
$ | 81,552 | |||||||
Transportation — 3.07% | ||||||||
CSX Corp | 329 | 20,441 | ||||||
FedEx Corp | 31 | 5,001 | ||||||
Kansas City Southern | 246 | 23,481 | ||||||
Norfolk Southern Corp | 183 | 27,366 | ||||||
Ryder System Inc | 351 | 16,900 |
See accompanying notes.
38
Schedule of Investments Principal EDGE Active Income ETF
December 31, 2018 (unaudited)
COMMON STOCKS — 19.22% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Banks — 4.82% | Semiconductors — 0.36% | ||||||
Bank of Hawaii Corp | 21,255 | $ | 1,430,887 | Microchip Technology Inc | 14,059 | $ | 1,011,123 |
Bank of Nova Scotia/The | 31,780 | 1,584,868 | |||||
Columbia Banking System Inc | 45,092 | 1,636,389 | Telecommunications — 0.49% | ||||
Cullen / Frost Bankers Inc | 18,390 | 1,617,216 | BCE Inc | 34,531 | 1,365,010 | ||
East West Bancorp Inc | 31,344 | 1,364,404 | Toys, Games & Hobbies — 0.35% | ||||
JPMorgan Chase & Co | 17,077 | 1,667,057 | Hasbro Inc | 12,082 | 981,663 | ||
PacWest Bancorp | 32,842 | 1,092,982 | |||||
US Bancorp | 34,346 | 1,569,612 | TOTAL COMMON STOCKS | $ | 53,882,817 | ||
Washington Trust Bancorp Inc | 32,681 | 1,553,328 | PREFERRED STOCKS — 4.90% | Shares Held | Value | ||
$ | 13,516,743 | Banks — 1.65% | |||||
Chemicals — 0.28% | Bank of America Corp; Series K | ||||||
DowDuPont Inc | 14,714 | 786,905 | (3-month USD LIBOR + 1.33%), | ||||
6.45%, 01/30/2019 | 15,000 | 378,000 | |||||
Computers — 0.39% | |||||||
Bank of America Corp; Series EE | |||||||
Apple Inc | 6,904 | 1,089,037 | 6.00%, 04/25/2021(c) | 10,000 | 250,500 | ||
Diversified Financial Services — 0.68% | Bank of America Corp; Series Y | ||||||
BGC Partners Inc, Class A | 174,246 | 900,852 | 6.50%, 01/27/2020(c) | 20,000 | 507,600 | ||
BlackRock Inc | 2,533 | 995,013 | Goldman Sachs Group Inc/The; Series B | ||||
6.20%, 01/30/2019(c) | 7,500 | 191,250 | |||||
$ | 1,895,865 | ||||||
Goldman Sachs Group Inc/The; Series N | |||||||
Electric — 2.20% | 6.30%, 05/10/2021(c) | 30,000 | 760,800 | ||||
ALLETE Inc | 18,784 | 1,431,717 | JPMorgan Chase & Co; Series BB | ||||
Eversource Energy | 10,455 | 679,993 | 6.15%, 09/01/2020(c) | 25,000 | 644,500 | ||
GenOn Energy Inc(a),(b) | 8,401 | 1,176,123 | |||||
Morgan Stanley; Series I | |||||||
WEC Energy Group Inc | 21,097 | 1,461,178 | (3-month USD LIBOR + 3.71%), | ||||
Xcel Energy Inc | 28,816 | 1,419,764 | 6.38%, 10/15/2024(c),(d) | 25,000 | 630,750 | ||
$ | 6,168,775 | Morgan Stanley; Series E | |||||
Electronics — 0.23% | (3-month USD LIBOR + 4.32%), | ||||||
7.13%, 10/15/2023(c),(d) | 35,000 | 922,950 | |||||
Garmin Ltd | 10,425 | 660,111 | |||||
Wells Fargo & Co; Series Y | |||||||
Food — 0.59% | 5.63%, 06/15/2022(c) | 15,000 | 352,500 | ||||
B&G Foods Inc | 36,981 | 1,069,121 | |||||
Kraft Heinz Co/The | 13,571 | 584,096 | $ | 4,638,850 | |||
$ | 1,653,217 | Electric — 0.66% | |||||
Duke Energy Corp | |||||||
Healthcare — Products — 0.80% | 5.13%, 01/15/2073 | 16,000 | 363,200 | ||||
Abbott Laboratories | 17,113 | 1,237,783 | Entergy Louisiana LLC | ||||
Medtronic PLC | 11,054 | 1,005,472 | 4.88%, 09/01/2021 | 25,000 | 576,500 | ||
$ | 2,243,255 | Entergy Mississippi Inc | |||||
Housewares — 0.07% | 4.90%, 10/01//2026 | 25,000 | 555,250 | ||||
Tupperware Brands Corp | 6,060 | 191,314 | NextEra Energy Capital Holdings Inc; Series I | ||||
5.13%, 11/15/2072 | 16,000 | 358,240 | |||||
Machinery — Diversified — 0.27% | $ | 1,853,190 | |||||
Deere & Co | 5,024 | 749,430 | |||||
Hand/Machine Tools — 0.21% | |||||||
Oil & Gas — 2.42% | Stanley Black & Decker Inc | ||||||
Chevron Corp | 12,597 | 1,370,428 | 5.75%, 07/25/2052 | 25,000 | 592,750 | ||
Exxon Mobil Corp | 19,826 | 1,351,935 | |||||
HollyFrontier Corp | 24,834 | 1,269,514 | Insurance — 0.17% | ||||
Marathon Petroleum Corp | 22,450 | 1,324,774 | Prudential Financial Inc | ||||
Occidental Petroleum Corp | 23,829 | 1,462,624 | 5.75%, 12/15/2052 | 20,000 | 474,800 | ||
$ | 6,779,275 | REITs — 2.11% | |||||
Pharmaceuticals — 1.78% | Boston Properties Inc | ||||||
5.25%, 01/31/2019(c) | 20,000 | 457,000 | |||||
Johnson & Johnson | 11,440 | 1,476,332 | |||||
Merck & Co Inc | 23,105 | 1,765,453 | Digital Realty Trust Inc; Series H | ||||
7.38%, 03/26/2019(c) | 55,000 | 1,386,550 | |||||
Pfizer Inc | 40,384 | 1,762,762 | |||||
Kimco Realty Corp; Series L | |||||||
$ | 5,004,547 | 5.13%, 08/16/2022(c) | 5,000 | 98,550 | |||
Pipelines — 0.93% | Kimco Realty Corp; Series I | ||||||
EnLink Midstream LLC | 86,842 | 824,130 | 6.00%, 01/31/2019(c) | 15,000 | 359,850 | ||
Plains GP Holdings LP, Class A(a) | 26,628 | 535,223 | PS Business Parks Inc; Series W | ||||
Targa Resources Corp | 34,788 | 1,253,064 | 5.20%, 10/20/2021(c) | 39,618 | 819,696 | ||
$ | 2,612,417 | PS Business Parks Inc; Series Y | |||||
5.20%, 12/07/2022(c) | 10,000 | 205,500 | |||||
Real Estate — 0.15% | Public Storage; Series E | ||||||
Newmark Group Inc | 53,470 | 428,829 | 4.90%, 10/14/2021(c) | 15,000 | 309,300 | ||
REITs — 2.41% | Public Storage; Series Y | ||||||
Annaly Capital Management Inc | 55,325 | 543,292 | 6.38%, 03/17/2019(c) | 35,000 | 878,850 | ||
Digital Realty Trust Inc | 14,838 | 1,580,989 | Ventas Realty LP / Ventas Capital Corp | ||||
EPR Properties | 24,690 | 1,580,901 | 5.45%, 03/15/2043 | 15,000 | 363,000 | ||
Medical Properties Trust Inc | 108,180 | 1,739,534 | Vornado Realty Trust; Series M | ||||
Omega Healthcare Investors Inc | 37,001 | 1,300,585 | 5.25%, 12/13/2022(c) | 50,000 | 1,027,500 | ||
$ | 6,745,301 | $ | 5,905,796 |
See accompanying notes.
39
Schedule of Investments | ||||||||||
Principal EDGE Active Income ETF | ||||||||||
December 31, 2018 (unaudited) | ||||||||||
Principal | ||||||||||
PREFERRED STOCKS (continued) | Shares Held | Value | BONDS (continued) | Amount | Value | |||||
Telecommunications — 0.10% | Food — 1.39% | |||||||||
Qwest Corp | B&G Foods Inc | |||||||||
6.13%, 06/01/2053 | 15,000 | $ | 270,000 | 4.63%, 06/01/2021 | $ | 2,000,000 | $ | 1,950,000 | ||
JBS USA LUX SA / JBS USA Finance Inc | ||||||||||
TOTAL PREFERRED STOCKS | $ | 13,735,386 | 5.75%, 06/15/2025(e) | 1,000,000 | 955,000 | |||||
7.25%, 06/01/2021(e) | 1,000,000 | 1,005,000 | ||||||||
Principal | ||||||||||
BONDS — 72.27% | Amount | Value | $ | 3,910,000 | ||||||
Auto Parts & Equipment — 1.76% | Healthcare — Products — 1.93% | |||||||||
Titan International Inc | Hologic Inc | |||||||||
6.50%, 11/30/2023 | $ | 5,500,000 | $ | 4,922,500 | 4.63%, 02/01/2028(e) | 6,000,000 | 5,400,000 | |||
Banks — 1.78% | Healthcare — Services — 5.29% | |||||||||
Citigroup Inc | Encompass Health Corp | |||||||||
6.68%, 09/13/2043 | 1,000,000 | 1,179,680 | 5.75%, 09/15/2025 | 3,000,000 | 2,925,000 | |||||
JPMorgan Chase & Co | HCA Inc | |||||||||
(3-month USD LIBOR + 3.25%), | 5.63%, 09/01/2028 | 3,000,000 | 2,895,000 | |||||||
5.15%, 12/29/2049(c),(d) | 4,000,000 | 3,810,400 | 5.88%, 05/01/2023 | 2,000,000 | 2,025,000 | |||||
$ | 4,990,080 | Surgery Center Holdings Inc | ||||||||
6.75%, 07/01/2025(e) | 3,500,000 | 2,975,000 | ||||||||
Chemicals — 3.06% | Tenet Healthcare Corp | |||||||||
Kraton Polymers LLC / Kraton Polymers Capital | 8.13%, 04/01/2022 | 4,000,000 | 4,010,000 | |||||||
Corp | ||||||||||
7.00%, 04/15/2025(e) | 4,000,000 | 3,680,000 | $ | 14,830,000 | ||||||
OCI NV | Home Builders — 2.03% | |||||||||
6.63%, 04/15/2023(e) | 5,000,000 | 4,912,500 | KB Home | |||||||
$ | 8,592,500 | 7.50%, 09/15/2022 | 2,000,000 | 2,055,000 | ||||||
PulteGroup Inc | ||||||||||
Commercial Services — 1.03% | 6.38%, 05/15/2033 | 4,000,000 | 3,650,000 | |||||||
Avis Budget Car Rental LLC / Avis Budget | ||||||||||
Finance Inc | $ | 5,705,000 | ||||||||
5.50%, 04/01/2023 | 3,000,000 | 2,895,000 | Insurance — 1.35% | |||||||
MetLife Inc | ||||||||||
Computers — 1.07% | 9.25%, 04/08/2038(e) | 3,000,000 | 3,780,000 | |||||||
Dell International LLC / EMC Corp | ||||||||||
6.02%, 06/15/2026(e) | 3,000,000 | 3,013,565 | Internet — 0.35% | |||||||
VeriSign Inc | ||||||||||
Diversified Financial Services — 1.07% | 5.25%, 04/01/2025 | 1,000,000 | 990,000 | |||||||
Jefferies Group LLC | ||||||||||
6.25%, 01/15/2036 | 3,000,000 | 3,008,088 | Iron & Steel — 1.85% | |||||||
Allegheny Technologies Inc | ||||||||||
7.88%, 08/15/2023 | 3,000,000 | 3,060,000 | ||||||||
Electric — 4.87% | ||||||||||
Emera Inc | ||||||||||
(3-month USD LIBOR + 5.44%), | ArcelorMittal | |||||||||
6.75%, 06/15/2076(d) | 3,000,000 | 3,005,760 | 6.25%, 02/25/2022 | 2,000,000 | 2,114,000 | |||||
GenOn Energy Inc | $ | 5,174,000 | ||||||||
0.00%, 10/15/2020(a),(g) | 3,100,000 | — | Lodging — 1.08% | |||||||
GenOn Energy Inc / NRG Americas Inc | Boyd Gaming Corp | |||||||||
(3-month USD LIBOR + 6.50%), | 6.88%, 05/15/2023 | 3,000,000 | 3,030,000 | |||||||
9.39%, 12/01/2023 | 672,070 | 658,627 | ||||||||
NRG Energy Inc | Media — 5.95% | |||||||||
6.25%, 05/01/2024 | 2,000,000 | 2,030,000 | CCO Holdings LLC / CCO Holdings Capital Corp | |||||||
5.13%, 05/01/2027(e) | 1,000,000 | 931,400 | ||||||||
PPL Capital Funding Inc, | ||||||||||
(3-month USD LIBOR + 2.67%), | 5.75%, 01/15/2024 | 2,000,000 | 1,980,000 | |||||||
5.47%, 03/30/2067 | 4,000,000 | 3,460,000 | CSC Holdings LLC | |||||||
Talen Energy Supply LLC | 6.75%, 11/15/2021 | 3,000,000 | 3,075,000 | |||||||
4.60%, 12/15/2021 | 5,000,000 | 4,500,000 | DISH DBS Corp | |||||||
5.88%, 11/15/2024 | 4,000,000 | 3,220,000 | ||||||||
$ | 13,654,387 | Sirius XM Radio Inc | ||||||||
Engineering & Construction — 0.76% | 5.38%, 04/15/2025(e) | 4,000,000 | 3,790,000 | |||||||
Engility Corp | Viacom Inc | |||||||||
8.88%, 09/01/2024 | 2,000,000 | 2,135,000 | (3-month USD LIBOR + 3.90%), | |||||||
5.88%, 02/28/2057(d) | 2,000,000 | 1,814,985 | ||||||||
Entertainment — 0.61% | ||||||||||
(3-month USD LIBOR + 3.90%), | ||||||||||
AMC Entertainment Holdings Inc | 6.25%, 02/28/2057(d) | 2,000,000 | 1,864,298 | |||||||
6.13%, 05/15/2027 | 2,000,000 | 1,710,000 | ||||||||
$ | 16,675,683 | |||||||||
Environmental Control — 5.04% | ||||||||||
Advanced Disposal Services Inc | Mining — 1.32% | |||||||||
5.63%, 11/15/2024(e) | 4,000,000 | 3,910,000 | Freeport-McMoRan Inc | |||||||
Covanta Holding Corp | 3.88%, 03/15/2023 | 4,000,000 | 3,700,000 | |||||||
5.88%, 03/01/2024 | 5,000,000 | 4,700,000 | Mortgage Backed Securities — 6.94% | |||||||
5.88%, 07/01/2025 | 2,000,000 | 1,840,000 | Citigroup Commercial Mortgage Trust 2015-GC29 | |||||||
Waste Pro USA Inc | 4.14%, 04/10/2048(f) | 750,000 | 737,560 | |||||||
5.50%, 02/15/2026(e) | 4,000,000 | 3,680,000 | COMM 2014-UBS3 Mortgage Trust | |||||||
$ | 14,130,000 | 4.78%, 06/10/2047(f) | 2,000,000 | 1,984,914 |
See accompanying notes.
40
Schedule of Investments Principal EDGE Active Income ETF
December 31, 2018 (unaudited)
Principal | Principal | ||||||||||
BONDS (continued) | Amount | Value | BONDS (continued) | Amount | Value | ||||||
Mortgage Backed Securities (continued) | Pipelines — 3.81% | ||||||||||
COMM 2015-CCRE22 Mortgage Trust | EnLink Midstream Partners LP | ||||||||||
4.12%, 03/10/2048(f) | $ | 500,000 | $ | 485,826 | 4.15%, 06/01/2025 | $ | 5,000,000 | $ | 4,507,686 | ||
GS Mortgage Securities Trust 2013-GC13 | 4.85%, 07/15/2026 | 750,000 | 676,325 | ||||||||
4.08%, 07/10/2046(e),(f) | 500,000 | 494,415 | NGPL PipeCo LLC | ||||||||
GS Mortgage Securities Trust 2013-GCJ12 | 4.88%, 08/15/2027(e) | 2,000,000 | 1,885,000 | ||||||||
4.18%, 06/10/2046(f) | 2,000,000 | 1,956,241 | Transcanada Trust | ||||||||
GS Mortgage Securities Trust 2014-GC20 | (3-month USD LIBOR + 3.53%), | ||||||||||
4.97%, 04/10/2047(f) | 2,000,000 | 1,991,340 | 5.63%, 05/20/2075(d) | 4,000,000 | 3,605,000 | ||||||
GS Mortgage Securities Trust 2014-GC24 | $ | 10,674,011 | |||||||||
4.53%, 09/10/2047(f) | 500,000 | 491,059 | |||||||||
GS Mortgage Securities Trust 2015-GC32 | REITs — 1.64% | ||||||||||
4.41%, 07/10/2048(f) | 1,241,000 | 1,226,636 | CBL & Associates LP | ||||||||
JP Morgan Chase Commercial Mortgage | 5.95%, 12/15/2026 | 6,000,000 | 4,590,000 | ||||||||
Securities Trust 2012-LC9 | Storage/Warehousing — 1.05% | ||||||||||
4.37%, 12/15/2047(e),(f) | 1,750,000 | 1,623,618 | Mobile Mini Inc | ||||||||
JP Morgan Chase Commercial Mortgage | 5.88%, 07/01/2024 | 3,000,000 | 2,940,000 | ||||||||
Securities Trust 2015-JP1 | |||||||||||
4.24%, 01/15/2049(e),(f) | 1,000,000 | 905,048 | Telecommunications — 2.91% | ||||||||
Sprint Corp | |||||||||||
JPMBB Commercial Mortgage Securities Trust | 7.88%, 09/15/2023 | 4,000,000 | 4,105,000 | ||||||||
2014-C19 | T-Mobile USA Inc | ||||||||||
4.66%, 04/15/2047(f) | 2,000,000 | 1,989,580 | |||||||||
6.38%, 03/01/2025 | 4,000,000 | 4,040,000 | |||||||||
Wells Fargo Commercial Mortgage Trust | |||||||||||
2014-LC16 | $ | 8,145,000 | |||||||||
4.46%, 08/15/2050 | 1,000,000 | 986,079 | Transportation — 1.06% | ||||||||
Wells Fargo Commercial Mortgage Trust | XPO Logistics Inc | ||||||||||
2015-C26 | 6.50%, 06/15/2022(e) | 3,000,000 | 2,973,750 | ||||||||
3.59%, 02/15/2048(e) | 1,425,000 | 1,225,682 | |||||||||
Wells Fargo Commercial Mortgage Trust | TOTAL BONDS | $ | 202,611,806 | ||||||||
2015-SG1 | Total Investments | $ | 270,230,009 | ||||||||
4.47%, 09/15/2048(f) | 1,600,000 | 1,555,208 | Other Assets and Liabilities — 3.61% | $ | 10,110,799 | ||||||
WFRBS Commercial Mortgage Trust 2013-C14 | |||||||||||
3.98%, 06/15/2046(e),(f) | 500,000 | 453,459 | TOTAL NET ASSETS — 100.00% | $ | 280,340,808 | ||||||
WFRBS Commercial Mortgage Trust 2014-C22 | |||||||||||
(a)Non-income producing security | |||||||||||
3.76%, 09/15/2057(f) | 1,000,000 | 947,504 | |||||||||
3.90%, 09/15/2057(e),(f) | 500,000 | 399,131 | (b)The value of these investments was determined using significant | ||||||||
$ | 19,453,300 | unobservable inputs. | |||||||||
(c)Perpetual security. Perpetual securities pay an indefinite stream of interest, | |||||||||||
Office & Business Equipment — 0.70% | |||||||||||
CDW LLC / CDW Finance Corp | but they may be called by the issuer at an earlier date. Date shown, if any, | ||||||||||
5.50%, 12/01/2024 | 2,000,000 | 1,975,000 | reflects the next call date or final legal maturity date. Rate shown is as of | ||||||||
period end. | |||||||||||
Oil & Gas — 5.60% | |||||||||||
(d)Rate shown is as of period end. The rate may be a variable or floating rate | |||||||||||
Gulfport Energy Corp | |||||||||||
6.38%, 01/15/2026 | 6,000,000 | 5,190,000 | or a fixed rate which may convert to a variable or floating rate in the future. | ||||||||
Nabors Industries Inc | (e)Security exempt from registration under Rule 144A of the Securities Act of | ||||||||||
5.50%, 01/15/2023 | 2,000,000 | 1,587,442 | 1933. These securities may be resold in transactions exempt from | ||||||||
Rowan Cos Inc | registration, normally to qualified institutional buyers. At the end of the | ||||||||||
4.75%, 01/15/2024 | 3,000,000 | 2,265,000 | period, the value of these securities totaled $58,400,068 or 20.83% of net assets. | ||||||||
4.88%, 06/01/2022 | 2,000,000 | 1,650,000 | |||||||||
W&T Offshore Inc | |||||||||||
9.75%, 11/01/2023(e) | 3,000,000 | 2,625,000 | (f)Certain variable rate securities are not based on a published reference rate | ||||||||
Whiting Petroleum Corp | and spread but are determined by the issuer or agent and are based on | ||||||||||
5.75%, 03/15/2021 | 2,500,000 | 2,375,000 | current market conditions. These securities do not indicate a reference rate | ||||||||
$ | 15,692,442 | and spread in their description. Rate shown is the rate in effect as of period | |||||||||
Oil & Gas Services — 2.19% | end. | ||||||||||
Archrock Partners LP / Archrock Partners Finance | (g)Security is defaulted. | ||||||||||
Corp | |||||||||||
6.00%, 04/01/2021 | 2,000,000 | 1,920,000 | Portfolio Summary (unaudited) | ||||||||
6.00%, 10/01/2022 | 2,000,000 | 1,880,000 | Sector | Percent | |||||||
Weatherford International Ltd | |||||||||||
4.50%, 04/15/2022 | 4,000,000 | 2,340,000 | Financial | 17.83 | % | ||||||
Energy | 14.94 | % | |||||||||
$ | 6,140,000 | Consumer, Non-cyclical | 14.57 | % | |||||||
Packaging & Containers — 1.02% | Communications | 9.79 | % | ||||||||
Reynolds Group Issuer Inc / Reynolds Group | Industrial | 8.60 | % | ||||||||
Issuer LLC / Reynolds Group Issuer | Utilities | 7.73 | % | ||||||||
(Luxembourg) S.A. | Consumer, Cyclical | 6.95 | % | ||||||||
5.13%, 07/15/2023(e) | 3,000,000 | 2,857,500 | Mortgage Securities | 6.94 | % | ||||||
Basic Materials | 6.51 | % | |||||||||
Pharmaceuticals — 1.76% | Technology | 2.53 | % | ||||||||
HLF Financing Sarl LLC / Herbalife International | Other Assets and Liabilities | 3.61 | % | ||||||||
Inc | |||||||||||
7.25%, 08/15/2026(e) | 5,000,000 | 4,925,000 | TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
41
Schedule of Investments Principal Healthcare Innovators Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS — 99.78% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Biotechnology — 44.66% | Biotechnology (continued) | ||||||
Abeona Therapeutics Inc(a) | 5,781 | $ | 41,276 | Seattle Genetics Inc(a) | 22,987 | $ | 1,302,443 |
ACADIA Pharmaceuticals Inc(a) | 17,938 | 290,057 | Solid Biosciences Inc(a) | 5,084 | 136,251 | ||
Acceleron Pharma Inc(a) | 6,602 | 287,517 | Spark Therapeutics Inc(a) | 5,392 | 211,043 | ||
Achillion Pharmaceuticals Inc(a) | 19,886 | 31,619 | Spectrum Pharmaceuticals Inc(a) | 15,205 | 133,044 | ||
Acorda Therapeutics Inc(a) | 6,813 | 106,147 | Stemline Therapeutics Inc(a) | 4,335 | 41,182 | ||
Adverum Biotechnologies Inc(a) | 8,921 | 28,101 | Theravance Biopharma Inc(a) | 7,907 | 202,340 | ||
Agenus Inc(a) | 12,467 | 29,671 | Ultragenyx Pharmaceutical Inc(a) | 7,201 | 313,099 | ||
Alder Biopharmaceuticals Inc(a) | 9,791 | 100,358 | Unum Therapeutics Inc(a) | 4,286 | 18,858 | ||
Alnylam Pharmaceuticals Inc(a) | 14,580 | 1,063,028 | Verastem Inc(a) | 10,560 | 35,482 | ||
AMAG Pharmaceuticals Inc(a) | 4,947 | 75,145 | Vericel Corp(a) | 5,229 | 90,985 | ||
Amicus Therapeutics Inc(a) | 27,140 | 260,001 | Viking Therapeutics Inc(a) | 7,309 | 55,914 | ||
AnaptysBio Inc(a) | 3,449 | 220,012 | ZIOPHARM Oncology Inc(a) | 18,918 | 35,377 | ||
Arena Pharmaceuticals Inc(a) | 7,082 | 275,844 | |||||
$ | 19,842,157 | ||||||
ArQule Inc(a) | 15,615 | 43,254 | |||||
Arrowhead Pharmaceuticals Inc(a) | 12,631 | 156,877 | Energy-Alternate Sources — 0.06% | ||||
Assembly Biosciences Inc(a) | 2,906 | 65,734 | Amyris Inc(a) | 7,227 | 24,138 | ||
Atara Biotherapeutics Inc(a) | 6,507 | 226,053 | Healthcare — Products—19.18% | ||||
Audentes Therapeutics Inc(a) | 5,357 | 114,211 | Accelerate Diagnostics Inc(a) | 7,350 | 84,525 | ||
AVEO Pharmaceuticals Inc(a) | 16,976 | 27,162 | AtriCure Inc(a) | 4,749 | 145,319 | ||
Avrobio Inc(a) | 3,434 | 57,176 | AxoGen Inc(a) | 4,959 | 101,312 | ||
Axovant Sciences Ltd(a) | 17,518 | 17,448 | BioLife Solutions Inc(a) | 2,362 | 28,415 | ||
BioCryst Pharmaceuticals Inc(a) | 15,696 | 126,667 | Cardiovascular Systems Inc(a) | 4,689 | 133,590 | ||
Biohaven Pharmaceutical Holding Co Ltd(a) | 5,540 | 204,869 | CareDx Inc(a) | 5,215 | 131,105 | ||
BioMarin Pharmaceutical Inc(a) | 18,592 | 1,583,109 | Cerus Corp(a) | 19,202 | 97,354 | ||
Bluebird Bio Inc(a) | 7,820 | 775,744 | Cutera Inc(a) | 1,985 | 33,785 | ||
Blueprint Medicines Corp(a) | 6,298 | 339,525 | DENTSPLY SIRONA Inc | 32,193 | 1,197,901 | ||
Cara Therapeutics Inc(a) | 5,638 | 73,294 | Endologix Inc(a) | 11,740 | 8,406 | ||
CRISPR Therapeutics AG(a) | 6,829 | 195,105 | Genomic Health Inc(a) | 5,145 | 331,389 | ||
Cymabay Therapeutics Inc(a) | 6,278 | 49,408 | Glaukos Corp(a) | 4,941 | 277,536 | ||
CytomX Therapeutics Inc(a) | 6,452 | 97,425 | Haemonetics Corp(a) | 7,492 | 749,575 | ||
Deciphera Pharmaceuticals Inc(a) | 5,404 | 113,430 | Inspire Medical Systems Inc(a) | 3,064 | 129,454 | ||
Denali Therapeutics Inc(a) | 13,550 | 279,943 | Insulet Corp(a) | 8,289 | 657,483 | ||
Dicerna Pharmaceuticals Inc(a) | 7,598 | 81,223 | Intersect ENT Inc(a) | 4,065 | 114,552 | ||
Dynavax Technologies Corp(a) | 5,524 | 50,545 | Invacare Corp | 4,715 | 20,274 | ||
Editas Medicine Inc(a) | 6,841 | 155,633 | iRhythm Technologies Inc(a) | 3,262 | 226,644 | ||
Epizyme Inc(a) | 9,973 | 61,434 | Natus Medical Inc(a) | 4,758 | 161,915 | ||
Esperion Therapeutics Inc(a) | 3,846 | 176,916 | Nevro Corp(a) | 4,064 | 158,049 | ||
Exact Sciences Corp(a) | 14,166 | 893,875 | Novocure Ltd(a) | 13,331 | 446,322 | ||
Fate Therapeutics Inc(a) | 7,572 | 97,149 | OPKO Health Inc(a) | 80,324 | 241,775 | ||
FibroGen Inc(a) | 12,241 | 566,513 | Quidel Corp(a) | 4,639 | 226,476 | ||
Five Prime Therapeutics Inc(a) | 5,106 | 47,486 | Sientra Inc(a) | 4,080 | 51,857 | ||
Geron Corp(a) | 26,348 | 26,348 | STAAR Surgical Co(a) | 6,013 | 191,875 | ||
GlycoMimetics Inc(a) | 6,178 | 58,506 | Surmodics Inc(a) | 1,916 | 90,550 | ||
GTx Inc(a) | 3,450 | 2,691 | Tandem Diabetes Care Inc(a) | 8,211 | 311,772 | ||
Halozyme Therapeutics Inc(a) | 20,707 | 302,943 | Teleflex Inc | 6,627 | 1,712,947 | ||
ImmunoGen Inc(a) | 21,384 | 102,643 | ViewRay Inc(a) | 9,708 | 58,927 | ||
Immunomedics Inc(a) | 27,125 | 387,074 | Wright Medical Group NV(a) | 14,739 | 401,196 | ||
Incyte Corp(a) | 26,096 | 1,659,445 | |||||
Inovio Pharmaceuticals Inc(a) | 13,129 | 52,516 | $ | 8,522,280 | |||
Insmed Inc(a) | 11,055 | 145,042 | Healthcare — Services — 6.47% | ||||
Intercept Pharmaceuticals Inc(a) | 4,243 | 427,652 | Brookdale Senior Living Inc(a) | 26,662 | 178,636 | ||
Intrexon Corp(a) | 16,956 | 110,892 | Capital Senior Living Corp(a) | 4,295 | 29,206 | ||
Ionis Pharmaceuticals Inc(a) | 19,881 | 1,074,767 | Community Health Systems Inc(a) | 16,306 | 45,983 | ||
Iovance Biotherapeutics Inc(a) | 13,717 | 121,395 | Evolus Inc(a) | 3,828 | 45,553 | ||
Karyopharm Therapeutics Inc(a) | 8,691 | 81,435 | Invitae Corp(a) | 7,706 | 85,228 | ||
Lexicon Pharmaceuticals Inc(a) | 15,193 | 100,881 | Molina Healthcare Inc(a) | 8,260 | 959,977 | ||
Loxo Oncology Inc(a) | 4,419 | 618,969 | Natera Inc(a) | 8,746 | 122,094 | ||
MacroGenics Inc(a) | 6,061 | 76,975 | R1 RCM Inc(a) | 15,782 | 125,467 | ||
Medicines Co/The(a) | 10,588 | 202,654 | Surgery Partners Inc(a) | 7,004 | 68,569 | ||
NeoGenomics Inc(a) | 11,715 | 147,726 | Syneos Health Inc(a) | 14,925 | 587,299 | ||
Novavax Inc(a) | 54,900 | 101,016 | Teladoc Health Inc(a) | 6,558 | 325,080 | ||
Omeros Corp(a) | 6,968 | 77,623 | Tenet Healthcare Corp(a) | 14,250 | 244,245 | ||
Pacific Biosciences of California Inc(a) | 18,933 | 140,104 | Triple-S Management Corp, Class B(a) | 3,192 | 55,509 | ||
Pieris Pharmaceuticals Inc(a) | 7,728 | 20,556 | |||||
$ | 2,872,846 | ||||||
Prothena Corp PLC(a) | 5,717 | 58,885 | |||||
PTC Therapeutics Inc(a) | 7,213 | 247,550 | Pharmaceuticals — 28.87% | ||||
Achaogen Inc(a) | 6,487 | 7,979 | |||||
Puma Biotechnology Inc(a) | 5,457 | 111,050 | |||||
Aclaris Therapeutics Inc(a) | 4,445 | 32,848 | |||||
Radius Health Inc(a) | 6,525 | 107,597 | |||||
Adamas Pharmaceuticals Inc(a) | 3,902 | 33,323 | |||||
REGENXBIO Inc(a) | 5,082 | 213,190 | |||||
Aerie Pharmaceuticals Inc(a) | 6,489 | 234,253 | |||||
Retrophin Inc(a) | 5,802 | 131,299 | |||||
Agios Pharmaceuticals Inc(a) | 8,321 | 383,681 | |||||
Rigel Pharmaceuticals Inc(a) | 23,883 | 54,931 | |||||
Aimmune Therapeutics Inc(a) | 8,392 | 200,737 | |||||
Sage Therapeutics Inc(a) | 6,768 | 648,307 | |||||
Akebia Therapeutics Inc(a) | 8,186 | 45,269 | |||||
Sangamo Therapeutics Inc(a) | 14,590 | 167,493 | |||||
Akorn Inc(a) | 18,001 | 61,023 |
See accompanying notes.
42
Schedule of Investments Principal Healthcare Innovators Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | Portfolio Summary (unaudited) | |||
Pharmaceuticals (continued) | Sector | Percent | ||||
Alkermes PLC(a) | 22,519 | $ | 664,536 | |||
Consumer, Non-cyclical | 99.18 | % | ||||
Amneal Pharmaceuticals Inc(a) | 16,485 | 223,042 | ||||
Technology | 0.41 | % | ||||
Apellis Pharmaceuticals Inc(a) | 8,061 | 106,325 | ||||
Consumer, Cyclical | 0.13 | % | ||||
Array BioPharma Inc(a) | 30,500 | 434,625 | ||||
Energy | 0.06 | % | ||||
Assertio Therapeutics Inc(a) | 9,172 | 33,111 | ||||
Other Assets and Liabilities | 0.22 | % | ||||
Athenex Inc(a) | 9,520 | 120,809 | ||||
Bellicum Pharmaceuticals Inc(a) | 6,221 | 18,165 | TOTAL NET ASSETS | 100.00 | % | |
Clovis Oncology Inc(a) | 7,555 | 135,688 | ||||
Coherus Biosciences Inc(a) | 9,732 | 88,075 | ||||
Collegium Pharmaceutical Inc(a) | 4,767 | 81,849 | ||||
Corbus Pharmaceuticals Holdings Inc(a) | 8,209 | 47,941 | ||||
Dermira Inc(a) | 6,031 | 43,363 | ||||
DexCom Inc(a) | 12,276 | 1,470,665 | ||||
Dova Pharmaceuticals Inc(a) | 4,047 | 30,676 | ||||
Endo International PLC(a) | 32,132 | 234,564 | ||||
Flexion Therapeutics Inc(a) | 5,427 | 61,434 | ||||
G1 Therapeutics Inc(a) | 4,793 | 91,786 | ||||
Global Blood Therapeutics Inc(a) | 7,470 | 306,643 | ||||
Heron Therapeutics Inc(a) | 5,261 | 136,470 | ||||
Horizon Pharma PLC(a) | 23,910 | 467,201 | ||||
Insys Therapeutics Inc(a) | 10,653 | 37,285 | ||||
Intellia Therapeutics Inc(a) | 6,199 | 84,616 | ||||
Intra-Cellular Therapies Inc(a) | 7,851 | 89,423 | ||||
Ironwood Pharmaceuticals Inc(a) | 19,972 | 206,910 | ||||
Kala Pharmaceuticals Inc(a) | 3,528 | 17,252 | ||||
Kura Oncology Inc(a) | 5,450 | 76,518 | ||||
La Jolla Pharmaceutical Co(a) | 2,619 | 24,697 | ||||
Madrigal Pharmaceuticals Inc(a) | 2,042 | 230,174 | ||||
MannKind Corp(a) | 21,953 | 23,270 | ||||
Marinus Pharmaceuticals Inc(a) | 5,815 | 16,689 | ||||
Mirati Therapeutics Inc(a) | 4,153 | 176,170 | ||||
Momenta Pharmaceuticals Inc(a) | 11,238 | 124,067 | ||||
MyoKardia Inc(a) | 5,756 | 281,238 | ||||
Nektar Therapeutics(a) | 24,988 | 821,355 | ||||
Neurocrine Biosciences Inc(a) | 13,105 | 935,828 | ||||
Ocular Therapeutix Inc(a) | 4,169 | 16,593 | ||||
Optinose Inc(a) | 5,915 | 36,673 | ||||
Pacira Pharmaceuticals Inc(a) | 5,878 | 252,872 | ||||
Paratek Pharmaceuticals Inc(a) | 4,553 | 23,357 | ||||
Portola Pharmaceuticals Inc(a) | 9,483 | 185,108 | ||||
Progenics Pharmaceuticals Inc(a) | 12,118 | 50,896 | ||||
Reata Pharmaceuticals Inc, Class A(a) | 3,406 | 191,077 | ||||
Revance Therapeutics Inc(a) | 5,301 | 106,709 | ||||
Rhythm Pharmaceuticals Inc(a) | 4,904 | 131,819 | ||||
Rocket Pharmaceuticals Inc(a) | 5,654 | 83,792 | ||||
Sarepta Therapeutics Inc(a) | 9,623 | 1,050,158 | ||||
Senseonics Holdings Inc(a) | 25,259 | 65,421 | ||||
Sorrento Therapeutics Inc(a) | 12,547 | 30,113 | ||||
Synergy Pharmaceuticals Inc(a) | 35,585 | 4,053 | ||||
TESARO Inc(a) | 7,965 | 591,401 | ||||
TG Therapeutics Inc(a) | 7,797 | 31,968 | ||||
TherapeuticsMD Inc(a) | 33,780 | 128,702 | ||||
uniQure NV(a) | 5,330 | 153,611 | ||||
Vanda Pharmaceuticals Inc(a) | 7,516 | 196,393 | ||||
Vital Therapies Inc(a) | 6,080 | 1,133 | ||||
Voyager Therapeutics Inc(a) | 4,655 | 43,757 | ||||
Xencor Inc(a) | 8,011 | 289,678 | ||||
Zogenix Inc(a) | 6,002 | 218,833 | ||||
$ | 12,825,690 | |||||
Retail — 0.13% | ||||||
PetIQ Inc(a) | 2,419 | 56,774 | ||||
Software — 0.41% | ||||||
Tabula Rasa HealthCare Inc(a) | 2,872 | 183,119 | ||||
TOTAL COMMON STOCKS | $ | 44,327,004 | ||||
Total Investments | $ | 44,327,004 | ||||
Other Assets and Liabilities — 0.22% | $ | 99,479 | ||||
TOTAL NET ASSETS — 100.00% | $ | 44,426,483 | ||||
(a)Non-income Producing Security |
See accompanying notes.
43
Schedule of Investments
Principal International Multi-Factor Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS — 99.24% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Advertising — 0.60% | Beverages (continued) | ||||||
Dentsu Inc | 800 | $ | 35,801 | Coca-Cola Amatil Ltd | 2,381 | $ | 13,735 |
Hakuhodo DY Holdings Inc | 400 | 5,748 | Coca-Cola HBC AG | 799 | 24,971 | ||
Publicis Groupe SA | 594 | 34,083 | Davide Campari-Milano SpA | 1,325 | 11,211 | ||
$ | 75,632 | Diageo PLC | 5,659 | 201,602 | |||
Fevertree Drinks PLC | 328 | 9,193 | |||||
Aerospace & Defense — 1.02% | Kirin Holdings Co Ltd | 1,800 | 37,748 | ||||
CAE Inc | 300 | 5,514 | Pernod Ricard SA | 798 | 131,021 | ||
Meggitt PLC | 2,378 | 14,276 | Royal Unibrew A/S | 188 | 12,954 | ||
MTU Aero Engines AG | 70 | 12,704 | Suntory Beverage & Food Ltd | 400 | 18,101 | ||
Safran SA | 809 | 97,696 | |||||
$ | 568,041 | ||||||
$ | 130,190 | ||||||
Biotechnology — 1.03% | |||||||
Agriculture — 0.86% | CSL Ltd | 940 | 122,592 | ||||
British American Tobacco PLC | 2,757 | 87,852 | Swedish Orphan Biovitrum AB(a) | 364 | 7,927 | ||
Swedish Match AB | 558 | 21,979 | |||||
$ | 130,519 | ||||||
$ | 109,831 | ||||||
Chemicals — 2.20% | |||||||
Airlines — 0.55% | Arkema SA | 231 | 19,839 | ||||
International Consolidated Airlines Group SA | 5,490 | 43,245 | Asahi Kasei Corp | 2,000 | 20,619 | ||
Qantas Airways Ltd | 6,558 | 26,745 | Covestro AG(b) | 447 | 22,115 | ||
$ | 69,990 | Croda International PLC | 416 | 24,841 | |||
Apparel — 2.81% | Koninklijke DSM NV | 426 | 34,869 | ||||
adidas AG | 311 | 64,994 | Methanex Corp | 100 | 4,810 | ||
Gildan Activewear Inc | 142 | 4,310 | Mitsubishi Chemical Holdings Corp | 3,100 | 23,549 | ||
Hermes International | 66 | 36,660 | Nissan Chemical Corp | 300 | 15,766 | ||
Kering SA | 196 | 92,432 | Novozymes A/S | 667 | 29,775 | ||
LVMH Moet Hennessy Louis Vuitton SE | 485 | 143,479 | Shin-Etsu Chemical Co Ltd | 900 | 70,092 | ||
Moncler SpA | 463 | 15,347 | Solvay SA | 135 | 13,506 | ||
$ | 357,222 | $ | 279,781 | ||||
Auto Manufacturers — 2.86% | Coal — 0.13% | ||||||
Bayerische Motoren Werke AG | 1,078 | 87,323 | Whitehaven Coal Ltd | 5,309 | 16,154 | ||
Honda Motor Co Ltd | 2,800 | 73,944 | Commercial Services — 3.73% | ||||
Nissan Motor Co Ltd | 9,760 | 78,388 | Ashtead Group PLC | 1,235 | 25,769 | ||
Renault SA | 1,086 | 67,876 | Atlantia SpA | 937 | 19,399 | ||
Suzuki Motor Corp | 1,100 | 55,870 | Edenred | 422 | 15,526 | ||
$ | 363,401 | Experian PLC | 2,975 | 72,236 | |||
Nihon M&A Center Inc | 400 | 8,087 | |||||
Auto Parts & Equipment — 0.95% | Park24 Co Ltd | 300 | 6,605 | ||||
Aisin Seiki Co Ltd | 400 | 13,941 | Randstad NV | 274 | 12,586 | ||
CIE Automotive SA | 205 | 5,036 | Recruit Holdings Co Ltd | 1,900 | 46,154 | ||
Cie Plastic Omnium SA | 193 | 4,460 | RELX PLC | 8,088 | 166,645 | ||
Continental AG | 298 | 41,228 | SGS SA | 32 | 71,950 | ||
Faurecia SA | 332 | 12,580 | Wirecard AG | 195 | 29,670 | ||
Hella GmbH & Co KGaA | 95 | 3,788 | |||||
Magna International Inc | 497 | 22,560 | $ | 474,627 | |||
NGK Spark Plug Co Ltd | 300 | 6,000 | Computers — 1.86% | ||||
Stanley Electric Co Ltd | 200 | 5,638 | Atos SE | 267 | 21,867 | ||
Yokohama Rubber Co Ltd/The | 300 | 5,652 | Capgemini SE | 616 | 61,262 | ||
$ | 120,883 | CGI Group Inc, Class A(a) | 433 | 26,483 | |||
Computershare Ltd | 2,076 | 25,136 | |||||
Banks — 11.42% | Logitech International SA | 1,218 | 38,316 | ||||
Bank Leumi Le-Israel BM | 8,359 | 50,522 | Nomura Research Institute Ltd | 300 | 11,154 | ||
Bank of Montreal | 1,868 | 122,038 | Obic Co Ltd | 100 | 7,746 | ||
Canadian Imperial Bank of Commerce | 1,964 | 146,279 | Otsuka Corp | 300 | 8,266 | ||
DBS Group Holdings Ltd | 4,600 | 79,954 | SCSK Corp | 200 | 7,098 | ||
DNB ASA | 2,120 | 33,872 | Teleperformance | 185 | 29,590 | ||
FinecoBank Banca Fineco SpA | 1,422 | 14,302 | |||||
Hang Seng Bank Ltd | 1,000 | 22,451 | $ | 236,918 | |||
Intesa Sanpaolo SpA | 42,962 | 95,484 | Construction Materials — 2.10% | ||||
KBC Group NV | 345 | 22,405 | Daikin Industries Ltd | 500 | 53,351 | ||
Macquarie Group Ltd | 1,142 | 87,394 | Geberit AG | 267 | 103,850 | ||
National Bank of Canada | 1,614 | 66,265 | Kingspan Group PLC | 755 | 32,335 | ||
Royal Bank of Canada | 2,730 | 186,853 | Sika AG | 580 | 73,525 | ||
Skandinaviska Enskilda Banken AB, Class A | 4,977 | 48,349 | Xinyi Glass Holdings Ltd | 4,000 | 4,424 | ||
Sumitomo Mitsui Financial Group Inc | 4,800 | 159,628 | $ | 267,485 | |||
Svenska Handelsbanken AB, Class A | 3,246 | 36,002 | |||||
Swedbank AB, Class A | 2,818 | 62,875 | Distribution/Wholesale — 2.75% | ||||
Toronto-Dominion Bank/The | 3,608 | 179,343 | Ferguson PLC | 695 | 44,443 | ||
United Overseas Bank Ltd | 2,100 | 37,857 | Inchcape PLC | 1,095 | 7,697 | ||
ITOCHU Corp | 3,200 | 54,508 | |||||
$ | 1,451,873 | Marubeni Corp | 3,600 | 25,370 | |||
Beverages — 4.47% | Mitsubishi Corp | 2,900 | 79,905 | ||||
Anheuser-Busch InBev SA | 1,037 | 68,556 | Mitsui & Co Ltd | 4,000 | 61,694 | ||
Asahi Group Holdings Ltd | 1,000 | 38,949 | Sojitz Corp | 6,200 | 21,608 |
See accompanying notes.
44
Schedule of Investments
Principal International Multi-Factor Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Distribution/Wholesale (continued) | Gas — 0.84% | ||||||
Sumitomo Corp | 3,000 | $ | 42,740 | Enagas SA | 1,681 | $ | 45,473 |
Toyota Tsusho Corp | 400 | 11,843 | Hong Kong & China Gas Co Ltd | 14,600 | 30,205 | ||
$ | 349,808 | Snam SpA | 7,148 | 31,277 | |||
Diversified Financial Services — 3.13% | $ | 106,955 | |||||
CI Financial Corp | 418 | 5,291 | Hand/Machine Tools — 0.74% | ||||
Hargreaves Lansdown PLC | 829 | 19,537 | Fuji Electric Co Ltd | 400 | 11,842 | ||
Hong Kong Exchanges & Clearing Ltd | 3,200 | 92,602 | Sandvik AB | 1,807 | 25,761 | ||
IG Group Holdings PLC | 937 | 6,807 | Schindler Holding AG | 245 | 48,531 | ||
Japan Exchange Group Inc | 700 | 11,362 | Techtronic Industries Co Ltd | 1,500 | 7,969 | ||
Julius Baer Group Ltd(a) | 1,660 | 59,128 | |||||
$ | 94,103 | ||||||
London Stock Exchange Group PLC | 1,285 | 66,530 | |||||
Mitsubishi UFJ Lease & Finance Co Ltd | 700 | 3,372 | Healthcare — Products — 2.03% | ||||
ORIX Corp | 3,100 | 45,409 | Cochlear Ltd | 187 | 22,862 | ||
Partners Group Holding AG | 95 | 57,605 | Coloplast A/S, Class B | 430 | 39,922 | ||
ConvaTec Group PLC(b) | 3,156 | 5,590 | |||||
SBI Holdings Inc | 700 | 13,789 | |||||
Schroders PLC | 393 | 12,237 | DiaSorin SpA | 37 | 2,997 | ||
Tokyo Century Corp | 100 | 4,407 | GN Store Nord A/S | 483 | 18,033 | ||
Shimadzu Corp | 500 | 9,917 | |||||
$ | 398,076 | Smith & Nephew PLC | 2,469 | 46,072 | |||
Electric — 0.87% | Sonova Holding AG | 309 | 50,489 | ||||
A2A SpA | 5,547 | 9,994 | Sysmex Corp | 200 | 9,627 | ||
CLP Holdings Ltd | 2,000 | 22,604 | Terumo Corp | 700 | 39,750 | ||
Fortum OYJ | 1,131 | 24,751 | William Demant Holding A/S(a) | 444 | 12,598 | ||
Red Electrica Corp SA | 2,353 | 52,557 | $ | 257,857 | |||
$ | 109,906 | Healthcare — Services — 0.28% | |||||
Electrical Components & Equipment — 0.05% | Fresenius Medical Care AG & Co KGaA | 366 | 23,752 | ||||
Brother Industries Ltd | 400 | 5,952 | PeptiDream Inc(a) | 300 | 11,879 | ||
Electronics — 1.48% | $ | 35,631 | |||||
Assa Abloy AB | 1,830 | 32,654 | Holding Companies — Diversified — 0.08% | ||||
Electrocomponents PLC | 1,227 | 7,923 | Swire Pacific Ltd, Class A | 1,000 | 10,561 | ||
Halma PLC | 1,232 | 21,419 | |||||
Hoya Corp | 700 | 42,247 | Home Builders — 1.07% | ||||
MINEBEA MITSUMI Inc | 1,400 | 20,309 | Barratt Developments PLC | 4,438 | 26,179 | ||
Nidec Corp | 500 | 56,909 | Bellway PLC | 378 | 12,117 | ||
Venture Corp Ltd | 700 | 7,165 | Berkeley Group Holdings PLC | 665 | 29,488 | ||
Haseko Corp | 1,000 | 10,538 | |||||
$ | 188,626 | Persimmon PLC | 1,322 | 32,521 | |||
Engineering & Construction — 1.31% | Taylor Wimpey PLC | 14,407 | 25,020 | ||||
ACS Actividades de Construccion y Servicios SA | 641 | 24,845 | $ | 135,863 | |||
Aena SME SA(b) | 168 | 26,130 | |||||
COMSYS Holdings Corp | 300 | 7,343 | Home Furnishings — 1.31% | ||||
Eiffage SA | 385 | 32,184 | Hoshizaki Corp | 100 | 6,095 | ||
HomeServe PLC | 816 | 9,002 | Howden Joinery Group PLC | 2,612 | 14,502 | ||
Kajima Corp | 1,200 | 16,182 | Sony Corp | 3,000 | 145,778 | ||
Sydney Airport | 7,065 | 33,490 | $ | 166,375 | |||
Taisei Corp | 400 | 17,171 | Household Products — 4.79% | ||||
$ | 166,347 | Kao Corp | 800 | 59,516 | |||
Entertainment — 0.27% | Kose Corp | 100 | 15,747 | ||||
Aristocrat Leisure Ltd | 2,211 | 34,012 | L’Oreal SA | 652 | 150,302 | ||
Pigeon Corp | 200 | 8,576 | |||||
Environmental Control — 0.10% | Pola Orbis Holdings Inc | 400 | 10,835 | ||||
Waste Connections Inc | 175 | 12,989 | Unicharm Corp | 800 | 25,977 | ||
Food — 2.69% | Unilever NV | 3,158 | 171,579 | ||||
Chr Hansen Holding A/S | 239 | 21,147 | Unilever PLC | 3,180 | 166,527 | ||
Danone SA | 2,048 | 144,333 | $ | 609,059 | |||
Kikkoman Corp | 300 | 16,176 | Insurance — 4.31% | ||||
Koninklijke Ahold Delhaize NV | 3,091 | 78,179 | AIA Group Ltd | 12,000 | 99,610 | ||
Loblaw Cos Ltd | 392 | 17,547 | Allianz SE | 870 | 174,580 | ||
Marine Harvest ASA | 1,272 | 26,877 | Assicurazioni Generali SpA | 3,843 | 64,285 | ||
Metro Inc | 282 | 9,779 | Dai-ichi Life Holdings Inc | 2,100 | 32,916 | ||
Salmar ASA | 137 | 6,782 | Hannover Rueck SE | 139 | 18,745 | ||
SSP Group PLC | 865 | 7,138 | NN Group NV | 527 | 21,013 | ||
Tate & Lyle PLC | 1,589 | 13,367 | Sampo OYJ | 1,058 | 46,561 | ||
$ | 341,325 | Sony Financial Holdings Inc | 500 | 9,375 | |||
Forest Products & Paper — 0.64% | Tokio Marine Holdings Inc | 1,700 | 81,212 | ||||
Mondi PLC | 1,190 | 24,777 | $ | 548,297 | |||
Smurfit Kappa Group PLC | 977 | 26,037 | Internet — 1.18% | ||||
UPM-Kymmene OYJ | 836 | 21,216 | Auto Trader Group PLC(b) | 3,251 | 18,846 | ||
West Fraser Timber Co Ltd | 187 | 9,238 | Kakaku.com Inc | 500 | 8,859 | ||
$ | 81,268 | M3 Inc | 800 | 10,759 |
See accompanying notes.
45
Schedule of Investments
Principal International Multi-Factor Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Internet (continued) | Pharmaceuticals (continued) | ||||||
MonotaRO Co Ltd | 500 | $ | 12,399 | Sumitomo Dainippon Pharma Co Ltd | 400 | $ | 12,755 |
Rakuten Inc(a) | 4,400 | 29,546 | UCB SA | 203 | 16,583 | ||
Rightmove PLC | 3,570 | 19,669 | $ | 1,023,639 | |||
Scout24 AG(b) | 127 | 5,844 | |||||
Trend Micro Inc(a) | 400 | 21,787 | Real Estate — 1.92% | ||||
ZOZO Inc | 1,200 | 22,006 | Aeon Mall Co Ltd | 400 | 6,383 | ||
Castellum AB | 828 | 15,260 | |||||
$ | 149,715 | CK Asset Holdings Ltd | 4,000 | 29,270 | |||
Iron & Steel — 0.41% | Deutsche Wohnen SE | 561 | 25,711 | ||||
BlueScope Steel Ltd | 2,851 | 22,009 | LEG Immobilien AG | 117 | 12,215 | ||
Evraz PLC | 1,114 | 6,823 | Mitsui Fudosan Co Ltd | 2,300 | 51,307 | ||
voestalpine AG | 766 | 22,906 | REA Group Ltd | 312 | 16,258 | ||
$ | 51,738 | Sumitomo Realty & Development Co Ltd | 1,200 | 44,078 | |||
Vonovia SE | 970 | 43,999 | |||||
Leisure Time — 0.43% | |||||||
Carnival PLC | 865 | 41,488 | $ | 244,481 | |||
Yamaha Corp | 300 | 12,810 | REITs — 1.78% | ||||
$ | 54,298 | Ascendas Real Estate Investment Trust | 12,800 | 24,136 | |||
Canadian Apartment Properties REIT | 200 | 6,490 | |||||
Lodging — 0.55% | CapitaLand Mall Trust | 11,500 | 19,069 | ||||
Crown Resorts Ltd | 1,906 | 15,922 | Goodman Group | 5,077 | 38,013 | ||
InterContinental Hotels Group PLC | 544 | 29,378 | GPT Group/The | 9,123 | 34,314 | ||
Sands China Ltd | 5,600 | 24,530 | Link REIT | 3,500 | 35,445 | ||
$ | 69,830 | Merlin Properties Socimi SA | 1,184 | 14,630 | |||
Machinery — Construction & Mining — 0.22% | Mirvac Group | 17,047 | 26,896 | ||||
Atlas Copco AB, Class A(a) | 1,192 | 28,311 | Vicinity Centres | 15,196 | 27,828 | ||
$ | 226,821 | ||||||
Machinery — Diversified — 1.77% | |||||||
Hexagon AB | 598 | 27,529 | Retail — 3.13% | ||||
Keyence Corp | 200 | 101,601 | ABC-Mart Inc | 200 | 11,094 | ||
Kubota Corp | 1,700 | 24,219 | Alimentation Couche-Tard Inc | 456 | 22,683 | ||
SMC Corp | 100 | 30,327 | Canadian Tire Corp Ltd | 130 | 13,592 | ||
Spirax-Sarco Engineering PLC | 142 | 11,294 | Dollarama Inc | 367 | 8,729 | ||
Yaskawa Electric Corp | 1,200 | 29,539 | Fast Retailing Co Ltd | 300 | 154,291 | ||
HUGO BOSS AG | 153 | 9,452 | |||||
$ | 224,509 | ||||||
Industria de Diseno Textil SA | 2,722 | 69,704 | |||||
Media — 0.90% | JD Sports Fashion PLC | 1,314 | 5,842 | ||||
Informa PLC | 5,306 | 42,620 | Matsumotokiyoshi Holdings Co Ltd | 200 | 6,140 | ||
Pearson PLC | 3,597 | 43,023 | Next PLC | 406 | 20,653 | ||
Wolters Kluwer NV | 490 | 29,003 | Pandora A/S | 401 | 16,326 | ||
$ | 114,646 | Restaurant Brands International Inc | 365 | 19,068 | |||
Ryohin Keikaku Co Ltd | 100 | 24,223 | |||||
Mining — 3.55% | Sundrug Co Ltd | 200 | 5,976 | ||||
Anglo American PLC | 2,536 | 56,496 | USS Co Ltd | 300 | 5,061 | ||
Boliden AB | 950 | 20,578 | Welcia Holdings Co Ltd | 100 | 4,525 | ||
Evolution Mining Ltd | 7,432 | 19,316 | |||||
Kirkland Lake Gold Ltd | 300 | 7,823 | $ | 397,359 | |||
Rio Tinto Ltd | 2,498 | 138,065 | Semiconductors — 1.95% | ||||
Rio Tinto PLC | 3,369 | 160,171 | Advantest Corp | 1,200 | 24,568 | ||
South32 Ltd | 16,072 | 37,923 | ASML Holding NV | 515 | 80,933 | ||
Teck Resources Ltd | 500 | 10,764 | SUMCO Corp | 3,500 | 39,182 | ||
$ | 451,136 | Tokyo Electron Ltd | 900 | 102,764 | |||
Miscellaneous Manufacture — 0.09% | $ | 247,447 | |||||
Nikon Corp | 800 | 11,934 | Software — 2.58% | ||||
Oil & Gas — 0.24% | Amadeus IT Group SA | 1,178 | 82,115 | ||||
Neste OYJ | 394 | 30,408 | Constellation Software Inc | 18 | 11,522 | ||
Dassault Systemes SE | 329 | 39,090 | |||||
Packaging & Containers — 0.05% | Nemetschek SE | 17 | 1,865 | ||||
CCL Industries Inc, Class B | 163 | 5,977 | Open Text Corp | 331 | 10,789 | ||
Pharmaceuticals — 8.05% | Oracle Corp Japan | 100 | 6,387 | ||||
Alfresa Holdings Corp | 300 | 7,672 | SAP SE | 1,251 | 124,600 | ||
Astellas Pharma Inc | 6,100 | 78,000 | Temenos AG | 197 | 23,630 | ||
Bayer AG | 1,625 | 112,753 | TIS Inc | 200 | 7,892 | ||
Ubisoft Entertainment SA(a) | 246 | 19,865 | |||||
Chugai Pharmaceutical Co Ltd | 600 | 34,925 | |||||
GlaxoSmithKline PLC | 9,210 | 175,053 | $ | 327,755 | |||
Grifols SA | 802 | 21,043 | Telecommunications — 3.39% | ||||
Ipsen SA | 101 | 13,059 | BCE Inc | 1,400 | 55,305 | ||
Medipal Holdings Corp | 400 | 8,595 | BT Group PLC | 20,644 | 62,651 | ||
Merck KGaA | 415 | 42,784 | KDDI Corp | 3,800 | 90,974 | ||
Novartis AG | 2,546 | 217,688 | Nippon Telegraph & Telephone Corp | 1,900 | 77,695 | ||
Roche Holding AG | 901 | 223,119 | NTT DOCOMO Inc | 3,000 | 67,675 | ||
Shionogi & Co Ltd | 800 | 45,772 | Sunrise Communications Group AG(b) | 209 | 18,382 | ||
Sino Biopharmaceutical Ltd | 21,000 | 13,838 | Telenor ASA | 1,422 | 27,547 |
See accompanying notes.
46
Schedule of Investments
Principal International Multi-Factor Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | |
Telecommunications (continued) | |||
TELUS Corp | 906 | $ | 30,030 |
$ | 430,259 | ||
Transportation — 1.72% | |||
Canadian National Railway Co | 635 | 47,029 | |
Canadian Pacific Railway Ltd | 195 | 34,601 | |
Central Japan Railway Co | 200 | 42,270 | |
Deutsche Post AG | 2,309 | 63,255 | |
DSV A/S | 468 | 30,824 | |
$ | 217,979 | ||
TOTAL COMMON STOCKS | $ | 12,613,799 | |
PREFERRED STOCKS — 0.38% | Shares Held | Value | |
Household Products/Wares — 0.38% | |||
Henkel AG & Co KGaA | |||
1.05%, 12/20/2020 | 444 | 48,531 | |
TOTAL PREFERRED STOCKS | $ | 48,531 | |
Total Investments | $ | 12,662,330 | |
Other Assets and Liabilities — 0.37% | $ | 47,688 | |
TOTAL NET ASSETS — 100.00% | $ | 12,710,018 |
(a)Non-income producing security
(b)Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities totaled $96,907 or 0.76% of net assets.
Portfolio Summary (unaudited) | ||
Sector | Percent | |
Consumer, Non-cyclical | 28.32 | % |
Financial | 22.58 | % |
Consumer, Cyclical | 16.67 | % |
Industrial | 10.65 | % |
Basic Materials | 6.80 | % |
Technology | 6.39 | % |
Communications | 6.06 | % |
Utilities | 1.71 | % |
Energy | 0.37 | % |
Diversified | 0.08 | % |
Other Assets and Liabilities | 0.37 | % |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
47
Schedule of Investments
Principal Investment Grade Corporate Active ETF
December 31, 2018 (unaudited)
Principal | Principal | ||||||||
BONDS — 97.15% | Amount | Value | BONDS (continued) | Amount | Value | ||||
Aerospace & Defense — 1.54% | Banks (continued) | ||||||||
United Technologies Corp | Royal Bank of Canada | ||||||||
3.10%, 06/01/2022 | $ | 510,000 | $ | 499,414 | 3.70%, 10/05/2023 | $ | 1,130,000 | $ | 1,134,532 |
3.95%, 08/16/2025 | 935,000 | 927,759 | Royal Bank of Scotland Group PLC | ||||||
4.13%, 11/16/2028 | 1,785,000 | 1,768,402 | (3-month USD LIBOR + 1.47%), | ||||||
4.63%, 11/16/2048 | 245,000 | 236,593 | 4.09%, 05/15/2023(b) | 1,485,000 | 1,440,530 | ||||
5.13%, 05/28/2024 | 3,520,000 | 3,412,873 | |||||||
$ | 3,432,168 | Santander UK PLC | |||||||
Agriculture — 2.43% | 5.00%, 11/07/2023(a) | 1,185,000 | 1,157,141 | ||||||
Altria Group Inc | Skandinaviska Enskilda Banken AB | ||||||||
2.85%, 08/09/2022 | 1,800,000 | 1,727,958 | (5-year Swap rate + 3.85%), | ||||||
4.50%, 05/02/2043 | 315,000 | 262,163 | 5.75%, 05/13/2020(b),(c) | 3,000,000 | 2,920,332 | ||||
5.38%, 01/31/2044 | 1,945,000 | 1,813,647 | State Street Corp | ||||||
BAT Capital Corp | (3-month USD LIBOR + 1.03%), | ||||||||
3.22%, 08/15/2024 | 880,000 | 810,563 | 4.14%, 12/03/2029(b) | 845,000 | 872,201 | ||||
4.54%, 08/15/2047 | 800,000 | 636,840 | SunTrust Bank | ||||||
Reynolds American Inc | 4.05%, 11/03/2025 | 510,000 | 518,614 | ||||||
5.85%, 08/15/2045 | 190,000 | 176,516 | Svenska Handelsbanken AB | ||||||
3.90%, 11/20/2023 | 1,055,000 | 1,064,623 | |||||||
$ | 5,427,687 | Synchrony Bank | |||||||
Airlines — 2.15% | 3.00%, 06/15/2022 | 3,461,000 | 3,234,058 | ||||||
UBS AG | |||||||||
American Airlines 2013-2 Class A Pass Through | 4.50%, 06/26/2048(a) | 435,000 | 449,375 | ||||||
Trust | |||||||||
4.95%, 07/15/2024 | 1,652,669 | 1,677,541 | UBS Group Funding Switzerland AG | ||||||
(3-month USD LIBOR + 0.95%), | |||||||||
Continental Airlines 2012-1 Class A Pass Through | 3.57%, 08/15/2023(a),(b) | 2,000,000 | 1,957,786 | ||||||
Trust | |||||||||
Wells Fargo & Co | |||||||||
4.15%, 10/11/2025 | 816,813 | 814,689 | 4.40%, 06/14/2046 | 1,000,000 | 917,312 | ||||
United Airlines 2014-2 Class A Pass Through Trust | Zions Bancorp NA | ||||||||
3.75%, 03/03/2028 | 1,244,011 | 1,215,859 | 3.50%, 08/27/2021 | 1,195,000 | 1,191,295 | ||||
US Airways 2013-1 Class A Pass Through Trust | |||||||||
3.95%, 05/15/2027 | 1,077,522 | 1,085,309 | $ | 51,295,923 | |||||
$ | 4,793,398 | Beverages — 3.48% | |||||||
Anheuser-Busch Cos LLC / Anheuser-Busch | |||||||||
Auto Manufacturers — 2.31% | InBev Worldwide Inc | ||||||||
Daimler Finance North America LLC | 3.65%, 02/01/2026(a) | 1,700,000 | 1,607,432 | ||||||
2.25%, 03/02/2020(a) | 3,600,000 | 3,551,536 | 4.90%, 02/01/2046(a) | 205,000 | 190,114 | ||||
General Motors Financial Co Inc | Anheuser-Busch InBev Finance Inc | ||||||||
3.85%, 01/05/2028 | 480,000 | 417,963 | 2.65%, 02/01/2021 | 489,000 | 480,881 | ||||
3.95%, 04/13/2024 | 1,250,000 | 1,187,138 | Anheuser-Busch InBev Worldwide Inc | ||||||
$ | 5,156,637 | 4.60%, 04/15/2048 | 960,000 | 860,409 | |||||
Bacardi Ltd | |||||||||
Banks — 22.98% | 4.70%, 05/15/2028(a) | 335,000 | 321,930 | ||||||
Bank of America Corp | 5.15%, 05/15/2038(a) | 425,000 | 390,400 | ||||||
4.20%, 08/26/2024 | 2,800,000 | 2,777,040 | 5.30%, 05/15/2048(a) | 100,000 | 90,277 | ||||
4.25%, 10/22/2026 | 3,275,000 | 3,185,260 | Constellation Brands Inc | ||||||
Citigroup Inc | 4.40%, 11/15/2025 | 545,000 | 546,078 | ||||||
(3-month USD LIBOR + 0.95%), | Keurig Dr Pepper Inc | ||||||||
3.44%, 07/24/2023(b) | 1,905,000 | 1,860,078 | 3.55%, 05/25/2021(a) | 1,815,000 | 1,812,250 | ||||
(3-month USD LIBOR + 1.15%), | 4.42%, 05/25/2025(a) | 1,465,000 | 1,458,221 | ||||||
3.52%, 10/27/2028(b) | 2,000,000 | 1,865,181 | $ | 7,757,992 | |||||
4.13%, 07/25/2028 | 2,475,000 | 2,322,655 | Biotechnology — 0.89% | ||||||
4.65%, 07/23/2048 | 740,000 | 723,213 | Gilead Sciences Inc | ||||||
DBS Group Holdings Ltd | 2.55%, 09/01/2020 | 2,000,000 | 1,983,825 | ||||||
(5-year Swap rate + 1.59%), | |||||||||
4.52%, 12/11/2028(a),(b) | 3,650,000 | 3,729,391 | Chemicals — 0.89% | ||||||
First Republic Bank | Dow Chemical Co/The | ||||||||
5.55%, 11/30/2048(a) | 155,000 | 157,163 | |||||||
2.50%, 06/06/2022 | 1,740,000 | 1,686,209 | |||||||
4.63%, 02/13/2047 | 635,000 | 611,580 | DowDuPont Inc | ||||||
Goldman Sachs Group Inc/The | 5.32%, 11/15/2038 | 555,000 | 571,474 | ||||||
(3-month USD LIBOR + 1.05%), | 5.42%, 11/15/2048 | 385,000 | 399,993 | ||||||
2.91%, 06/05/2023(b) | 2,195,000 | 2,107,178 | SABIC Capital II BV | ||||||
4.00%, 10/10/2023(a) | 865,000 | 860,675 | |||||||
(3-month USD LIBOR + 1.00%), | |||||||||
3.49%, 07/24/2023(b) | 1,025,000 | 995,981 | $ | 1,989,305 | |||||
3.85%, 01/26/2027 | 3,690,000 | 3,470,989 | Computers — 2.55% | ||||||
5.95%, 01/15/2027 | 470,000 | 494,911 | Apple Inc | ||||||
JPMorgan Chase & Co | 3.35%, 02/09/2027 | 1,950,000 | 1,900,063 | ||||||
(3-month USD LIBOR + 0.85%), | 4.65%, 02/23/2046 | 1,950,000 | 2,064,150 | ||||||
3.26%, 01/10/2025(b) | 1,500,000 | 1,436,244 | Dell International LLC / EMC Corp | ||||||
5.63%, 08/16/2043 | 980,000 | 1,077,308 | 8.35%, 07/15/2046(a) | 1,600,000 | 1,732,464 | ||||
Morgan Stanley | $ | 5,696,677 | |||||||
5.00%, 11/24/2025 | 465,000 | 474,145 | Distribution/Wholesale — 0.33% | ||||||
(3-month USD LIBOR + 3.81%), | Ferguson Finance PLC | ||||||||
5.55%, 07/15/2020(b),(c) | 2,275,000 | 2,207,888 | 4.50%, 10/24/2028(a) | 740,000 | 739,258 |
See accompanying notes.
48
Schedule of Investments
Principal Investment Grade Corporate Active ETF
December 31, 2018 (unaudited)
Principal | Principal | ||||||||
BONDS (continued) | Amount | Value | BONDS (continued) | Amount | Value | ||||
Diversified Financial Services — 1.47% | Insurance (continued) | ||||||||
Brookfield Finance Inc | American International Group Inc | ||||||||
4.70%, 09/20/2047 | $ | 1,010,000 | $ | 928,710 | 3.90%, 04/01/2026 | $ | 1,600,000 | $ | 1,539,308 |
4.50%, 07/16/2044 | 1,280,000 | 1,142,309 | |||||||
Brookfield Finance LLC | AXA Equitable Holdings Inc | ||||||||
4.00%, 04/01/2024 | 1,350,000 | 1,334,619 | 5.00%, 04/20/2048(a) | 1,065,000 | 944,689 | ||||
Nuveen LLC | |||||||||
4.00%, 11/01/2028(a) | 985,000 | 1,014,970 | Markel Corp | ||||||
4.30%, 11/01/2047 | 1,000,000 | 868,172 | |||||||
$ | 3,278,299 | Nuveen Finance LLC | |||||||
4.13%, 11/01/2024(a) | 1,770,000 | 1,802,912 | |||||||
Electric — 6.03% | |||||||||
Consolidated Edison Co of New York Inc | Prudential Financial Inc | ||||||||
4.00%, 12/01/2028 | 425,000 | 435,551 | (3-month USD LIBOR + 3.92%), | ||||||
5.63%, 06/15/2043(b) | 1,500,000 | 1,468,995 | |||||||
Dominion Energy Inc | |||||||||
4.25%, 06/01/2028 | 920,000 | 923,083 | XLIT Ltd | ||||||
Duke Energy Florida LLC | 4.45%, 03/31/2025 | 510,000 | 506,824 | ||||||
3.80%, 07/15/2028 | 890,000 | 898,895 | 5.50%, 03/31/2045 | 975,000 | 1,008,193 | ||||
Exelon Corp | $ | 10,880,207 | |||||||
3.50%, 06/01/2022 | 1,480,000 | 1,447,291 | Media — 6.84% | ||||||
Florida Power & Light Co | 21st Century Fox America Inc | ||||||||
3.95%, 03/01/2048 | 935,000 | 913,161 | 3.00%, 09/15/2022 | 405,000 | 400,179 | ||||
4.13%, 06/01/2048 | 150,000 | 150,384 | 6.20%, 12/15/2034 | 180,000 | 218,847 | ||||
Fortis Inc | 6.40%, 12/15/2035 | 1,000,000 | 1,247,553 | ||||||
3.06%, 10/04/2026 | 920,000 | 839,859 | Charter Communications Operating LLC / Charter | ||||||
MidAmerican Energy Co | Communications Operating Capital | ||||||||
3.95%, 08/01/2047 | 765,000 | 740,574 | 3.58%, 07/23/2020 | 730,000 | 729,213 | ||||
Pacific Gas & Electric Co | 4.20%, 03/15/2028 | 1,000,000 | 942,001 | ||||||
3.30%, 12/01/2027 | 600,000 | 489,629 | 6.48%, 10/23/2045 | 700,000 | 719,557 | ||||
4.65%, 08/01/2028(a) | 1,730,000 | 1,586,009 | Comcast Corp | ||||||
Southern Co/The | 3.38%, 02/15/2025 | 3,325,000 | 3,256,600 | ||||||
(3-month USD LIBOR + 3.63%), | 3.95%, 10/15/2025 | 485,000 | 490,741 | ||||||
5.50%, 03/15/2057(b) | 1,590,000 | 1,525,221 | 4.15%, 10/15/2028 | 525,000 | 533,102 | ||||
Tucson Electric Power Co | 4.60%, 10/15/2038 | 975,000 | 984,534 | ||||||
4.85%, 12/01/2048 | 1,185,000 | 1,232,561 | 4.60%, 08/15/2045 | 385,000 | 375,122 | ||||
Virginia Electric & Power Co | 4.70%, 10/15/2048 | 780,000 | 788,487 | ||||||
3.80%, 04/01/2028 | 1,995,000 | 2,003,399 | Discovery Communications LLC | ||||||
4.60%, 12/01/2048 | 270,000 | 281,611 | 5.00%, 09/20/2037 | 435,000 | 403,494 | ||||
5.20%, 09/20/2047 | 45,000 | 41,357 | |||||||
$ | 13,467,228 | NBCUniversal Media LLC | |||||||
Environmental Control — 0.27% | 4.45%, 01/15/2043 | 510,000 | 491,604 | ||||||
Waste Connections Inc | Viacom Inc | ||||||||
4.25%, 12/01/2028 | 590,000 | 602,910 | 4.38%, 03/15/2043 | 825,000 | 651,390 | ||||
Food — 4.02% | Warner Media LLC | ||||||||
3.60%, 07/15/2025 | 900,000 | 852,410 | |||||||
General Mills Inc | 4.05%, 12/15/2023 | 1,450,000 | 1,448,243 | ||||||
3.70%, 10/17/2023 | 2,400,000 | 2,385,996 | 5.38%, 10/15/2041 | 725,000 | 698,265 | ||||
4.55%, 04/17/2038 | 565,000 | 524,201 | |||||||
4.70%, 04/17/2048 | 945,000 | 864,853 | $ | 15,272,699 | |||||
McCormick & Co Inc | Mining — 1.62% | ||||||||
3.15%, 08/15/2024 | 1,500,000 | 1,445,937 | BHP Billiton Finance USA Ltd | ||||||
3.40%, 08/15/2027 | 1,275,000 | 1,204,452 | (5-year Swap rate + 5.09%), | ||||||
Nestle Holdings Inc | 6.75%, 10/19/2075(a),(b) | 2,415,000 | 2,504,307 | ||||||
3.35%, 09/24/2023(a) | 1,240,000 | 1,252,276 | Glencore Finance Canada Ltd | ||||||
3.50%, 09/24/2025(a) | 1,285,000 | 1,290,751 | 5.55%, 10/25/2042(a) | 620,000 | 558,074 | ||||
$ | 8,968,466 | Glencore Funding LLC | |||||||
3.88%, 10/27/2027(a) | 625,000 | 558,737 | |||||||
Forest Products & Paper — 0.28% | |||||||||
International Paper Co | $ | 3,621,118 | |||||||
4.35%, 08/15/2048 | 725,000 | 620,290 | Miscellaneous Manufacture — 0.86% | ||||||
Healthcare — Products — 2.42% | General Electric Co | ||||||||
Abbott Laboratories | 4.50%, 03/11/2044 | 210,000 | 171,272 | ||||||
5.30%, 02/11/2021 | 1,750,000 | 1,752,169 | |||||||
3.75%, 11/30/2026 | 390,000 | 385,163 | |||||||
4.90%, 11/30/2046 | 1,025,000 | 1,075,967 | $ | 1,923,441 | |||||
Becton Dickinson and Co | Oil & Gas — 5.28% | ||||||||
3.70%, 06/06/2027 | 1,010,000 | 955,296 | Canadian Natural Resources Ltd | ||||||
Medtronic Inc | 3.85%, 06/01/2027 | 1,500,000 | 1,414,981 | ||||||
2.50%, 03/15/2020 | 3,000,000 | 2,984,641 | Concho Resources Inc | ||||||
$ | 5,401,067 | 4.38%, 01/15/2025 | 900,000 | 888,933 | |||||
Continental Resources Inc | |||||||||
Healthcare — Services — 0.46% | 3.80%, 06/01/2024 | 2,415,000 | 2,286,206 | ||||||
UnitedHealth Group Inc | 4.90%, 06/01/2044 | 1,530,000 | 1,354,159 | ||||||
3.88%, 12/15/2028 | 1,020,000 | 1,033,200 | Marathon Oil Corp | ||||||
Insurance — 4.87% | 4.40%, 07/15/2027 | 625,000 | 593,876 | ||||||
AIA Group Ltd | 5.20%, 06/01/2045 | 410,000 | 378,855 | ||||||
3.20%, 03/11/2025(a) | 1,660,000 | 1,598,805 | 6.60%, 10/01/2037 | 2,415,000 | 2,706,723 |
See accompanying notes.
49
Schedule of Investments
Principal Investment Grade Corporate Active ETF
December 31, 2018 (unaudited)
Principal | Principal | ||||||||
BONDS (continued) | Amount | Value | BONDS (continued) | Amount | Value | ||||
Oil & Gas (continued) | Retail — 0.63% | ||||||||
Newfield Exploration Co | Home Depot Inc/The | ||||||||
5.38%, 01/01/2026 | $ | 1,395,000 | $ | 1,367,100 | 3.90%, 12/06/2028 | $ | 305,000 | $ | 312,398 |
5.63%, 07/01/2024 | 395,000 | 399,937 | 5.88%, 12/16/2036 | 600,000 | 720,871 | ||||
Shell International Finance BV | McDonald’s Corp | ||||||||
4.00%, 05/10/2046 | 145,000 | 140,021 | 4.45%, 09/01/2048 | 355,000 | 337,705 | ||||
Valero Energy Corp | Walmart Inc | ||||||||
4.35%, 06/01/2028 | 250,000 | 247,665 | 4.05%, 06/29/2048 | 45,000 | 44,776 | ||||
$ | 11,778,456 | $ | 1,415,750 | ||||||
Oil & Gas Services — 0.89% | |||||||||
Baker Hughes a GE Co LLC / Baker Hughes | Savings & Loans — 0.61% | ||||||||
Co-Obligor Inc | Nationwide Building Society | ||||||||
3.34%, 12/15/2027 | 1,265,000 | 1,163,918 | (5-year Swap rate + 1.85%), | ||||||
Halliburton Co | 4.13%, 10/18/2032(a),(b) | 1,540,000 | 1,362,868 | ||||||
4.75%, 08/01/2043 | 875,000 | 834,396 | |||||||
Semiconductors — 0.47% | |||||||||
$ | 1,998,314 | Xilinx Inc | |||||||
Packaging & Containers — 0.50% | 2.95%, 06/01/2024 | 1,105,000 | 1,054,702 | ||||||
Packaging Corp of America | Software — 1.77% | ||||||||
4.50%, 11/01/2023 | 1,080,000 | 1,107,074 | Fiserv Inc | ||||||
Pharmaceuticals — 5.07% | 3.80%, 10/01/2023 | 485,000 | 488,020 | ||||||
AbbVie Inc | 4.20%, 10/01/2028 | 380,000 | 379,239 | ||||||
3.38%, 11/14/2021 | 435,000 | 434,591 | Microsoft Corp | ||||||
4.25%, 11/14/2028 | 215,000 | 208,721 | 3.70%, 08/08/2046 | 1,250,000 | 1,197,479 | ||||
Bayer US Finance II LLC | Oracle Corp | ||||||||
3.88%, 12/15/2023(a) | 1,150,000 | 1,129,137 | 3.80%, 11/15/2037 | 660,000 | 617,207 | ||||
4.38%, 12/15/2028(a) | 1,940,000 | 1,852,220 | 4.00%, 11/15/2047 | 795,000 | 740,701 | ||||
Cigna Corp | 6.13%, 07/08/2039 | 440,000 | 528,142 | ||||||
3.75%, 07/15/2023(a) | 610,000 | 607,969 | |||||||
4.13%, 11/15/2025(a) | 575,000 | 574,190 | $ | 3,950,788 | |||||
4.38%, 10/15/2028(a) | 2,125,000 | 2,136,859 | Telecommunications — 2.71% | ||||||
CVS Health Corp | AT&T Inc | ||||||||
3.70%, 03/09/2023 | 1,875,000 | 1,854,928 | 4.10%, 02/15/2028 | 1,000,000 | 961,576 | ||||
4.30%, 03/25/2028 | 930,000 | 909,176 | 4.75%, 05/15/2046 | 1,700,000 | 1,509,420 | ||||
5.05%, 03/25/2048 | 665,000 | 646,786 | 4.90%, 08/15/2037 | 335,000 | 312,351 | ||||
Zoetis Inc | British Telecommunications PLC | ||||||||
3.90%, 08/20/2028 | 760,000 | 744,581 | 4.50%, 12/04/2023 | 300,000 | 304,065 | ||||
4.45%, 08/20/2048 | 225,000 | 220,483 | 5.13%, 12/04/2028 | 605,000 | 608,406 | ||||
$ | 11,319,641 | Telefonica Emisiones SA | |||||||
Pipelines — 7.30% | 5.21%, 03/08/2047 | 460,000 | 421,083 | ||||||
Andeavor Logistics LP / Tesoro Logistics Finance | Verizon Communications Inc | ||||||||
Corp | 5.25%, 03/16/2037 | 1,855,000 | 1,932,291 | ||||||
4.25%, 12/01/2027 | 1,155,000 | 1,090,326 | $ | 6,049,192 | |||||
Energy Transfer Operating LP | |||||||||
5.15%, 03/15/2045 | 500,000 | 432,550 | Transportation — 1.18% | ||||||
EnLink Midstream Partners LP | Burlington Northern Santa Fe LLC | ||||||||
5.05%, 04/01/2045 | 1,085,000 | 847,675 | 4.15%, 12/15/2048 | 700,000 | 681,698 | ||||
Kinder Morgan Energy Partners LP | Canadian National Railway Co | ||||||||
3.50%, 03/01/2021 | 1,015,000 | 1,011,878 | 4.45%, 01/20/2049 | 710,000 | 751,691 | ||||
4.70%, 11/01/2042 | 2,250,000 | 1,958,280 | CSX Corp | ||||||
MPLX LP | 4.75%, 11/15/2048 | 415,000 | 419,503 | ||||||
4.00%, 03/15/2028 | 580,000 | 543,605 | Union Pacific Corp | ||||||
4.50%, 07/15/2023 | 1,870,000 | 1,888,721 | 3.50%, 06/08/2023 | 430,000 | 430,817 | ||||
4.80%, 02/15/2029 | 180,000 | 179,557 | 3.75%, 03/15/2024 | 345,000 | 347,984 | ||||
Plains All American Pipeline LP / PAA Finance | $ | 2,631,693 | |||||||
Corp | |||||||||
4.50%, 12/15/2026 | 605,000 | 582,736 | TOTAL BONDS | $ | 216,865,042 | ||||
Sabine Pass Liquefaction LLC | |||||||||
5.00%, 03/15/2027 | 750,000 | 752,505 | Total Investments | $ | 216,865,042 | ||||
5.75%, 05/15/2024 | 3,745,000 | 3,907,372 | Other Assets and Liabilities — 2.85% | $ | 6,356,734 | ||||
Western Gas Partners LP | TOTAL NET ASSETS — 100.00% | $ | 223,221,776 | ||||||
5.30%, 03/01/2048 | 130,000 | 112,179 | |||||||
5.45%, 04/01/2044 | 1,500,000 | 1,344,267 | |||||||
Williams Cos Inc/The | (a)Security exempt from registration under Rule 144A of the Securities Act of | ||||||||
5.75%, 06/24/2044 | 1,625,000 | 1,633,173 | 1933. These securities may be resold in transactions exempt from registration, | ||||||
$ | 16,284,824 | normally to qualified institutional buyers. At the end of the period, the value | |||||||
of these securities totaled $40,980,186 or 18.36% of net assets. | |||||||||
REITs — 2.05% | |||||||||
(b)Rate shown is as of period end. The rate may be a variable or floating rate | |||||||||
Alexandria Real Estate Equities Inc | |||||||||
3.45%, 04/30/2025 | 920,000 | 885,544 | or a fixed rate which may convert to a variable or floating rate in the future. | ||||||
4.70%, 07/01/2030 | 2,170,000 | 2,196,157 | (c)Perpetual security. Perpetual securities pay an indefinite stream of interest, but | ||||||
Camden Property Trust | they may be called by the issuer at an earlier date. Date shown, if any, reflects | ||||||||
4.10%, 10/15/2028 | 1,470,000 | 1,488,244 | |||||||
the next call date or final legal maturity date. Rate shown is as of period end. | |||||||||
$ | 4,569,945 |
See accompanying notes.
50
Schedule of Investments | ||
Principal Investment Grade Corporate Active ETF | ||
December 31, 2018 (unaudited) | ||
Portfolio Summary (unaudited) | ||
Sector | Percent | |
Financial | 31.98 | % |
Consumer, Non-cyclical | 18.77 | % |
Energy | 13.47 | % |
Communications | 9.55 | % |
Utilities | 6.03 | % |
Consumer, Cyclical | 5.42 | % |
Technology | 4.80 | % |
Industrial | 4.34 | % |
Basic Materials | 2.79 | % |
Other Assets and Liabilities | 2.85 | % |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
51
Schedule of Investments Principal Millennials Index ETF December 31, 2018 (unaudited)
COMMON STOCKS — 99.78% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Apparel — 5.37% | Internet (continued) | ||||||
adidas AG | 1,681 | $ | 351,303 | Facebook Inc, Class A(a) | 557 | $ | 73,017 |
Carter’s Inc | 427 | 34,852 | GrubHub Inc(a) | 1,729 | 132,804 | ||
Columbia Sportswear Co | 582 | 48,940 | IAC/InterActiveCorp(a) | 1,504 | 275,292 | ||
Deckers Outdoor Corp(a) | 495 | 63,335 | Just Eat PLC(a) | 20,791 | 155,503 | ||
Gildan Activewear Inc | 1,768 | 53,667 | Match Group Inc | 6,928 | 296,310 | ||
Michael Kors Holdings Ltd(a) | 5,454 | 206,816 | Naspers Ltd, Class N | 1,113 | 223,743 | ||
Netflix Inc(a) | 1,192 | 319,051 | |||||
$ | 758,913 | ||||||
Pandora Media Inc(a) | 35,037 | 283,449 | |||||
Beverages — 6.12% | Rightmove PLC | 8,362 | 46,070 | ||||
Anheuser-Busch InBev SA | 929 | 61,416 | SEEK Ltd | 3,573 | 42,582 | ||
Brown-Forman Corp, Class B | 1,640 | 78,031 | Tencent Holdings Ltd | 7,807 | 313,058 | ||
Constellation Brands Inc, Class A | 391 | 62,881 | Trade Me Group Ltd | 16,907 | 72,060 | ||
Davide Campari-Milano SpA | 13,518 | 114,381 | YY Inc ADR(a) | 3,229 | 193,288 | ||
Diageo PLC | 3,021 | 107,623 | |||||
Molson Coors Brewing Co, Class B | 1,181 | 66,325 | $ | 3,867,600 | |||
Pernod Ricard SA | 614 | 100,810 | Leisure Time — 1.77% | ||||
Treasury Wine Estates Ltd | 26,218 | 273,306 | Planet Fitness Inc, Class A(a) | 4,667 | 250,245 | ||
$ | 864,773 | Media — 3.73% | |||||
Commercial Services — 14.88% | AMC Networks Inc, Class A(a) | 857 | 47,032 | ||||
Bright Horizons Family Solutions Inc(a) | 2,946 | 328,332 | MSG Networks Inc, Class A(a) | 1,941 | 45,730 | ||
Care.com Inc(a) | 10,834 | 209,205 | Sirius XM Holdings Inc | 14,152 | 80,808 | ||
Global Payments Inc | 791 | 81,576 | Vivendi SA | 10,518 | 256,445 | ||
Navitas Ltd | 89,121 | 317,628 | Walt Disney Co/The | 879 | 96,383 | ||
PayPal Holdings Inc(a) | 3,098 | 260,511 | $ | 526,398 | |||
RELX PLC | 4,970 | 102,401 | |||||
TAL Education Group ADR(a) | 7,307 | 194,951 | REITs — 1.97% | ||||
American Campus Communities Inc | 1,133 | 46,895 | |||||
Wirecard AG | 3,449 | 524,784 | |||||
Worldpay Inc, Class A(a) | 1,082 | 82,697 | AvalonBay Communities Inc | 542 | 94,335 | ||
Essex Property Trust Inc | 370 | 90,728 | |||||
$ | 2,102,085 | UNITE Group PLC/The | 4,591 | 47,164 | |||
Computers — 1.90% | $ | 279,122 | |||||
Apple Inc | 531 | 83,760 | |||||
Retail — 19.79% | |||||||
HP Inc | 4,074 | 83,354 | |||||
American Eagle Outfitters Inc | 2,194 | 42,410 | |||||
Ingenico Group SA | 629 | 35,702 | At Home Group Inc(a) | 1,370 | 25,564 | ||
International Business Machines Corp | 579 | 65,815 | |||||
Bed Bath & Beyond Inc | 2,066 | 23,387 | |||||
$ | 268,631 | Children’s Place Inc/The | 328 | 29,550 | |||
Construction Materials — 0.40% | Chipotle Mexican Grill Inc(a) | 545 | 235,326 | ||||
Fortune Brands Home & Security Inc | 1,497 | 56,871 | Dick’s Sporting Goods Inc | 1,248 | 38,938 | ||
Domino’s Pizza Inc | 382 | 94,732 | |||||
Diversified Financial Services — 2.22% | Fast Retailing Co Ltd | 700 | 360,011 | ||||
Discover Financial Services | 4,901 | 289,061 | Foot Locker Inc | 965 | 51,338 | ||
Pagseguro Digital Ltd, Class A(a) | 1,312 | 24,574 | |||||
Hennes & Mauritz AB, Class B | 18,147 | 258,028 | |||||
$ | 313,635 | Hibbett Sports Inc(a) | 1,835 | 26,241 | |||
Electronics — 0.78% | Home Depot Inc/The | 1,975 | 339,344 | ||||
Garmin Ltd | 1,737 | 109,987 | Industria de Diseno Textil SA | 3,289 | 84,223 | ||
JD Sports Fashion PLC | 10,839 | 48,188 | |||||
Food — 3.43% | Lowe’s Cos Inc | 1,007 | 93,007 | ||||
Sprouts Farmers Market Inc(a) | 1,869 | 43,940 | Lululemon Athletica Inc(a) | 999 | 121,488 | ||
Takeaway.com NV(a),(b) | 6,381 | 429,888 | Mr Price Group Ltd | 8,429 | 144,208 | ||
United Natural Foods Inc(a) | 1,013 | 10,728 | Qurate Retail Inc(a) | 3,512 | 68,554 | ||
$ | 484,556 | Signet Jewelers Ltd | 1,335 | 42,413 | |||
Starbucks Corp | 1,526 | 98,274 | |||||
Home Builders — 0.97% | Truworths International Ltd | 22,335 | 136,765 | ||||
DR Horton Inc | 2,010 | 69,666 | Urban Outfitters Inc(a) | 7,931 | 263,309 | ||
Toll Brothers Inc | 2,034 | 66,980 | Williams-Sonoma Inc | 842 | 42,479 | ||
$ | 136,646 | Zalando SE(a),(b) | 4,987 | 128,219 | |||
Home Furnishings — 1.93% | $ | 2,795,996 | |||||
Electrolux AB, Series B | 3,252 | 68,651 | Semiconductors — 1.44% | ||||
Sleep Number Corp(a) | 1,245 | 39,504 | |||||
NVIDIA Corp | 1,521 | 203,053 | |||||
Sony Corp | 2,100 | 102,045 | |||||
Whirlpool Corp | 581 | 62,091 | Software — 3.71% | ||||
$ | 272,291 | Blackbaud Inc | 437 | 27,487 | |||
Cornerstone OnDemand Inc(a) | 1,125 | 56,734 | |||||
Internet — 27.37% | First Data Corp, Class A(a) | 5,531 | 93,529 | ||||
Alibaba Group Holding Ltd ADR(a) | 2,215 | 303,610 | Microsoft Corp | 968 | 98,320 | ||
Alphabet Inc, Class C(a) | 341 | 353,143 | Momo Inc ADR(a) | 9,060 | 215,175 | ||
Amazon.com Inc(a) | 162 | 243,319 | Square Enix Holdings Co Ltd | 1,200 | 32,703 | ||
ASOS PLC(a) | 2,061 | 59,816 | |||||
Baozun Inc ADR(a) | 1,121 | 32,744 | $ | 523,948 | |||
Booking Holdings Inc(a) | 169 | 291,089 | |||||
Ctrip.com International Ltd ADR(a) | 5,826 | 157,652 |
See accompanying notes.
52
Schedule of Investments
Principal Millennials Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | |
Toys, Games & Hobbies — 2.00% | |||
Funko Inc, Class A(a) | 21,484 | $ | 282,515 |
TOTAL COMMON STOCKS | $ | 14,097,265 | |
Total Investments | $ | 14,097,265 | |
Other Assets and Liabilities — 0.22% | $ | 30,493 | |
TOTAL NET ASSETS — 100.00% | $ | 14,127,758 |
(a) | Non-Income Producing Security |
(b) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities totaled $558,107 or 3.95% of net assets. |
Portfolio Summary (unaudited) | ||
Sector | Percent | |
Consumer, Cyclical | 31.83 | % |
Communications | 31.10 | % |
Consumer, Non-cyclical | 24.43 | % |
Technology | 7.05 | % |
Financial | 4.19 | % |
Industrial | 1.18 | % |
Other Assets and Liabilities | 0.22 | % |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
53
Schedule of Investments Principal Price Setters Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS — 99.74% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Aerospace & Defense — 2.07% | Electronics (continued) | ||||||
Boeing Co/The | 510 | $ | 164,475 | Garmin Ltd | 2,155 | $ | 136,454 |
Raytheon Co | 251 | 38,491 | Mettler-Toledo International Inc(a) | 210 | 118,772 | ||
TransDigm Group Inc(a) | 449 | 152,687 | |||||
$ | 530,904 | ||||||
$ | 355,653 | Environmental Control — 2.25% | |||||
Banks — 0.66% | Republic Services Inc | 2,720 | 196,085 | ||||
Fifth Third Bancorp | 1,653 | 38,895 | Waste Management Inc | 2,139 | 190,349 | ||
M&T Bank Corp | 288 | 41,222 | $ | 386,434 | |||
State Street Corp | 515 | 32,481 | |||||
Food — 5.02% | |||||||
$ | 112,598 | Campbell Soup Co | 4,247 | 140,109 | |||
Beverages — 1.40% | Hershey Co/The | 1,861 | 199,462 | ||||
Brown-Forman Corp, Class B | 1,010 | 48,056 | JM Smucker Co/The | 1,010 | 94,425 | ||
Constellation Brands Inc, Class A | 591 | 95,045 | Kellogg Co | 825 | 47,033 | ||
Monster Beverage Corp(a) | 863 | 42,477 | Kraft Heinz Co/The | 1,905 | 81,991 | ||
PepsiCo Inc | 499 | 55,129 | Lamb Weston Holdings Inc | 1,010 | 74,296 | ||
$ | 240,707 | McCormick & Co Inc | 1,204 | 167,645 | |||
Sysco Corp | 917 | 57,459 | |||||
Biotechnology — 0.23% | |||||||
Celgene Corp(a) | 627 | 40,184 | $ | 862,420 | |||
Forest Products & Paper — 0.22% | |||||||
Chemicals — 1.72% | |||||||
Eastman Chemical Co | 1,261 | 92,192 | International Paper Co | 918 | 37,050 | ||
PPG Industries Inc | 1,134 | 115,929 | Gas — 0.37% | ||||
Sherwin-Williams Co/The | 136 | 53,510 | Atmos Energy Corp | 679 | 62,957 | ||
Westlake Chemical Corp | 505 | 33,416 | |||||
Hand/Machine Tools — 0.24% | |||||||
$ | 295,047 | Stanley Black & Decker Inc | 346 | 41,430 | |||
Commercial Services — 7.63% | Healthcare — Products — 2.37% | ||||||
Automatic Data Processing Inc | 477 | 62,544 | IDEXX Laboratories Inc(a) | 978 | 181,928 | ||
Ecolab Inc | 992 | 146,171 | Intuitive Surgical Inc(a) | 127 | 60,823 | ||
Equifax Inc | 1,128 | 105,051 | Zimmer Biomet Holdings Inc | 1,581 | 163,981 | ||
FleetCor Technologies Inc(a) | 638 | 118,489 | |||||
Global Payments Inc | 1,124 | 115,918 | $ | 406,732 | |||
Moody’s Corp | 763 | 106,851 | Healthcare — Services — 4.04% | ||||
S&P Global Inc | 963 | 163,652 | Anthem Inc | 232 | 60,930 | ||
Total System Services Inc | 2,077 | 168,839 | Humana Inc | 676 | 193,661 | ||
TransUnion | 2,255 | 128,084 | Laboratory Corp of America Holdings(a) | 1,070 | 135,205 | ||
Verisk Analytics Inc(a) | 1,789 | 195,073 | Quest Diagnostics Inc | 1,236 | 102,922 | ||
$ | 1,310,672 | UnitedHealth Group Inc | 808 | 201,289 | |||
Computers — 1.99% | $ | 694,007 | |||||
Accenture PLC, Class A | 1,148 | 161,880 | Home Builders — 0.92% | ||||
Apple Inc | 306 | 48,269 | NVR Inc(a) | 65 | 158,404 | ||
Cognizant Technology Solutions Corp, Class A | 1,555 | 98,711 | |||||
DXC Technology Co | 619 | 32,912 | Household Products — 1.58% | ||||
Estee Lauder Cos Inc/The, Class A | 924 | 120,212 | |||||
$ | 341,772 | Procter & Gamble Co/The | 1,649 | 151,576 | |||
Distribution/Wholesale — 1.02% | $ | 271,788 | |||||
Fastenal Co | 3,341 | 174,701 | |||||
Household Products/Wares — 3.28% | |||||||
Diversified Financial Services — 7.91% | Avery Dennison Corp | 464 | 41,681 | ||||
Alliance Data Systems Corp | 528 | 79,242 | Church & Dwight Co Inc | 2,600 | 170,976 | ||
BlackRock Inc | 337 | 132,380 | Clorox Co/The | 1,423 | 219,341 | ||
CME Group Inc | 780 | 146,734 | Kimberly-Clark Corp | 1,153 | 131,373 | ||
Intercontinental Exchange Inc | 2,500 | 188,325 | $ | 563,371 | |||
Mastercard Inc, Class A | 1,040 | 196,196 | |||||
Nasdaq Inc | 2,264 | 184,675 | Insurance — 4.22% | ||||
SEI Investments Co | 1,750 | 80,850 | Aflac Inc | 4,113 | 187,388 | ||
T Rowe Price Group Inc | 1,643 | 151,682 | Arthur J Gallagher & Co | 1,846 | 136,050 | ||
Visa Inc, Class A | 1,495 | 197,250 | Progressive Corp/The | 3,179 | 191,789 | ||
Reinsurance Group of America Inc | 355 | 49,782 | |||||
$ | 1,357,334 | Torchmark Corp | 2,141 | 159,569 | |||
Electric — 5.21% | $ | 724,578 | |||||
American Electric Power Co Inc | 1,947 | 145,519 | |||||
Dominion Energy Inc | 1,721 | 122,983 | Internet — 2.90% | ||||
Duke Energy Corp | 725 | 62,567 | CDW Corp | 2,507 | 203,193 | ||
NextEra Energy Inc | 1,202 | 208,932 | F5 Networks Inc(a) | 1,242 | 201,241 | ||
Pinnacle West Capital Corp | 1,683 | 143,392 | Facebook Inc, Class A(a) | 714 | 93,598 | ||
WEC Energy Group Inc | 3,052 | 211,381 | $ | 498,032 | |||
$ | 894,774 | Lodging — 0.53% | |||||
Electrical Components & Equipment — 0.96% | Las Vegas Sands Corp | 1,750 | 91,088 | ||||
AMETEK Inc | 2,438 | 165,053 | Machinery — Diversified — 3.57% | ||||
Electronics — 3.09% | Cognex Corp | 1,018 | 39,366 | ||||
Amphenol Corp, Class A | 1,395 | 113,023 | Dover Corp | 680 | 48,246 | ||
Fortive Corp | 2,404 | 162,655 | IDEX Corp | 948 | 119,695 |
See accompanying notes.
54
Schedule of Investments Principal Price Setters Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | |||
Machinery — Diversified (continued) | Transportation (continued) | |||||||
Nordson Corp | 952 | $ | 113,621 | FedEx Corp | 221 | $ | 35,654 | |
Roper Technologies Inc | 671 | 178,835 | Kansas City Southern | 531 | 50,684 | |||
Xylem Inc | 1,709 | 114,024 | Norfolk Southern Corp | 917 | 137,128 | |||
$ | 613,787 | Union Pacific Corp | 422 | 58,333 | ||||
United Parcel Service Inc, Class B | 524 | 51,106 | ||||||
Media — 0.30% | ||||||||
Comcast Corp, Class A | 1,512 | 51,484 | $ | 453,417 | ||||
Miscellaneous Manufacture — 1.99% | Water — 0.85% | |||||||
3M Co | 784 | 149,383 | American Water Works Co Inc | 1,609 | 146,049 | |||
Eaton Corp PLC | 677 | 46,483 | ||||||
Illinois Tool Works Inc | 792 | 100,338 | TOTAL COMMON STOCKS | $ | 17,126,981 | |||
Parker-Hannifin Corp | 306 | 45,637 | Total Investments | $ | 17,126,981 | |||
$ | 341,841 | Other Assets and Liabilities — 0.26% | $ | 44,762 | ||||
Pharmaceuticals — 3.73% | TOTAL NET ASSETS — 100.00% | $ | 17,171,743 | |||||
AbbVie Inc | 1,101 | 101,501 | ||||||
Cigna Corp | 661 | 125,537 | (a)Non-Income Producing Security | |||||
Pfizer Inc | 5,038 | 219,909 | ||||||
Zoetis Inc | 2,260 | 193,320 | Portfolio Summary (unaudited) | |||||
$ | 640,267 | Sector | Percent | |||||
Real Estate — 0.64% | Consumer, Non-cyclical | 29.29 | % | |||||
CBRE Group Inc, Class A(a) | 2,727 | 109,189 | Technology | 17.68 | % | |||
REITs — 3.95% | Financial | 17.37 | % | |||||
American Tower Corp | 1,312 | 207,545 | Industrial | 16.82 | % | |||
Essex Property Trust Inc | 578 | 141,731 | Utilities | 6.43 | % | |||
Extra Space Storage Inc | 2,149 | 194,442 | Consumer, Cyclical | 6.18 | % | |||
Public Storage | 666 | 134,805 | Communications | 4.04 | % | |||
Basic Materials | 1.93 | % | ||||||
$ | 678,523 | |||||||
Other Assets and Liabilities | 0.26 | % | ||||||
Retail — 3.71% | ||||||||
Domino’s Pizza Inc | 245 | 60,757 | TOTAL NET ASSETS | 100.00 | % | |||
Home Depot Inc/The | 706 | 121,305 | ||||||
Lowe’s Cos Inc | 610 | 56,339 | ||||||
McDonald’s Corp | 1,170 | 207,757 | ||||||
Starbucks Corp | 957 | 61,631 | ||||||
Walgreens Boots Alliance Inc | 1,881 | 128,529 | ||||||
$ | 636,318 | |||||||
Semiconductors — 3.68% | ||||||||
Applied Materials Inc | 949 | 31,070 | ||||||
IPG Photonics Corp(a) | 222 | 25,150 | ||||||
KLA-Tencor Corp | 482 | 43,134 | ||||||
Lam Research Corp | 664 | 90,417 | ||||||
Maxim Integrated Products Inc | 897 | 45,612 | ||||||
Microchip Technology Inc | 615 | 44,231 | ||||||
Micron Technology Inc(a) | 1,119 | 35,506 | ||||||
NVIDIA Corp | 225 | 30,038 | ||||||
ON Semiconductor Corp(a) | 5,332 | 88,031 | ||||||
Teradyne Inc | 1,207 | 37,876 | ||||||
Texas Instruments Inc | 1,706 | 161,217 | ||||||
$ | 632,282 | |||||||
Software — 12.01% | ||||||||
Adobe Inc(a) | 874 | 197,734 | ||||||
ANSYS Inc(a) | 342 | 48,886 | ||||||
Broadridge Financial Solutions Inc | 1,820 | 175,175 | ||||||
CDK Global Inc | 1,857 | 88,913 | ||||||
Cerner Corp(a) | 852 | 44,679 | ||||||
Fidelity National Information Services Inc | 1,881 | 192,897 | ||||||
Fiserv Inc(a) | 2,563 | 188,355 | ||||||
Intuit Inc | 1,096 | 215,748 | ||||||
Jack Henry & Associates Inc | 1,566 | 198,130 | ||||||
MSCI Inc | 1,305 | 192,396 | ||||||
Paychex Inc | 2,836 | 184,765 | ||||||
Red Hat Inc(a) | 1,241 | 217,969 | ||||||
SS&C Technologies Holdings Inc | 2,575 | 116,158 | ||||||
$ | 2,061,805 | |||||||
Telecommunications — 0.84% | ||||||||
Arista Networks Inc(a) | 685 | 144,329 | ||||||
Transportation — 2.64% | ||||||||
CSX Corp | 1,018 | 63,248 | ||||||
Expeditors International of Washington Inc | 841 | 57,264 |
See accompanying notes.
55
Schedule of Investments Principal Shareholder Yield Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS — 99.67% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Advertising — 2.05% | Construction Materials — 0.37% | ||||||
Interpublic Group of Cos Inc/The | 5,297 | $ | 109,277 | Fortune Brands Home & Security Inc | 1,078 | $ | 40,953 |
Omnicom Group Inc | 1,614 | 118,209 | |||||
Distribution/Wholesale — 1.70% | |||||||
$ | 227,486 | Watsco Inc | 395 | 54,960 | |||
Aerospace & Defense — 2.57% | WW Grainger Inc | 473 | 133,556 | ||||
Boeing Co/The | 342 | 110,295 | $ | 188,516 | |||
General Dynamics Corp | 294 | 46,220 | Diversified Financial Services — 8.15% | ||||
Spirit AeroSystems Holdings Inc, Class A | 715 | 51,544 | Alliance Data Systems Corp | 513 | 76,991 | ||
TransDigm Group Inc(a) | 227 | 77,194 | |||||
American Express Co | 670 | 63,864 | |||||
$ | 285,253 | Capital One Financial Corp | 668 | 50,494 | |||
Airlines — 2.48% | Discover Financial Services | 1,572 | 92,717 | ||||
Alaska Air Group Inc | 1,908 | 116,102 | Intercontinental Exchange Inc | 895 | 67,420 | ||
Delta Air Lines Inc | 1,212 | 60,479 | Invesco Ltd | 2,009 | 33,631 | ||
Southwest Airlines Co | 2,126 | 98,816 | Lazard Ltd, Class A | 2,297 | 84,782 | ||
Legg Mason Inc | 3,086 | 78,724 | |||||
$ | 275,397 | Mastercard Inc, Class A | 374 | 70,555 | |||
Apparel — 2.06% | Nasdaq Inc | 1,524 | 124,313 | ||||
Carter’s Inc | 1,062 | 86,680 | Navient Corp | 9,515 | 83,827 | ||
Hanesbrands Inc | 6,330 | 79,315 | Synchrony Financial | 3,375 | 79,178 | ||
VF Corp | 877 | 62,565 | $ | 906,496 | |||
$ | 228,560 | Electronics — 1.61% | |||||
Auto Manufacturers — 1.30% | Allegion PLC | 777 | 61,935 | ||||
Ford Motor Co | 11,675 | 89,314 | Gentex Corp | 2,878 | 58,164 | ||
General Motors Co | 1,662 | 55,594 | Honeywell International Inc | 449 | 59,322 | ||
$ | 144,908 | $ | 179,421 | ||||
Auto Parts & Equipment — 2.75% | Entertainment — 0.60% | ||||||
Allison Transmission Holdings Inc | 3,107 | 136,428 | Vail Resorts Inc | 318 | 67,041 | ||
BorgWarner Inc | 2,525 | 87,719 | Food — 1.84% | ||||
Lear Corp | 663 | 81,456 | General Mills Inc | 1,292 | 50,310 | ||
$ | 305,603 | Kroger Co/The | 2,409 | 66,248 | |||
Tyson Foods Inc, Class A | 1,652 | 88,217 | |||||
Banks — 8.23% | |||||||
Associated Banc-Corp | 2,646 | 52,364 | $ | 204,775 | |||
Bank of New York Mellon Corp/The | 2,170 | 102,142 | Hand/Machine Tools — 1.01% | ||||
BB&T Corp | 1,203 | 52,114 | Snap-on Inc | 773 | 112,309 | ||
Citigroup Inc | 865 | 45,032 | |||||
Healthcare — Products — 0.69% | |||||||
Citizens Financial Group Inc | 1,503 | 44,684 | |||||
Patterson Cos Inc | 3,927 | 77,205 | |||||
Huntington Bancshares Inc | 7,898 | 94,144 | |||||
PacWest Bancorp | 1,253 | 41,700 | Healthcare — Services — 3.41% | ||||
PNC Financial Services Group Inc/The | 415 | 48,518 | Anthem Inc | 278 | 73,011 | ||
Popular Inc | 2,931 | 138,402 | Humana Inc | 242 | 69,328 | ||
Regions Financial Corp | 6,384 | 85,418 | Quest Diagnostics Inc | 1,202 | 100,091 | ||
State Street Corp | 616 | 38,851 | UnitedHealth Group Inc | 548 | 136,518 | ||
Synovus Financial Corp | 2,513 | 80,391 | $ | 378,948 | |||
Zions Bancorp NA | 2,253 | 91,787 | |||||
Home Builders — 0.44% | |||||||
$ | 915,547 | Toll Brothers Inc | 1,490 | 49,066 | |||
Biotechnology — 2.06% | Home Furnishings — 0.73% | ||||||
Amgen Inc | 670 | 130,429 | Whirlpool Corp | 763 | 81,542 | ||
Gilead Sciences Inc | 1,574 | 98,454 | |||||
Household Products — 0.55% | |||||||
$ | 228,883 | ||||||
Estee Lauder Cos Inc/The, Class A | 472 | 61,407 | |||||
Chemicals — 3.29% | |||||||
Air Products & Chemicals Inc | 407 | 65,140 | Household Products/Wares — 0.78% | ||||
Celanese Corp, Series A | 648 | 58,301 | Church & Dwight Co Inc | 1,325 | 87,132 | ||
Eastman Chemical Co | 1,215 | 88,829 | Housewares — 0.98% | ||||
LyondellBasell Industries NV, Class A | 1,136 | 94,470 | Toro Co/The | 1,950 | 108,966 | ||
PPG Industries Inc | 580 | 59,293 | |||||
Insurance — 6.21% | |||||||
$ | 366,033 | Allstate Corp/The | 1,333 | 110,146 | |||
Commercial Services — 1.18% | American Financial Group Inc | 1,129 | 102,208 | ||||
H&R Block Inc | 2,581 | 65,480 | Axis Capital Holdings Ltd | 1,324 | 68,371 | ||
Robert Half International Inc | 1,145 | 65,494 | CNO Financial Group Inc | 5,448 | 81,066 | ||
Fidelity National Financial Inc | 1,638 | 51,499 | |||||
$ | 130,974 | First American Financial Corp | 2,136 | 95,351 | |||
Computers — 2.54% | MetLife Inc | 1,416 | 58,141 | ||||
Apple Inc | 691 | 108,998 | Primerica Inc | 1,271 | 124,190 | ||
Cognizant Technology Solutions Corp, Class A | 798 | 50,657 | $ | 690,972 | |||
International Business Machines Corp | 420 | 47,742 | |||||
Seagate Technology PLC | 1,223 | 47,196 | Internet — 1.23% | ||||
Western Digital Corp | 756 | 27,949 | CDW Corp | 1,688 | 136,812 | ||
$ | 282,542 | Leisure Time — 0.83% | |||||
Harley-Davidson Inc | 2,709 | 92,431 |
See accompanying notes.
56
Schedule of Investments Principal Shareholder Yield Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | |||
Lodging — 0.41% | Shipbuilding — 0.43% | |||||||
Wyndham Destinations Inc | 1,256 | $ | 45,015 | Huntington Ingalls Industries Inc | 249 | $ | 47,387 | |
Machinery — Diversified — 0.88% | Software — 1.59% | |||||||
Cummins Inc | 736 | 98,359 | Broadridge Financial Solutions Inc | 651 | 62,659 | |||
CDK Global Inc | 952 | 45,582 | ||||||
Media — 2.27% | ||||||||
MSCI Inc | 462 | 68,112 | ||||||
Comcast Corp, Class A | 1,804 | 61,426 | ||||||
Sirius XM Holdings Inc | 10,407 | 59,424 | $ | 176,353 | ||||
Walt Disney Co/The | 1,201 | 131,690 | Telecommunications — 2.89% | |||||
$ | 252,540 | Cisco Systems Inc | 2,748 | 119,071 | ||||
Juniper Networks Inc | 2,547 | 68,540 | ||||||
Miscellaneous Manufacture — 2.22% | ||||||||
Motorola Solutions Inc | 1,159 | 133,331 | ||||||
Carlisle Cos Inc | 635 | 63,830 | ||||||
Eaton Corp PLC | 809 | 55,546 | $ | 320,942 | ||||
Ingersoll-Rand PLC | 1,395 | 127,266 | Transportation — 1.17% | |||||
$ | 246,642 | Union Pacific Corp | 945 | 130,627 | ||||
Oil & Gas — 1.94% | TOTAL COMMON STOCKS | $ | 11,083,054 | |||||
Marathon Petroleum Corp | 1,920 | 113,299 | ||||||
Valero Energy Corp | 1,366 | 102,409 | Total Investments | $ | 11,083,054 | |||
Other Assets and Liabilities — 0.33% | $ | 36,889 | ||||||
$ | 215,708 | |||||||
TOTAL NET ASSETS — 100.00% | $ | 11,119,943 | ||||||
Oil & Gas Services — 0.91% | ||||||||
Baker Hughes a GE Co | 4,692 | 100,878 | ||||||
(a)Non-income producing security | ||||||||
Packaging & Containers — 0.83% | ||||||||
Silgan Holdings Inc | 2,297 | 54,255 | Portfolio Summary (unaudited) | |||||
Westrock Co | 993 | 37,496 | ||||||
Sector | Percent | |||||||
$ | 91,751 | |||||||
Financial | 27.02 | % | ||||||
Pharmaceuticals — 4.03% | Consumer, Cyclical | 25.95 | % | |||||
AbbVie Inc | 564 | 51,995 | Consumer, Non-cyclical | 14.55 | % | |||
Allergan PLC | 804 | 107,463 | Industrial | 11.08 | % | |||
Cardinal Health Inc | 944 | 42,102 | Communications | 8.43 | % | |||
CVS Health Corp | 1,829 | 119,836 | Technology | 6.50 | % | |||
McKesson Corp | 438 | 48,386 | Basic Materials | 3.29 | % | |||
Pfizer Inc | 1,795 | 78,352 | Energy | 2.85 | % | |||
$ | 448,134 | Other Assets and Liabilities | 0.33 | % | ||||
Real Estate — 1.10% | TOTAL NET ASSETS | 100.00 | % | |||||
Jones Lang LaSalle Inc | 406 | 51,400 | ||||||
Realogy Holdings Corp | 4,805 | 70,537 | ||||||
$ | 121,937 | |||||||
REITs — 2.46% | ||||||||
American Tower Corp | 468 | 74,033 | ||||||
Extra Space Storage Inc | 769 | 69,579 | ||||||
Host Hotels & Resorts Inc | 3,520 | 58,678 | ||||||
Simon Property Group Inc | 426 | 71,564 | ||||||
$ | 273,854 | |||||||
Retail — 11.67% | ||||||||
Bed Bath & Beyond Inc | 5,738 | 64,954 | ||||||
Cracker Barrel Old Country Store Inc | 430 | 68,740 | ||||||
Foot Locker Inc | 2,681 | 142,629 | ||||||
Home Depot Inc/The | 675 | 115,978 | ||||||
Kohl’s Corp | 989 | 65,610 | ||||||
Lowe’s Cos Inc | 1,383 | 127,734 | ||||||
Nordstrom Inc | 2,398 | 111,771 | ||||||
Signet Jewelers Ltd | 2,465 | 78,313 | ||||||
Target Corp | 1,643 | 108,586 | ||||||
TJX Cos Inc/The | 1,582 | 70,779 | ||||||
Tractor Supply Co | 1,897 | 158,286 | ||||||
Walgreens Boots Alliance Inc | 949 | 64,845 | ||||||
Williams-Sonoma Inc | 2,378 | 119,970 | ||||||
$ | 1,298,195 | |||||||
Savings & Loans — 0.86% | ||||||||
Investors Bancorp Inc | 9,183 | 95,503 | ||||||
Semiconductors — 2.37% | ||||||||
Entegris Inc | 1,968 | 54,897 | ||||||
Lam Research Corp | 646 | 87,966 | ||||||
Skyworks Solutions Inc | 1,134 | 76,001 | ||||||
Teradyne Inc | 1,440 | 45,187 | ||||||
$ | 264,051 |
See accompanying notes.
57
Schedule of Investments
Principal Spectrum Preferred Securities Active ETF
December 31, 2018 (unaudited)
Principal | Principal | |||||||||
BONDS — 97.77% | Amount | Value | BONDS (continued) | Amount | Value | |||||
Banks — 46.98% | Insurance (continued) | |||||||||
Bank of America Corp | Catlin Insurance Co Ltd | |||||||||
(3-month USD LIBOR + 3.90%), | (3-month USD LIBOR + 2.98%), | |||||||||
6.10%, 03/17/2025(a),(b) | $ | 2,200,000 | $ | 2,167,000 | 5.43%, 04/19/2019(b) | $ | 1,650,000 | $ | 1,544,400 | |
Bank of New York Mellon Corp/The | Dai-ichi Life Insurance Co Ltd/The | |||||||||
(3-month USD LIBOR + 3.42%), | (3-month USD LIBOR + 3.68%), | |||||||||
4.95%, 06/20/2020(a),(b) | 1,100,000 | 1,072,500 | 5.10%, 10/28/2024(a),(b),(c) | 2,200,000 | 2,189,000 | |||||
BNP Paribas SA | Legal & General Group PLC | |||||||||
(3-month USD LIBOR + 1.29%), | (5-year Swap rate + 3.69%), | |||||||||
7.20%, 06/25/2037(a),(b),(c) | 2,200,000 | 2,244,000 | 5.25%, 03/21/2047(a) | 2,200,000 | 1,961,846 | |||||
Citigroup Inc | Lincoln National Corp | |||||||||
(3-month USD LIBOR + 4.06%), | (3-month USD LIBOR + 2.04%), | |||||||||
5.88%, 03/27/2020(a),(b) | 1,100,000 | 1,061,500 | 4.51%, 04/20/2067 | 1,100,000 | 857,450 | |||||
Citizens Financial Group Inc | Meiji Yasuda Life Insurance Co | |||||||||
(3-month USD LIBOR + 3.16%), | (5-year Swap rate + 4.23%), | |||||||||
6.38%, 04/06/2024(a),(b) | 1,100,000 | 1,028,500 | 5.20%, 10/20/2045(a),(c) | 1,100,000 | 1,100,000 | |||||
Credit Agricole SA | MetLife Inc | |||||||||
(3-month USD LIBOR + 6.98%), | 9.25%, 04/08/2038(c) | 1,635,000 | 2,060,100 | |||||||
8.38%, 10/13/2019(a),(b),(c) | 1,650,000 | 1,687,125 | Progressive Corp/The | |||||||
Dresdner Funding Trust I | (3-month USD LIBOR + 2.54%), | |||||||||
8.15%, 06/30/2031(c) | 1,650,000 | 1,987,425 | 5.38%, 03/15/2023(a),(b) | 1,650,000 | 1,546,132 | |||||
Goldman Sachs Group Inc/The | Prudential Financial Inc | |||||||||
(3-month USD LIBOR + 3.92%), | (3-month USD LIBOR + 3.92%), | |||||||||
5.38%, 05/10/2020(a),(b) | 1,650,000 | 1,594,346 | 5.63%, 06/15/2043(a) | 1,650,000 | 1,615,894 | |||||
HSBC Capital Funding Dollar 1 LP | QBE Insurance Group Ltd | |||||||||
(3-month USD LIBOR + 4.98%), | (10-year Swap rate + 4.40%), | |||||||||
10.18%, 06/30/2030(a),(b) | 1,600,000 | 2,296,000 | 5.88%, 06/17/2046(a) | 1,100,000 | 1,043,744 | |||||
JPMorgan Chase & Co | Voya Financial Inc | |||||||||
(3-month USD LIBOR + 3.78%), | (United States Treasury + 3.36%) | |||||||||
6.75%, 02/01/2024(a),(b) | 1,100,000 | 1,136,575 | 6.13%, 09/15/2023(a),(b) | 1,100,000 | 1,043,625 | |||||
Lloyds Bank PLC | $ | 16,991,691 | ||||||||
(3-month USD LIBOR + 11.76%), | ||||||||||
12.00%, 12/16/2024(a),(b),(c) | 1,650,000 | 1,929,429 | Pipelines — 6.90% | |||||||
Morgan Stanley | Enbridge Inc | |||||||||
(3-month USD LIBOR + 3.81%), | (3-month USD LIBOR + 3.89%), | |||||||||
5.55%, 07/15/2020(a),(b) | 1,100,000 | 1,067,550 | 6.00%, 01/15/2077(a) | 1,650,000 | 1,481,666 | |||||
Standard Chartered PLC | Enterprise Products Operating LLC | |||||||||
(3-month USD LIBOR + 1.46%), | (3-month USD LIBOR + 3.03%), | |||||||||
7.01%, 07/30/2037(a),(b),(c) | 2,200,000 | 2,194,500 | 5.25%, 08/16/2077(a) | 1,100,000 | 915,447 | |||||
US Bancorp | Transcanada Trust | |||||||||
(3-month USD LIBOR + 2.91%), | (3-month USD LIBOR + 3.53%), | |||||||||
5.30%, 04/15/2027(a),(b) | 550,000 | 517,000 | 5.63%, 05/20/2075(a) | 1,100,000 | 991,375 | |||||
Wells Fargo & Co | $ | 3,388,488 | ||||||||
(3-month USD LIBOR + 3.99%), | ||||||||||
5.88%, 06/15/2025(a),(b) | 1,100,000 | 1,087,295 | TOTAL BONDS | $ | 48,008,367 | |||||
$ | 23,070,745 | Total Investments | $ | 48,008,367 | ||||||
Other Assets and Liabilities — 2.23% | $ | 1,093,588 | ||||||||
Diversified Financial Services — 4.25% | TOTAL NET ASSETS — 100.00% | $ | 49,101,955 | |||||||
American Express Co | ||||||||||
(3-month USD LIBOR + 3.43%), | ||||||||||
5.20%, 11/15/2019(a),(b) | 1,650,000 | 1,625,250 | (a)Rate shown is as of period end. The rate may be a variable or floating rate | |||||||
Charles Schwab Corp/The | or a fixed rate which may convert to a variable or floating rate in the future. | |||||||||
(3-month USD LIBOR + 2.58%), | (b)Perpetual securities pay an indefinite stream of interest, but they may be | |||||||||
5.00%, 12/01/2027(a),(b) | 550,000 | 460,625 | called by the issuer at an earlier date. Date shown, if any, reflects the next | |||||||
$ | 2,085,875 | call date or final legal maturity date. Rate shown is as of period end. | ||||||||
(c)Security exempt from registration under Rule 144A of the Securities Act of | ||||||||||
Electric — 3.37% | ||||||||||
Emera Inc | 1933. These securities may be resold in transactions exempt from registration, | |||||||||
(3-month USD LIBOR + 5.44%), | normally to qualified institutional buyers. At the end of the period, the value | |||||||||
6.75%, 06/15/2076(a) | 1,650,000 | 1,653,168 | of these securities totaled $16,209,979 or 33.01% of net assets. | |||||||
Gas — 1.67% | ||||||||||
NiSource Inc | Portfolio Summary (unaudited) | |||||||||
(5-year Swap rate + 2.84%) | Sector | Percent | ||||||||
5.65%, 06/15/2023(a),(b),(c) | 880,000 | 818,400 | ||||||||
Financial | 85.84 | % | ||||||||
Insurance — 34.60% | Energy | 6.90 | % | |||||||
Allstate Corp/The | Utilities | 5.03 | % | |||||||
(3-month USD LIBOR + 2.94%), | �� | Other Assets and Liabilities | 2.23 | % | ||||||
5.75%, 08/15/2053(a) | 1,100,000 | 1,072,500 | ||||||||
TOTAL NET ASSETS | 100.00 | % | ||||||||
American International Group Inc | ||||||||||
(3-month USD LIBOR + 2.87%), | ||||||||||
5.75%, 04/01/2048(a) | 1,100,000 | 957,000 |
See accompanying notes.
58
Schedule of Investments Principal Sustainable Momentum Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS — 99.75% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Aerospace & Defense — 6.08% | Diversified Financial Services (continued) | ||||||
Boeing Co/The | 136 | $ | 43,860 | SEI Investments Co | 590 | $ | 27,258 |
Curtiss-Wright Corp | 326 | 33,291 | T Rowe Price Group Inc | 415 | 38,313 | ||
Harris Corp | 274 | 36,894 | TD Ameritrade Holding Corp | 746 | 36,524 | ||
HEICO Corp | 644 | 49,897 | Visa Inc, Class A | 241 | 31,798 | ||
Lockheed Martin Corp | 85 | 22,256 | $ | 424,468 | |||
Northrop Grumman Corp | 128 | 31,347 | |||||
Raytheon Co | 204 | 31,284 | Electric — 0.63% | ||||
Teledyne Technologies Inc(a) | 236 | 48,869 | NextEra Energy Inc | 176 | 30,592 | ||
$ | 297,698 | Electrical Components & Equipment — 0.82% | |||||
AMETEK Inc | 590 | 39,943 | |||||
Apparel — 2.61% | |||||||
Columbia Sportswear Co | 377 | 31,702 | Electronics — 2.83% | ||||
PVH Corp | 291 | 27,048 | FLIR Systems Inc | 883 | 38,446 | ||
Ralph Lauren Corp | 400 | 41,384 | Keysight Technologies Inc(a) | 846 | 52,520 | ||
VF Corp | 387 | 27,609 | National Instruments Corp | 570 | 25,866 | ||
TE Connectivity Ltd | 289 | 21,857 | |||||
$ | 127,743 | ||||||
$ | 138,689 | ||||||
Banks — 1.59% | |||||||
Comerica Inc | 459 | 31,529 | Energy-Alternate Sources — 0.35% | ||||
First Solar Inc(a) | 404 | 17,152 | |||||
JPMorgan Chase & Co | 262 | 25,576 | |||||
Regions Financial Corp | 1,550 | 20,739 | Entertainment — 0.60% | ||||
$ | 77,844 | Churchill Downs Inc | 120 | 29,273 | |||
Beverages — 1.22% | Food — 1.14% | ||||||
Brown-Forman Corp, Class B | 824 | 39,206 | Lamb Weston Holdings Inc | 761 | 55,979 | ||
Constellation Brands Inc, Class A | 126 | 20,263 | Healthcare — Products — 5.33% | ||||
$ | 59,469 | Abbott Laboratories | 481 | 34,791 | |||
ABIOMED Inc(a) | 152 | 49,406 | |||||
Chemicals — 1.17% | |||||||
Eastman Chemical Co | 425 | 31,072 | Bio-Techne Corp | 296 | 42,837 | ||
Westlake Chemical Corp | 398 | 26,335 | Cantel Medical Corp | 258 | 19,208 | ||
ICU Medical Inc(a) | 175 | 40,185 | |||||
$ | 57,407 | Insulet Corp(a) | 517 | 41,009 | |||
Commercial Services — 11.62% | ResMed Inc | 292 | 33,250 | ||||
2U Inc(a) | 524 | 26,053 | $ | 260,686 | |||
ASGN Inc(a) | 548 | 29,866 | |||||
Bright Horizons Family Solutions Inc(a) | 445 | 49,595 | Healthcare — Services — 1.59% | ||||
Cimpress NV(a) | 285 | 29,475 | Chemed Corp | 164 | 46,458 | ||
Encompass Health Corp | 512 | 31,590 | |||||
Cintas Corp | 169 | 28,390 | |||||
CoStar Group Inc(a) | 122 | 41,156 | $ | 78,048 | |||
FleetCor Technologies Inc(a) | 143 | 26,558 | Household Products — 0.78% | ||||
Grand Canyon Education Inc(a) | 274 | 26,342 | Estee Lauder Cos Inc/The, Class A | 295 | 38,380 | ||
Moody’s Corp | 278 | 38,931 | |||||
S&P Global Inc | 232 | 39,426 | Insurance — 2.71% | ||||
Square Inc, Class A(a) | 909 | 50,986 | Fidelity National Financial Inc | 720 | 22,637 | ||
Total System Services Inc | 519 | 42,190 | First American Financial Corp | 491 | 21,918 | ||
United Rentals Inc(a) | 255 | 26,145 | Hanover Insurance Group Inc/The | 380 | 44,373 | ||
Verisk Analytics Inc(a) | 430 | 46,887 | Progressive Corp/The | 725 | 43,739 | ||
Weight Watchers International Inc(a) | 703 | 27,101 | $ | 132,667 | |||
WEX Inc(a) | 282 | 39,497 | Internet — 7.30% | ||||
$ | 568,598 | Amazon.com Inc(a) | 31 | 46,561 | |||
GoDaddy Inc(a) | 729 | 47,837 | |||||
Computers — 4.09% | GrubHub Inc(a) | 441 | 33,873 | ||||
Cognizant Technology Solutions Corp, Class A | 358 | 22,726 | IAC/InterActiveCorp(a) | 283 | 51,800 | ||
DXC Technology Co | 331 | 17,599 | Netflix Inc(a) | 150 | 40,149 | ||
EPAM Systems Inc(a) | 252 | 29,234 | |||||
Palo Alto Networks Inc(a) | 246 | 46,334 | |||||
Fortinet Inc(a) | 834 | 58,739 | |||||
VeriSign Inc(a) | 243 | 36,035 | |||||
NetApp Inc | 716 | 42,724 | Zendesk Inc(a) | 934 | 54,518 | ||
Seagate Technology PLC | 753 | 29,058 | |||||
$ | 357,107 | ||||||
$ | 200,080 | ||||||
Lodging — 2.59% | |||||||
Distribution/Wholesale — 2.66% | Choice Hotels International Inc | 360 | 25,769 | ||||
Copart Inc(a) | 867 | 41,425 | Hilton Worldwide Holdings Inc | 366 | 26,279 | ||
KAR Auction Services Inc | 532 | 25,387 | Hyatt Hotels Corp, Class A | 588 | 39,749 | ||
Watsco Inc | 248 | 34,507 | Marriott International Inc, Class A | 324 | 35,173 | ||
WW Grainger Inc | 102 | 28,801 | |||||
$ | 126,970 | ||||||
$ | 130,120 | ||||||
Machinery — Construction & Mining — 0.35% | |||||||
Diversified Financial Services — 8.67% | BWX Technologies Inc | 454 | 17,356 | ||||
BlackRock Inc | 82 | 32,211 | |||||
CME Group Inc | 277 | 52,109 | Machinery — Diversified — 2.71% | ||||
Credit Acceptance Corp(a) | 135 | 51,538 | Deere & Co | 186 | 27,746 | ||
E*TRADE Financial Corp | 797 | 34,972 | IDEX Corp | 310 | 39,141 | ||
LPL Financial Holdings Inc | 725 | 44,283 | Roper Technologies Inc | 103 | 27,451 | ||
Mastercard Inc, Class A | 253 | 47,728 | Xylem Inc | 574 | 38,297 | ||
Nasdaq Inc | 340 | 27,734 | $ | 132,635 |
See accompanying notes.
59
Schedule of Investments Principal Sustainable Momentum Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | Portfolio Summary (unaudited) | |||
Oil & Gas — 3.05% | Sector | Percent | ||||
Continental Resources Inc(a) | 760 | $ | 30,544 | |||
Consumer, Non-cyclical | 25.32 | % | ||||
HollyFrontier Corp | 916 | 46,826 | Technology | 19.78 | % | |
Marathon Petroleum Corp | 612 | 36,114 | Financial | 15.60 | % | |
Valero Energy Corp | 476 | 35,686 | Industrial | 14.88 | % | |
$ | 149,170 | Consumer, Cyclical | 10.11 | % | ||
Pharmaceuticals — 3.64% | Communications | 8.86 | % | |||
Herbalife Nutrition Ltd(a) | 909 | 53,586 | Energy | 3.40 | % | |
Nektar Therapeutics(a) | 416 | 13,674 | Basic Materials | 1.17 | % | |
Sarepta Therapeutics Inc(a) | 603 | 65,805 | Utilities | 0.63 | % | |
Zoetis Inc | 529 | 45,251 | Other Assets and Liabilities | 0.25 | % | |
$ | 178,316 | TOTAL NET ASSETS | 100.00 | % | ||
Real Estate — 1.42% | ||||||
CBRE Group Inc, Class A(a) | 935 | 37,437 | ||||
Jones Lang LaSalle Inc | 253 | 32,030 | ||||
$ | 69,467 | |||||
REITs — 1.21% | ||||||
Rayonier Inc | 1,253 | 34,696 | ||||
Ryman Hospitality Properties Inc | 370 | 24,675 | ||||
$ | 59,371 | |||||
Retail — 1.64% | ||||||
Burlington Stores Inc(a) | 216 | 35,137 | ||||
Kohl’s Corp | 684 | 45,376 | ||||
$ | 80,513 | |||||
Semiconductors — 2.08% | ||||||
Intel Corp | 860 | 40,360 | ||||
IPG Photonics Corp(a) | 124 | 14,048 | ||||
Micron Technology Inc(a) | 551 | 17,483 | ||||
ON Semiconductor Corp(a) | 1,805 | 29,801 | ||||
$ | 101,692 | |||||
Software — 13.62% | ||||||
Adobe Inc(a) | 205 | 46,379 | ||||
ANSYS Inc(a) | 183 | 26,158 | ||||
Aspen Technology Inc(a) | 562 | 46,185 | ||||
Broadridge Financial Solutions Inc | 403 | 38,789 | ||||
Intuit Inc | 258 | 50,787 | ||||
Jack Henry & Associates Inc | 239 | 30,238 | ||||
Microsoft Corp | 316 | 32,096 | ||||
MSCI Inc | 296 | 43,639 | ||||
Paycom Software Inc(a) | 413 | 50,572 | ||||
PTC Inc(a) | 574 | 47,585 | ||||
RealPage Inc(a) | 558 | 26,890 | ||||
Red Hat Inc(a) | 296 | 51,990 | ||||
salesforce.com Inc(a) | 248 | 33,969 | ||||
ServiceNow Inc(a) | 267 | 47,539 | ||||
Splunk Inc(a) | 292 | 30,616 | ||||
SS&C Technologies Holdings Inc | 836 | 37,712 | ||||
Tyler Technologies Inc(a) | 136 | 25,272 | ||||
$ | 666,416 | |||||
Telecommunications — 1.56% | ||||||
Cisco Systems Inc | 1,043 | 45,193 | ||||
Motorola Solutions Inc | 273 | 31,406 | ||||
$ | 76,599 | |||||
Transportation — 2.09% | ||||||
CH Robinson Worldwide Inc | 478 | 40,195 | ||||
Old Dominion Freight Line Inc | 301 | 37,171 | ||||
XPO Logistics Inc(a) | 434 | 24,755 | ||||
$ | 102,121 | |||||
TOTAL COMMON STOCKS | $ | 4,882,569 | ||||
Total Investments | $ | 4,882,569 | ||||
Other Assets and Liabilities — 0.25% | $ | 12,170 | ||||
TOTAL NET ASSETS — 100.00% | $ | 4,894,739 | ||||
(a)Non-Income Producing Security |
See accompanying notes.
60
Schedule of Investments
Principal U.S. Mega-Cap Multi-Factor Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS — 99.70% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | |||
Aerospace & Defense — 3.60% | Pharmaceuticals (continued) | |||||||
Boeing Co/The | 84,731 | $ | 27,325,747 | Pfizer Inc | 1,076,403 | $ | 46,984,991 | |
United Technologies Corp | 225,383 | 23,998,782 | $ | 176,697,053 | ||||
$ | 51,324,529 | Retail — 7.38% | ||||||
Agriculture — 2.71% | Home Depot Inc/The | 228,943 | 39,336,986 | |||||
Altria Group Inc | 258,507 | 12,767,661 | McDonald’s Corp | 283,613 | 50,361,161 | |||
Philip Morris International Inc | 386,456 | 25,799,802 | Walmart Inc | 166,016 | 15,464,390 | |||
$ | 38,567,463 | $ | 105,162,537 | |||||
Banks — 7.30% | Semiconductors — 1.60% | |||||||
Bank of America Corp | 1,069,634 | 26,355,782 | Intel Corp | 329,680 | 15,471,882 | |||
Citigroup Inc | 439,239 | 22,866,782 | NVIDIA Corp | 55,478 | 7,406,313 | |||
JPMorgan Chase & Co | 279,258 | 27,261,166 | $ | 22,878,195 | ||||
Wells Fargo & Co | 599,545 | 27,627,034 | ||||||
Software — 6.74% | ||||||||
$ | 104,110,764 | Adobe Inc(a) | 57,753 | 13,066,038 | ||||
Beverages — 5.60% | Microsoft Corp | 275,521 | 27,984,668 | |||||
Coca-Cola Co/The | 1,026,981 | 48,627,551 | Oracle Corp | 919,805 | 41,529,196 | |||
PepsiCo Inc | 281,859 | 31,139,782 | salesforce.com Inc(a) | 98,035 | 13,427,854 | |||
$ | 79,767,333 | $ | 96,007,756 | |||||
Biotechnology — 2.08% | Telecommunications — 7.35% | |||||||
Amgen Inc | 152,019 | 29,593,539 | AT&T Inc | 938,416 | 26,782,393 | |||
Cisco Systems Inc | 647,726 | 28,065,967 | ||||||
Chemicals — 1.84% | ||||||||
Verizon Communications Inc | 888,623 | 49,958,385 | ||||||
DowDuPont Inc | 490,004 | 26,205,414 | ||||||
$ | 104,806,745 | |||||||
Computers — 4.93% | ||||||||
Apple Inc | 295,143 | 46,555,857 | Transportation — 1.88% | |||||
International Business Machines Corp | 208,394 | 23,688,146 | Union Pacific Corp | 193,518 | 26,749,993 | |||
$ | 70,244,003 | TOTAL COMMON STOCKS | $ | 1,420,865,270 | ||||
Diversified Financial Services — 3.82% | Total Investments | $ | 1,420,865,270 | |||||
Mastercard Inc, Class A | 141,553 | 26,703,973 | Other Assets and Liabilities — 0.30% | $ | 4,250,043 | |||
Visa Inc, Class A | 209,949 | 27,700,671 | ||||||
TOTAL NET ASSETS — 100.00% | $ | 1,425,115,313 | ||||||
$ | 54,404,644 | |||||||
Electronics — 1.77% | (a)Non-income producing security | |||||||
Honeywell International Inc | 191,498 | 25,300,716 | ||||||
Healthcare — Products — 4.22% | Portfolio Summary (unaudited) | |||||||
Abbott Laboratories | 429,544 | 31,068,918 | Sector | Percent | ||||
Medtronic PLC | 320,340 | 29,138,126 | ||||||
Consumer, Non-cyclical | 33.80 | % | ||||||
$ | 60,207,044 | Communications | 17.19 | % | ||||
Healthcare — Services — 3.12% | Technology | 13.27 | % | |||||
UnitedHealth Group Inc | 178,309 | 44,420,338 | Financial | 13.23 | % | |||
Industrial | 9.25 | % | ||||||
Household Products — 3.68% | Consumer, Cyclical | 7.38 | % | |||||
Procter & Gamble Co/The | 570,016 | 52,395,871 | Energy | 3.74 | % | |||
Insurance — 2.11% | Basic Materials | 1.84 | % | |||||
Berkshire Hathaway Inc, Class B(a) | 147,177 | 30,050,600 | Other Assets and Liabilities | 0.30 | % | |||
Internet — 6.71% | TOTAL NET ASSETS | 100.00 | % | |||||
Alphabet Inc, Class A(a) | 26,106 | 27,279,726 | ||||||
Amazon.com Inc(a) | 29,805 | 44,766,216 | ||||||
Facebook Inc, Class A(a) | 94,798 | 12,427,070 | ||||||
Netflix Inc(a) | 41,672 | 11,153,927 | ||||||
$ | 95,626,939 | |||||||
Media — 3.12% | ||||||||
Comcast Corp, Class A | 440,288 | 14,991,806 | ||||||
Walt Disney Co/The | 269,472 | 29,547,605 | ||||||
$ | 44,539,411 | |||||||
Miscellaneous Manufacture — 2.00% | ||||||||
3M Co | 149,552 | 28,495,638 | ||||||
Oil & Gas — 3.74% | ||||||||
Chevron Corp | 257,694 | 28,034,530 | ||||||
Exxon Mobil Corp | 370,644 | 25,274,215 | ||||||
$ | 53,308,745 | |||||||
Pharmaceuticals — 12.40% | ||||||||
AbbVie Inc | 164,840 | 15,196,600 | ||||||
Eli Lilly & Co | 293,654 | 33,981,641 | ||||||
Johnson & Johnson | 228,061 | 29,431,272 | ||||||
Merck & Co Inc | 668,794 | 51,102,549 |
See accompanying notes.
61
Schedule of Investments
Principal U.S. Small-Cap Multi-Factor Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS — 99.64% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Aerospace & Defense — 0.73% | Banks (continued) | ||||||
Aerovironment Inc(a) | 15,072 | $ | 1,024,142 | TriState Capital Holdings Inc(a) | 17,877 | $ | 347,886 |
Kaman Corp | 22,643 | 1,270,046 | Triumph Bancorp Inc(a) | 27,416 | 814,255 | ||
$ | 2,294,188 | Trustmark Corp | 56,316 | 1,601,064 | |||
Veritex Holdings Inc(a) | 27,227 | 582,113 | |||||
Agriculture — 0.03% | Walker & Dunlop Inc | 20,953 | 906,217 | ||||
Turning Point Brands Inc | 3,804 | 103,545 | WesBanco Inc | 20,683 | 758,859 | ||
Airlines — 1.08% | $ | 30,106,860 | |||||
Allegiant Travel Co | 6,429 | 644,314 | Beverages — 0.54% | ||||
SkyWest Inc | 9,236 | 410,725 | Boston Beer Co Inc/The, Class A(a) | 7,095 | 1,708,760 | ||
Spirit Airlines Inc(a) | 40,475 | 2,344,312 | |||||
Biotechnology — 3.06% | |||||||
$ | 3,399,351 | Adverum Biotechnologies Inc(a) | 12,880 | 40,572 | |||
Apparel — 1.76% | Arrowhead Pharmaceuticals Inc(a) | 31,690 | 393,590 | ||||
Deckers Outdoor Corp(a) | 23,340 | 2,986,353 | Cambrex Corp(a) | 24,223 | 914,660 | ||
Oxford Industries Inc | 11,445 | 813,053 | ChemoCentryx Inc(a) | 4,862 | 53,044 | ||
Steven Madden Ltd | 56,662 | 1,714,592 | CRISPR Therapeutics AG(a) | 32,894 | 939,782 | ||
Emergent BioSolutions Inc(a) | 16,825 | 997,386 | |||||
$ | 5,513,998 | ||||||
Halozyme Therapeutics Inc(a) | 50,192 | 734,309 | |||||
Auto Parts & Equipment — 0.62% | ImmunoGen Inc(a) | 73,643 | 353,486 | ||||
Altra Industrial Motion Corp | 67,375 | 1,694,481 | Innoviva Inc(a) | 47,085 | 821,633 | ||
Douglas Dynamics Inc | 7,290 | 261,638 | Intercept Pharmaceuticals Inc(a) | 12,791 | 1,289,205 | ||
$ | 1,956,119 | Myriad Genetics Inc(a) | 28,536 | 829,542 | |||
NeoGenomics Inc(a) | 30,192 | 380,721 | |||||
Banks — 9.59% | Palatin Technologies Inc(a) | 37,356 | 26,463 | ||||
Allegiance Bancshares Inc(a) | 3,006 | 97,304 | |||||
PDL BioPharma Inc(a) | 75,716 | 219,576 | |||||
BancFirst Corp | 5,109 | 254,939 | PTC Therapeutics Inc(a) | 29,114 | 999,193 | ||
Banner Corp | 25,628 | 1,370,585 | Retrophin Inc(a) | 12,850 | 290,796 | ||
Baycom Corp(a) | 6,179 | 142,673 | |||||
Vericel Corp(a) | 16,255 | 282,837 | |||||
Blue Hills Bancorp Inc | 9,446 | 201,578 | XOMA Corp(a) | 2,117 | 26,780 | ||
Camden National Corp | 2,786 | 100,212 | |||||
Cathay General Bancorp | 51,484 | 1,726,259 | $ | 9,593,575 | |||
CBTX Inc | 11,383 | 334,660 | Chemicals — 1.21% | ||||
City Holding Co | 8,334 | 563,295 | American Vanguard Corp | 7,400 | 112,406 | ||
Community Bank System Inc | 28,819 | 1,680,148 | Balchem Corp | 8,616 | 675,064 | ||
ConnectOne Bancorp Inc | 15,010 | 277,235 | Innospec Inc | 8,627 | 532,803 | ||
Enterprise Financial Services Corp | 13,983 | 526,180 | PQ Group Holdings Inc(a) | 23,323 | 345,414 | ||
Equity Bancshares Inc, Class A(a) | 8,817 | 310,799 | Sensient Technologies Corp | 25,794 | 1,440,595 | ||
FB Financial Corp | 10,822 | 378,986 | Stepan Co | 9,419 | 697,006 | ||
Financial Institutions Inc | 10,226 | 262,808 | $ | 3,803,288 | |||
First Bancshares Inc/The | 4,770 | 144,293 | |||||
Coal — 0.88% | |||||||
First Commonwealth Financial Corp | 52,051 | 628,776 | |||||
Arch Coal Inc, Class A | 18,899 | 1,568,428 | |||||
First Financial Corp | 3,504 | 140,686 | Warrior Met Coal Inc | 49,398 | 1,190,986 | ||
First Interstate BancSystem Inc, Class A | 27,209 | 994,761 | |||||
First Merchants Corp | 17,847 | 611,617 | $ | 2,759,414 | |||
First Mid-Illinois Bancshares Inc | 4,347 | 138,756 | Commercial Services — 5.04% | ||||
First Midwest Bancorp Inc | 56,429 | 1,117,859 | Aaron’s Inc | 15,418 | 648,327 | ||
Franklin Financial Network Inc(a) | 13,847 | 365,145 | Adtalem Global Education Inc(a) | 15,970 | 755,700 | ||
Great Western Bancorp Inc | 27,137 | 848,031 | Barrett Business Services Inc | 1,937 | 110,893 | ||
Hanmi Financial Corp | 18,300 | 360,510 | BG Staffing Inc | 5,393 | 111,365 | ||
Heartland Financial USA Inc | 25,845 | 1,135,888 | Care.com Inc(a) | 6,022 | 116,285 | ||
Heritage Commerce Corp | 24,948 | 282,910 | Carriage Services Inc | 6,165 | 95,558 | ||
Heritage Financial Corp | 49,609 | 1,474,380 | Cass Information Systems Inc | 3,331 | 176,277 | ||
Horizon Bancorp Inc | 11,741 | 185,273 | CBIZ Inc(a) | 26,829 | 528,531 | ||
Independent Bank Corp | 10,496 | 737,974 | CorVel Corp(a) | 2,059 | 127,081 | ||
Independent Bank Group Inc | 27,997 | 1,281,423 | CRA International Inc | 3,442 | 146,457 | ||
Lakeland Bancorp Inc | 17,368 | 257,220 | Deluxe Corp | 42,969 | 1,651,728 | ||
Lakeland Financial Corp | 11,070 | 444,571 | Ennis Inc | 6,471 | 124,567 | ||
LegacyTexas Financial Group Inc | 25,250 | 810,273 | EVERTEC Inc | 36,020 | 1,033,774 | ||
Live Oak Bancshares Inc | 14,609 | 216,359 | Forrester Research Inc | 3,565 | 159,356 | ||
Luther Burbank Corp | 9,827 | 88,640 | FTI Consulting Inc(a) | 24,347 | 1,622,484 | ||
Merchants Bancorp | 5,505 | 109,880 | Hackett Group Inc/The | 7,961 | 127,456 | ||
Metropolitan Bank Holding Corp(a) | 2,637 | 81,352 | HMS Holdings Corp(a) | 21,543 | 606,005 | ||
NBT Bancorp Inc | 11,042 | 381,943 | ICF International Inc | 8,182 | 530,030 | ||
Old Line Bancshares Inc | 13,482 | 354,846 | Kforce Inc | 14,571 | 450,535 | ||
LiveRamp Holdings Inc(a) | 22,067 | 852,448 | |||||
Old Second Bancorp Inc | 13,050 | 169,650 | |||||
Opus Bank | 17,466 | 342,159 | Medifast Inc | 8,319 | 1,040,041 | ||
Peoples Bancorp Inc | 6,002 | 180,660 | Monro Inc | 10,757 | 739,544 | ||
Preferred Bank | 18,597 | 806,180 | Navigant Consulting Inc | 18,403 | 442,592 | ||
S&T Bancorp Inc | 11,836 | 447,874 | Nutrisystem Inc | 37,798 | 1,658,576 | ||
Paylocity Holding Corp(a) | 15,566 | 937,229 | |||||
Seacoast Banking Corp of Florida(a) | 21,317 | 554,668 | |||||
ServisFirst Bancshares Inc | 14,536 | 463,262 | Strategic Education Inc | 4,759 | 539,766 | ||
Vectrus Inc(a) | 3,398 | 73,329 | |||||
Sierra Bancorp | 6,717 | 161,410 | |||||
Viad Corp | 8,387 | 420,105 | |||||
Southside Bancshares Inc | 15,988 | 507,619 | |||||
Sterling Bancorp Inc | 6,037 | 41,957 | $ | 15,826,039 |
See accompanying notes.
62
Schedule of Investments
Principal U.S. Small-Cap Multi-Factor Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Computers — 1.59% | Engineering & Construction — 1.61% | ||||||
ExlService Holdings Inc(a) | 13,674 | $ | 719,526 | Comfort Systems USA Inc | 21,276 | $ | 929,336 |
Insight Enterprises Inc(a) | 16,116 | 656,727 | Exponent Inc | 15,461 | 784,027 | ||
Presidio Inc | 11,791 | 153,873 | KBR Inc | 131,521 | 1,996,489 | ||
Qualys Inc(a) | 20,408 | 1,525,294 | NV5 Global Inc(a) | 4,140 | 250,677 | ||
Unisys Corp(a) | 45,867 | 533,433 | TopBuild Corp(a) | 24,010 | 1,080,450 | ||
Varonis Systems Inc(a) | 18,155 | 960,399 | |||||
$ | 5,040,979 | ||||||
Virtusa Corp(a) | 10,377 | 441,956 | |||||
Entertainment — 0.63% | |||||||
$ | 4,991,208 | Eldorado Resorts Inc(a) | 40,886 | 1,480,482 | |||
Construction Materials — 1.51% | International Speedway Corp, Class A | 10,517 | 461,276 | ||||
Boise Cascade Co | 35,129 | 837,827 | RCI Hospitality Holdings Inc | 1,736 | 38,765 | ||
Continental Building Products Inc(a) | 25,508 | 649,178 | |||||
$ | 1,980,523 | ||||||
Gibraltar Industries Inc(a) | 8,711 | 310,024 | |||||
PGT Innovations Inc(a) | 40,981 | 649,549 | Environmental Control — 0.60% | ||||
Evoqua Water Technologies Corp(a) | 63,581 | 610,378 | |||||
Simpson Manufacturing Co Inc | 11,291 | 611,182 | |||||
Summit Materials Inc, Class A(a) | 136,467 | 1,692,191 | Tetra Tech Inc | 19,426 | 1,005,684 | ||
US Ecology Inc | 4,194 | 264,138 | |||||
$ | 4,749,951 | ||||||
$ | 1,880,200 | ||||||
Distribution/Wholesale — 0.91% | |||||||
Dorman Products Inc(a) | 9,168 | 825,303 | Food — 0.98% | ||||
G-III Apparel Group Ltd(a) | 27,460 | 765,859 | Calavo Growers Inc | 10,921 | 796,796 | ||
Nexeo Solutions Inc(a) | 29,189 | 250,734 | Chefs’ Warehouse Inc/The(a) | 7,294 | 233,262 | ||
Systemax Inc | 7,054 | 168,520 | John B Sanfilippo & Son Inc | 5,437 | 302,624 | ||
Simply Good Foods Co/The(a) | 24,034 | 454,243 | |||||
Triton International Ltd | 27,408 | 851,567 | |||||
Sprouts Farmers Market Inc(a) | 55,481 | 1,304,358 | |||||
$ | 2,861,983 | ||||||
$ | 3,091,283 | ||||||
Diversified Financial Services — 4.20% | |||||||
Blucora Inc(a) | 18,638 | 496,516 | Forest Products & Paper — 0.28% | ||||
Cohen & Steers Inc | 15,329 | 526,091 | Neenah Inc | 10,037 | 591,380 | ||
Diamond Hill Investment Group Inc | 1,606 | 240,017 | Schweitzer-Mauduit International Inc | 10,976 | 274,949 | ||
Enova International Inc(a) | 21,249 | 413,506 | $ | 866,329 | |||
Federated Investors Inc, Class B | 95,011 | 2,522,542 | Gas — 0.17% | ||||
FRP Holdings Inc(a) | 1,775 | 81,668 | |||||
Chesapeake Utilities Corp | 6,539 | 531,621 | |||||
Hamilton Lane Inc, Class A | 17,524 | 648,388 | |||||
Houlihan Lokey Inc | 35,519 | 1,307,099 | Hand/Machine Tools — 0.12% | ||||
Legg Mason Inc | 88,725 | 2,263,375 | Franklin Electric Co Inc | 8,426 | 361,307 | ||
Moelis & Co, Class A | 47,767 | 1,642,229 | Healthcare — Products — 6.58% | ||||
PennyMac Financial Services Inc | 8,131 | 172,865 | AngioDynamics Inc(a) | 10,161 | 204,541 | ||
PJT Partners Inc, Class A | 10,848 | 420,469 | Apxy Medical Corp | 4,562 | 29,562 | ||
Regional Management Corp(a) | 5,123 | 123,208 | |||||
AtriCure Inc(a) | 7,886 | 241,312 | |||||
TPG RE Finance Trust Inc | 59,844 | 1,093,948 | Atrion Corp | 368 | 272,717 | ||
Waddell & Reed Financial Inc, Class A | 67,796 | 1,225,752 | Avanos Medical Inc(a) | 15,870 | 710,817 | ||
$ | 13,177,673 | BioLife Solutions Inc(a) | 7,226 | 86,929 | |||
BioTelemetry Inc(a) | 14,864 | 887,678 | |||||
Electric — 1.32% | |||||||
Ameresco Inc, Class A(a) | 6,136 | 86,517 | Cardiovascular Systems Inc(a) | 13,636 | 388,490 | ||
CareDx Inc(a) | 10,420 | 261,959 | |||||
Black Hills Corp | 47,615 | 2,989,270 | |||||
Cerus Corp(a) | 43,511 | 220,601 | |||||
Clearway Energy Inc | 62,516 | 1,078,401 | |||||
CONMED Corp | 12,384 | 795,053 | |||||
$ | 4,154,188 | CryoLife Inc(a) | 6,539 | 185,577 | |||
Electrical Components & Equipment — 1.27% | CytoSorbents Corp(a) | 8,643 | 69,835 | ||||
Encore Wire Corp | 5,178 | 259,832 | Genomic Health Inc(a) | 15,449 | 995,070 | ||
EnerSys | 17,344 | 1,346,068 | Glaukos Corp(a) | 9,371 | 526,369 | ||
Generac Holdings Inc(a) | 44,076 | 2,190,577 | Integer Holdings Corp(a) | 18,392 | 1,402,574 | ||
Insteel Industries Inc | 7,290 | 177,001 | Invacare Corp | 22,579 | 97,090 | ||
iRadimed Corp(a) | 2,656 | 64,966 | |||||
$ | 3,973,478 | ||||||
iRhythm Technologies Inc(a) | 11,165 | 775,744 | |||||
Electronics — 1.61% | LeMaitre Vascular Inc | 6,292 | 148,743 | ||||
Alarm.com Holdings Inc(a) | 26,857 | 1,393,073 | |||||
Luminex Corp | 9,612 | 222,133 | |||||
Atkore International Group Inc(a) | 22,745 | 451,261 | |||||
Meridian Bioscience Inc | 14,449 | 250,835 | |||||
Badger Meter Inc | 9,205 | 452,978 | Merit Medical Systems Inc(a) | 27,150 | 1,515,241 | ||
Brady Corp, Class A | 18,932 | 822,785 | NanoString Technologies Inc(a) | 7,767 | 115,185 | ||
Comtech Telecommunications Corp | 7,062 | 171,889 | Novocure Ltd(a) | 21,657 | 725,076 | ||
Control4 Corp(a) | 15,102 | 265,795 | |||||
NuVasive Inc(a) | 30,513 | 1,512,224 | |||||
Napco Security Technologies Inc(a) | 2,978 | 46,903 | |||||
Orthofix Medical Inc(a) | 6,333 | 332,419 | |||||
Stoneridge Inc(a) | 14,238 | 350,967 | |||||
Patterson Cos Inc | 113,245 | 2,226,397 | |||||
Vishay Precision Group Inc(a) | 3,811 | 115,206 | |||||
Quidel Corp(a) | 12,994 | 634,367 | |||||
Watts Water Technologies Inc, Class A | 15,105 | 974,726 | Repligen Corp(a) | 24,601 | 1,297,457 | ||
$ | 5,045,583 | STAAR Surgical Co(a) | 14,050 | 448,335 | |||
Surmodics Inc(a) | 5,031 | 237,765 | |||||
Energy-Alternate Sources — 0.48% | |||||||
Tactile Systems Technology Inc(a) | 6,401 | 291,566 | |||||
Amyris Inc(a) | 25,429 | 84,933 | |||||
Tandem Diabetes Care Inc(a) | 63,391 | 2,406,956 | |||||
Pattern Energy Group Inc, Class A | 58,085 | 1,081,543 | |||||
TPI Composites Inc(a) | 13,719 | 337,213 | Utah Medical Products Inc | 918 | 76,267 | ||
$ | 1,503,689 | $ | 20,657,850 |
See accompanying notes.
63
Schedule of Investments
Principal U.S. Small-Cap Multi-Factor Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Healthcare — Services — 2.38% | Leisure Time (continued) | ||||||
Addus HomeCare Corp(a) | 7,542 | $ | 511,951 | MasterCraft Boat Holdings Inc(a) | 5,454 | $ | 101,990 |
Amedisys Inc(a) | 17,237 | 2,018,625 | |||||
$ | 2,339,620 | ||||||
American Renal Associates Holdings Inc(a) | 4,437 | 51,114 | |||||
Ensign Group Inc/The | 13,773 | 534,255 | Lodging — 0.05% | ||||
Invitae Corp(a) | 21,906 | 242,280 | Marcus Corp/The | 4,054 | 160,133 | ||
LHC Group Inc(a) | 17,173 | 1,612,201 | Machinery — Diversified — 0.99% | ||||
Medpace Holdings Inc(a) | 16,272 | 861,277 | Applied Industrial Technologies Inc | 16,588 | 894,757 | ||
National HealthCare Corp | 2,909 | 228,211 | Cactus Inc, Class A(a) | 26,089 | 715,099 | ||
R1 RCM Inc(a) | 19,164 | 152,354 | Chart Industries Inc(a) | 11,629 | 756,234 | ||
RadNet Inc(a) | 12,087 | 122,925 | CSW Industrials Inc(a) | 7,374 | 356,533 | ||
Select Medical Holdings Corp(a) | 35,771 | 549,085 | |||||
Kadant Inc | 4,713 | 383,921 | |||||
Surgery Partners Inc(a) | 12,321 | 120,623 | |||||
Triple-S Management Corp, Class B(a) | 7,553 | 131,347 | $ | 3,106,544 | |||
US Physical Therapy Inc | 3,281 | 335,810 | Media — 2.27% | ||||
AMC Networks Inc, Class A(a) | 34,120 | 1,872,505 | |||||
$ | 7,472,058 | ||||||
Gray Television Inc(a) | 28,174 | 415,285 | |||||
Home Builders — 0.33% | John Wiley & Sons Inc, Class A | 12,375 | 581,254 | ||||
Cavco Industries Inc(a) | 3,394 | 442,510 | |||||
Nexstar Media Group Inc | 27,337 | 2,149,782 | |||||
Winnebago Industries Inc | 25,011 | 605,516 | World Wrestling Entertainment Inc, Class A | 28,325 | 2,116,444 | ||
$ | 1,048,026 | $ | 7,135,270 | ||||
Home Furnishings — 0.30% | Metal Fabrication & Hardware — 0.62% | ||||||
Sleep Number Corp(a) | 29,541 | 937,336 | |||||
Advanced Drainage Systems Inc | 20,696 | 501,878 | |||||
Household Products — 0.15% | Rexnord Corp(a) | 62,712 | 1,439,240 | ||||
Inter Parfums Inc | 7,400 | 485,218 | $ | 1,941,118 | |||
Household Products/Wares — 1.07% | Mining — 0.36% | ||||||
ACCO Brands Corp | 42,880 | 290,726 | Covia Holdings Corp(a) | 33,287 | 113,841 | ||
Helen of Troy Ltd(a) | 13,639 | 1,789,164 | Kaiser Aluminum Corp | 11,482 | 1,025,228 | ||
WD-40 Co | 7,031 | 1,288,501 | $ | 1,139,069 | |||
$ | 3,368,391 | Miscellaneous Manufacture — 2.01% | |||||
Insurance — 2.89% | ESCO Technologies Inc | 8,305 | 547,715 | ||||
American Equity Investment Life Holding Co | 69,267 | 1,935,320 | Fabrinet(a) | 31,768 | 1,630,016 | ||
FBL Financial Group Inc, Class A | 1,939 | 127,295 | Federal Signal Corp | 11,392 | 226,701 | ||
FedNat Holding Co | 5,884 | 117,209 | Harsco Corp(a) | 31,366 | 622,929 | ||
HCI Group Inc | 4,460 | 226,613 | Hillenbrand Inc | 16,646 | 631,383 | ||
Health Insurance Innovations Inc, Class A(a) | 10,904 | 291,464 | Myers Industries Inc | 8,944 | 135,144 | ||
Horace Mann Educators Corp | 14,655 | 548,830 | Proto Labs Inc(a) | 8,804 | 993,003 | ||
Kinsale Capital Group Inc | 7,652 | 425,145 | Raven Industries Inc | 5,866 | 212,290 | ||
Mercury General Corp | 25,354 | 1,311,055 | Standex International Corp | 2,941 | 197,576 | ||
National General Holdings Corp | 22,805 | 552,109 | Tredegar Corp | 5,093 | 80,775 | ||
NMI Holdings Inc, Class A(a) | 23,894 | 426,508 | Trinseo SA | 22,450 | 1,027,761 | ||
RLI Corp | 24,436 | 1,685,840 | $ | 6,305,293 | |||
Safety Insurance Group Inc | 5,208 | 426,067 | |||||
United Fire Group Inc | 6,625 | 367,356 | Office & Business Equipment — 0.32% | ||||
Universal Insurance Holdings Inc | 16,951 | 642,782 | Pitney Bowes Inc | 170,267 | 1,006,278 | ||
$ | 9,083,593 | Office Furnishings — 0.48% | |||||
Internet — 2.12% | Herman Miller Inc | 27,396 | 828,729 | ||||
Cogent Communications Holdings Inc | 19,614 | 886,749 | Interface Inc | 27,799 | 396,136 | ||
HealthStream Inc | 8,318 | 200,880 | Knoll Inc | 17,602 | 290,081 | ||
Match Group Inc | 49,693 | 2,125,370 | $ | 1,514,946 | |||
New Media Investment Group Inc | 29,008 | 335,622 | Oil & Gas — 2.48% | ||||
NIC Inc | 32,233 | 402,268 | Callon Petroleum Co(a) | 138,418 | 898,333 | ||
Perficient Inc(a) | 16,492 | 367,112 | |||||
Carrizo Oil & Gas Inc(a) | 84,909 | 958,623 | |||||
Shutterfly Inc(a) | 42,223 | 1,699,898 | |||||
CVR Energy Inc | 26,765 | 922,857 | |||||
Shutterstock Inc | 12,649 | 455,490 | Denbury Resources Inc(a) | 239,591 | 409,701 | ||
TechTarget Inc(a) | 16,068 | 196,190 | |||||
Evolution Petroleum Corp | 6,975 | 47,569 | |||||
$ | 6,669,579 | Gulfport Energy Corp(a) | 135,120 | 885,036 | |||
Investment Companies — 0.18% | Mammoth Energy Services Inc | 14,451 | 259,829 | ||||
Par Pacific Holdings Inc(a) | 8,892 | 126,089 | |||||
B. Riley Financial Inc | 4,539 | 64,454 | |||||
Penn Virginia Corp(a) | 7,408 | 400,476 | |||||
Newtek Business Services Corp | 9,491 | 165,523 | |||||
Southwestern Energy Co(a) | 542,184 | 1,848,847 | |||||
TCG BDC Inc | 27,073 | 335,705 | |||||
SRC Energy Inc(a) | 116,808 | 548,998 | |||||
$ | 565,682 | Unit Corp(a) | 12,521 | 178,800 | |||
Iron & Steel — 0.21% | VAALCO Energy Inc(a) | 12,222 | 17,966 | ||||
Carpenter Technology Corp | 18,232 | 649,242 | W&T Offshore Inc(a) | 68,186 | 280,926 | ||
Leisure Time — 0.75% | $ | 7,784,050 | |||||
Acushnet Holdings Corp | 17,803 | 375,109 | Oil & Gas Services — 0.49% | ||||
Callaway Golf Co | 69,277 | 1,059,938 | Archrock Inc | 36,744 | 275,212 | ||
Fox Factory Holding Corp(a) | 8,067 | 474,904 | FTS International Inc(a) | 20,727 | 147,369 | ||
Johnson Outdoors Inc, Class A | 1,288 | 75,657 | Matrix Service Co(a) | 6,324 | 113,453 | ||
Malibu Boats Inc, Class A(a) | 7,242 | 252,022 |
See accompanying notes.
64
Schedule of Investments
Principal U.S. Small-Cap Multi-Factor Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Oil & Gas Services (continued) | Retail (continued) | ||||||
Oceaneering International Inc(a) | 54,954 | $ | 664,943 | PC Connection Inc | 4,377 | $ | 130,128 |
SEACOR Holdings Inc(a) | 9,146 | 338,402 | PetIQ Inc(a) | 20,548 | 482,262 | ||
$ | 1,539,379 | PetMed Express Inc | 19,321 | 449,407 | |||
RH(a) | 20,920 | 2,506,634 | |||||
Pharmaceuticals — 2.59% | Ruth’s Hospitality Group Inc | 7,498 | 170,430 | ||||
Antares Pharma Inc(a) | 41,855 | 113,846 | |||||
Shoe Carnival Inc | 8,134 | 272,570 | |||||
BioSpecifics Technologies Corp(a) | 1,127 | 68,296 | |||||
Tailored Brands Inc | 36,268 | 494,696 | |||||
Concert Pharmaceuticals Inc(a) | 5,978 | 75,024 | |||||
Tilly’s Inc, Class A | 8,550 | 92,853 | |||||
Corcept Therapeutics Inc(a) | 51,892 | 693,277 | |||||
Wingstop Inc | 13,885 | 891,278 | |||||
Enanta Pharmaceuticals Inc(a) | 9,436 | 668,352 | Zumiez Inc(a) | 13,740 | 263,396 | ||
Endo International PLC(a) | 101,162 | 738,483 | |||||
Heska Corp(a) | 1,954 | 168,239 | $ | 19,378,915 | |||
Horizon Pharma PLC(a) | 64,262 | 1,255,679 | Savings & Loans — 1.44% | ||||
Momenta Pharmaceuticals Inc(a) | 16,163 | 178,439 | Axos Financial Inc(a) | 44,184 | 1,112,553 | ||
MyoKardia Inc(a) | 11,052 | 540,001 | First Defiance Financial Corp | 6,566 | 160,933 | ||
Owens & Minor Inc | 31,149 | 197,173 | Meridian Bancorp Inc | 24,239 | 347,102 | ||
Phibro Animal Health Corp, Class A | 9,017 | 289,987 | Northfield Bancorp Inc | 9,121 | 123,590 | ||
Premier Inc, Class A(a) | 31,527 | 1,177,533 | Northwest Bancshares Inc | 81,331 | 1,377,747 | ||
Sorrento Therapeutics Inc(a) | 48,389 | 116,134 | Washington Federal Inc | 52,405 | 1,399,737 | ||
Supernus Pharmaceuticals Inc(a) | 31,271 | 1,038,823 | |||||
$ | 4,521,662 | ||||||
USANA Health Sciences Inc(a) | 6,849 | 806,333 | |||||
Semiconductors — 1.74% | |||||||
$ | 8,125,619 | Brooks Automation Inc | 19,647 | 514,359 | |||
Pipelines — 0.18% | Cabot Microelectronics Corp | 15,455 | 1,473,634 | ||||
SemGroup Corp, Class A | 40,073 | 552,206 | Cohu Inc | 12,192 | 195,925 | ||
Nanometrics Inc(a) | 19,152 | 523,424 | |||||
Private Equity — 0.59% | Power Integrations Inc | 14,030 | 855,549 | ||||
Kennedy-Wilson Holdings Inc | 101,111 | 1,837,187 | Semtech Corp(a) | 22,793 | 1,045,515 | ||
Real Estate — 1.17% | SMART Global Holdings Inc(a) | 28,804 | 855,479 | ||||
Marcus & Millichap Inc(a) | 26,938 | 924,781 | |||||
$ | 5,463,885 | ||||||
McGrath RentCorp | 11,107 | 571,788 | |||||
Realogy Holdings Corp | 134,242 | 1,970,673 | Software — 4.83% | ||||
Alteryx Inc, Class A(a) | 31,372 | 1,865,693 | |||||
RMR Group Inc/The, Class A | 3,635 | 192,946 | |||||
Appfolio Inc, Class A(a) | 6,020 | 356,504 | |||||
$ | 3,660,188 | Apptio Inc, Class A(a) | 24,509 | 930,362 | |||
REITs — 6.11% | Bottomline Technologies de Inc(a) | 22,927 | 1,100,496 | ||||
AG Mortgage Investment Trust Inc | 35,043 | 558,235 | Cornerstone OnDemand Inc(a) | 33,679 | 1,698,432 | ||
Alexander’s Inc | 851 | 259,334 | CSG Systems International Inc | 16,574 | 526,556 | ||
Apollo Commercial Real Estate Finance Inc | 146,763 | 2,445,072 | Ebix Inc | 13,507 | 574,858 | ||
Arbor Realty Trust Inc | 154,660 | 1,557,426 | Envestnet Inc(a) | 19,071 | 938,102 | ||
Ares Commercial Real Estate Corp | 19,068 | 248,647 | Manhattan Associates Inc(a) | 34,861 | 1,477,061 | ||
Braemar Hotels & Resorts Inc | 14,642 | 130,753 | ManTech International Corp, Class A | 12,310 | 643,751 | ||
CareTrust REIT Inc | 71,361 | 1,317,324 | Monotype Imaging Holdings Inc | 20,221 | 313,830 | ||
Chesapeake Lodging Trust | 39,801 | 969,154 | Omnicell Inc(a) | 17,282 | 1,058,350 | ||
CorEnergy Infrastructure Trust Inc | 8,868 | 293,354 | Progress Software Corp | 19,172 | 680,414 | ||
Four Corners Property Trust Inc | 33,175 | 869,185 | QAD Inc, Class A | 2,903 | 114,175 | ||
Hersha Hospitality Trust | 44,730 | 784,564 | Simulations Plus Inc | 2,764 | 55,004 | ||
KKR Real Estate Finance Trust Inc | 36,288 | 694,915 | SPS Commerce Inc(a) | 8,592 | 707,809 | ||
National Health Investors Inc | 27,182 | 2,053,328 | Tabula Rasa HealthCare Inc(a) | 11,748 | 749,052 | ||
NexPoint Residential Trust Inc | 6,464 | 226,563 | Upland Software Inc(a) | 13,859 | 376,688 | ||
PennyMac Mortgage Investment Trust | 70,420 | 1,311,220 | Verint Systems Inc(a) | 23,675 | 1,001,689 | ||
Redwood Trust Inc | 170,506 | 2,569,526 | $ | 15,168,826 | |||
Tanger Factory Outlet Centers Inc | 121,019 | 2,447,004 | |||||
Western Asset Mortgage Capital Corp | 54,453 | 454,138 | Storage/Warehousing — 0.11% | ||||
Mobile Mini Inc | 10,386 | 329,756 | |||||
$ | 19,189,742 | ||||||
Retail — 6.17% | Telecommunications — 2.39% | ||||||
CalAmp Corp(a) | 30,535 | 397,260 | |||||
America’s Car-Mart Inc(a) | 1,563 | 113,239 | |||||
Casa Systems Inc(a) | 26,419 | 346,881 | |||||
BJ’s Restaurants Inc | 13,027 | 658,775 | |||||
Bloomin’ Brands Inc | 61,332 | 1,097,230 | Consolidated Communications Holdings Inc | 30,693 | 303,247 | ||
Bojangles’ Inc(a) | 7,278 | 117,030 | InterDigital Inc | 28,183 | 1,872,197 | ||
Iridium Communications Inc(a) | 49,401 | 911,448 | |||||
Boot Barn Holdings Inc(a) | 16,748 | 285,218 | |||||
Brinker International Inc | 43,169 | 1,898,573 | Plantronics Inc | 30,120 | 996,972 | ||
Caleres Inc | 12,942 | 360,176 | Shenandoah Telecommunications Co | 9,704 | 429,402 | ||
Cheesecake Factory Inc/The | 30,728 | 1,336,975 | Switch Inc, Class A | 49,528 | 346,696 | ||
Chico’s FAS Inc | 86,684 | 487,164 | Telephone & Data Systems Inc | 30,805 | 1,002,395 | ||
Vonage Holdings Corp(a) | 104,405 | 911,456 | |||||
Citi Trends Inc | 2,993 | 61,027 | |||||
Container Store Group Inc/The(a) | 4,331 | 20,659 | $ | 7,517,954 | |||
Dave & Buster’s Entertainment Inc | 31,578 | 1,407,116 | Textiles — 0.38% | ||||
Dick’s Sporting Goods Inc | 78,051 | 2,435,191 | UniFirst Corp | 8,281 | 1,184,763 | ||
DSW Inc, Class A | 39,503 | 975,724 | |||||
Duluth Holdings Inc, Class B(a) | 4,953 | 124,964 | Transportation — 1.54% | ||||
Group 1 Automotive Inc | 10,977 | 578,707 | ArcBest Corp | 14,487 | 496,325 | ||
La-Z-Boy Inc | 20,887 | 578,779 | Forward Air Corp | 11,577 | 634,999 | ||
National Vision Holdings Inc(a) | 38,648 | 1,088,714 | Marten Transport Ltd | 19,786 | 320,335 |
See accompanying notes.
65
Schedule of Investments
Principal U.S. Small-Cap Multi-Factor Index ETF
December 31, 2018 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | ||
Transportation (continued) | ||||
Matson Inc | 19,500 | $ | 624,390 | |
PAM Transportation Services Inc(a) | 509 | 20,060 | ||
Saia Inc(a) | 15,627 | 872,299 | ||
Universal Logistics Holdings Inc | 6,344 | 114,763 | ||
Werner Enterprises Inc | 59,508 | 1,757,866 | ||
$ | 4,841,037 | |||
Trucking & Leasing — 0.73% | ||||
GATX Corp | 17,518 | 1,240,449 | ||
Greenbrier Cos Inc/The | 26,977 | 1,066,671 | ||
$ | 2,307,120 | |||
Water — 0.82% | ||||
American States Water Co | 28,709 | 1,924,651 | ||
SJW Group | 11,495 | 639,352 | ||
$ | 2,564,003 | |||
TOTAL COMMON STOCKS | $ | 312,826,670 | ||
Total Investments | $ | 312,826,670 | ||
Other Assets and Liabilities — 0.36% | $ | 1,123,312 | ||
TOTAL NET ASSETS — 100.00% | $ | 313,949,982 | ||
(a)Non-Income Producing Security | ||||
Portfolio Summary (unaudited) | ||||
Sector | Percent | |||
Financial | 26.16 | % | ||
Consumer, Non-cyclical | 22.44 | % | ||
Consumer, Cyclical | 13.57 | % | ||
Industrial | 13.33 | % | ||
Technology | 8.48 | % | ||
Communications | 6.79 | % | ||
Energy | 4.50 | % | ||
Utilities | 2.31 | % | ||
Basic Materials | 2.06 | % | ||
Other Assets and Liabilities | 0.36 | % | ||
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
66
Financial Highlights | ||||||||
Principal Exchange-Traded Funds | ||||||||
(unaudited) | ||||||||
Principal Active Global Dividend Income ETF | ||||||||
For a share outstanding for the year ended June 30 (except as noted): | ||||||||
Period ended | Year ended | Period ended | ||||||
December 31, 2018(b) | June 30, 2018 | June 30, 2017(a) | ||||||
Net asset value, beginning of period | $ | 27.56 | $ | 25.36 | $ | 25.00 | ||
Investment Operations: | ||||||||
Net investment income (loss)(c) | 0.28 | 0.69 | 0.17 | |||||
Net realized and change in unrealized gain (loss) | (2.71 | ) | 2.15 | 0.19 | ||||
Total from investment operations | (2.43 | ) | 2.84 | 0.36 | ||||
Dividends and Distributions to Shareholders from: | ||||||||
Net investment income | (0.53 | ) | (0.51 | ) | — | |||
Net realized gains | (0.30 | ) | (0.13 | ) | — | |||
Total dividends and distributions to stockholders | (0.83 | ) | (0.64 | ) | — | |||
Net asset value, end of period | $ | 24.30 | $ | 27.56 | $ | 25.36 | ||
Total Return: | (8.95 | )%(d) | 11.24 | % | 1.43%(d) | |||
Ratios/Supplemental Data: | ||||||||
Net assets, end of period (000s) | $ | 628,197 | $ | 705,435 | $ | 428,567 | ||
Ratio of expenses to average net assets | 0.58 | %(e) | 0.58 | % | 0.58%(e) | |||
Ratio of net investment income (loss) to average net assets | 2.03 | %(e) | 2.51 | % | 4.56%(e) | |||
Portfolio turnover rate(f) | 37.1 | %(e) | 22.0 | % | 0.0%(e) |
(a) | Period from May 9, 2017, date operations commenced, through June 30, 2017. |
(b) | Six months ended December 31, 2018. |
(c) | Calculated on average shares outstanding during the period. |
(d) | Total return amounts have not been annualized. |
(e) | Computed on an annualized basis. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
67
Financial Highlights | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Contrarian Value Index ETF | ||||||
For a share outstanding for the period ended June 30 (except as noted): | ||||||
Period ended | Period ended | |||||
December 31, 2018(b) | June 30, 2018(a) | |||||
Net asset value, beginning of period | $ | 26.12 | $ | 25.00 | ||
Investment Operations: | ||||||
Net investment income (loss)(c) | 0.21 | 0.26 | ||||
Net realized and change in unrealized gain (loss) | (3.64 | ) | 1.03 | |||
Total from investment operations | (3.43 | ) | 1.29 | |||
Dividends and Distributions to Shareholders from: | ||||||
Net investment income | (0.30 | ) | (0.17 | ) | ||
Total dividends and distributions to stockholders | (0.30 | ) | (0.17 | ) | ||
Net asset value, end of period | $ | 22.39 | $ | 26.12 | ||
Total Return:(d) | (13.24 | )% | 5.15 | % | ||
Ratios/Supplemental Data: | ||||||
Net assets, end of period (000s) | $ | 3,359 | $ | 3,918 | ||
Ratio of expenses to average net assets(e) | 0.29 | % | 0.29 | % | ||
Ratio of net investment income (loss) to average net assets(e) | 1.60 | % | 1.44 | % | ||
Portfolio turnover rate(e)(f) | 8.7 | % | 61.6 | % |
(a) | Period from October 18, 2017, date operations commenced, through June 30, 2018. |
(b) | Six months ended December 31, 2018. |
(c) | Calculated on average shares outstanding during the period. |
(d) | Total return amounts have not been annualized. |
(e) | Computed on an annualized basis. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
68
Financial Highlights | ||||||||||||
Principal Exchange-Traded Funds | ||||||||||||
(unaudited) | ||||||||||||
Principal EDGE Active Income ETF | ||||||||||||
For a share outstanding for the year ended June 30 (except as noted): | ||||||||||||
Period ended | Year ended | Year ended | Period ended | |||||||||
December 31, 2018(b) | June 30, 2018 | June 30, 2017 | June 30, 2016(a) | |||||||||
Net asset value, beginning of period | $ | 40.27 | $ | 41.31 | $ | 39.12 | $ | 40.00 | ||||
Investment Operations: | ||||||||||||
Net investment income (loss)(c) | 1.67 | 1.78 | 1.95 | 2.13 | ||||||||
Net realized and change in unrealized gain (loss) | (3.24 | ) | (0.50 | ) | 2.22 | (1.39 | ) | |||||
Total from investment operations | (1.57 | ) | 1.28 | 4.17 | 0.74 | |||||||
Dividends and Distributions to Shareholders from: | ||||||||||||
Net investment income | (1.11 | ) | (1.87 | ) | (1.98 | ) | (1.62 | ) | ||||
Net realized gains | (0.34 | ) | (0.45 | ) | — | — | ||||||
Total dividends and distributions to stockholders | (1.45 | ) | (2.32 | ) | (1.98 | ) | (1.62 | ) | ||||
Net asset value, end of period | $ | 37.25 | $ | 40.27 | $ | 41.31 | $ | 39.12 | ||||
Total Return: | (4.09 | )%(d) | 3.10 | % | 10.92 | % | 2.13 | %(d) | ||||
Ratios/Supplemental Data: | ||||||||||||
Net assets, end of period (000s) | $ | 280,341 | $ | 292,267 | $ | 286,084 | $ | 265,013 | ||||
Ratio of expenses to average net assets | 0.65 | %(f) | 0.65 | %(e) | 0.77 | %(e) | 0.85%(e)(f) | |||||
Ratio of gross expenses to average net assets | 0.65 | %(f) | 0.68 | % | 0.80 | % | 1.34 | %(f) | ||||
Ratio of net investment income (loss) to average net assets | 8.36 | %(f) | 4.34 | % | 4.82 | % | 5.99 | %(f) | ||||
Portfolio turnover rate(g) | 22.6 | %(f) | 11.0 | % | 30.7 | % | 34.3 | %(f) |
(a) | Period from July 8, 2015, date operations commenced, through June 30, 2016. |
(b) | Six months ended December 31, 2018. |
(c) | Calculated on average shares outstanding during the period. |
(d) | Total return amounts have not been annualized. |
(e) | Includes Reimbursements from the Manager. |
(f) | Computed on an annualized basis. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
69
Financial Highlights | |||||||||
Principal Exchange-Traded Funds | |||||||||
(unaudited) | |||||||||
Principal Healthcare Innovators Index ETF | |||||||||
For a share outstanding for the year ended June 30 (except as noted): | |||||||||
Period ended | Year ended | Period ended | |||||||
December 31, 2018(b) | June 30, 2018 | June 30, 2017(a) | |||||||
Net asset value, beginning of period | $ | 34.74 | $ | 28.56 | $ | 25.00 | |||
Investment Operations: | |||||||||
Net investment income (loss)(c) | (0.06 | ) | (0.12 | ) | (0.08 | ) | |||
Net realized and change in unrealized gain (loss) | (6.91 | ) | 6.35 | 3.64 | |||||
Total from investment operations | (6.97 | ) | 6.23 | 3.56 | |||||
Dividends and Distributions to Shareholders from: | |||||||||
Net realized gains | — | (0.05 | ) | — | |||||
Total dividends and distributions to stockholders | — | (0.05 | ) | — | |||||
Net asset value, end of period | $ | 27.77 | $ | 34.74 | $ | 28.56 | |||
Total Return: | (20.06 | )%(d) | 21.83 | % | 14.24 | %(d) | |||
Ratios/Supplemental Data: | |||||||||
Net assets, end of period (000s) | $ | 44,426 | $ | 52,104 | $ | 7,140 | |||
Ratio of expenses to average net assets | 0.42 | %(e) | 0.42 | % | 0.42 | %(e) | |||
Ratio of net investment income (loss) to average net assets | (0.38 | )%(e) | (0.38 | )% | (0.32 | )%(e) | |||
Portfolio turnover rate(f) | 27.9 | %(e) | 33.6 | % | 18.2 | %(e) |
(a) | Period from August 19, 2016, date operations commenced, through June 30, 2017. |
(b) | Six months ended December 31, 2018. |
(c) | Calculated on average shares outstanding during the period. |
(d) | Total return amounts have not been annualized. |
(e) | Computed on an annualized basis. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
70
Financial Highlights | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal International Multi-Factor Index ETF | ||||||
For a share outstanding for the period ended June 30 (except as noted): | ||||||
Period ended | Period ended | |||||
December 31, 2018(b) | June 30, 2018(a) | |||||
Net asset value, beginning of period | $ | 99.34 | $ | 100.00 | ||
Investment Operations: | ||||||
Net investment income (loss)(c) | 0.74 | 1.79 | ||||
Net realized and change in unrealized gain (loss) | (13.48 | ) | (1.75 | ) | ||
Total from investment operations | (12.74 | ) | 0.04 | |||
Dividends and Distributions to Shareholders from: | ||||||
Net investment income | (1.87 | ) | (0.70 | ) | ||
Total dividends and distributions to stockholders | (1.87 | ) | (0.70 | ) | ||
Net asset value, end of period | $ | 84.73 | $ | 99.34 | ||
Total Return:(d) | (13.02 | )% | 0.04 | % | ||
Ratios/Supplemental Data: | ||||||
Net assets, end of period (000s) | $ | 12,710 | $ | 14,901 | ||
Ratio of expenses to average net assets(e) | 0.39 | % | 0.39 | % | ||
Ratio of net investment income (loss) to average net assets(e) | 1.57 | % | 2.74 | % | ||
Portfolio turnover rate(e)(f) | 54.7 | % | 54.1 | % |
(a) | Period from November 8, 2017, date operations commenced, through June 30, 2018. |
(b) | Six months ended December 31, 2018. |
(c) | Calculated on average shares outstanding during the period. |
(d) | Total return amounts have not been annualized. |
(e) | Computed on an annualized basis. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
71
Financial Highlights | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Investment Grade Corporate Active ETF | ||||||
For a share outstanding for the period ended June 30 (except as noted): | ||||||
Period ended | Period ended | |||||
December 31, 2018(b) | June 30, 2018(a) | |||||
Net asset value, beginning of period | $ | 24.59 | $ | 25.00 | ||
Investment Operations: | ||||||
Net investment income (loss)(c) | 0.49 | 0.19 | ||||
Net realized and change in unrealized gain (loss) | (0.49 | ) | (0.52 | ) | ||
Total from investment operations | — | (0.33 | ) | |||
Dividends and Distributions to Shareholders from: | ||||||
Net investment income | (0.57 | ) | (0.08 | ) | ||
Net realized gains | (0.02 | ) | — | |||
Total dividends and distributions to stockholders | (0.59 | ) | (0.08 | ) | ||
Net asset value, end of period | $ | 24.00 | $ | 24.59 | ||
Total Return:(d) | (0.01 | )% | (1.32 | )% | ||
Ratios/Supplemental Data: | ||||||
Net assets, end of period (000s) | $ | 223,222 | $ | 228,710 | ||
Ratio of expenses to average net assets(e) | 0.26 | % | 0.26 | % | ||
Ratio of net investment income (loss) to average net assets(e) | 3.97 | % | 3.83 | % | ||
Portfolio turnover rate(e)(f) | 79.9 | % | 47.8 | % |
(a) | Period from April 18, 2018, date operations commenced, through June 30, 2018. |
(b) | Six months ended December 31, 2018. |
(c) | Calculated on average shares outstanding during the period. |
(d) | Total return amounts have not been annualized. |
(e) | Computed on an annualized basis. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
72
Financial Highlights | |||||||||||
Principal Exchange-Traded Funds | |||||||||||
(unaudited) | |||||||||||
Principal Millennials Index ETF | |||||||||||
For a share outstanding for the year ended June 30 (except as noted): | |||||||||||
Period ended | Year ended | Period ended | |||||||||
December 31, 2018(b) | June 30, 2018 | June 30, 2017(a) | |||||||||
Net asset value, beginning of period | $ | 36.76 | $ | 28.92 | $ | 25.00 | |||||
Investment Operations: | |||||||||||
Net investment income (loss)(c) | 0.10 | 0.23 | 0.17 | ||||||||
Net realized and change in unrealized gain (loss) | (5.26 | ) | 7.91 | 3.87 | |||||||
Total from investment operations | (5.16 | ) | 8.14 | 4.04 | |||||||
Dividends and Distributions to Shareholders from: | |||||||||||
Net investment income | (0.21 | ) | (0.23 | ) | (0.09 | ) | |||||
Net realized gains | — | (0.07 | ) | (0.03 | ) | ||||||
Total dividends and distributions to stockholders | (0.21 | ) | (0.30 | ) | (0.12 | ) | |||||
Net asset value, end of period | $ | 31.39 | $ | 36.76 | $ | 28.92 | |||||
Total Return: | (14.08)%(d) | 28.31 | % | 16.23 | %(d) | ||||||
Ratios/Supplemental Data: | |||||||||||
Net assets, end of period (000s) | $ | 14,128 | $ | 20,217 | $ | 7,230 | |||||
Ratio of expenses to average net assets | 0.45 | %(e) | 0.45 | % | 0.45 | %(e) | |||||
Ratio of expenses to average net assets excluding interest expense | —(f) | 0.45 | % | —(f) | |||||||
Ratio of net investment income (loss) to average net assets | 0.57 | %(e) | 0.66 | % | 0.71 | %(e) | |||||
Portfolio turnover rate(g) | 2.2 | %(e) | 35.6 | % | 5.1 | %(e) |
(a) | Period from August 19, 2016, date operations commenced, through June 30, 2017. |
(b) | Six months ended December 31, 2018. |
(c) | Calculated on average shares outstanding during the period. |
(d) | Total return amounts have not been annualized. |
(e) | Computed on an annualized basis. |
(f) | Ratio is not applicable as there was no interest expense in the period. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
73
Financial Highlights | |||||||||||||
Principal Exchange-Traded Funds | |||||||||||||
(unaudited) | |||||||||||||
Principal Price Setters Index ETF | |||||||||||||
For a share outstanding for the year ended June 30 (except as noted): | |||||||||||||
Period ended | Year ended | Year ended | Period ended | ||||||||||
December 31, 2018(b) | June 30, 2018 | June 30, 2017 | June 30, 2016(a) | ||||||||||
Net asset value, beginning of period | $ | 33.32 | $ | 29.03 | $ | 26.08 | $ | 25.00 | |||||
Investment Operations: | |||||||||||||
Net investment income (loss)(c) | 0.22 | 0.39 | 0.34 | 0.09 | |||||||||
Net realized and change in unrealized gain (loss) | (2.00 | ) | 4.20 | 3.06 | 0.99 | ||||||||
Total from investment operations | (1.78 | ) | 4.59 | 3.40 | 1.08 | ||||||||
Dividends and Distributions to Shareholders from: | |||||||||||||
Net investment income | (0.32 | ) | (0.27 | ) | (0.39 | ) | — | ||||||
Net realized gains | — | (0.03 | ) | (0.06 | ) | — | |||||||
Total dividends and distributions to stockholders | (0.32 | ) | (0.30 | ) | (0.45 | ) | — | ||||||
Net asset value, end of period | $ | 31.22 | $ | 33.32 | $ | 29.03 | $ | 26.08 | |||||
Total Return: | (5.38 | )%(d) | 15.89 | % | 13.23 | % | 4.31%(d) | ||||||
Ratios/Supplemental Data: | |||||||||||||
Net assets, end of period (000s) | $ | 17,172 | $ | 21,655 | $ | 7,257 | $ | 6,519 | |||||
Ratio of expenses to average net assets | 0.29%(e)(f) | 0.29 | %(e) | 0.40 | % | 0.40%(f) | |||||||
Ratio of gross expenses to average net assets | 0.40 | %(f) | 0.40 | % | —(g) | —(g) | |||||||
Ratio of net investment income (loss) to average net assets | 1.27 | %(f) | 1.22 | % | 1.26 | % | 1.32%(f) | ||||||
Portfolio turnover rate(h) | 0.3 | %(f) | 63.5 | % | 2.0 | % | 0.0%(f) |
(a) | Period from March 21, 2016, date operations commenced, through June 30, 2016. |
(b) | Six months ended December 31, 2018. |
(c) | Calculated on average shares outstanding during the period. |
(d) | Total return amounts have not been annualized. |
(e) | Includes Reimbursements from the Manager. |
(f) | Computed on an annualized basis. |
(g) | Ratio is not applicable as there was no Reimbursement from Manager in the period. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
74
Financial Highlights | ||||||||||||||
Principal Exchange-Traded Funds | ||||||||||||||
(unaudited) | ||||||||||||||
Principal Shareholder Yield Index ETF | ||||||||||||||
For a share outstanding for the year ended June 30 (except as noted): | ||||||||||||||
Period ended | Year ended | Year ended | Period ended | |||||||||||
December 31, 2018(b) | June 30, 2018 | June 30, 2017 | June 30, 2016(a) | |||||||||||
Net asset value, beginning of period | $ | 32.49 | $ | 29.16 | $ | 24.65 | $ | 25.00 | ||||||
Investment Operations: | ||||||||||||||
Net investment income (loss)(c) | 0.35 | 0.61 | 0.54 | 0.18 | ||||||||||
Net realized and change in unrealized gain (loss) | (4.51 | ) | 3.21 | 4.67 | (0.53 | ) | ||||||||
Total from investment operations | (4.16 | ) | 3.82 | 5.21 | (0.35 | ) | ||||||||
Dividends and Distributions to Shareholders from: | ||||||||||||||
Net investment income | (0.53 | ) | (0.47 | ) | (0.67 | ) | — | |||||||
Net realized gains | — | (0.02 | ) | (0.03 | ) | — | ||||||||
Total dividends and distributions to stockholders | (0.53 | ) | (0.49 | ) | (0.70 | ) | — | |||||||
Net asset value, end of period | $ | 27.80 | $ | 32.49 | $ | 29.16 | $ | 24.65 | ||||||
Total Return: | (12.97 | )%(d) | 13.17 | % | 21.42 | % | (1.39 | )%(d) | ||||||
Ratios/Supplemental Data: | ||||||||||||||
Net assets, end of period (000s) | $ | 11,120 | $ | 14,622 | $ | 7,290 | $ | 6,6163 | ||||||
Ratio of expenses to average net assets | 0.29%(e)(f) | 0.29 | %(f) | 0.40 | % | 0.40 | %(e) | |||||||
Ratio of gross expenses to average net assets | 0.40 | %(e) | 0.40 | % | —(g) | —(g) | ||||||||
Ratio of net investment income (loss) to average net assets | 2.19 | %(e) | 1.90 | % | 1.98 | % | 2.73 | %(e) | ||||||
Portfolio turnover rate | 0.7 | %(e) | 55.5 | % | 3.0 | % | 7.1%(e)(h) |
(a) | Period from March 21, 2016, date operations commenced, through June 30, 2016. |
(b) | Six months ended December 31, 2018. |
(c) | Calculated on average shares outstanding during the period. |
(d) | Total return amounts have not been annualized. |
(e) | Computed on an annualized basis. |
(f) | Includes Reimbursements from the Manager. |
(g) | Ratio is not applicable as there was no Reimbursement from Manager in the period. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
75
Financial Highlights | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Spectrum Preferred Securities Active ETF | ||||||
For a share outstanding for the period ended June 30 (except as noted): | ||||||
Period ended | Period ended | |||||
December 31, 2018(b) | June 30, 2018(a) | |||||
Net asset value, beginning of period | $ | 94.45 | $ | 100.00 | ||
Investment Operations: | ||||||
Net investment income (loss)(c) | 2.47 | 4.72 | ||||
Net realized and change in unrealized gain (loss) | (4.71 | ) | (5.91 | ) | ||
Total from investment operations | (2.24 | ) | (1.19 | ) | ||
Dividends and Distributions to Shareholders from: | ||||||
Net investment income | (2.93 | ) | (4.34 | ) | ||
Net realized gains | — | (0.02 | ) | |||
Total dividends and distributions to stockholders | (2.93 | ) | (4.36 | ) | ||
Net asset value, end of period | $ | 89.28 | $ | 94.45 | ||
Total Return:(d) | (2.45 | )% | (1.28 | )% | ||
Ratios/Supplemental Data: | ||||||
Net assets, end of period (000s) | $ | 49,102 | $ | 51,949 | ||
Ratio of expenses to average net assets(e) | 0.55 | % | 0.55 | % | ||
Ratio of net investment income (loss) to average net assets(e) | 5.26 | % | 4.93 | % | ||
Portfolio turnover rate(e)(f) | 13.1 | % | 41.0 | % |
(a) | Period from July 7, 2017, date operations commenced, through June 30, 2018. |
(b) | Six months ended December 31, 2018. |
(c) | Calculated on average shares outstanding during the period. |
(d) | Total return amounts have not been annualized. |
(e) | Computed on an annualized basis. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
76
Financial Highlights | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Sustainable Momentum Index ETF | ||||||
For a share outstanding for the period ended June 30 (except as noted): | ||||||
Period ended | Period ended | |||||
December 31, 2018(b) | June 30, 2018(a) | |||||
Net asset value, beginning of period | $ | 28.01 | $ | 25.00 | ||
Investment Operations: | ||||||
Net investment income (loss)(c) | 0.10 | 0.18 | ||||
Net realized and change in unrealized gain (loss) | (3.50 | ) | 2.96 | |||
Total from investment operations | (3.40 | ) | 3.14 | |||
Dividends and Distributions to Shareholders from: | ||||||
Net investment income | (0.14 | ) | (0.13 | ) | ||
Total dividends and distributions to stockholders | (0.14 | ) | (0.13 | ) | ||
Net asset value, end of period | $ | 24.47 | $ | 28.01 | ||
Total Return:(d) | (12.18 | )% | 12.62 | % | ||
Ratios/Supplemental Data: | ||||||
Net assets, end of period (000s) | $ | 4,895 | $ | 5,603 | ||
Ratio of expenses to average net assets(e) | 0.29 | % | 0.29 | % | ||
Ratio of net investment income (loss) to average net assets(e) | 0.68 | % | 0.97 | % | ||
Portfolio turnover rate(e)(f) | 1.5 | % | 158.1 | % |
(a) | Period from October 18, 2017, date operations commenced, through June 30, 2018. |
(b) | Six months ended December 31, 2018. |
(c) | Calculated on average shares outstanding during the period. |
(d) | Total return amounts have not been annualized. |
(e) | Computed on an annualized basis. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
77
Financial Highlights | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | ||||||
For a share outstanding for the period ended June 30 (except as noted): | ||||||
Period ended | Period ended | |||||
December 31, 2018(b) | June 30, 2018(a) | |||||
Net asset value, beginning of period | $ | 26.02 | $ | 25.00 | ||
Investment Operations: | ||||||
Net investment income (loss)(c) | 0.32 | 0.38 | ||||
Net realized and change in unrealized gain (loss) | (0.76 | ) | 0.80 | |||
Total from investment operations | (0.44 | ) | 1.18 | |||
Dividends and Distributions to Shareholders from: | ||||||
Net investment income | (0.47 | ) | (0.16 | ) | ||
Total dividends and distributions to stockholders | (0.47 | ) | (0.16 | ) | ||
Net asset value, end of period | $ | 25.11 | $ | 26.02 | ||
Total Return:(d) | (1.75 | )% | 4.73 | % | ||
Ratios/Supplemental Data: | ||||||
Net assets, end of period (000s) | $ | 1,425,115 | $ | 1,666,525 | ||
Ratio of expenses to average net assets(e)(f) | 0.12 | % | 0.12 | % | ||
Ratio of gross expenses to average net assets(e) | 0.15 | % | 0.15 | % | ||
Ratio of net investment income (loss) to average net assets(e) | 2.37 | % | 2.02 | % | ||
Portfolio turnover rate(e)(g) | 22.0 | % | 39.8 | % |
(a) | Period from October 11, 2017, date operations commenced, through June 30, 2018. |
(b) | Six months ended December 31, 2018. |
(c) | Calculated on average shares outstanding during the period. |
(d) | Total return amounts have not been annualized. |
(e) | Computed on an annualized basis. |
(f) | Includes Reimbursements from the Manager. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
78
Financial Highlights | |||||||||
Principal Exchange-Traded Funds | |||||||||
(unaudited) | |||||||||
Principal U.S. Small-Cap Multi-Factor Index ETF(a) | |||||||||
For a share outstanding for the year ended June 30 (except as noted): | |||||||||
Period ended | Year ended | Period ended | |||||||
December 31, 2018(c) | June 30, 2018 | June 30, 2017(b) | |||||||
Net asset value, beginning of period | $ | 33.45 | $ | 28.84 | $ | 25.00 | |||
Investment Operations: | |||||||||
Net investment income (loss)(d) | 0.24 | 0.29 | 0.26 | ||||||
Net realized and change in unrealized gain (loss) | (5.63 | ) | 4.64 | 3.75 | |||||
Total from investment operations | (5.39 | ) | 4.93 | 4.01 | |||||
Dividends and Distributions to Shareholders from: | |||||||||
Net investment income | (0.28 | ) | (0.30 | ) | (0.17 | ) | |||
Net realized gains | — | (0.02 | ) | — | |||||
Total dividends and distributions to stockholders | (0.28 | ) | (0.32 | ) | (0.17 | ) | |||
Net asset value, end of period | $ | 27.78 | $ | 33.45 | $ | 28.84 | |||
Total Return: | (16.17)%(e) | 17.14 | % | 16.08 | %(e) | ||||
Ratios/Supplemental Data: | |||||||||
Net assets, end of period (000s) | $ | 313,950 | $ | 351,176 | $ | 275,466 | |||
Ratio of expenses to average net assets | 0.38 | %(f) | 0.38 | % | 0.38 | %(f) | |||
Ratio of net investment income (loss) to average net assets | 1.43 | %(f) | 0.94 | % | 1.21 | %(f) | |||
Portfolio turnover rate(g) | 77.2 | %(f) | 76.3 | % | 44.7 | %(f) |
(a) | Effective October 27, 2017, Principal U.S. Small-Cap Index ETF changed its name to Principal U.S. Small-Cap Multi-Factor Index ETF. |
(b) | Period from September 21, 2016, date operations commenced, through June 30, 2017. |
(c) | Six months ended December 31, 2018. |
(d) | Calculated on average shares outstanding during the period. |
(e) | Total return amounts have not been annualized. |
(f) | Computed on an annualized basis. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
79
Shareholder Expense Example
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions paid on purchases and sales of Fund shares and (2) ongoing costs, including management fees. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other exchange-traded funds.
The Examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018, except as noted in the following table.
Actual Expenses
The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second section of table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other fund.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as contingent deferred sales charges, redemption fees or exchange fees. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different fund. In addition, if these transaction costs were included, your costs would have been higher.
Beginning | Ending | Annualized | Expenses Paid | |||||
Account Value | Account Value | Expense Ratio | During Period | |||||
Principal Active Global Dividend Income ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 910.50 | 0.58 | % | $ | 2.84 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,022.23 | 0.58 | % | $ | 3.01 |
Principal Contrarian Value Index ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 867.60 | 0.29 | % | $ | 1.37 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,023.74 | 0.29 | % | $ | 1.48 |
Principal EDGE Active Income ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 959.10 | 0.65 | % | $ | 3.21 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,021.93 | 0.65 | % | $ | 3.31 |
Principal Healthcare Innovators Index ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 799.40 | 0.42 | % | $ | 1.90 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,023.09 | 0.42 | % | $ | 2.14 |
Principal International Multi-Factor Index ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 869.80 | 0.39 | % | $ | 1.97 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,023.24 | 0.39 | % | $ | 1.99 |
Principal Investment Grade Corporate Active ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 999.90 | 0.26 | % | $ | 1.31 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,023.89 | 0.26 | % | $ | 1.33 |
Principal Millennials Index ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 859.20 | 0.45 | % | $ | 2.11 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,022.94 | 0.45 | % | $ | 2.29 |
Principal Price Setters Index ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 946.20 | 0.29 | % | $ | 1.42 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,023.74 | 0.29 | % | $ | 1.48 |
Principal Shareholder Yield Index ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 870.30 | 0.29 | % | $ | 1.37 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,023.74 | 0.29 | % | $ | 1.48 |
80
Shareholder Expense Example | ||||||||
Principal Exchange-Traded Funds | ||||||||
December 31, 2018 (unaudited) | ||||||||
Beginning | Ending | Annualized | Expenses Paid | |||||
Account Value | Account Value | Expense Ratio | During Period | |||||
Principal Spectrum Preferred Securities Active ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 975.50 | 0.55 | % | $ | 2.74 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,022.43 | 0.55 | % | $ | 2.80 |
Principal Sustainable Momentum Index ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 878.20 | 0.29 | % | $ | 1.37 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,023.74 | 0.29 | % | $ | 1.48 |
Principal U.S. Mega-Cap Multi-Factor Index ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 982.50 | 0.12 | % | $ | 0.60 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,024.60 | 0.12 | % | $ | 0.61 |
Principal U.S. Small-Cap Multi-Factor Index ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 838.30 | 0.38 | % | $ | 1.99 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,023.29 | 0.38 | % | $ | 1.94 |
81
Principal Exchange-Traded Funds
(unaudited)
Notification of Source of Distributions
Pursuant to Rule 19a-1 of the Investment Company Act of 1940
As noted in the table provided below, certain of the Principal Exchange-Traded Funds made distributions for the months of October 2018 and December 2018 for which a portion is estimated to be in excess of the fund’s current and accumulated net income. As of these month ends, the estimated sources of these distributions were as follows:
October 2018 | |||||||
Fund | Net Income | Realized Gain | Capital Sources | ||||
Principal Millennials Index ETF | 87.72 | % | 12.28 | % | 0.00 | % | |
December 2018 | |||||||
Fund | Net Income | Realized Gain | Capital Sources | ||||
Principal International Multi-Factor Index ETF | 80.51 | % | 0.00 | % | 19.49 | % | |
Principal Investment Grade Corporate Active ETF | 98.33 | 0.00 | 1.67 | ||||
Principal Millennials Index ETF | 96.35 | 3.65 | 0.00 |
The ultimate composition of these distributions may vary from the estimates provided above due to a variety of factors including future income and expenses, and realized gains and losses from the purchase and sale of securities.
Please note that this information is being provided to satisfy certain notice requirements under the Investment Company Act of 1940. Tax reporting information for shareholders of the funds will not be available until the end of the funds’ fiscal year.
As a result, shareholders should not use the information provided in this notice for tax reporting purposes.
82
Trustees and Officers
Under Delaware law, a Board of Trustees oversees the Trust. The Trustees have financial or other relevant experience and meet several times during the year to review contracts, Trust activities and the quality of services provided to the Trust. Each trustee also has the same position with Principal Funds, Inc. and Principal Variable Contracts Funds, Inc. which are also sponsored by Principal Life Insurance Company. Each trustee holds office for an indefinite term or until reaching age 72. Trustees considered to be “interested persons” as defined in the Investment Company Act of 1940, as shown below are considered to be interested because of an affiliation with the Manager and Principal Life Insurance Company.
The following Trustees are considered not to be “interested persons” as defined in the 1940 Act
Number of | |||
Name, | Portfolios in Fund | Other Directorships | |
Position Held with the Trust, | Principal Occupation(s) | Complex Overseen | Held by Trustee |
Year of Birth | During past 5 years | by Trustee | During Past 5 Years |
Elizabeth Ballantine | Principal, EBA Associates | 133 | Durango Herald, Inc; |
Trustee since 2014 | McClatchy | ||
Member, Nominating and Governance | Newspapers, Inc. | ||
Committee | |||
1948 | |||
Leroy T. Barnes, Jr. | Retired. | 133 | McClatchy |
Trustee since 2014 | Newspapers, Inc.; | ||
Member, Audit Committee | Herbalife Ltd.; | ||
1951 | Frontier | ||
Communications, Inc. | |||
Craig Damos | President, The Damos Company | 133 | Hardin Construction |
Trustee since 2014 | |||
Member, Audit Committee | |||
Member, 15(c) Committee | |||
1954 | |||
Mark A. Grimmett | Formerly, Executive Vice President | 133 | None |
Trustee since 2014 | and CFO, Merle Norman Cosmetics, | ||
Member, Nominating and Governance | Inc. | ||
Committee | |||
Member, 15(c) Committee | |||
Member, Executive Committee | |||
1960 | |||
Fritz S. Hirsch | Formerly, CEO, MAM USA | 133 | Focus Products |
Trustee since 2014 | Group; MAM USA | ||
Member, Operations Committee | |||
Member, 15(c) Committee | |||
1951 | |||
Tao Huang | Retired. | 133 | Armstrong World |
Trustee since 2014 | Industries, Inc. | ||
Member, Operations Committee | |||
Member, 15(c) Committee | |||
1962 | |||
Karen (“Karrie”) McMillan | Managing Director, Patomak Global | 133 | None |
Trustee since 2014 | Partners, LLC. | ||
Member, Operations Committee | Formerly, General Counsel, | ||
1961 | Investment Company Institute | ||
Elizabeth A. Nickels | Formerly, Executive Director, | 133 | Charlotte Russe; |
Trustee since 2015 | Herman Miller Foundation; | Follet Corporation; | |
Member, Audit Committee | Formerly President, Herman Miller | PetSmart; | |
1962 | Healthcare | SpartanNash; | |
Spectrum Health | |||
Systems |
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Number of | |||
Name, | Portfolios in Fund | Other Directorships | |
Position Held with the Trust, | Principal Occupation(s) | Complex Overseen | Held by Trustee |
Year of Birth | During past 5 years | by Trustee | During Past 5 Years |
Mary M. (“Meg”) VanDeWeghe | CEO and President, Forte Consulting, | 133 | Brown Advisory; |
Trustee since 2018 | Inc | B/E Aerospace; | |
Member Operations Committee | WP Carey; | ||
1959 | Nalco (and it | ||
successor Ecolab) |
The following Trustees are considered to be “interested persons” as defined in the 1940 Act, because of an affiliation with the Manager and Principal Life.
Number of | |||
Name, | Portfolios in Fund | Other Directorships | |
Position Held with the Trust, | Principal Occupation(s) | Complex Overseen | Held by Trustee |
Year of Birth | During past 5 years | by Trustee | During Past 5 Years |
Michael J. Beer | Chief Executive Officer, Principal | 133 | None |
Trustee since 2014 | Funds Distributor, Inc. (“PFD”) | ||
President, Chief Executive Officer | since 2015 | ||
Member, Executive Committee | Executive Director — Funds, | ||
1961 | Principal Global Investors, LLC | ||
(“PGI”) since 2017 | |||
Director, PGI since 2017 | |||
Director, PFD since 2015 | |||
Vice President/Mutual Funds and | |||
Broker Dealer, Principal Life | |||
Insurance Company (“PLIC”) | |||
(2001-2014) | |||
Vice President/Chief Operating | |||
Officer, Principal Funds, PLIC | |||
(2014-2015) | |||
Executive Director, Principal Funds & | |||
Trust, PLIC since 2015 | |||
Director, Principal Management | |||
Corporation, (“PMC”) (2006-2015) | |||
President & Chief Executive Officer, | |||
PMC (2015-2017) | |||
Executive Vice President/Chief | |||
Operating Officer, PMC | |||
(2008-2015) | |||
Chair, PMC (2015-2017) | |||
Director, Principal Securities, Inc. | |||
(“PSI”) (2005- 2015) | |||
President, PSI (2005-2015) | |||
Director, Principal Shareholder | |||
Services (“PSS”) (2007-2015) | |||
Chairman, PSS since 2015 | |||
President, PSS (2007-2015) | |||
Executive Vice President, PSS | |||
since 2015 |
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Number of | |||
Name, | Portfolios in Fund | Other Directorships | |
Position Held with the Trust, | Principal Occupation(s) | Complex Overseen | Held by Trustee |
Year of Birth | During past 5 years | by Trustee | During Past 5 Years |
Nora M. Everett | Director, Finisterre Capital LLP | 133 | None |
Trustee since 2014 | since 2011 | ||
Chair Member, Executive Committee | Director, Origin Asset Management | ||
1959 | LLP since 2011 | ||
Chairman, Principal Financial | |||
Advisors, Inc. (“PFA”) (2010-2015) | |||
Chairman, PFD (2011-2015) | |||
Senior Vice President/Retirement and | |||
Income Solutions (“RIS”), PLIC | |||
(2008-2015) | |||
President/RIS, PLIC since 2015 | |||
Chairman, PMC (2011-2015) | |||
President, PMC (2008-2015) | |||
Director, PSI (2008-2011, and | |||
since 2015) | |||
Chairman, PSI (2011-2015) | |||
Chief Executive Officer, PSI | |||
(2009-2015) | |||
Chairman, PSS (2011-2015) | |||
Patrick Halter | Director Morley Capital Management, | 133 | None |
Trustee since 2017 | Inc. (“Morley”) since 2017 | ||
Member, Executive Committee | Chair, Post Advisory Group, LLC | ||
1959 | (“Post”) since 2017 | ||
Chief Operating Office, PGI | |||
since 2017 | |||
Director, PGI since 2003 | |||
Chair, PREI since 2004 | |||
Chief Executive Office, PREI | |||
since 2005 | |||
Chair, Spectrum since 2017 |
Correspondence intended for each Trustee who is other than an Interested Trustee may be sent to 655 9th Street, Des Moines, IA50392.
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The following table presents officers of the Trust. | |
Name, | |
Position Held with the Trust, | Principal Occupation(s) |
Address, and Year of Birth | During past 5 years |
Randy L. Bergstrom | Counsel, PGI |
Assistant Tax Counsel | Counsel, PLIC |
Des Moines, IA 50392 | |
1955 | |
Jennifer A. Block | Vice President and Counsel (2017-2018) |
Deputy Chief Compliance Officer | Assistant Counsel (2010-2017 |
Des Moines, IA 50392 | Assistant Secretary (2015-2018 |
1973 | Counsel, PGI (2017-2018) |
Counsel, PFD (2009-2013) | |
Counsel, PLIC (2009-2018) | |
Counsel, PMC (2009-2013, 2014-2017) | |
Counsel, PSI (2009-2013) | |
Counsel, PSS (2009-2013) | |
Tracy Bollin | Managing Director, PGI since 2016 |
Chief Financial Officer | Chief Operating Officer, PMC (2015-2017) |
Des Moines, IA 50392 | Chief Financial Officer, PFA (2010-2015) |
1970 | Senior Vice President, PFD since 2015 |
Chief Financial Officer, PFD (2010-2016) | |
Senior Vice President, PMC (2015–2017) | |
Chief Financial Officer, PMC (2010-2015) | |
Director, PMC (2014–2017) | |
Chief Financial Officer, PSI (2010-2015) | |
Director, PSS since 2014 | |
President, PSS since 2015 | |
Chief Financial Officer, PSS (2010-2015) | |
Gina L. Graham | Vice President/Treasurer, PFA since 2016 |
Treasurer | Vice President/ Treasurer, Morley since 2016 |
Des Moines, IA 50392 | Vice President/Treasurer, PFD since 2016 |
1965 | Vice President/Treasurer, PGI since 2016 |
Vice President/Treasurer, PLIC since 2016 | |
Vice President/Treasurer, PMC (2016-2017) | |
Vice President/Treasurer, Principal Real Estate Investors, | |
LLC since 2016 | |
Vice President/Treasurer, PSI since 2016 | |
Vice President/Treasurer, PSS since 2016 | |
Laura B. Latham | Counsel, PGI since 2018 |
Assistant Counsel and Assistant Secretary | Prior thereto, Attorney in Private Practice |
Des Moines, IA 50392 | |
1986 | |
Diane K. Nelson | Chief Compliance Officer/AML Officer, PSS (Since 2015) |
AML Officer | Compliance Advisor, PMC (2013-2015) |
Des Moines, 50392 | |
1965 | |
Layne A. Rasmussen | Vice President/Controller, PMC |
Vice President | Director — Accounting, PLIC since 2015 |
Des Moines, IA 50392 | Finance Controller, PLIC prior to 2015 |
1958 | |
Sara L. Reece | Director — Accounting, PLIC since 2015 |
Vice President and Controller | Assistant Financial Controller, PLIC prior to 2015 |
Des Moines, IA 50392 | |
1975 |
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Name, | |
Position Held with the Trust, | Principal Occupation(s) |
Address, and Year of Birth | During past 5 years |
Teri R. Root | Interim Chief Compliance Office (2018) |
Chief Compliance Officer | Deputy Chief Compliance Officer (2015-2018) |
Des Moines, IA 50392 | Deputy Chief Compliance Officer, PGI since 2017 |
1979 | Vice President and Chief Compliance Officer, PMC |
(2015-2017) | |
Compliance Office, PMC (2010-2013) | |
Vice President, PSS Since 2015 | |
Britney L. Schnathorst | Counsel, PLIC since 2013 |
Assistant Counsel and Assistant Secretary | Prior thereto, Attorney in Private Practice |
Des Moines, IA 50392 | |
1981 | |
Adam U. Shaikh | Assistant General Counsel, PGI (2018) |
Assistant Counsel | Counsel, PGI (2017-2018) |
Des Moines, IA 50392 | Counsel, PFD (2006-2013) |
1972 | Counsel, PLIC (since 2006) |
Counsel, PMC (2007-2013, 2014-2017) | |
Counsel, PSI (2007-2013) | |
Dan L. Westholm | Assistant Vice President/Treasurer, PGI since 2017 |
Assistant Treasurer | Assistant Vice President/Treasury, PFA since 2013 |
Des Moines, IA 50392 | Director — Treasury, PFA (2011-2013) |
1966 | Assistant Vice President/Treasury, PFD since 2013 |
Director — Treasury, PFD (2011-2013) | |
Assistant Vice President/Treasury, PLIC since 2014 | |
Director — Treasury, PLIC (2007-2014) | |
Director — Treasury, PMC (2003-2013) | |
Assistant Vice President/Treasury, PMC (2013-2017) | |
Assistant Vice President/Treasury, PSI since 2013 | |
Director — Treasury, PSI (2011-2013) | |
Assistant Vice President/Treasury, PSS since 2013 | |
Director — Treasury, PSS (2007-2013) | |
Beth Wilson | Director and Secretary — Funds, PLIC |
Vice President and Secretary | Vice President, PMC (2007-2013) |
Des Moines, IA 50392 | |
1956 | |
Clint L. Woods | Vice President, Associate General Counsel, Governance |
Vice President and Counsel | Officer, and Assistant Corporate Secretary, PLIC since 2015 |
Des Moines, IA 50392 | Assistant General Counsel, Assistant Corporate Secretary, and |
1961 | Governance Officer, PLIC (2013-2015) |
Jared A. Yepsen | Associate General Counsel, AEGON (2003-2012) |
Assistant Tax Counsel | Counsel, PGI since 2017 |
Des Moines, IA 50392 | Counsel, PLIC since 2015 |
1981 | Senior Attorney, Transamerica Life Insurance Company |
(TLIC) (2013-2015) | |
Attorney, TLIC (2010-2013) |
The 15(c) Committee assists the Board in performing the annual review of the Trust’s advisory and sub-advisory agreements pursuant to Section 15(c) of the 1940 Act.
The Audit Committee selects the independent auditors for the Trust and oversees the activities of the independent auditors as well as the internal auditors. The committee also receives reports about accounting and financial matters affecting the Trust.
The Executive Committee is selected by the Board. It may exercise all the powers of the Board, with certain exceptions, when the Board is not in session. The Committee must report its actions to the Board.
The Nominating and Governance Committee selects and nominates all candidates who are not “interested persons” of the Trust for election to the Board. The committee also oversees the structure and efficiency of the Board of Trustees and the committees the Board establishes.
The Operations Committee oversees the provision of administrative and distribution services to the Trust, communications with the Trusts’ shareholders, and provides review and oversight of the Trusts’ operations.
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Additional information about the Trust is available in the Prospectuses dated September 20, 2016, November 1, 2016, and May 8, 2017, and the Statements of Additional Information dated September 20, 2016 and November 1, 2016. These documents may be obtained free of charge by writing Principal Exchange-Traded Funds, c/o ALPS Distributors, Inc., 1290 Broadway, Suite 1100, Denver, CO 80203 or telephoning 1-800-787-1621. The prospectuses may be viewed at www.PrincipalETFs.com.
PROXY VOTING POLICIES
A description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities and the results of the proxy votes for the most recent twelve months ended June 30 may be obtained free of charge by telephoning 1-800-787-1621, or on the SEC website at www.sec.gov.
SCHEDULES OF INVESTMENTS
The Trust files complete schedules of investments with the Securities and Exchange Commission as of March 31 and September 30 of each year on Form N-Q. The Trust’s Form N-Q can be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. or on the Commission’s website at www.sec.gov. Information on the operation of the Public Reference Room may be obtained by calling the Commission at 1-202-551-8090.
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Board Consideration of Investment Advisory Contracts
During the period covered by this report, the Board of Trustees of Principal Exchange-Traded Funds (“PETF”) approved the annual review and renewal of the Management Agreements and for all Funds and a subadvisory agreement for the Principal Spectrum Preferred Securities Active ETF.
Annual Review and Renewal of Management Agreement and Sub-Advisory Agreements
At its September 12, 2018 meeting, the Board performed its annual review and renewal process relating to the Management Agreement and the Subadvisory Agreements for all Funds.
Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”) requires the Board, including a majority of the Directors who have no direct or indirect interest in the investment advisory agreements and who are not “interested persons” of PETF, as defined in the 1940 Act (the “Independent Directors”), annually to review and to consider the continuation of: (1) the Management Agreement between the Principal Global Investors, LLC (the “Manager”) and PETF, on behalf of each of the fifteen (15) series of PETF (each series is referred to as a “Fund”); and (2) the Subadvisory Agreement between the Manager and Spectrum Asset Management Inc. (“Spectrum”) (the “Subadvisor”). The Management Agreement and the Subadvisory Agreement are collectively referred to as the “Advisory Agreements.”
The Board, including the Independent Directors, considered the factors and reached the conclusions described below relating to the continuation of the Advisory Agreements. In evaluating the Advisory Agreements, the Board, including the Independent Directors, reviewed a broad range of information requested for this purpose by the Independent Directors, including, among other information, information regarding performance, advisory fees, total expenses, profitability from the Advisory Agreements to the Manager and information about economies of scale. The Board reviewed the materials provided and concluded that it was provided all information reasonably necessary to evaluate the Advisory Agreements.
Management Agreement
With respect to the Management Agreement for each Fund, the Board considered, among other factors, that the Manager, along with Principal Management Corporation (“PMC”), the previous investment adviser to the Funds that merged with and into the Manager on May 1, 2017, and its affiliates have demonstrated a long-term commitment to support the Funds. In addition, the Board considered the following factors, and made certain findings and conclusions with respect thereto, for each of the Funds. The Board concluded that a relationship with a capable and conscientious adviser is in the best interests of each Fund.
Nature, Extent and Quality of Services
The Board considered the nature, quality and extent of the services provided under the Management Agreement, including accounting and administrative services, as applicable. The Board considered the experience and skills of senior management leading Fund operations, the experience and skills of the personnel performing the functions under the Management Agreement and the resources made available to such personnel, the ability of the Manager to attract and retain high-quality personnel and the organizational depth and stability of the Manager. The Board concluded that appropriate resources were provided under the Management Agreement. The Board also considered that, during the periods reviewed, the Manager had delegated day-to-day portfolio management responsibility for the Principal Spectrum Preferred Securities Active ETF to Spectrum. The Board noted that the Manager’s process for the selection of subadvisors emphasizes the selection of Principal-affiliated subadvisors that are determined to be qualified under the Manager’s due diligence process, but that the Manager will select an unaffiliated subadvisor to manage all or a portion of a Fund’s investment portfolio when deemed necessary or appropriate based upon a consideration of the Fund’s investment mandate and available expertise and resources within the Principal organization. Based upon all relevant factors, the Board concluded that the nature, quality and extent of the services provided by the Manager to the Funds under the Management Agreement was satisfactory.
Investment Performance
The Board reviewed each Fund’s investment performance over longer-term periods, reviewing both the investment return during the three-year period ended March 31, 2018 and the blended investment return (50%/50%) of the three- and five-year periods ended March 31, 2018, and compared those returns to various agreed-upon performance measures, including peer-group data based upon a broad-based, industry category determined by Morningstar.
For Funds that did not have a three-year or five-year performance history, the Board reviewed performance for a one-year or three-year period ended March 31, 2018, respectively, if available. The Board also compared each Fund’s investment performance over the one-, three- and five-year periods ended March 31, 2018, as available, to one or more relevant benchmark
89
indices. The Board noted that certain Funds had commenced operations recently and, accordingly, no or limited performance information was considered. The Board also considered whether investment results were consistent with a Fund’s investment objective(s) and policies. For most Funds, the Board concluded that the Fund’s investment returns met acceptable levels of investment performance. There were certain Funds that had not attained during the relevant period(s) a level of investment performance considered satisfactory by the Board. For such Funds, the Board also considered other factors, such as the longer-term performance of each such Fund, remedial efforts being taken to improve performance and/or the Manager’s explanation for the performance of such Fund. The Board considered the Manager’s due diligence process for evaluating the performance of all Funds for which they received regular reporting and concluded that the Manager has in place an effective due diligence process to monitor investment performance, and to encourage remedial action if necessary.
Investment Management Fees
The Board considered each Fund’s management fee. For each Fund, the Board received certain information from Broadridge including actual total expense ratio (including, as applicable, acquired fund fees and expenses and after any expense caps or fee waivers) at average fiscal-year asset levels for commons shares of the Funds against a peer group selected by Broadridge (“Expense Group”), and, if available, a broad-based, industry category defined by Broadridge (“Expense Universe”).
In evaluating the management fees, the Board considered a variety of factors, including the amount of the fees, breakpoints, comparison to fees of peer group funds and other funds and non-fund accounts managed by the Manager, subadvisory fees paid, services provided, investment performance, total net expense ratios, profitability, the existence and sharing of economies of scale and expense caps and fee waivers. The Board considered that certain Funds with similar investment strategies and policies have different management fees and noted the reasons cited by the Manager for the differing fees. In reviewing the fees of other accounts managed by the Manager, the Board considered information provided by the Manager regarding differences between the services provided to the Funds and the services provided to such other accounts.
Considering all factors they deemed relevant, the Board concluded that the management fee payable by each Fund was reasonable in light of the nature, quality and extent of the services provided by the Manager and other relevant factors.
Profitability
The Board reviewed detailed information regarding revenues PMC, the previous investment advisor to the Funds, and its affiliate, the Manager, received under the Management Agreement and the estimated direct and indirect costs incurred in providing to each Fund the services described in the Management Agreement for the year ended December 31, 2017. The Board also considered the returns on revenue generated in connection with the payment of subadvisory fees to Spectrum and the aggregated return on revenue to PMC and its affiliates for the year ended December 31, 2017. The Board concluded that the management fee for each Fund was reasonable, taking into account the profitability information presented by the Manager.
Economies of Scale
The Board considered whether there are economies of scale with respect to the management of each Fund and whether the Funds benefit from any such economies of scale. The Board determined that no breakpoints are necessary at this time for the Principal Investment Grade Corporate Active ETF, the Principal Spectrum Preferred Securities Active ETF, the Principal EDGE Active Global Dividend Income ETF, the Principal EDGE Active Income ETF, the Principal Contrarian Value Index ETF, the Principal Emerging Markets Multi-Factor Index ETF, the Principal International Multi-Factor Index ETF, the Principal Morley Short Duration Index ETF, the Principal Price Setters Index ETF, the Principal Shareholder Yield Index ETF, the Principal Sustainable Momentum Index ETF, the Principal U.S. Mega-Cap Multi-Factor Index ETF or the Principal U.S. SmallCap Index ETF due, among other factors, to their current asset levels and taking into account levels of profitability to the Manager.
Sub-advisory Agreement
Nature, Quality and Extent of Services
The Board consideredthe nature, quality and extent of the services provided under the Subadvisory Agreement. The Board considered the reputation, qualifications and background of Spectrum, the investment approach of Spectrum, the experience and skills of investment personnel responsible for the day-to-day management of the Principal Spectrum Preferred Securities Active ETF and the resources made available to such personnel. The Board also considered Spectrum’s compliance with investment policies and general legal compliance. Based upon all relevant factors, the Board concluded that the nature, quality and extent of the services provided by Spectrum to the Principal Spectrum Preferred Securities Active ETF Funds under the Subadvisory Agreement is satisfactory.
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Investment Performance
As to the Principal Spectrum Preferred Securities Active ETF, the Manager had advised the Board that the investment services delivered by Spectrum was reasonable. Based upon all relevant factors, the Board concluded that Spectrum is qualified and that the investment performance of the Subadvisor met acceptable levels of investment performance
Subadvisory Fees, Economies of Scale and Profitability
For the Principal Spectrum Preferred Securities Active ETF, the Board considered the subadvisory fees, noting that the Manager compensates Spectrum from its own management fee, so that shareholders pay only the management fee.
Other Benefits to the Manager and Subadvisers
The Board also considered the character and amount of other incidental benefits received by the Manager and its affiliates from their relationships with the Funds. The Board concluded that the management and subadvisory fees w ere reasonable in light of these fall-out benefits.
The Board also considered the character and amount of other incidental benefits received by Spectrum when evaluating the subadvisory fee. The Board concluded that taking into account these fall-out benefits, the subadvisory fee was reasonable.
Overall Conclusions
Based upon all of the information considered and the conclusions reached, the Board determined that the terms of each Advisory Agreement continue to be fair and reasonable and that the continuation of each Advisory Agreement, with the actions proposed by the Manager, is in the best interests of each Fund.
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ITEM 2 – CODE OF ETHICS
Not applicable to semi-annual reports.
ITEM 3 – AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable to semi-annual reports.
ITEM 4 – PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable to semi-annual reports.
ITEM 5 – AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6 – SCHEDULE OF INVESTMENTS
Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.
ITEM 7 – DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8 – PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 9 – PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10 – SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 11 – CONTROLS AND PROCEDURES
a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing).
(b) There have been no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 12 – DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13 – EXHIBITS
(a)(1) Code of Ethics - Not applicable to semi-annual reports.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.CERT.
(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant)
Principal Exchange-Traded Funds
By /s/ Michael J. Beer
Michael J. Beer, President and CEO
Date 2/12/2019
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /s/ Michael J. Beer
Michael J. Beer, President and CEO
Date 2/12/2019
By /s/ Tracy W. Bollin
Tracy W. Bollin, Chief Financial Officer
Date 2/12/2019