UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-23029
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, 2018 | |
Date of reporting period: | December 31, 2017 |
ITEM 1 – REPORT TO STOCKHOLDERS
EE11865PFI | 01/2017
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, 2017 (unaudited) | |||||||||
Principal Active | Principal | Principal EDGE | |||||||
Global Dividend | Contrarian Value | Active Income | |||||||
Income ETF | Index ETF | ETF | |||||||
Investments in securities — at cost | $ | 566,857,367 | $ | 3,738,255 | $ | 272,008,909 | |||
Assets | |||||||||
Investments in securities — at value | $ | 616,863,121 | $ | 3,926,136 | $ | 285,892,550 | |||
Cash | 12,457,112 | 14,925 | 2,249,011 | ||||||
Receivables: | |||||||||
Dividends and interest | 1,440,609 | 6,874 | 3,447,352 | ||||||
Investment securities sold | 4,128,666 | 8,525 | 1,200,984 | ||||||
Total Assets | 634,889,508 | 3,956,460 | 292,789,897 | ||||||
Liabilities | |||||||||
Due to custodian | 2,810,325 | — | — | ||||||
Accrued management and investment advisory fees | 298,597 | 998 | 166,099 | ||||||
Accrued income distribution | 2,499,705 | 17,100 | 1,166,703 | ||||||
Payables: | |||||||||
Investment securities purchased | 2,859,142 | — | — | ||||||
Total Liabilities | 8,467,769 | 18,098 | 1,332,802 | ||||||
Net Assets Applicable to Outstanding Shares | $ | 626,421,739 | $ | 3,938,362 | $ | 291,457,095 | |||
Net Assets Consist of: | |||||||||
Capital shares and additional paid-in-capital | $ | 575,765,538 | $ | 3,750,025 | $ | 275,972,258 | |||
Accumulated undistributed (overdistributed) net investment income (loss) | (5,558 | ) | (34 | ) | (289,622 | ) | |||
Accumulated undistributed (overdistributed) net realized gain (loss) | 658,028 | 490 | 1,890,518 | ||||||
Net unrealized appreciation (depreciation) of investments | 50,005,754 | 187,881 | 13,883,641 | ||||||
Net unrealized appreciation (depreciation) of translation of asset and liabilities in foreign | |||||||||
currency | (2,023 | ) | — | 300 | |||||
Total Net Assets | $ | 626,421,739 | $ | 3,938,362 | $ | 291,457,095 | |||
Net Asset Value Per Share: | |||||||||
Net Assets | $ | 626,421,739 | $ | 3,938,362 | $ | 291,457,095 | |||
Shares Issued and Outstanding | 22,500,001 | 150,001 | 7,075,000 | ||||||
Net Asset Value per share | $ | 27.84 | $ | 26.26 | $ | 41.20 |
See accompanying notes.
1
Statements of Assets and Liabilities | |||||||||
Principal Exchange-Traded Funds | |||||||||
December 31, 2017 (unaudited) | |||||||||
Principal | Principal | ||||||||
Healthcare | International | Principal | |||||||
Innovators Index | Multi-Factor | Millennials Index | |||||||
ETF | Index ETF | ETF | |||||||
Investments in securities — at cost | $ | 45,643,417 | $ | 14,954,334 | $ | 8,332,638 | |||
Foreign currency — at cost | $ | — | $ | 417 | $ | — | |||
Assets | |||||||||
Investments in securities — at value | $ | 48,434,486 | $ | 15,184,047 | $ | 10,285,796 | |||
Foreign currency — at value | — | 416 | — | ||||||
Cash | 50,495 | 51,157 | 13,718 | ||||||
Receivables: | |||||||||
Dividends and interest | — | 19,823 | 3,910 | ||||||
Investment securities sold | — | — | 4,769 | ||||||
Total Assets | 48,484,981 | 15,255,443 | 10,308,193 | ||||||
Liabilities | |||||||||
Accrued management and investment advisory fees | 17,421 | 5,149 | 4,002 | ||||||
Accrued income distribution | — | 23,000 | 6,100 | ||||||
Total Liabilities | 17,421 | 28,149 | 10,102 | ||||||
Net Assets Applicable to Outstanding Shares | $ | 48,467,560 | $ | 15,227,294 | $ | 10,298,091 | |||
Net Assets Consist of: | |||||||||
Capital shares and additional paid-in-capital | $ | 45,394,841 | $ | 15,000,100 | $ | 8,350,629 | |||
Accumulated undistributed (overdistributed) net investment income (loss) | (38,319 | ) | (2,543 | ) | (6,379 | ) | |||
Accumulated undistributed (overdistributed) net realized gain (loss) | 319,969 | (150 | ) | 599 | |||||
Net unrealized appreciation (depreciation) of investments | 2,791,069 | 229,713 | 1,953,158 | ||||||
Net unrealized appreciation (depreciation) of translation of asset and liabilities in foreign | |||||||||
currency | — | 174 | 84 | ||||||
Total Net Assets | $ | 48,467,560 | $ | 15,227,294 | $ | 10,298,091 | |||
Net Asset Value Per Share: | |||||||||
Net Assets | $ | 48,467,560 | $ | 15,227,294 | $ | 10,298,091 | |||
Shares Issued and Outstanding | 1,550,001 | 150,001 | 300,001 | ||||||
Net Asset Value per share | $ | 31.27 | $ | 101.51 | $ | 34.33 |
See accompanying notes.
2
Statements of Assets and Liabilities | |||||||||
Principal Exchange-Traded Funds | |||||||||
December 31, 2017 (unaudited) | |||||||||
Principal | |||||||||
Spectrum | |||||||||
Principal Price | Principal | Preferred | |||||||
Setters Index | Shareholder | Securities | |||||||
ETF | Yield Index ETF | Active ETF | |||||||
Investments in securities — at cost | $ | 20,934,716 | $ | 7,169,825 | $ | 34,245,227 | |||
Assets | |||||||||
Investments in securities — at value | $ | 22,406,499 | $ | 8,090,424 | $ | 34,122,029 | |||
Cash | 36,700 | 37,223 | 499,118 | ||||||
Receivables: | |||||||||
Dividends and interest | 23,309 | 10,002 | 418,447 | ||||||
Investment securities sold | 43,053 | 11,720 | — | ||||||
Expense reimbursement from Manager | 2,033 | 777 | — | ||||||
Total Assets | 22,511,594 | 8,150,146 | 35,039,594 | ||||||
Liabilities | |||||||||
Accrued management and investment advisory fees | 7,393 | 2,826 | 15,884 | ||||||
Accrued income distribution | 50,800 | 36,300 | 144,900 | ||||||
Total Liabilities | 58,193 | 39,126 | 160,784 | ||||||
Net Assets Applicable to Outstanding Shares | $ | 22,453,401 | $ | 8,111,020 | $ | 34,878,810 | |||
Net Assets Consist of: | |||||||||
Capital shares and additional paid-in-capital | $ | 20,981,249 | $ | 7,190,964 | $ | 35,032,465 | |||
Accumulated undistributed (overdistributed) net investment income (loss) | (184 | ) | (1,324 | ) | (42,614 | ) | |||
Accumulated undistributed (overdistributed) net realized gain (loss) | 553 | 781 | 12,157 | ||||||
Net unrealized appreciation (depreciation) of investments | 1,471,783 | 920,599 | (123,198 | ) | |||||
Total Net Assets | $ | 22,453,401 | $ | 8,111,020 | $ | 34,878,810 | |||
Net Asset Value Per Share: | |||||||||
Net Assets | $ | 22,453,401 | $ | 8,111,020 | $ | 34,878,810 | |||
Shares Issued and Outstanding | 700,001 | 250,001 | 350,001 | ||||||
Net Asset Value per share | $ | 32.08 | $ | 32.44 | $ | 99.65 |
See accompanying notes.
3
Statements of Assets and Liabilities | ||||||||
Principal Exchange-Traded Funds | ||||||||
December 31, 2017 (unaudited) | ||||||||
Principal | Principal | |||||||
Principal | U.S. Mega- | U.S. Small- | ||||||
Sustainable | Cap Multi- | Cap Multi- | ||||||
Momentum | Factor | Factor | ||||||
Index ETF | Index | Index ETF (a) | ||||||
Investments in securities — at cost | $ | 3,740,150 | $ | 770,729,304 | $ | 293,910,390 | ||
Assets | ||||||||
Investments in securities — at value | $ | 3,900,337 | $ | 791,469,275 | $ | 319,752,128 | ||
Cash | 13,014 | 1,629,744 | 853,512 | |||||
Receivables: | ||||||||
Dividends and interest | 5,945 | 781,700 | 399,174 | |||||
Investment securities sold | 3,719 | 1,084,879 | 482,582 | |||||
Expense reimbursement from Manager | — | 17,542 | — | |||||
Total Assets | 3,923,015 | 794,983,140 | 321,487,396 | |||||
Liabilities | ||||||||
Accrued management and investment advisory fees | 993 | 87,709 | 104,942 | |||||
Accrued income distribution | 12,000 | 1,904,705 | 834,510 | |||||
Total Liabilities | 12,993 | 1,992,414 | 939,452 | |||||
Net Assets Applicable to Outstanding Shares | $ | 3,910,022 | $ | 792,990,726 | $ | 320,547,944 | ||
Net Assets Consist of: | ||||||||
Capital shares and additional paid-in-capital | $ | 3,750,025 | $ | 772,186,033 | $ | 283,233,770 | ||
Accumulated undistributed (overdistributed) net investment income (loss) | (291 | ) | (51,516 | ) | 70,359 | |||
Accumulated undistributed (overdistributed) net realized gain (loss) | 101 | 116,238 | 11,402,077 | |||||
Net unrealized appreciation (depreciation) of investments | 160,187 | 20,739,971 | 25,841,738 | |||||
Total Net Assets | $ | 3,910,022 | $ | 792,990,726 | $ | 320,547,944 | ||
Net Asset Value Per Share: | ||||||||
Net Assets | $ | 3,910,022 | $ | 792,990,726 | $ | 320,547,944 | ||
Shares Issued and Outstanding | 150,001 | 30,350,001 | 10,350,001 | |||||
Net Asset Value per share | $ | 26.07 | $ | 26.13 | $ | 30.97 |
(a) | Effective October 27, 2017, Principal U.S. Small Cap Index ETF changed its name to U.S. Small-Cap Multi-Factor Index ETF. |
See accompanying notes.
4
Statements of Operations | |||||||||
Principal Exchange-Traded Funds | |||||||||
Period Ended December 31, 2017 (unaudited) | |||||||||
Principal Active | Principal | Principal EDGE | |||||||
Global Dividend | Contrarian Value | Active Income | |||||||
Income ETF | Index ETF (a) | ETF | |||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividend income | $ | 6,173,083 | $ | 19,367 | $ | 1,927,465 | |||
Withholding tax | (251,794 | ) | (10 | ) | (12,199 | ) | |||
Interest | — | — | 5,656,289 | ||||||
Total Income | 5,921,289 | 19,357 | 7,571,555 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 1,395,260 | 2,291 | 1,016,034 | ||||||
Listing fees | N/A | N/A | 1,877 | ||||||
Transfer agent fees | N/A | N/A | 4,161 | ||||||
Custodian fees | N/A | N/A | 1,360 | ||||||
Audit fees | N/A | N/A | 6,107 | ||||||
Trustee fees | N/A | N/A | 1,358 | ||||||
Professional fees | N/A | N/A | 1,429 | ||||||
Insurance | N/A | N/A | 13,713 | ||||||
Shareholder reports | N/A | N/A | 897 | ||||||
Other expenses | N/A | N/A | 165 | ||||||
Total Gross Expenses | 1,395,260 | 2,291 | 1,047,101 | ||||||
Less: Reimbursement from Manager | — | — | (102,982 | ) | |||||
Total Expenses | 1,395,260 | 2,291 | 944,119 | ||||||
Net Investment Income (Loss) | 4,526,029 | 17,066 | 6,627,436 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments: | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 3,507,220 | 490 | 3,112,011 | ||||||
Foreign currency transactions | 29,166 | — | 367 | ||||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | 47,825,810 | 187,881 | 316,740 | ||||||
Foreign currency transactions | (14,017 | ) | — | (91 | ) | ||||
Net Realized and Unrealized Gain (Loss) on Investments | 51,348,179 | 188,371 | 3,429,027 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 55,874,208 | $ | 205,437 | $ | 10,056,463 |
(a) | Period from October 18, 2017, date operations commenced, through December 31, 2017. |
See accompanying notes.
5
Statements of Operations | |||||||||
Principal Exchange-Traded Funds | |||||||||
Period Ended December 31, 2017 (unaudited) | |||||||||
Principal | Principal | ||||||||
Healthcare | International | Principal | |||||||
Innovators Index | Multi-Factor | Millennials Index | |||||||
ETF | Index ETF (a) | ETF | |||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividend income | $ | 2,811 | $ | 34,109 | $ | 38,181 | |||
Withholding tax | — | (4,998 | ) | (2,159 | ) | ||||
Total Income | 2,811 | 29,111 | 36,022 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 41,130 | 8,654 | 19,515 | ||||||
Total Expenses | 41,130 | 8,654 | 19,515 | ||||||
Net Investment Income (Loss) | (38,319 | ) | 20,457 | 16,507 | |||||
Net Realized and Unrealized Gain (Loss) on Investments: | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 90,863 | (448 | ) | 23,085 | |||||
In-kind redemptions | 244,652 | — | — | ||||||
Foreign currency transactions | — | 298 | (145 | ) | |||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | 2,250,530 | 229,713 | 1,520,941 | ||||||
Foreign currency transactions | — | 174 | 40 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments | 2,586,045 | 229,737 | 1,543,921 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 2,547,726 | $ | 250,194 | $ | 1,560,428 |
(a) | Period from November 8, 2017, date operations commenced, through December 31, 2017. |
See accompanying notes.
6
Statements of Operations | |||||||||
Principal Exchange-Traded Funds | |||||||||
Period Ended December 31, 2017 (unaudited) | |||||||||
Principal | |||||||||
Spectrum | |||||||||
Principal Price | Principal | Preferred | |||||||
Setters Index | Shareholder | Securities | |||||||
ETF | Yield Index ETF | Active ETF (a) | |||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividend income | $ | 87,673 | $ | 83,803 | $ | — | |||
Interest | — | — | 749,087 | ||||||
Total Income | 87,673 | 83,803 | 749,087 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 21,890 | 15,319 | 78,300 | ||||||
Total Gross Expenses | 21,890 | 15,319 | 78,300 | ||||||
Less: Reimbursement from Manager | (6,020 | ) | (4,213 | ) | — | ||||
Total Expenses | 15,870 | 11,106 | 78,300 | ||||||
Net Investment Income (Loss) | 71,803 | 72,697 | 670,787 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments: | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 20,246 | 5,552 | 20,298 | ||||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | 1,086,313 | 834,021 | (123,198 | ) | |||||
Net Realized and Unrealized Gain (Loss) on Investments | 1,106,559 | 839,573 | (102,900 | ) | |||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,178,362 | $ | 912,270 | $ | 567,887 |
(a) | Period from July 7, 2017, date operations commenced, through December 31, 2017. |
See accompanying notes.
7
Statements of Operations | |||||||||
Principal Exchange-Traded Funds | |||||||||
Period Ended December 31, 2017 (unaudited) | |||||||||
Principal | Principal | ||||||||
Principal | U.S. Mega- | U.S. Small- | |||||||
Sustainable | Cap Multi- | Cap Multi- | |||||||
Momentum | Factor | Factor | |||||||
Index ETF (a) | Index ETF (b) | Index ETF (c) | |||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividend income | $ | 14,011 | $ | 1,963,031 | $ | 2,055,667 | |||
Withholding tax | (10 | ) | — | — | |||||
Total Income | 14,001 | 1,963,031 | 2,055,667 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 2,292 | 137,303 | 547,640 | ||||||
Total Gross Expenses | 2,292 | 137,303 | 547,640 | ||||||
Less: Reimbursement from Manager | — | (27,461 | ) | — | |||||
Total Expenses | 2,292 | 109,842 | 547,640 | ||||||
Net Investment Income (Loss) | 11,709 | 1,853,189 | 1,508,027 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments: | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 101 | (101,995 | ) | (1,204,916 | ) | ||||
In-kind redemptions | — | 218,233 | 12,608,094 | ||||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | 160,187 | 20,739,971 | 11,214,444 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments | 160,288 | 20,856,209 | 22,617,622 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 171,997 | $ | 22,709,398 | $ | 24,125,649 |
(a) | Period from October 18, 2017, date operations commenced, through December 31, 2017. |
(b) | Period from October 11, 2017, date operations commenced, through December 31, 2017. |
(c) | Effective October 27, 2017, Principal U.S. Small Cap Index ETF changed its name to U.S. Small-Cap Multi-Factor Index ETF. |
See accompanying notes.
8
Statement of Changes in Net Assets | |||||
Principal Exchange-Traded Funds | |||||
(unaudited) | |||||
Principal Active Global Dividend | |||||
Income ETF | |||||
Period ended | Period ended | ||||
December 31, 2017 | June 30, 2017 (a) | ||||
Operations | |||||
Net investment income (loss) | $ | 4,526,029 | $ | 2,366,031 | |
Net realized gain (loss) on investments | 3,536,386 | 904 | |||
Change in unrealized appreciation/depreciation of investments and foreign currency | 47,811,793 | 2,191,938 | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | 55,874,208 | 4,558,873 | |||
Dividends and Distributions to Shareholders | |||||
From net investment income | (6,898,522 | ) | — | ||
From net realized gain on investments | (2,878,358 | ) | — | ||
Total Dividends and Distributions | (9,776,880 | ) | — | ||
Capital Share Transactions | |||||
Net increase (decrease) in capital share transactions | 151,757,003 | 424,008,535 | |||
Total Increase (Decrease) in Net Assets | 197,854,331 | 428,567,408 | |||
Net Assets | |||||
Beginning of period | 428,567,408 | — | |||
End of period (including undistributed net investment income as set forth below) | $ | 626,421,739 | $ | 428,567,408 | |
Undistributed (overdistributed) net investment income (loss) | $ | (5,558 | ) | $ | 2,366,935 |
Capital Share Transactions | |||||
Dollars: | |||||
Sold | $ | 151,757,003 | $ | 424,008,535 | |
Net Increase (Decrease) | $ | 151,757,003 | $ | 424,008,535 | |
Shares: | |||||
Sold | 5,600,000 | 16,900,001 | |||
Net Increase (Decrease) | 5,600,000 | 16,900,001 |
(a) | Period from May 9, 2017, date operations commenced, through June 30, 2017. |
See accompanying notes.
9
Statement of Changes in Net Assets | |||
Principal Exchange-Traded Funds | |||
(unaudited) | |||
Principal Contrarian | |||
Value Index ETF | |||
Period ended | |||
December 31, 2017 (a) | |||
Operations | |||
Net investment income (loss) | $ | 17,066 | |
Net realized gain (loss) on investments | 490 | ||
Change in unrealized appreciation/depreciation of investments and foreign currency | 187,881 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | 205,437 | ||
Dividends and Distributions to Shareholders | |||
From net investment income | (17,100 | ) | |
Total Dividends and Distributions | (17,100 | ) | |
Capital Share Transactions | |||
Net increase (decrease) in capital share transactions | 3,750,025 | ||
Total Increase (Decrease) in Net Assets | 3,938,362 | ||
Net Assets | |||
Beginning of period | — | ||
End of period (including undistributed net investment income as set forth below) | $ | 3,938,362 | |
Undistributed (overdistributed) net investment income (loss) | $ | (34 | ) |
Capital Share Transactions | |||
Dollars: | |||
Sold | $ | 3,750,025 | |
Net Increase (Decrease) | $ | 3,750,025 | |
Shares: | |||
Sold | 150,001 | ||
Net Increase (Decrease) | 150,001 |
(a) | Period from October 18, 2017, date operations commenced, through December 31, 2017. |
See accompanying notes.
10
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal EDGE Active Income ETF | ||||||
Period ended | Year ended | |||||
December 31, 2017 | June 30, 2017 | |||||
Operations | ||||||
Net investment income (loss) | $ | 6,627,436 | $ | 13,349,660 | ||
Net realized gain (loss) on investments | 3,112,378 | 3,360,887 | ||||
Change in unrealized appreciation/depreciation of investments and foreign currency | 316,649 | 11,756,917 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 10,056,463 | 28,467,464 | ||||
Dividends and Distributions to Shareholders | ||||||
From net investment income | (7,736,427 | ) | (13,513,547 | ) | ||
From net realized gain on investments | (3,162,212 | ) | — | |||
Total Dividends and Distributions | (10,898,639 | ) | (13,513,547 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 6,214,826 | 6,165,752 | ||||
Total Increase (Decrease) in Net Assets | 5,372,650 | 21,071,834 | ||||
Net Assets | ||||||
Beginning of period | 286,084,445 | 265,012,611 | ||||
End of period (including undistributed net investment income as set forth below) | $ | 291,457,095 | $ | 286,084,445 | ||
Undistributed (overdistributed) net investment income (loss) | $ | (289,622 | ) | $ | 819,369 | |
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 6,214,826 | $ | 10,225,148 | ||
Redeemed | — | (4,059,396 | ) | |||
Net Increase (Decrease) | $ | 6,214,826 | $ | 6,165,752 | ||
Shares: | ||||||
Sold | 150,000 | 250,000 | ||||
Redeemed | — | (100,000 | ) | |||
Net Increase (Decrease) | 150,000 | 150,000 |
See accompanying notes.
11
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Healthcare Innovators Index | ||||||
ETF | ||||||
Period ended | Year ended | |||||
December 31, 2017 | June 30, 2017 (a) | |||||
Operations | ||||||
Net investment income (loss) | $ | (38,319 | ) | $ | (17,255 | ) |
Net realized gain (loss) on investments | 335,515 | 385,259 | ||||
Change in unrealized appreciation/depreciation of investments and foreign currency | 2,250,530 | 540,539 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,547,726 | 908,543 | ||||
Dividends and Distributions to Shareholders | ||||||
From net realized gain on investments | (79,577 | ) | — | |||
Total Dividends and Distributions | (79,577 | ) | — | |||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 38,859,313 | 6,231,555 | ||||
Total Increase (Decrease) in Net Assets | 41,327,462 | 7,140,098 | ||||
Net Assets | ||||||
Beginning of period | 7,140,098 | — | ||||
End of period (including undistributed net investment income as set forth below) | $ | 48,467,560 | $ | 7,140,098 | ||
Undistributed (overdistributed) net investment income (loss) | $ | (38,319 | ) | $ | — | |
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 40,358,145 | $ | 7,598,277 | ||
Redeemed | (1,498,832 | ) | (1,366,722 | ) | ||
Net Increase (Decrease) | $ | 38,859,313 | $ | 6,231,555 | ||
Shares: | ||||||
Sold | 1,350,000 | 300,001 | ||||
Redeemed | (50,000 | ) | (50,000 | ) | ||
Net Increase (Decrease) | 1,300,000 | 250,001 |
(a) | Period from August 19, 2016, date operations commenced, through June 30, 2017. |
See accompanying notes.
12
Statement of Changes in Net Assets | |||
Principal Exchange-Traded Funds | |||
(unaudited) | |||
Principal | |||
International Multi- | |||
Factor Index ETF | |||
Period ended | |||
December 31, 2017 (a) | |||
Operations | |||
Net investment income (loss) | $ | 20,457 | |
Net realized gain (loss) on investments | (150 | ) | |
Change in unrealized appreciation/depreciation of investments and foreign currency | 229,887 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | 250,194 | ||
Dividends and Distributions to Shareholders | |||
From net investment income | (23,000 | ) | |
Total Dividends and Distributions | (23,000 | ) | |
Capital Share Transactions | |||
Net increase (decrease) in capital share transactions | 15,000,100 | ||
Total Increase (Decrease) in Net Assets | 15,227,294 | ||
Net Assets | |||
Beginning of period | — | ||
End of period (including undistributed net investment income as set forth below) | $ | 15,227,294 | |
Undistributed (overdistributed) net investment income (loss) | $ | (2,543 | ) |
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 December 31, 2017. |
See accompanying notes.
13
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Millennials Index ETF | ||||||
Period ended | Year ended | |||||
December 31, 2017 | June 30, 2017 (a) | |||||
Operations | ||||||
Net investment income (loss) | $ | 16,507 | $ | 41,269 | ||
Net realized gain (loss) on investments | 22,940 | 522,641 | ||||
Change in unrealized appreciation/depreciation of investments and foreign currency | 1,520,981 | 432,261 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,560,428 | 996,171 | ||||
Dividends and Distributions to Shareholders | ||||||
From net investment income | (49,301 | ) | (23,400 | ) | ||
From net realized gain on investments | (21,947 | ) | (8,081 | ) | ||
Total Dividends and Distributions | (71,248 | ) | (31,481 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 1,579,210 | 6,265,011 | ||||
Total Increase (Decrease) in Net Assets | 3,068,390 | 7,229,701 | ||||
Net Assets | ||||||
Beginning of period | 7,229,701 | — | ||||
End of period (including undistributed net investment income as set forth below) | $ | 10,298,091 | $ | 7,229,701 | ||
Undistributed (overdistributed) net investment income (loss) | $ | (6,379 | ) | $ | 26,415 | |
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 1,579,210 | $ | 11,595,881 | ||
Redeemed | — | (5,330,870 | ) | |||
Net Increase (Decrease) | $ | 1,579,210 | $ | 6,265,011 | ||
Shares: | ||||||
Sold | 50,000 | 450,001 | ||||
Redeemed | — | (200,000 | ) | |||
Net Increase (Decrease) | 50,000 | 250,001 |
(a) | Period from August 19, 2016, date operations commenced, through June 30, 2017. |
See accompanying notes.
14
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Price Setters Index ETF | ||||||
Period ended | Period ended | |||||
December 31, 2017 | June 30, 2017 | |||||
Operations | ||||||
Net investment income (loss) | $ | 71,803 | $ | 84,527 | ||
Net realized gain (loss) on investments | 20,246 | 571,389 | ||||
Change in unrealized appreciation/depreciation of investments and foreign currency | 1,086,313 | 192,950 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,178,362 | 848,866 | ||||
Dividends and Distributions to Shareholders | ||||||
From net investment income | (80,051 | ) | (98,450 | ) | ||
From net realized gain on investments | (19,372 | ) | (14,953 | ) | ||
Total Dividends and Distributions | (99,423 | ) | (113,403 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 14,117,405 | 2,492 | ||||
Total Increase (Decrease) in Net Assets | 15,196,344 | 737,955 | ||||
Net Assets | ||||||
Beginning of period | 7,257,057 | 6,519,102 | ||||
End of period (including undistributed net investment income as set forth below) | $ | 22,453,401 | $ | 7,257,057 | ||
Undistributed (overdistributed) net investment income (loss) | $ | (184 | ) | $ | 8,064 | |
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 14,117,405 | $ | 4,208,677 | ||
Redeemed | — | (4,206,185 | ) | |||
Net Increase (Decrease) | $ | 14,117,405 | $ | 2,492 | ||
Shares: | ||||||
Sold | 450,000 | 150,000 | ||||
Redeemed | — | (150,000 | ) | |||
Net Increase (Decrease) | 450,000 | — |
See accompanying notes.
15
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Shareholder Yield Index ETF | ||||||
Period ended | Period ended | |||||
December 31, 2017 | June 30, 2017 | |||||
Operations | ||||||
Net investment income (loss) | $ | 72,697 | $ | 136,029 | ||
Net realized gain (loss) on investments | 5,552 | 932,347 | ||||
Change in unrealized appreciation/depreciation of investments and foreign currency | 834,021 | 218,424 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 912,270 | 1,286,800 | ||||
Dividends and Distributions to Shareholders | ||||||
From net investment income | (87,500 | ) | (166,951 | ) | ||
From net realized gain on investments | (4,214 | ) | (8,059 | ) | ||
Total Dividends and Distributions | (91,714 | ) | (175,010 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | — | 15,551 | ||||
Total Increase (Decrease) in Net Assets | 820,556 | 1,127,341 | ||||
Net Assets | ||||||
Beginning of period | 7,290,464 | 6,163,123 | ||||
End of period (including undistributed net investment income as set forth below) | $ | 8,111,020 | $ | 7,290,464 | ||
Undistributed (overdistributed) net investment income (loss) | $ | (1,324 | ) | $ | 13,479 | |
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | — | $ | 4,357,982 | ||
Redeemed | — | (4,342,431 | ) | |||
Net Increase (Decrease) | $ | — | $ | 15,551 | ||
Shares: | ||||||
Sold | — | 150,000 | ||||
Redeemed | — | (150,000 | ) | |||
Net Increase (Decrease) | $ | — | $ | — |
See accompanying notes.
16
Statement of Changes in Net Assets | |||
Principal Exchange-Traded Funds | |||
(unaudited) | |||
Principal Spectrum | |||
Preferred Securities | |||
Active ETF | |||
Period ended | |||
December 31, 2017 (a) | |||
Operations | |||
Net investment income (loss) | $ | 670,787 | |
Net realized gain (loss) on investments | 20,298 | ||
Change in unrealized appreciation/depreciation of investments and foreign currency | (123,198 | ) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 567,887 | ||
Dividends and Distributions to Shareholders | |||
From net investment income | (713,401 | ) | |
From net realized gain on investments | (8,141 | ) | |
Total Dividends and Distributions | (721,542 | ) | |
Capital Share Transactions | |||
Net increase (decrease) in capital share transactions | 35,032,465 | ||
Total Increase (Decrease) in Net Assets | 34,878,810 | ||
Net Assets | |||
Beginning of period | — | ||
End of period (including undistributed net investment income as set forth below) | $ | 34,878,810 | |
Undistributed (overdistributed) net investment income (loss) | $ | (42,614 | ) |
Capital Share Transactions | |||
Dollars: | |||
Sold | $ | 35,032,465 | |
Net Increase (Decrease) | $ | 35,032,465 | |
Shares: | |||
Sold | 350,001 | ||
Net Increase (Decrease) | 350,001 |
(a) | Period from July 7, 2017, date operations commenced, through December 31, 2017. |
See accompanying notes.
17
Statement of Changes in Net Assets | |||
Principal Exchange-Traded Funds | |||
(unaudited) | |||
Principal Sustainable | |||
Momentum | |||
Index ETF | |||
Period ended | |||
December 31, 2017 (a) | |||
Operations | |||
Net investment income (loss) | $ | 11,709 | |
Net realized gain (loss) on investments | 101 | ||
Change in unrealized appreciation/depreciation of investments and foreign currency | 160,187 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | 171,997 | ||
Dividends and Distributions to Shareholders | |||
From net investment income | (12,000 | ) | |
Total Dividends and Distributions | (12,000 | ) | |
Capital Share Transactions | |||
Net increase (decrease) in capital share transactions | 3,750,025 | ||
Total Increase (Decrease) in Net Assets | 3,910,022 | ||
Net Assets | |||
Beginning of period | — | ||
End of period (including undistributed net investment income as set forth below) | $ | 3,910,022 | |
Undistributed (overdistributed) net investment income (loss) | $ | (291 | ) |
Capital Share Transactions | |||
Dollars: | |||
Sold | $ | 3,750,025 | |
Net Increase (Decrease) | $ | 3,750,025 | |
Shares: | |||
Sold | 150,001 | ||
Net Increase (Decrease) | 150,001 |
(a) | Period from October 18, 2017, date operations commenced, through December 31, 2017. |
See accompanying notes.
18
Statement of Changes in Net Assets | |||
Principal Exchange-Traded Funds | |||
(unaudited) | |||
Principal U.S. Mega- | |||
Cap Multi-Factor | |||
Index | |||
Period ended | |||
December 31, 2017 (a) | |||
Operations | |||
Net investment income (loss) | $ | 1,853,189 | |
Net realized gain (loss) on investments | 116,238 | ||
Change in unrealized appreciation/depreciation of investments and foreign currency | 20,739,971 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | 22,709,398 | ||
Dividends and Distributions to Shareholders | |||
From net investment income | (1,904,705 | ) | |
Total Dividends and Distributions | (1,904,705 | ) | |
Capital Share Transactions | |||
Net increase (decrease) in capital share transactions | 772,186,033 | ||
Total Increase (Decrease) in Net Assets | 792,990,726 | ||
Net Assets | |||
Beginning of period | — | ||
End of period (including undistributed net investment income as set forth below) | $ | 792,990,726 | |
Undistributed (overdistributed) net investment income (loss) | $ | (51,516 | ) |
Capital Share Transactions | |||
Dollars: | |||
Sold | $ | 812,305,070 | |
Redeemed | (40,119,037 | ) | |
Net Increase (Decrease) | $ | 772,186,033 | |
Shares: | |||
Sold | 31,950,001 | ||
Redeemed | (1,600,000 | ) | |
Net Increase (Decrease) | 30,350,001 |
(a) | Period from October 11, 2017, date operations commenced, through December 31, 2017. |
See accompanying notes.
19
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal U.S. Small-Cap Multi-Factor | ||||||
Index ETF (b) | ||||||
Period ended | Year ended | |||||
December 31, 2017 | June 30, 2017 (a) | |||||
Operations | ||||||
Net investment income (loss) | $ | 1,508,027 | $ | 2,158,163 | ||
Net realized gain (loss) on investments | 11,403,178 | 19,169,989 | ||||
Change in unrealized appreciation/depreciation of investments and foreign currency | 11,214,444 | 14,627,294 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 24,125,649 | 35,955,446 | ||||
Dividends and Distributions to Shareholders | ||||||
From net investment income | (2,098,119 | ) | (1,497,712 | ) | ||
From net realized gain on investments | (159,618 | ) | — | |||
Total Dividends and Distributions | (2,257,737 | ) | (1,497,712 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 23,214,467 | 241,007,831 | ||||
Total Increase (Decrease) in Net Assets | 45,082,379 | 275,465,565 | ||||
Net Assets | ||||||
Beginning of period | 275,465,565 | — | ||||
End of period (including undistributed net investment income as set forth below) | $ | 320,547,944 | $ | 275,465,565 | ||
Undistributed (overdistributed) net investment income (loss) | $ | 70,359 | $ | 660,451 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 136,953,553 | $ | 345,504,287 | ||
Redeemed | (113,739,086 | ) | (104,496,456 | ) | ||
Net Increase (Decrease) | $ | 23,214,467 | $ | 241,007,831 | ||
Shares: | ||||||
Sold | 4,550,000 | 13,200,001 | ||||
Redeemed | (3,750,000 | ) | (3,650,000 | ) | ||
Net Increase (Decrease) | 800,000 | 9,550,001 |
(a) | Period from September 21, 2016, date operations commenced, through June 30, 2017. |
(b) | Effective October 27, 2017, Principal U.S. Small Cap Index ETF changed its name to U.S. Small-Cap Multi-Factor Index ETF. |
See accompanying notes.
20
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2017 (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 twelve 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 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. Each of the Funds was an investment company at all times during the year. The Funds have not provided financial support, and are not contractually required to provide financial support to any investee.
On May 1, 2017 Principal Management Corporation was merged into Principal Global Investors, LLC (the “Advisor”). The merger did not involve a change in actual control or management with respect to the investment adviser of the Funds.
Effective October 27, 2017, Principal U.S. Small-Cap Index ETF changed its name to U.S. Small-Cap Multi-Factor Index ETF.
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 are listed on the Bats BZX Exchange (the “Exchange”). Shares of the Principal EDGE Active Income ETF 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 Healthcare Innovators Index ETF and Principal Millennials Index ETF initial investment and commencement of operations was on August 19, 2016. Principal U.S. Small-Cap Multi-Factor Index ETF initial investment and commencement of operations was on September 21, 2016. 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 7, 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.
2. Significant Accounting Policies
The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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 Advisor under procedures established and periodically reviewed by the Trust’s Board of Trustees.
21
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2017 (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 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 shareholders cannot purchase or redeem shares.
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.
To the extent the Funds invest in foreign securities listed on foreign exchanges which trade on days on which the Funds do not determine net asset values, for example weekends and other customary national U.S. holidays, the Funds’ net asset values could be significantly affected on days when shareholders cannot purchase or redeem shares.
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 over the 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. Prior to October 2 2017, expenses directly attributed to Principal EDGE Active Income ETF are charged to Principal EDGE Active Income ETF.
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. generally accepted accounting principles. 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, REITs, utilization of earnings and profits distributed to shareholders on redemption of shares, and limitations imposed by Sections 381-384 of the Internal Revenue Code.
22
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2017 (unaudited)
2. Significant Accounting Policies (continued)
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.
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, 2017, 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 3 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.
Investment Company Reporting Modernization. Effective October 13, 2016, the U.S. Securities and Exchange Commission (“SEC”) approved a final rule, Investment Company Reporting Modernization. The SEC adopted new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. As of December 31, 2017, the Funds have adopted the new rules, forms and 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. SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio, PVC SAM Balanced Portfolio, PVC SAM Conservative Balanced Portfolio, PVC SAM Flexible Income Portfolio, PVC SAM Strategic Growth Portfolio (collectively the “SAM Portfolios”) invest in Principal Active Global Dividend Income ETF, Principal EDGE Active Income ETF, Principal U.S. Mega-Cap Multi-Factor Index ETF and Principal U.S. Small-Cap Multi-Factor Index ETF (the “underlying funds”).
An underlying fund to the SAM Portfolios may experience relatively large redemptions or purchases as the SAM Portfolios periodically reallocate or rebalance their assets. These transactions may accelerate the realization of taxable income if sales of portfolio securities result in gains and could increase transaction costs. In addition, when the SAM Portfolios reallocate or redeem significant assets away from an underlying fund, the loss of assets to the underlying fund could result in increased expense ratios for that fund.
The Advisor is the advisor to the SAM Portfolios 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 SAM Portfolios which it manages. Each may face conflicts of interest in fulfilling its responsibilities to all such funds.
As of December 31, 2017, the SAM Portfolios owned 99.56%, in the aggregate, of the outstanding shares of Principal Active Global Dividend Income ETF, 93.25% of Principal EDGE Active Income ETF, 99.84% of Principal U.S. Mega-Cap Multi-Factor Index ETF and 99.03% of Principal U.S. Small-Cap Multi-Factor Index ETF.
23
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2017 (unaudited)
3. Operating Policies (continued)
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 market, income and/or cost approches. 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 Funds’ 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, prepayments 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.
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.
24
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2017 (unaudited)
4. Fair Valuation (continued)
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 generally included in the Level 3 category are primarily valued using quoted prices from brokers and 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 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.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those instruments.
The beginning of the period timing recognition has been adopted for the transfers between levels of the Funds’ assets and liabilities. During the period, there were no transfers between Level 1 and Level 2 or into/out of Level 3. In addition, at the end of the period, the Funds did not have a Level 3 balance.
The following is a summary of the inputs used as of December 31, 2017 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* | $ | 616,863,121 | $ | — | $ | — | $ | 616,863,121 |
Total investments in securities | $ | 616,863,121 | $ | — | $ | — | $ | 616,863,121 |
Principal Contrarian Value Index ETF | ||||||||
Common Stocks* | $ | 3,926,136 | $ | — | $ | — | $ | 3,926,136 |
Total investments in securities | $ | 3,926,136 | $ | — | $ | — | $ | 3,926,136 |
Principal EDGE Active Income ETF | ||||||||
Common Stocks* | $ | 67,834,646 | $ | — | $ | — | $ | 67,834,646 |
Preferred Stocks* | 14,490,795 | — | — | 14,490,795 | ||||
Bonds* | — | 187,796,387 | — | 187,796,387 | ||||
U.S. Government & Government | ||||||||
Agency Obligations* | — | 15,770,722 | — | 15,770,722 | ||||
Total investments in securities | $ | 82,325,441 | $ | 203,567,109 | $ | — | $ | 285,892,550 |
25
Notes to Financial Statements | ||||||||
Principal Exchange-Traded Funds | ||||||||
December 31, 2017 (unaudited) | ||||||||
4. Fair Valuation (continued) | ||||||||
Level 2 — | ||||||||
Other | Level 3 — | |||||||
Level 1 — | Significant | Significant | ||||||
Quoted | Observable | Unobservable | Totals | |||||
Fund | Prices | Inputs | Inputs | (Level 1,2,3) | ||||
Principal Healthcare Innovators Index ETF | ||||||||
Common Stocks* | $ | 48,434,486 | $ | — | $ | — | $ | 48,434,486 |
Total investments in securities | $ | 48,434,486 | $ | — | $ | — | $ | 48,434,486 |
Principal International Multi-Factor Index ETF | ||||||||
Common Stocks* | $ | 15,120,796 | $ | — | $ | — | $ | 15,120,796 |
Preferred Stocks* | 63,251 | — | — | 63,251 | ||||
Total investments in securities | $ | 15,184,047 | $ | — | $ | — | $ | 15,184,047 |
Principal Millennials Index ETF | ||||||||
Common Stocks* | $ | 10,285,796 | $ | — | $ | — | $ | 10,285,796 |
Total investments in securities | $ | 10,285,796 | $ | — | $ | — | $ | 10,285,796 |
Principal Price Setters Index ETF | ||||||||
Common Stocks* | $ | 22,406,499 | $ | — | $ | — | $ | 22,406,499 |
Total investments in securities | $ | 22,406,499 | $ | — | $ | — | $ | 22,406,499 |
Principal Shareholder Yield Index ETF | ||||||||
Common Stocks* | $ | 8,090,424 | $ | — | $ | — | $ | 8,090,424 |
Total investments in securities | $ | 8,090,424 | $ | — | $ | — | $ | 8,090,424 |
Principal Spectrum Preferred Securities Active ETF | ||||||||
Bonds* | $ | — | $ | 34,122,029 | $ | — | $ | 34,122,029 |
Total investments in securities | $ | — | $ | 34,122,029 | $ | — | $ | 34,122,029 |
Principal Sustainable Momentum Index ETF | ||||||||
Common Stocks* | $ | 3,900,337 | $ | — | $ | — | $ | 3,900,337 |
Total investments in securities | $ | 3,900,337 | $ | — | $ | — | $ | 3,900,337 |
Principal U.S. Mega-Cap Multi-Factor Index ETF | ||||||||
Common Stocks* | $ | 791,469,275 | $ | — | $ | — | $ | 791,469,275 |
Total investments in securities | $ | 791,469,275 | $ | — | $ | — | $ | 791,469,275 |
Principal U.S. Small-Cap Multi-Factor Index ETF | ||||||||
Common Stocks* | $ | 319,752,128 | $ | — | $ | — | $ | 319,752,128 |
Total investments in securities | $ | 319,752,128 | $ | — | $ | — | $ | 319,752,128 |
* For additional detail regarding sector classifications, please see the Schedules of Investments. |
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. 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 EDGE Active Income ETF* | 0.75 | % | 0.73 | % | 0.71 | % | 0.70 | % |
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 | % |
* Period from July 1, 2017 through October 1, 2017 | ||||||||
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 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 | % |
* | Period from October 2, 2017 through December 31, 2017. |
26
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2017 (unaudited)
5. Management Agreement and Transactions with Affiliates (continued)
The Advisor has contractually agreed to limit the expenses (excluding interest expense, expenses related to fund investments, and other extraordinary expenses) of the Principal EDGE Active Income ETF to maintain a total level of operating expense (expressed as percent of average net assets on an annualized basis) not to exceed 0.65% (for the period from July 1, 2017 through October 1, 2017).
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, 2018.
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 | %* |
* Period from October 11, 2017 through December 31, 2017. |
Affiliated Ownership. At December 31, 2017, Principal Financial Services, Inc. (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 Healthcare Innovators Index ETF | 200,001 |
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 | 294,004 |
Principal Sustainable Momentum Index ETF | 119,905 |
6. Investment Transactions
For the December 31, 2017, 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 | $ | 52,371,076 | $ | 51,036,805 | $ | — | $ | — |
Principal Contrarian Value Index | 25,152 | 13,126 | — | — | ||||
Principal EDGE Active Income ETF | 19,575,421 | 16,952,881 | — | — | ||||
Principal Healthcare Innovators Index ETF | 1,711,988 | 1,992,755 | — | — | ||||
Principal International Multi-Factor Index ETF | 810,415 | 189,266 | — | — | ||||
Principal Millennials Index ETF | 346,592 | 396,451 | — | — | ||||
Principal Price Setters Index ETF | 186,741 | 233,025 | — | — | ||||
Principal Shareholder Yield Index ETF | 87,970 | 81,674 | — | — | ||||
Principal Spectrum Preferred Securities Active ETF | 39,205,313 | 5,436,634 | — | — | ||||
Principal Sustainable Momentum Index ETF | 25,823 | 3,719 | — | — | ||||
Principal U.S. Mega-Cap Multi- Factor Index ETF | 31,777,303 | 33,212,244 | — | — | ||||
Principal U.S. Small-Cap Multi- Factor Index ETF | 112,853,884 | 112,973,299 | — | — | ||||
For the December 31, 2017, in-kind transactions were as follows: | ||||||||
Fund | Purchases | Sales | ||||||
Principal Active Global Dividend Income ETF | $ | 147,804,285 | $ | — | ||||
Principal Contrarian Value Index ETF | 3,722,577 | — | ||||||
Principal Healthcare Innovators Index ETF | 40,369,828 | 1,367,967 | ||||||
Principal International Multi-Factor Index ETF | 14,333,967 | — | ||||||
Principal Millennials Index ETF | 1,584,145 | — | ||||||
Principal Price Setters Index ETF | 14,120,013 | — | ||||||
Principal Sustainable Momentum Index ETF | 3,717,945 | — | ||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 812,253,489 | 40,205,483 | ||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 136,923,060 | 113,864,480 |
27
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2017 (unaudited)
7. Federal Tax Information
Distributions to Shareholders. The federal income tax character of distributions paid to shareholders for the periods ended June 30, 2017, and December 31, 2017 was as follows:
Ordinary Income | Long-Term Capital Gain* | |||||||
Period ended | Year ended | Period ended | Year ended | |||||
Fund | December 31, 2017 | June 30, 2017 | December 31, 2017 | June 30, 2017 | ||||
Principal Active Global Dividend Income ETF | $ | 6,898,522 | $ | — | $ | 2,878,358 | $ | — |
Principal Contrarian Value Index ETF | 17,100 | — | — | — | ||||
Principal EDGE Active Income ETF | 7,736,427 | 13,513,547 | 3,162,212 | — | ||||
Principal Healthcare Innovators Index ETF | 79,577 | — | — | — | ||||
Principal International Multi-Factor Index ETF | 23,000 | — | — | — | ||||
Principal Millennials Index ETF | 49,300 | 31,481 | 21,947 | — | ||||
Principal Price Setters Index ETF | 80,051 | 113,278 | 19,372 | 125 | ||||
Principal Shareholder Yield Index ETF | 87,500 | 174,521 | 4,214 | 489 | ||||
Principal Spectrum Preferred Securities Active ETF | 713,401 | — | 8,141 | — | ||||
Principal Sustainable Momentum Index ETF | 12,000 | — | — | — | ||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 1,904,705 | — | — | — | ||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 2,098,119 | 1,497,712 | 159,618 | — |
* | 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, 2017, the components of distributable earnings on a federal income tax basis were:
Undistributed | Undistributed | Unrealized | |||||||
Ordinary | Long-Term | Appreciation/ | Capital Loss | ||||||
Fund | Income | Capital Gains | (Depreciation) | Carryforward | |||||
Principal Active Global Dividend Income ETF | $ | 2,366,935 | $ | — | $ | 2,191,938 | $ | — | |
Principal EDGE Active Income ETF | 2,827,999 | 424,674 | 13,333,195 | (258,855 | ) | ||||
Principal Healthcare Innovators Index ETF | 64,403 | — | 540,167 | — | |||||
Principal Millennials Index ETF | 33,240 | — | 425,042 | — | |||||
Principal Price Setters Index ETF | 8,064 | — | 385,149 | — | |||||
Principal Shareholder Yield Index ETF | 13,479 | — | 86,021 | — | |||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 820,066 | — | 14,626,196 | — |
Capital Loss Carryforwards. As of June 30, 2017, 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:
Unlimited Losses | Unlimited Losses | ||||
Fund | Short-Term | Long-Term | Total | ||
Principal EDGE Active Income ETF | $ | 258,855 | $ — | $ | 258,855 |
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 year ended June 30, 2017, the Funds do not plan to defer any late-year losses.
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 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, from 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, 2017, the Funds recorded reclassifications as follows:
Accumulated | Accumulated Net | |||||||
Undistributed Net | Realized Gain on | |||||||
Fund | Investment Income | Investment | Paid In Capital | |||||
Principal Active Global Dividend Income ETF | $ | 904 | $ | (904 | ) | $ | — | |
Principal EDGE Active Income ETF | 322,291 | (320,657 | ) | (1,634 | ) | |||
Principal Healthcare Innovators Index ETF | 17,255 | (321,228 | ) | 303,973 |
28
Notes to Financial Statements | ||||||||
Principal Exchange-Traded Funds | ||||||||
December 31, 2017 (unaudited) | ||||||||
7. Federal Tax Information (continued) | ||||||||
Accumulated | Accumulated Net | |||||||
Undistributed Net | Realized Gain on | |||||||
Fund | Investment Income | Investment | Paid In Capital | |||||
Principal Millennials Index ETF | $ | 8,546 | $ | (514,954 | ) | $ | 506,408 | |
Principal Price Setters Index ETF | — | (556,757 | ) | 556,757 | ||||
Principal Shareholder Yield Index ETF | (1,820 | ) | (923,568 | ) | 925,388 | |||
Principal U.S. Small-Cap Multi-Factor Index ETF | — | (19,011,472 | ) | 19,011,472 |
Federal Income Tax Basis. As of December 31, 2017, the net federal income tax unrealized appreciation (depreciation) and federal tax cost of investments held by each Fund was as follows:
Net | Cost for | |||||||||
Unrealized | Federal | |||||||||
Unrealized | Unrealized | Appreciation | Income Tax | |||||||
Fund | Appreciation | Depreciation | (Depreciation) | Purposes | ||||||
Principal Active Global Dividend Income ETF | $ | 56,499,851 | $ | (6,494,097 | ) | $ | 50,005,754 | $ | 566,857,367 | |
Principal Contrarian Value Index ETF | 260,241 | (72,360 | ) | 187,881 | 3,738,255 | |||||
Principal EDGE Active Income ETF | 19,445,136 | (5,561,495 | ) | 13,883,641 | 272,008,909 | |||||
Principal Healthcare Innovators Index ETF | 5,675,243 | (2,884,174 | ) | 2,791,069 | 45,643,417 | |||||
Principal International Multi-Factor Index ETF | 460,404 | (230,691 | ) | 229,713 | 14,954,334 | |||||
Principal Millennials Index ETF | 2,195,079 | (241,921 | ) | 1,953,158 | 8,332,638 | |||||
Principal Price Setters Index ETF | 1,626,701 | (154,918 | ) | 1,471,783 | 20,934,716 | |||||
Principal Shareholder Yield Index ETF | 1,174,962 | (254,363 | ) | 920,599 | 7,169,825 | |||||
Principal Spectrum Preferred Securities Active | ||||||||||
ETF | 145,546 | (268,744 | ) | (123,198 | ) | 34,245,227 | ||||
Principal Sustainable Momentum Index ETF | 218,619 | (58,432 | ) | 160,187 | 3,740,150 | |||||
Principal U.S. Mega-Cap Multi- Factor Index ETF | 24,135,816 | (3,395,845 | ) | 20,739,971 | 770,729,304 | |||||
Principal U.S. Small-Cap Multi- Factor Index ETF | 35,312,110 | (9,470,372 | ) | 25,841,738 | 293,910,390 |
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.
29
Schedule of Investments Principal Active Global Dividend Income ETF
December 31, 2017 (unaudited)
COMMON STOCKS — 98.47% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | |||
Aerospace & Defense — 2.21% | Multi-National — 1.41% | |||||||
Boeing Co/The | 46,912 | $ | 13,834,818 | Banco Latinoamericano de Comercio Exterior SA | 329,151 | $ | 8,854,162 | |
Airlines — 0.97% | Oil & Gas — 7.31% | |||||||
Alaska Air Group Inc | 82,496 | 6,064,281 | Chevron Corp | 118,669 | 14,856,172 | |||
Royal Dutch Shell PLC, Class B | 460,420 | 15,593,750 | ||||||
Auto Manufacturers — 3.57% | ||||||||
Vermilion Energy Inc | 422,584 | 15,356,911 | ||||||
Nissan Motor Co Ltd | 1,002,400 | 9,995,087 | ||||||
PACCAR Inc | 173,557 | 12,336,431 | $ | 45,806,833 | ||||
$ | 22,331,518 | Oil & Gas Services — 1.09% | ||||||
Schlumberger Ltd | 101,242 | 6,822,698 | ||||||
Auto Parts & Equipment — 5.12% | ||||||||
Autoliv Inc | 51,413 | 6,533,564 | Pharmaceuticals — 7.80% | |||||
Bridgestone Corp | 315,000 | 14,643,621 | GlaxoSmithKline PLC | 554,338 | 9,898,118 | |||
Magna International Inc | 192,245 | 10,895,413 | Novo Nordisk A/S, Class B | 232,619 | 12,540,664 | |||
$ | 32,072,598 | Pfizer Inc | 406,420 | 14,720,532 | ||||
Roche Holding AG | 46,350 | 11,724,845 | ||||||
Banks — 7.91% | ||||||||
Banco Bilbao Vizcaya Argentaria SA | 696,189 | 5,940,809 | $ | 48,884,159 | ||||
BNP Paribas SA | 173,801 | 12,981,304 | Real Estate — 2.10% | |||||
ING Groep NV | 464,920 | 8,548,805 | Daito Trust Construction Co Ltd | 64,400 | 13,131,484 | |||
JPMorgan Chase & Co | 116,201 | 12,426,535 | ||||||
PacWest Bancorp | 191,269 | 9,639,958 | REITs — 2.49% | |||||
Annaly Capital Management Inc | 509,973 | 6,063,579 | ||||||
$ | 49,537,411 | Omega Healthcare Investors Inc | 345,247 | 9,508,102 | ||||
Beverages — 4.37% | $ | 15,571,681 | ||||||
Ambev SA ADR | 1,901,801 | 12,285,634 | ||||||
Diageo PLC | 409,426 | 15,063,442 | Retail — 1.22% | |||||
Nordstrom Inc | 161,611 | 7,657,129 | ||||||
$ | 27,349,076 | |||||||
Semiconductors — 5.61% | ||||||||
Biotechnology — 0.95% | Microchip Technology Inc | 210,749 | 18,520,622 | |||||
CSL Ltd | 54,099 | 5,964,381 | Taiwan Semiconductor Manufacturing Co Ltd | |||||
Chemicals — 4.51% | ADR | 419,722 | 16,641,977 | |||||
Croda International PLC | 198,363 | 11,848,355 | $ | 35,162,599 | ||||
Givaudan SA | 4,200 | 9,706,399 | ||||||
Incitec Pivot Ltd | 1,256,699 | 3,824,105 | Software — 6.49% | |||||
Petronas Chemicals Group Bhd | 1,500,000 | 2,853,966 | Broadridge Financial Solutions Inc | 59,513 | 5,390,687 | |||
j2 Global Inc | 130,154 | 9,765,455 | ||||||
$ | 28,232,825 | Microsoft Corp | 232,619 | 19,898,229 | ||||
Commercial Services — 4.32% | SAP SE | 50,000 | 5,606,296 | |||||
Experian PLC | 364,177 | 8,044,112 | $ | 40,660,667 | ||||
RELX NV | 232,619 | 5,349,100 | ||||||
Ritchie Bros Auctioneers Inc | 456,475 | 13,662,296 | Telecommunications — 3.59% | |||||
BCE Inc | 278,969 | 13,400,277 | ||||||
$ | 27,055,508 | MTN Group Ltd | 326,596 | 3,605,820 | ||||
Computers — 2.32% | Telenor ASA | 104,723 | 2,243,536 | |||||
Apple Inc | 86,051 | 14,562,411 | Vodacom Group Ltd | 272,818 | 3,212,296 | |||
Construction Materials — 1.70% | $ | 22,461,929 | ||||||
James Hardie Industries PLC | 603,939 | 10,659,078 | Toys, Games & Hobbies — 1.34% | |||||
Diversified Financial Services — 2.37% | Hasbro Inc | 92,415 | 8,399,599 | |||||
Deutsche Boerse AG | 127,751 | 14,837,693 | Transportation — 1.74% | |||||
Electric — 1.47% | Union Pacific Corp | 81,450 | 10,922,445 | |||||
CLP Holdings Ltd | 900,000 | 9,209,827 | ||||||
TOTAL COMMON STOCKS | $ | 616,863,121 | ||||||
Electronics — 1.97% | ||||||||
TE Connectivity Ltd | 129,937 | 12,349,212 | Total Investments | $ | 616,863,121 | |||
Other Assets and Liabilities — 1.53% | $ | 9,558,618 | ||||||
Food — 3.22% | TOTAL NET ASSETS — 100% | $ | 626,421,739 | |||||
B&G Foods Inc | 256,811 | 9,026,907 | ||||||
Danone SA | 132,401 | 11,112,344 | ||||||
$ | 20,139,251 | Portfolio Summary (unaudited) | ||||||
Gas — 1.88% | Country | Percent | ||||||
Rubis SCA | 166,682 | 11,795,604 | United States | 37.54 | % | |||
Household Products/Wares — 2.71% | United Kingdom | 11.28 | % | |||||
Avery Dennison Corp | 50,334 | 5,781,363 | Canada | 8.89 | % | |||
Reckitt Benckiser Group PLC | 119,987 | 11,208,818 | Japan | 6.03 | % | |||
France | 5.73 | % | ||||||
$ | 16,990,181 | Switzerland | 5.23 | % | ||||
Insurance — 4.33% | Netherlands | 3.85 | % | |||||
Beazley PLC | 1,278,527 | 9,226,562 | Germany | 3.26 | % | |||
Chubb Ltd | 45,240 | 6,610,921 | Taiwan | 2.66 | % | |||
Swiss Re AG | 120,701 | 11,302,752 | Denmark | 2.00 | % | |||
$ | 27,140,235 | Brazil | 1.96 | % | ||||
Ireland | 1.70 | % | ||||||
Machinery — Diversified — 0.38% | Australia | 1.56 | % | |||||
AG Growth International Inc | 56,601 | 2,401,828 |
See accompanying notes.
30
Schedule of Investments | ||
Principal Active Global Dividend Income ETF | ||
December 31, 2017 (unaudited) | ||
Portfolio Summary (continued) | ||
Country | Percent | |
Hong Kong | 1.47 | % |
Panama | 1.41 | % |
South Africa | 1.09 | % |
Sweden | 1.04 | % |
Spain | 0.95 | % |
Malaysia | 0.46 | % |
Norway | 0.36 | % |
Other Assets & Liabilities | 1.53 | % |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
31
Schedule of Investments Principal Contrarian Value Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS — 99.69% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Aerospace & Defense — 1.68% | Computers (continued) | ||||||
Curtiss-Wright Corp | 69 | $ | 8,408 | Hewlett Packard Enterprise Co | 1,708 | $ | 24,527 |
L3 Technologies Inc | 95 | 18,796 | NetApp Inc | 162 | 8,962 | ||
Spirit AeroSystems Holdings Inc, Class A (a) | 108 | 9,423 | Teradata Corp (a) | 216 | 8,307 | ||
Teledyne Technologies Inc (a) | 120 | 21,738 | |||||
$ | 66,279 | ||||||
United Technologies Corp | 60 | 7,654 | |||||
Construction Materials — 2.76% | |||||||
$ | 66,019 | ||||||
Fortune Brands Home & Security Inc | 117 | 8,008 | |||||
Agriculture — 0.49% | Louisiana-Pacific Corp (a) | 962 | 25,262 | ||||
Archer-Daniels-Midland Co | 482 | 19,319 | Martin Marietta Materials Inc | 31 | 6,852 | ||
Airlines — 1.56% | Owens Corning | 385 | 35,397 | ||||
USG Corp (a) | 672 | 25,912 | |||||
Alaska Air Group Inc | 69 | 5,072 | |||||
Delta Air Lines Inc | 315 | 17,640 | Vulcan Materials Co | 57 | 7,317 | ||
JetBlue Airways Corp (a) | 1,125 | 25,133 | $ | 108,748 | |||
Spirit Airlines Inc (a) | 300 | 13,455 | |||||
Distribution/Wholesale — 0.51% | |||||||
$ | 61,300 | LKQ Corp (a) | 498 | 20,254 | |||
Apparel — 1.28% | Diversified Financial Services — 0.88% | ||||||
Columbia Sportswear Co | 288 | 20,701 | Ally Financial Inc | 741 | 21,608 | ||
Ralph Lauren Corp | 285 | 29,552 | E*TRADE Financial Corp (a) | 144 | 7,138 | ||
$ | 50,253 | Invesco Ltd | 156 | 5,700 | |||
Auto Manufacturers — 0.18% | $ | 34,446 | |||||
PACCAR Inc | 102 | 7,250 | Electric — 0.57% | ||||
Auto Parts & Equipment — 0.99% | MDU Resources Group Inc | 827 | 22,230 | ||||
BorgWarner Inc | 376 | 19,210 | |||||
Electrical Components & Equipment — 0.23% | |||||||
Lear Corp | 111 | 19,609 | |||||
AMETEK Inc | 126 | 9,131 | |||||
$ | 38,819 | ||||||
Electronics — 6.54% | |||||||
Banks — 3.53% | Agilent Technologies Inc | 132 | 8,840 | ||||
Bank of New York Mellon Corp/The | 246 | 13,249 | Arrow Electronics Inc (a) | 312 | 25,088 | ||
BankUnited Inc | 126 | 5,131 | Avnet Inc | 489 | 19,374 | ||
BB&T Corp | 243 | 12,082 | Corning Inc | 813 | 26,008 | ||
Comerica Inc | 69 | 5,990 | FLIR Systems Inc | 429 | 20,000 | ||
Huntington Bancshares Inc | 354 | 5,154 | |||||
JPMorgan Chase & Co | 131 | 14,009 | Garmin Ltd | 306 | 18,229 | ||
KeyCorp | 621 | 12,526 | Gentex Corp | 747 | 15,650 | ||
M&T Bank Corp | 30 | 5,130 | Jabil Inc | 889 | 23,336 | ||
PacWest Bancorp | 90 | 4,536 | National Instruments Corp | 210 | 8,742 | ||
Popular Inc | 378 | 13,415 | PerkinElmer Inc | 291 | 21,278 | ||
Sensata Technologies Holding NV (a) | 165 | 8,433 | |||||
State Street Corp | 63 | 6,149 | |||||
SunTrust Banks Inc | 279 | 18,021 | SYNNEX Corp | 194 | 26,374 | ||
Umpqua Holdings Corp | 885 | 18,408 | TE Connectivity Ltd | 213 | 20,244 | ||
Wells Fargo & Co | 87 | 5,278 | Trimble Inc (a) | 216 | 8,778 | ||
Woodward Inc | 96 | 7,348 | |||||
$ | 139,078 | ||||||
$ | 257,722 | ||||||
Biotechnology — 1.84% | |||||||
Alexion Pharmaceuticals Inc (a) | 122 | 14,590 | Engineering & Construction — 1.74% | ||||
Alnylam Pharmaceuticals Inc (a) | 132 | 16,770 | EMCOR Group Inc | 255 | 20,846 | ||
Amgen Inc | 39 | 6,782 | Fluor Corp | 405 | 20,918 | ||
Bio-Rad Laboratories Inc, Class A (a) | 116 | 27,686 | Jacobs Engineering Group Inc | 403 | 26,582 | ||
United Therapeutics Corp (a) | 45 | 6,658 | |||||
$ | 68,346 | ||||||
$ | 72,486 | Entertainment — 0.14% | |||||
Chemicals — 3.12% | Cinemark Holdings Inc | 162 | 5,641 | ||||
AdvanSix Inc (a) | 576 | 24,232 | |||||
Environmental Control — 1.47% | |||||||
Albemarle Corp | 156 | 19,951 | Clean Harbors Inc (a) | 270 | 14,634 | ||
Ashland Global Holdings Inc | 384 | 27,341 | |||||
Cabot Corp | 270 | 16,629 | Republic Services Inc | 366 | 24,745 | ||
Stericycle Inc (a) | 273 | 18,562 | |||||
Eastman Chemical Co | 282 | 26,124 | |||||
PolyOne Corp | 201 | 8,744 | $ | 57,941 | |||
$ | 123,021 | Food — 3.38% | |||||
Commercial Services — 2.76% | B&G Foods Inc | 159 | 5,589 | ||||
AMERCO | 41 | 15,494 | Flowers Foods Inc | 351 | 6,778 | ||
CoreLogic Inc (a) | 406 | 18,761 | Ingredion Inc | 57 | 7,969 | ||
CoStar Group Inc (a) | 33 | 9,799 | JM Smucker Co/The | 161 | 20,003 | ||
ManpowerGroup Inc | 164 | 20,682 | Kraft Heinz Co/The | 246 | 19,129 | ||
PayPal Holdings Inc (a) | 159 | 11,706 | Mondelez International Inc, Class A | 357 | 15,279 | ||
Quanta Services Inc (a) | 608 | 23,779 | Performance Food Group Co (a) | 666 | 22,044 | ||
WEX Inc (a) | 60 | 8,474 | Pinnacle Foods Inc | 117 | 6,958 | ||
$ | 108,695 | Tyson Foods Inc, Class A | 363 | 29,428 | |||
Computers — 1.68% | $ | 133,177 | |||||
Cognizant Technology Solutions Corp, Class A (a) | 114 | 8,096 | Hand/Machine Tools — 0.54% | ||||
DST Systems Inc | 264 | 16,387 | Stanley Black & Decker Inc | 125 | 21,211 |
See accompanying notes.
32
Schedule of Investments Principal Contrarian Value Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Healthcare — Products — 3.79% | Machinery — Construction & Mining — 0.77% | ||||||
Baxter International Inc | 309 | $ | 19,974 | Oshkosh Corp | 333 | $ | 30,266 |
Cooper Cos Inc/The | 80 | 17,430 | |||||
Machinery — Diversified — 1.27% | |||||||
Danaher Corp | 264 | 24,504 | |||||
AGCO Corp | 372 | 26,572 | |||||
DENTSPLY SIRONA Inc | 358 | 23,567 | |||||
Cummins Inc | 45 | 7,949 | |||||
Hill-Rom Holdings Inc | 237 | 19,977 | |||||
Roper Technologies Inc | 33 | 8,547 | |||||
Medtronic PLC | 279 | 22,529 | |||||
Wabtec Corp | 84 | 6,840 | |||||
Patterson Cos Inc | 345 | 12,465 | |||||
Teleflex Inc | 36 | 8,958 | $ | 49,908 | |||
$ | 149,404 | Media — 2.93% | |||||
Comcast Corp, Class A | 420 | 16,821 | |||||
Healthcare — Services — 3.92% | Discovery Communications Inc (a) | 546 | 12,220 | ||||
Aetna Inc | 176 | 31,749 | Liberty Broadband Corp (a) | 57 | 4,854 | ||
DaVita Inc (a) | 228 | 16,473 | |||||
Laboratory Corp of America Holdings (a) | 159 | 25,362 | News Corp | 1,753 | 28,416 | ||
MEDNAX Inc (a) | 315 | 16,833 | TEGNA Inc | 1,368 | 19,261 | ||
Time Warner Inc | 163 | 14,910 | |||||
Quest Diagnostics Inc | 164 | 16,152 | |||||
Tenet Healthcare Corp (a) | 348 | 5,276 | Twenty-First Century Fox Inc, Class A | 225 | 7,769 | ||
Viacom Inc, Class B | 363 | 11,184 | |||||
Universal Health Services Inc, Class B | 179 | 20,290 | |||||
WellCare Health Plans Inc (a) | 111 | 22,323 | $ | 115,435 | |||
$ | 154,458 | Metal Fabrication & Hardware — 0.18% | |||||
Valmont Industries Inc | 42 | 6,966 | |||||
Holding Companies — Diversified — 0.57% | |||||||
Leucadia National Corp | 843 | 22,331 | Mining — 0.57% | ||||
Freeport-McMoRan Inc (a) | 1,173 | 22,240 | |||||
Home Builders — 1.77% | |||||||
DR Horton Inc | 703 | 35,902 | Miscellaneous Manufacture — 2.81% | ||||
PulteGroup Inc | 1,020 | 33,915 | Carlisle Cos Inc | 152 | 17,275 | ||
$ | 69,817 | Dover Corp | 199 | 20,097 | |||
Eaton Corp PLC | 312 | 24,651 | |||||
Home Furnishings — 0.38% | General Electric Co | 225 | 3,926 | ||||
Whirlpool Corp | 89 | 15,009 | Ingersoll-Rand PLC | 200 | 17,838 | ||
Household Products — 0.46% | Textron Inc | 475 | 26,880 | ||||
Edgewell Personal Care Co (a) | 306 | 18,173 | $ | 110,667 | |||
Insurance — 7.14% | Office & Business Equipment — 0.56% | ||||||
Aflac Inc | 162 | 14,220 | Xerox Corp | 762 | 22,212 | ||
Alleghany Corp (a) | 26 | 15,498 | |||||
Oil & Gas — 1.30% | |||||||
Allstate Corp/The | 142 | 14,869 | |||||
Anadarko Petroleum Corp | 243 | 13,035 | |||||
American Financial Group Inc | 54 | 5,861 | Murphy USA Inc (a) | 105 | 8,438 | ||
American National Insurance Co | 140 | 17,955 | Parsley Energy Inc (a) | 519 | 15,279 | ||
Assurant Inc | 119 | 12,000 | |||||
Pioneer Natural Resources Co | 84 | 14,519 | |||||
Assured Guaranty Ltd | 405 | 13,717 | |||||
Berkshire Hathaway Inc, Class B (a) | 69 | 13,677 | $ | 51,271 | |||
First American Financial Corp | 297 | 16,644 | Oil & Gas Services — 0.33% | ||||
Hartford Financial Services Group Inc/The | 342 | 19,248 | Schlumberger Ltd | 195 | 13,141 | ||
Loews Corp | 358 | 17,911 | |||||
Markel Corp (a) | 5 | 5,696 | Packaging & Containers — 1.20% | ||||
Old Republic International Corp | 804 | 17,190 | Bemis Co Inc | 135 | 6,452 | ||
Prudential Financial Inc | 152 | 17,477 | Graphic Packaging Holding Co | 504 | 7,787 | ||
Reinsurance Group of America Inc | 129 | 20,115 | Sonoco Products Co | 126 | 6,695 | ||
Travelers Cos Inc/The | 42 | 5,697 | WestRock Co | 418 | 26,422 | ||
Unum Group | 342 | 18,772 | $ | 47,356 | |||
White Mountains Insurance Group Ltd | 18 | 15,323 | Pharmaceuticals — 1.42% | ||||
WR Berkley Corp | 69 | 4,944 | Abbott Laboratories | 352 | 20,089 | ||
XL Group Ltd | 411 | 14,451 | Cardinal Health Inc | 84 | 5,147 | ||
$ | 281,265 | Express Scripts Holding Co (a) | 222 | 16,570 | |||
Jazz Pharmaceuticals PLC (a) | 51 | 6,867 | |||||
Internet — 1.47% | |||||||
eBay Inc (a) | 465 | 17,549 | Pfizer Inc | 198 | 7,171 | ||
GrubHub Inc (a) | 192 | 13,786 | $ | 55,844 | |||
Liberty Ventures (a) | 364 | 19,743 | |||||
Real Estate — 0.45% | |||||||
Symantec Corp | 237 | 6,650 | Jones Lang LaSalle Inc | 45 | 6,702 | ||
$ | 57,728 | Realogy Holdings Corp | 420 | 11,130 | |||
Iron & Steel — 0.47% | $ | 17,832 | |||||
Steel Dynamics Inc | 429 | 18,503 | REITs — 6.30% | ||||
Leisure Products & Services — 1.26% | American Homes 4 Rent | 492 | 10,745 | ||||
Brunswick Corp | 114 | 6,295 | Annaly Capital Management Inc | 1,500 | 17,835 | ||
Carnival Corp | 405 | 26,880 | Apple Hospitality REIT Inc | 594 | 11,648 | ||
Vista Outdoor Inc (a) | 1,128 | 16,435 | Brandywine Realty Trust | 300 | 5,457 | ||
$ | 49,610 | Chimera Investment Corp | 867 | 16,022 | |||
Columbia Property Trust Inc | 720 | 16,524 | |||||
Lodging — 0.56% | Equity Commonwealth (a) | 534 | 16,292 | ||||
Hilton Worldwide Holdings Inc | 276 | 22,041 | Forest City Realty Trust Inc | 219 | 5,278 |
See accompanying notes.
33
Schedule of Investments Principal Contrarian Value Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | |||
REITs (continued) | Transportation (continued) | |||||||
Gramercy Property Trust | 603 | $ | 16,076 | Kansas City Southern | 254 | $ | 26,726 | |
Hudson Pacific Properties Inc | 138 | 4,727 | Kirby Corp (a) | 327 | 21,844 | |||
Medical Properties Trust Inc | 870 | 11,989 | Norfolk Southern Corp | 131 | 18,982 | |||
New Residential Investment Corp | 987 | 17,648 | Ryder System Inc | 297 | 24,998 | |||
Omega Healthcare Investors Inc | 153 | 4,214 | $ | 119,107 | ||||
Physicians Realty Trust | 252 | 4,533 | ||||||
Piedmont Office Realty Trust Inc | 524 | 10,276 | TOTAL COMMON STOCKS | $ | 3,926,136 | |||
RLJ Lodging Trust | 513 | 11,271 | ||||||
Senior Housing Properties Trust | 570 | 10,915 | Total Investments | $ | 3,926,136 | |||
SL Green Realty Corp | 45 | 4,542 | Other Assets and Liabilities — 0.31% | $ | 12,226 | |||
Spirit Realty Capital Inc | 1,062 | 9,112 | TOTAL NET ASSETS — 100% | $ | 3,938,362 | |||
Starwood Property Trust Inc | 510 | 10,888 | ||||||
Two Harbors Investment Corp | 1,102 | 17,919 | (a) Non-income producing security | |||||
VEREIT Inc | 1,836 | 14,302 | ||||||
$ | 248,213 | Portfolio Summary (unaudited) | ||||||
Retail — 6.95% | Sector | Percent | ||||||
AutoNation Inc (a) | 489 | 25,100 | ||||||
Bed Bath & Beyond Inc | 555 | 12,204 | Industrial | 24.21 | % | |||
Best Buy Co Inc | 361 | 24,718 | Financial | 19.12 | % | |||
CVS Health Corp | 279 | 20,228 | Consumer, Non-cyclical | 18.07 | % | |||
Dick’s Sporting Goods Inc | 321 | 9,226 | Consumer, Cyclical | 15.58 | % | |||
Dollar Tree Inc (a) | 87 | 9,336 | Technology | 8.03 | % | |||
Foot Locker Inc | 90 | 4,219 | Communications | 7.76 | % | |||
GameStop Corp, Class A | 918 | 16,478 | Basic Materials | 4.16 | % | |||
Gap Inc/The | 273 | 9,298 | Energy | 1.63 | % | |||
Macy’s Inc | 474 | 11,940 | Diversified | 0.57 | % | |||
PVH Corp | 248 | 34,028 | Utilities | 0.56 | % | |||
Signet Jewelers Ltd | 249 | 14,081 | Other Assets and Liabilities | 0.31 | % | |||
Tapestry Inc | 177 | 7,829 | TOTAL NET ASSETS | 100.00 | % | |||
Target Corp | 114 | 7,439 | ||||||
Tiffany & Co | 72 | 7,484 | ||||||
Wal-Mart Stores Inc | 222 | 21,922 | ||||||
Walgreens Boots Alliance Inc | 183 | 13,289 | ||||||
Williams-Sonoma Inc | 138 | 7,135 | ||||||
World Fuel Services Corp | 627 | 17,644 | ||||||
$ | 273,598 | |||||||
Savings & Loans — 0.82% | ||||||||
Investors Bancorp Inc | 798 | 11,077 | ||||||
New York Community Bancorp Inc | 762 | 9,921 | ||||||
People’s United Financial Inc | 606 | 11,332 | ||||||
$ | 32,330 | |||||||
Semiconductors — 3.55% | ||||||||
Cirrus Logic Inc (a) | 126 | 6,534 | ||||||
Intel Corp | 435 | 20,080 | ||||||
IPG Photonics Corp (a) | 58 | 12,419 | ||||||
Marvell Technology Group Ltd | 1,440 | 30,917 | ||||||
Microsemi Corp (a) | 129 | 6,663 | ||||||
ON Semiconductor Corp (a) | 1,051 | 22,008 | ||||||
QUALCOMM Inc | 279 | 17,861 | ||||||
Teradyne Inc | 557 | 23,322 | ||||||
$ | 139,804 | |||||||
Software — 2.23% | ||||||||
Activision Blizzard Inc | 348 | 22,035 | ||||||
Akamai Technologies Inc (a) | 108 | 7,024 | ||||||
ANSYS Inc (a) | 63 | 9,298 | ||||||
CA Inc | 702 | 23,363 | ||||||
Oracle Corp | 159 | 7,518 | ||||||
Synopsys Inc (a) | 219 | 18,668 | ||||||
$ | 87,906 | |||||||
Telecommunications — 3.36% | ||||||||
AT&T Inc | 537 | 20,879 | ||||||
CenturyLink Inc | 927 | 15,462 | ||||||
Cisco Systems Inc | 663 | 25,393 | ||||||
Juniper Networks Inc | 801 | 22,829 | ||||||
Telephone & Data Systems Inc | 838 | 23,296 | ||||||
ViaSat Inc (a) | 327 | 24,476 | ||||||
$ | 132,335 | |||||||
Transportation — 3.03% | ||||||||
CSX Corp | 324 | 17,823 | ||||||
FedEx Corp | 35 | 8,734 |
See accompanying notes.
34
Schedule of Investments Principal EDGE Active Income ETF
December 31, 2017 (unaudited)
COMMON STOCKS — 23.28% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||||
Aerospace & Defense — 0.03% | Semiconductors — 0.36% | ||||||||
Lockheed Martin Corp | 236 | $ | 75,768 | Microchip Technology Inc | 11,891 | $ | 1,044,981 | ||
Banks — 5.70% | Telecommunications — 0.57% | ||||||||
Bank of Hawaii Corp | 21,255 | 1,821,553 | BCE Inc | 34,531 | 1,657,833 | ||||
Bank of Nova Scotia/The | 31,780 | 2,050,763 | |||||||
Toys, Games & Hobbies — 0.36% | |||||||||
Columbia Banking System Inc | 45,092 | 1,958,796 | |||||||
Hasbro Inc | 11,609 | 1,055,142 | |||||||
Cullen / Frost Bankers Inc | 18,390 | 1,740,614 | |||||||
East West Bancorp Inc | 31,344 | 1,906,656 | |||||||
JPMorgan Chase & Co | 17,647 | 1,887,170 | |||||||
PacWest Bancorp | 32,842 | 1,655,237 | TOTAL COMMON STOCKS | $ | 67,834,646 | ||||
US Bancorp | 34,346 | 1,840,259 | PREFERRED STOCKS — 4.97% | Shares Held | Value | ||||
Washington Trust Bancorp Inc | 32,681 | 1,740,263 | Banks — 1.63% | ||||||
$ | 16,601,311 | Bank of America Corp 6.00%; Series EE (b) | 10,000 | 271,900 | |||||
Bank of America Corp 6.50%; Series Y (b) | 20,000 | 540,400 | |||||||
Chemicals — 0.36% | Goldman Sachs Group Inc/The 6.20%; | ||||||||
DowDuPont Inc | 14,714 | 1,047,931 | Series B (b) | 40,000 | 1,035,200 | ||||
Computers — 0.48% | Merrill Lynch Capital Trust I | ||||||||
Apple Inc | 8,215 | 1,390,225 | 6.45%, 12/15/2066; Series K (c) | 15,000 | 391,350 | ||||
Merrill Lynch Capital Trust III (3-month USD | |||||||||
Diversified Financial Services — 0.97% | LIBOR + 1.67%), | ||||||||
BGC Partners Inc, Class A | 115,264 | 1,741,639 | 7.38% , 09/15/2067 (d) | 15,000 | 407,550 | ||||
BlackRock Inc | 2,144 | 1,101,394 | Morgan Stanley (3-month USD LIBOR + | ||||||
$ | 2,843,033 | 3.71%), 6.38%; Series I (b),(d) | 25,000 | 696,250 | |||||
Electric — 1.57% | Morgan Stanley (3-month USD LIBOR + | ||||||||
ALLETE Inc | 18,784 | 1,396,778 | 4.32%), 7.13%; Series E (b),(d) | 35,000 | 1,013,600 | ||||
WEC Energy Group Inc | 26,831 | 1,782,383 | Wells Fargo & Co 5.63%; Series Y (b) | 15,000 | 389,100 | ||||
Xcel Energy Inc | 28,816 | 1,386,338 | $ | 4,745,350 | |||||
$ | 4,565,499 | Diversified Financial Services — 0.14% | |||||||
Electronics — 0.21% | General Electric Co | ||||||||
Garmin Ltd | 10,425 | 621,017 | 4.88%, 10/15/2052 | 17,000 | 423,300 | ||||
Food — 0.77% | Electric — 0.41% | ||||||||
B&G Foods Inc | 34,030 | 1,196,155 | Duke Energy Corp | ||||||
Kraft Heinz Co/The | 13,571 | 1,055,281 | 5.13%, 01/15/2073 | 16,000 | 405,600 | ||||
$ | 2,251,436 | Entergy Mississippi Inc | |||||||
4.90%, 10/01/2066 | 15,000 | 377,250 | |||||||
Housewares — 0.24% | NextEra Energy Capital Holdings Inc | ||||||||
Tupperware Brands Corp | 11,414 | 715,658 | 5.13%, 11/15/2072; Series I | 16,000 | 399,520 | ||||
Machinery — Diversified — 0.38% | $ | 1,182,370 | |||||||
Deere & Co | 7,070 | 1,106,526 | Hand/Machine Tools — 0.22% | ||||||
Oil & Gas — 3.21% | Stanley Black & Decker Inc | ||||||||
Chevron Corp | 13,396 | 1,677,045 | 5.75%, 07/25/2052 | 25,000 | 630,500 | ||||
Exxon Mobil Corp | 19,826 | 1,658,247 | Insurance — 0.17% | ||||||
HollyFrontier Corp | 44,793 | 2,294,298 | Prudential Financial Inc | ||||||
Marathon Petroleum Corp | 27,433 | 1,810,029 | 5.75%, 12/15/2052 | 20,000 | 505,000 | ||||
Occidental Petroleum Corp | 25,900 | 1,907,794 | |||||||
$ | 9,347,413 | REITs — 2.29% | |||||||
Boston Properties Inc 5.25% (b) | 20,000 | 506,400 | |||||||
Pharmaceuticals — 1.67% | Digital Realty Trust Inc 7.38%; Series H (b) | 55,000 | 1,466,850 | ||||||
Abbott Laboratories | 19,774 | 1,128,502 | Kimco Realty Corp 5.13%; Series L (b) | 5,000 | 123,700 | ||||
Johnson & Johnson | 9,970 | 1,393,008 | Kimco Realty Corp 6.00%; Series I (b) | 15,000 | 377,850 | ||||
Merck & Co Inc | 19,514 | 1,098,053 | PS Business Parks Inc 5.20%; Series W (b) | 39,000 | 984,750 | ||||
Pfizer Inc | 34,418 | 1,246,620 | PS Business Parks Inc 6.00%; Series T (b) | 11,143 | 278,575 | ||||
$ | 4,866,183 | Public Storage 4.90%; Series E (b) | 15,000 | 373,350 | |||||
Public Storage 6.38%; Series Y (b) | 35,000 | 931,000 | |||||||
Pipelines — 1.51% | Ventas Realty LP / Ventas Capital Corp | ||||||||
EnLink Midstream LLC | 86,842 | 1,528,419 | 5.45%, 03/15/2043 | 15,000 | 376,800 | ||||
Plains GP Holdings LP, Class A (a) | 47,902 | 1,051,449 | |||||||
Vornado Realty Trust 6.63%; Series I (b) | 50,000 | 1,255,000 | |||||||
Targa Resources Corp | 37,671 | 1,824,030 | |||||||
$ | 6,674,275 | ||||||||
$ | 4,403,898 | ||||||||
Telecommunications — 0.11% | |||||||||
REITs — 4.89% | Qwest Corp | ||||||||
AGNC Investment Corp | 55,317 | 1,116,850 | 6.13%, 06/01/2053 | 15,000 | 330,000 | ||||
Annaly Capital Management Inc | 115,836 | 1,377,290 | |||||||
Colony NorthStar Inc, Class A | 133,339 | 1,521,398 | |||||||
CYS Investments Inc | 108,360 | 870,131 | |||||||
TOTAL PREFERRED STOCKS | $ | 14,490,795 | |||||||
Digital Realty Trust Inc | 15,630 | 1,780,257 | |||||||
EPR Properties | 21,141 | 1,383,890 | Principal | ||||||
Gramercy Property Trust | 59,338 | 1,581,951 | BONDS — 64.43% | Amount | Value | ||||
Medical Properties Trust Inc | 115,128 | 1,586,464 | Banks — 3.61% | ||||||
Omega Healthcare Investors Inc | 43,341 | 1,193,611 | Bank of America Corp (3-month USD LIBOR + | ||||||
Pebblebrook Hotel Trust | 49,205 | 1,828,950 | 3.63%), | ||||||
$ | 14,240,792 | 8.00%, 12/31/2049 (b),(d) | $ | 5,000,000 | $ | 5,017,000 |
See accompanying notes.
35
Schedule of Investments Principal EDGE Active Income ETF
December 31, 2017 (unaudited)
Principal | Principal | ||||||||||
BONDS (continued) | Amount | Value | BONDS (continued) | Amount | Value | ||||||
Banks (continued) | Home Builders (continued) | ||||||||||
Citigroup Inc | PulteGroup Inc | ||||||||||
6.68%, 09/13/2043 | $ | 1,000,000 | $ | 1,383,962 | 6.38%, 05/15/2033 | $ | 4,000,000 | $ | 4,480,000 | ||
JPMorgan Chase & Co (3-month USD LIBOR + | $ | 6,755,000 | |||||||||
3.25%), | |||||||||||
5.15%, 12/29/2049 (b),(d) | 4,000,000 | 4,135,200 | Insurance — 1.52% | ||||||||
MetLife Inc | |||||||||||
$ | 10,536,162 | 9.25%, 04/08/2038 (e) | 3,000,000 | 4,425,000 | |||||||
Chemicals — 1.47% | |||||||||||
Kraton Polymers LLC / Kraton Polymers Capital | Internet — 0.37% | ||||||||||
Corp | VeriSign Inc | ||||||||||
7.00%, 04/15/2025 (e) | 4,000,000 | 4,280,000 | 5.25%, 04/01/2025 | 1,000,000 | 1,088,750 | ||||||
Commercial Services — 1.06% | Iron & Steel — 1.88% | ||||||||||
Avis Budget Car Rental LLC / Avis Budget | Allegheny Technologies Inc | ||||||||||
Finance Inc | 7.88%, 08/15/2023 | 3,000,000 | 3,241,860 | ||||||||
5.50%, 04/01/2023 | 3,000,000 | 3,075,000 | ArcelorMittal | ||||||||
6.75%, 02/25/2022 | 2,000,000 | 2,225,000 | |||||||||
Computers — 1.13% | $ | 5,466,860 | |||||||||
Dell International LLC / EMC Corp | |||||||||||
6.02%, 06/15/2026 (e) | 3,000,000 | 3,307,855 | Lodging — 1.09% | ||||||||
Boyd Gaming Corp | |||||||||||
Diversified Financial Services — 1.17% | 6.88%, 05/15/2023 | 3,000,000 | 3,180,000 | ||||||||
Jefferies Group LLC | |||||||||||
6.25%, 01/15/2036 | 3,000,000 | 3,411,494 | Media — 6.26% | ||||||||
CCO Holdings LLC / CCO Holdings Capital Corp | |||||||||||
Electric — 4.43% | 5.13%, 05/01/2027 (e) | 1,000,000 | 985,000 | ||||||||
Emera Inc | 5.75%, 01/15/2024 | 2,000,000 | 2,055,000 | ||||||||
(3-month USD LIBOR + 5.44%), | CSC Holdings LLC | ||||||||||
6.75%, 06/15/2076 (d) | 3,000,000 | 3,375,000 | |||||||||
6.75%, 11/15/2021 | 3,000,000 | 3,217,500 | |||||||||
GenOn Energy Inc | DISH DBS Corp | ||||||||||
0.00%, 10/15/2020 (a),(f) | 3,100,000 | 2,449,000 | |||||||||
5.88%, 11/15/2024 | 4,000,000 | 3,895,000 | |||||||||
NRG Energy Inc | Sirius XM Radio Inc | ||||||||||
6.25%, 07/15/2022 | 1,000,000 | 1,040,000 | 5.38%, 04/15/2025 (e) | 4,000,000 | 4,165,000 | ||||||
6.25%, 05/01/2024 | 2,000,000 | 2,095,000 | Viacom Inc | ||||||||
PPL Capital Funding Inc | (3-month USD LIBOR + 3.90%), | ||||||||||
(3-month USD LIBOR + 2.67%), | 5.88%, 02/28/2057 (d) | 2,000,000 | 1,967,500 | ||||||||
4.36%, 03/30/2067 (d) | 4,000,000 | 3,950,000 | |||||||||
(3-month USD LIBOR + 3.90%), | |||||||||||
$ | 12,909,000 | 6.25%, 02/28/2057 (d) | 2,000,000 | 1,952,500 | |||||||
Engineering & Construction — 0.73% | $ | 18,237,500 | |||||||||
Engility Corp | Mining — 1.37% | ||||||||||
8.88%, 09/01/2024 | 2,000,000 | 2,137,500 | Freeport-McMoRan Inc | ||||||||
Entertainment — 0.68% | 3.88%, 03/15/2023 | 4,000,000 | 3,980,000 | ||||||||
AMC Entertainment Holdings Inc | Mortgage Backed Securities — 6.26% | ||||||||||
6.13%, 05/15/2027 | 2,000,000 | 1,985,000 | Citigroup Commercial Mortgage Trust 2015-GC29 | ||||||||
Environmental Control — 2.44% | 4.15%, 04/10/2048 (c) | 750,000 | 738,675 | ||||||||
Advanced Disposal Services Inc | COMM 2014-UBS3 Mortgage Trust | ||||||||||
5.63%, 11/15/2024 (e) | 2,000,000 | 2,045,000 | 4.78%, 06/10/2047 (c) | 2,000,000 | 1,949,324 | ||||||
Covanta Holding Corp | COMM 2015-CCRE22 Mortgage Trust | ||||||||||
5.88%, 03/01/2024 | 5,000,000 | 5,075,000 | 4.12%, 03/10/2048 (c) | 500,000 | 496,746 | ||||||
$ | 7,120,000 | GS Mortgage Securities Trust 2013-GC13 | |||||||||
4.09%, 07/10/2046 (c),(e) | 500,000 | 500,180 | |||||||||
Food — 2.10% | GS Mortgage Securities Trust 2013-GCJ12 | ||||||||||
B&G Foods Inc | 4.18%, 06/10/2046 (c) | 2,000,000 | 1,976,871 | ||||||||
4.63%, 06/01/2021 | 2,000,000 | 2,030,000 | GS Mortgage Securities Trust 2014-GC20 | ||||||||
JBS USA LUX SA / JBS USA Finance Inc | 4.86%, 04/10/2047 (c) | 2,000,000 | 1,877,925 | ||||||||
5.75%, 06/15/2025 (e) | 1,000,000 | 962,500 | |||||||||
GS Mortgage Securities Trust 2014-GC24 | |||||||||||
7.25%, 06/01/2021 (e) | 1,000,000 | 1,016,250 | 4.53%, 09/10/2047 (c) | 500,000 | 509,909 | ||||||
Pinnacle Foods Finance LLC / Pinnacle Foods | GS Mortgage Securities Trust 2015-GC32 | ||||||||||
Finance Corp | 4.41%, 07/10/2048 (c) | 1,241,000 | 1,235,360 | ||||||||
5.88%, 01/15/2024 | 2,000,000 | 2,115,000 | JP Morgan Chase Commercial Mortgage | ||||||||
$ | 6,123,750 | Securities Trust 2012-LC9 | |||||||||
4.37%, 12/15/2047 (c),(e) | 1,750,000 | 1,620,300 | |||||||||
Healthcare — Services — 4.33% | |||||||||||
HCA Inc | JP Morgan Chase Commercial Mortgage | ||||||||||
5.88%, 05/01/2023 | 2,000,000 | 2,135,000 | Securities Trust 2015-JP1 | ||||||||
4.24%, 01/15/2049 (c),(e) | 1,000,000 | 804,378 | |||||||||
HealthSouth Corp | |||||||||||
5.75%, 09/15/2025 | 3,000,000 | 3,120,000 | JPMBB Commercial Mortgage Securities Trust | ||||||||
Surgery Center Holdings Inc | 2014-C19 | ||||||||||
6.75%, 07/01/2025 (e) | 3,500,000 | 3,307,500 | 4.66%, 04/15/2047 (c) | 2,000,000 | 2,036,095 | ||||||
Tenet Healthcare Corp | Wells Fargo Commercial Mortgage Trust | ||||||||||
8.13%, 04/01/2022 | 4,000,000 | 4,070,000 | 2015-C26 | ||||||||
3.59%, 02/15/2048 (e) | 1,425,000 | 1,119,448 | |||||||||
$ | 12,632,500 | ||||||||||
Wells Fargo Commercial Mortgage Trust | |||||||||||
Home Builders — 2.32% | 2015-SG1 | ||||||||||
KB Home | 4.47%, 09/15/2048 (c) | 1,600,000 | 1,561,238 | ||||||||
7.50%, 09/15/2022 | 2,000,000 | 2,275,000 |
See accompanying notes.
36
Schedule of Investments Principal EDGE Active Income ETF
December 31, 2017 (unaudited)
Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
BONDS (continued) | Amount | Value | AGENCY OBLIGATIONS — 5.41% | Amount | Value | |||||
Mortgage Backed Securities (continued) | Federal Home Loan Mortgage Corp | |||||||||
WFRBS Commercial Mortgage Trust 2013-C14 | (FHLMC) — 0.75% | |||||||||
4.00%, 06/15/2046 (c),(e) | $ | 500,000 | $ | 457,203 | 1.65%, 09/15/2040 (c),(g) | $ | 22,167,627 | $ | 898,062 | |
WFRBS Commercial Mortgage Trust 2014-C22 | 1.99%, 02/15/2038 (c),(g) | 19,864,882 | 1,287,148 | |||||||
3.77%, 09/15/2057 (c) | 1,000,000 | 965,968 | ||||||||
$ | 2,185,210 | |||||||||
3.91%, 09/15/2057 (c),(e) | 500,000 | 398,909 | ||||||||
Federal National Mortgage Association | ||||||||||
$ | 18,248,529 | |||||||||
(FNMA) — 3.06% | ||||||||||
Office & Business Equipment — 0.75% | 1.67%, 12/25/2056 (c),(g) | 24,070,156 | 1,232,515 | |||||||
CDW LLC / CDW Finance Corp | 1.72%, 12/25/2034 (c),(g) | 16,515,085 | 760,754 | |||||||
5.50%, 12/01/2024 | 2,000,000 | 2,175,000 | 1.72%, 07/25/2044 (c),(g) | 19,037,403 | 1,083,034 | |||||
1.72%, 07/25/2056 (c),(g) | 12,306,641 | 738,430 | ||||||||
Oil & Gas — 4.47% | ||||||||||
1.83%, 12/25/2045 (g) | 18,884,433 | 978,317 | ||||||||
Gulfport Energy Corp | ||||||||||
6.38%, 01/15/2026 (e) | 4,000,000 | 4,010,000 | 1.92%, 08/25/2044 (c),(g) | 21,010,132 | 1,250,689 | |||||
1.97%, 12/25/2044 (c),(g) | 28,177,407 | 1,665,034 | ||||||||
Nabors Industries Inc | ||||||||||
3.50%, 02/25/2036 (g) | 7,601,861 | 1,221,048 | ||||||||
5.50%, 01/15/2023 | 2,000,000 | 1,940,000 | ||||||||
Rowan Cos Inc | $ | 8,929,821 | ||||||||
4.75%, 01/15/2024 | 3,000,000 | 2,640,000 | ||||||||
Government National Mortgage Association | ||||||||||
4.88%, 06/01/2022 | 2,000,000 | 1,885,000 | ||||||||
Whiting Petroleum Corp | (GNMA) — 1.60% | |||||||||
3.50%, 11/20/2042 (g) | 8,324,856 | 1,388,747 | ||||||||
5.75%, 03/15/2021 | 2,500,000 | 2,565,625 | ||||||||
4.00%, 04/20/2046 (g) | 6,257,588 | 1,245,284 | ||||||||
$ | 13,040,625 | 4.00%, 09/20/2046 (g) | 10,970,611 | 2,021,660 | ||||||
Oil & Gas Services — 2.61% | $ | 4,655,691 | ||||||||
Archrock Partners LP / Archrock Partners | ||||||||||
Finance Corp | TOTAL U.S. GOVERNMENT & | |||||||||
6.00%, 04/01/2021 | 2,000,000 | 2,000,000 | GOVERNMENT AGENCY OBLIGATIONS | $ | 15,770,722 | |||||
6.00%, 10/01/2022 | 2,000,000 | 2,000,000 | ||||||||
Weatherford International Ltd | Total Investments | $ | 285,892,550 | |||||||
4.50%, 04/15/2022 | 4,000,000 | 3,620,000 | Other Assets and Liabilities — 1.91% | $ | 5,564,545 | |||||
$ | 7,620,000 | TOTAL NET ASSETS — 100% | $ | 291,457,095 | ||||||
Packaging & Containers — 1.07% | (a) Non-income producing security | |||||||||
Reynolds Group Issuer Inc / Reynolds Group Issuer | ||||||||||
(b) Perpetual security. Perpetual securities pay an indefinite stream of interest, | ||||||||||
LLC / Reynolds Group Issuer (Luxembourg) S.A. | ||||||||||
5.13%, 07/15/2023 (e) | 3,000,000 | 3,105,000 | but they may be called by the issuer at an earlier date. | |||||||
(c) Certain variable rate securities are not based on a published reference rate | ||||||||||
Pipelines — 2.85% | ||||||||||
EnLink Midstream Partners LP | and spread but are determined by the issuer or agent and are based on | |||||||||
4.15%, 06/01/2025 | 2,000,000 | 2,020,862 | current market conditions. These securities do not indicate a reference rate | |||||||
NGPL PipeCo LLC | and spread in their description. | |||||||||
4.88%, 08/15/2027 (e) | 2,000,000 | 2,075,000 | (d) Rate shown is the rate in effect as of period end. The rate may be based on a | |||||||
Transcanada Trust | fixed rate and may convert to a variable rate or floating rate in the future. | |||||||||
(3-month USD LIBOR + 3.53%), | (e) Security exempt from registration under Rule 144A of the Securities Act of | |||||||||
5.63%, 05/20/2075(d) | 4,000,000 | 4,210,000 | ||||||||
1933. These securities may be resold in transactions exempt from | ||||||||||
$ | 8,305,862 | registration, normally to qualified institutional buyers. At the end of the | ||||||||
Retail — 0.63% | period, the value of these securities totaled $46,989,523 or 16.12% of net | |||||||||
JC Penney Corp Inc | assets. | |||||||||
5.65%, 06/01/2020 | 2,000,000 | 1,825,000 | ||||||||
(f) Security is defaulted. | ||||||||||
Software — 1.45% | (g) Security is an Interest Only Strip. | |||||||||
First Data Corp | ||||||||||
7.00%, 12/01/2023 (e) | 4,000,000 | 4,230,000 | ||||||||
Portfolio Summary (unaudited) | ||||||||||
Storage/Warehousing — 1.08% | ||||||||||
Mobile Mini Inc | Sector | Percent | ||||||||
5.88%, 07/01/2024 | 3,000,000 | 3,150,000 | Financial | 21.95 | % | |||||
Energy | 14.66 | % | ||||||||
Telecommunications — 3.87% | Mortgage Securities | 11.67 | % | |||||||
Intelsat Jackson Holdings SA | Communications | 11.18 | % | |||||||
7.50%, 04/01/2021 | 3,000,000 | 2,730,000 | Consumer, Non-cyclical | 9.93 | % | |||||
Sprint Corp | Industrial | 6.66 | % | |||||||
7.88%, 09/15/2023 | 4,000,000 | 4,260,000 | ||||||||
T-Mobile USA Inc | Consumer, Cyclical | 6.40 | % | |||||||
6.38%, 03/01/2025 | 4,000,000 | 4,280,000 | Utilities | 6.40 | % | |||||
Basic Materials | 5.07 | % | ||||||||
$ | 11,270,000 | Technology | 4.17 | % | ||||||
Transportation — 1.43% | Other Assets and Liabilities | 1.91 | % | |||||||
XPO Logistics Inc | TOTAL NET ASSETS | 100.00 | % | |||||||
6.50%, 06/15/2022 (e) | 4,000,000 | 4,175,000 | ||||||||
TOTAL BONDS | $ | 187,796,387 |
See accompanying notes.
37
Schedule of Investments Principal Healthcare Innovators Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS — 99.93% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Biotechnology — 52.31% | Biotechnology (continued) | ||||||
Abeona Therapeutics Inc (a) | 6,592 | $ | 104,483 | United Therapeutics Corp (a) | 7,094 | $ | 1,049,557 |
ACADIA Pharmaceuticals Inc (a) | 19,943 | 600,484 | Versartis Inc (a) | 5,819 | 12,802 | ||
Acceleron Pharma Inc (a) | 6,326 | 268,475 | ZIOPHARM Oncology Inc (a) | 21,571 | 89,304 | ||
Achillion Pharmaceuticals Inc (a) | 22,375 | 64,440 | |||||
$ | 25,351,455 | ||||||
Acorda Therapeutics Inc (a) | 7,628 | 163,621 | |||||
Aduro Biotech Inc (a) | 12,196 | 91,470 | Commercial Services — 0.11% | ||||
Advaxis Inc (a) | 5,681 | 16,134 | AVEO Pharmaceuticals Inc (a) | 19,345 | 53,973 | ||
Agenus Inc (a) | 14,207 | 46,315 | Healthcare — Products — 10.75% | ||||
Alder Biopharmaceuticals Inc (a) | 11,080 | 126,866 | Accelerate Diagnostics Inc (a) | 8,294 | 217,303 | ||
Alnylam Pharmaceuticals Inc (a) | 12,119 | 1,539,719 | Analogic Corp | 2,045 | 171,269 | ||
AMAG Pharmaceuticals Inc (a) | 5,758 | 76,294 | AngioDynamics Inc (a) | 6,035 | 100,362 | ||
Amicus Therapeutics Inc (a) | 26,942 | 387,695 | AtriCure Inc (a) | 5,415 | 98,770 | ||
AnaptysBio Inc (a) | 3,319 | 334,290 | Cardiovascular Systems Inc (a) | 5,353 | 126,813 | ||
Arena Pharmaceuticals Inc (a) | 6,418 | 218,019 | Endologix Inc (a) | 13,372 | 71,540 | ||
Atara Biotherapeutics Inc (a) | 4,985 | 90,229 | GenMark Diagnostics Inc (a) | 8,944 | 37,296 | ||
Avexis Inc (a) | 5,207 | 576,259 | Genomic Health Inc (a) | 5,673 | 194,017 | ||
Axovant Sciences Ltd (a) | 17,581 | 92,652 | Glaukos Corp (a) | 5,641 | 144,692 | ||
Bellicum Pharmaceuticals Inc (a) | 5,444 | 45,784 | Haemonetics Corp (a) | 8,278 | 480,786 | ||
BioCryst Pharmaceuticals Inc (a) | 13,154 | 64,586 | Insulet Corp (a) | 9,315 | 642,735 | ||
BioMarin Pharmaceutical Inc (a) | 15,270 | 1,361,626 | Intersect ENT Inc (a) | 4,640 | 150,336 | ||
Bluebird Bio Inc (a) | 7,451 | 1,327,023 | Invacare Corp | 5,382 | 90,687 | ||
Blueprint Medicines Corp (a) | 6,370 | 480,362 | iRhythm Technologies Inc (a) | 3,720 | 208,506 | ||
Celldex Therapeutics Inc (a) | 20,986 | 59,600 | K2M Group Holdings Inc (a) | 6,779 | 122,022 | ||
Cymabay Therapeutics Inc (a) | 7,151 | 65,789 | Nevro Corp (a) | 4,612 | 318,412 | ||
Cytokinetics Inc (a) | 8,787 | 71,614 | Novocure Ltd (a) | 14,571 | 294,334 | ||
Dermira Inc (a) | 6,818 | 189,609 | OPKO Health Inc (a) | 91,052 | 446,155 | ||
Dynavax Technologies Corp (a) | 6,285 | 117,530 | Orthofix International NV (a) | 2,973 | 162,623 | ||
Editas Medicine Inc (a) | 6,809 | 209,241 | Penumbra Inc (a) | 5,055 | 475,675 | ||
Epizyme Inc (a) | 9,578 | 120,204 | Pulse Biosciences Inc (a) | 2,350 | 55,460 | ||
Esperion Therapeutics Inc (a) | 4,169 | 274,487 | Quidel Corp (a) | 5,300 | 229,755 | ||
Exact Sciences Corp (a) | 15,948 | 837,908 | Wright Medical Group NV (a) | 16,710 | 370,962 | ||
Exelixis Inc (a) | 47,960 | 1,457,984 | |||||
FibroGen Inc (a) | 13,301 | 630,467 | $ | 5,210,510 | |||
Five Prime Therapeutics Inc (a) | 4,741 | 103,923 | Healthcare — Services — 5.31% | ||||
Foundation Medicine Inc (a) | 5,891 | 401,766 | Brookdale Senior Living Inc (a) | 30,440 | 295,268 | ||
Geron Corp (a) | 26,031 | 46,856 | Capital Senior Living Corp (a) | 4,891 | 65,980 | ||
GlycoMimetics Inc (a) | 5,353 | 89,877 | Community Health Systems Inc (a) | 18,573 | 79,121 | ||
Halozyme Therapeutics Inc (a) | 23,100 | 468,006 | Envision Healthcare Corp (a) | 19,699 | 680,797 | ||
ImmunoGen Inc (a) | 14,271 | 91,477 | Kindred Healthcare Inc | 14,020 | 135,994 | ||
Immunomedics Inc (a) | 18,228 | 294,565 | Molina Healthcare Inc (a) | 9,296 | 712,817 | ||
Incyte Corp (a) | 12,174 | 1,153,000 | Surgery Partners Inc (a) | 7,984 | 96,606 | ||
Inovio Pharmaceuticals Inc (a) | 14,762 | 60,967 | Teladoc Inc (a) | 7,473 | 260,434 | ||
Insmed Inc (a) | 10,133 | 315,947 | Tenet Healthcare Corp (a) | 16,272 | 246,684 | ||
Intellia Therapeutics Inc (a) | 5,920 | 113,782 | |||||
$ | 2,573,701 | ||||||
Intercept Pharmaceuticals Inc (a) | 4,074 | 238,003 | |||||
Intrexon Corp (a) | 19,346 | 222,866 | Pharmaceuticals — 31.45% | ||||
AcelRx Pharmaceuticals Inc (a) | 7,798 | 15,791 | |||||
Ionis Pharmaceuticals Inc (a) | 20,290 | 1,020,587 | |||||
Achaogen Inc (a) | 6,902 | 74,128 | |||||
Juno Therapeutics Inc (a) | 17,372 | 794,074 | |||||
Aclaris Therapeutics Inc (a) | 4,270 | 105,298 | |||||
Kura Oncology Inc (a) | 3,497 | 53,504 | |||||
Adamas Pharmaceuticals Inc (a) | 3,682 | 124,783 | |||||
Lexicon Pharmaceuticals Inc (a) | 17,297 | 170,894 | |||||
Aerie Pharmaceuticals Inc (a) | 5,909 | 353,063 | |||||
Loxo Oncology Inc (a) | 4,863 | 409,367 | |||||
Agios Pharmaceuticals Inc (a) | 7,870 | 449,928 | |||||
MacroGenics Inc (a) | 6,006 | 114,114 | |||||
Aimmune Therapeutics Inc (a) | 8,277 | 313,036 | |||||
Medicines Co/The (a) | 11,807 | 322,803 | |||||
Akebia Therapeutics Inc (a) | 7,707 | 114,603 | |||||
Momenta Pharmaceuticals Inc (a) | 12,492 | 174,263 | |||||
Alkermes PLC (a) | 25,074 | 1,372,300 | |||||
NewLink Genetics Corp (a) | 4,799 | 38,920 | |||||
Array BioPharma Inc (a) | 28,084 | 359,475 | |||||
Novavax Inc (a) | 48,100 | 59,644 | |||||
Calithera Biosciences Inc (a) | 5,789 | 48,338 | |||||
Omeros Corp (a) | 7,830 | 152,137 | |||||
Cara Therapeutics Inc (a) | 4,457 | 54,554 | |||||
Otonomy Inc (a) | 4,952 | 27,484 | |||||
Clovis Oncology Inc (a) | 7,999 | 543,932 | |||||
Pacific Biosciences of California Inc (a) | 18,909 | 49,920 | |||||
Coherus Biosciences Inc (a) | 9,471 | 83,345 | |||||
Paratek Pharmaceuticals Inc (a) | 4,548 | 81,409 | |||||
Collegium Pharmaceutical Inc (a) | 4,829 | 89,143 | |||||
Prothena Corp PLC (a) | 6,263 | 234,800 | |||||
Depomed Inc (a) | 10,305 | 82,955 | |||||
PTC Therapeutics Inc (a) | 6,777 | 113,040 | |||||
DexCom Inc (a) | 13,831 | 793,761 | |||||
Puma Biotechnology Inc (a) | 5,304 | 524,300 | |||||
Enanta Pharmaceuticals Inc (a) | 3,125 | 183,375 | |||||
Radius Health Inc (a) | 7,129 | 226,488 | |||||
Endo International PLC (a) | 36,578 | 283,480 | |||||
REGENXBIO Inc (a) | 5,054 | 168,046 | |||||
Flexion Therapeutics Inc (a) | 5,228 | 130,909 | |||||
Retrophin Inc (a) | 6,292 | 132,572 | |||||
Global Blood Therapeutics Inc (a) | 7,162 | 281,825 | |||||
Sage Therapeutics Inc (a) | 6,108 | 1,006,049 | |||||
Heron Therapeutics Inc (a) | 6,003 | 108,654 | |||||
Sangamo Therapeutics Inc (a) | 13,701 | 224,696 | |||||
Horizon Pharma PLC (a) | 26,564 | 387,834 | |||||
Seattle Genetics Inc (a) | 23,384 | 1,251,044 | |||||
Ignyta Inc (a) | 9,193 | 245,453 | |||||
Spark Therapeutics Inc (a) | 5,982 | 307,594 | |||||
Impax Laboratories Inc (a) | 12,180 | 202,797 | |||||
Spectrum Pharmaceuticals Inc (a) | 13,828 | 262,041 | |||||
Insys Therapeutics Inc (a) | 11,886 | 114,343 | |||||
Theravance Biopharma Inc (a) | 8,806 | 245,599 | |||||
Intra-Cellular Therapies Inc (a) | 7,090 | 102,663 | |||||
Ultragenyx Pharmaceutical Inc (a) | 6,945 | 322,109 |
See accompanying notes.
38
Schedule of Investments Principal Healthcare Innovators Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | ||
Pharmaceuticals (continued) | ||||
Ironwood Pharmaceuticals Inc (a) | 21,969 | $ | 329,315 | |
Keryx Biopharmaceuticals Inc (a) | 17,302 | 80,454 | ||
La Jolla Pharmaceutical Co (a) | 2,973 | 95,671 | ||
Melinta Therapeutics Inc (a) | 1,714 | 27,081 | ||
MyoKardia Inc (a) | 5,754 | 242,243 | ||
Nektar Therapeutics (a) | 25,517 | 1,523,875 | ||
Neos Therapeutics Inc (a) | 4,582 | 46,736 | ||
Neurocrine Biosciences Inc (a) | 14,391 | 1,116,598 | ||
Ocular Therapeutix Inc (a) | 4,762 | 21,191 | ||
Pacira Pharmaceuticals Inc (a) | 6,603 | 301,427 | ||
Perrigo Co PLC | 16,790 | 1,463,416 | ||
Portola Pharmaceuticals Inc (a) | 9,383 | 456,765 | ||
Progenics Pharmaceuticals Inc (a) | 11,484 | 68,330 | ||
Reata Pharmaceuticals Inc, Class A (a) | 3,034 | 85,923 | ||
Revance Therapeutics Inc (a) | 5,044 | 180,323 | ||
Sarepta Therapeutics Inc (a) | 10,478 | 582,996 | ||
Synergy Pharmaceuticals Inc (a) | 36,775 | 82,008 | ||
TESARO Inc (a) | 8,834 | 732,074 | ||
Tetraphase Pharmaceuticals Inc (a) | 8,355 | 52,637 | ||
TG Therapeutics Inc (a) | 8,883 | 72,841 | ||
TherapeuticsMD Inc (a) | 32,097 | 193,866 | ||
Vanda Pharmaceuticals Inc (a) | 7,335 | 111,492 | ||
Xencor Inc (a) | 7,676 | 168,258 | ||
Zogenix Inc (a) | 4,056 | 162,443 | ||
Zynerba Pharmaceuticals Inc (a) | 2,166 | 27,118 | ||
$ | 15,244,847 | |||
TOTAL COMMON STOCKS | $ | 48,434,486 | ||
Total Investments | $ | 48,434,486 | ||
Other Assets and Liabilities — 0.07% | $ | 33,074 | ||
TOTAL NET ASSETS — 100% | $ | 48,467,560 | ||
(a) Non-income producing security | ||||
Portfolio Summary (unaudited) | ||||
Sector | Percent | |||
Consumer, Non-cyclical | 99.93 | % | ||
Other Assets and Liabilities | 0.07 | % | ||
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
39
Schedule of Investments Principal International Multi-Factor Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS — 99.31% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Advertising — 0.42% | Beverages — 2.10% | ||||||
WPP PLC | 3,561 | $ | 64,474 | Asahi Group Holdings Ltd | 1,200 | $ | 59,534 |
Coca-Cola HBC AG (b) | 417 | 13,625 | |||||
Aerospace & Defense — 0.75% | |||||||
Davide Campari-Milano SpA | 2,253 | 17,423 | |||||
CAE Inc | 315 | 5,851 | |||||
Diageo PLC | 3,747 | 137,858 | |||||
MTU Aero Engines AG | 90 | 16,133 | |||||
Kirin Holdings Co Ltd | 1,600 | 40,335 | |||||
Safran SA | 894 | 92,153 | |||||
Suntory Beverage & Food Ltd | 400 | 17,786 | |||||
$ | 114,137 | Treasury Wine Estates Ltd | 2,631 | 32,763 | |||
Agriculture — 1.74% | $ | 319,324 | |||||
British American Tobacco PLC | 3,509 | 237,737 | |||||
Chemicals — 3.38% | |||||||
Swedish Match AB | 705 | 27,777 | |||||
Arkema SA | 204 | 24,856 | |||||
$ | 265,514 | Asahi Kasei Corp | 2,300 | 29,670 | |||
Airlines — 0.97% | Croda International PLC | 459 | 27,416 | ||||
Deutsche Lufthansa AG | 1,596 | 58,828 | Daicel Corp | 1,200 | 13,653 | ||
International Consolidated Airlines Group SA | 6,255 | 54,978 | EMS-Chemie Holding AG | 54 | 36,048 | ||
Qantas Airways Ltd | 8,631 | 33,941 | Hitachi Chemical Co Ltd | 400 | 10,274 | ||
Kansai Paint Co Ltd | 500 | 12,993 | |||||
$ | 147,747 | Kingboard Chemical Holdings Ltd | 1,500 | 8,112 | |||
Apparel — 2.46% | Kingboard Laminates Holdings Ltd | 4,500 | 7,015 | ||||
adidas AG | 312 | 62,573 | Koninklijke DSM NV | 483 | 46,171 | ||
Burberry Group PLC | 1,485 | 35,929 | Kuraray Co Ltd | 900 | 16,982 | ||
Gildan Activewear Inc | 342 | 11,049 | Lenzing AG | 84 | 10,668 | ||
Hermes International | 81 | 43,370 | Mitsubishi Chemical Holdings Corp | 3,600 | 39,507 | ||
LVMH Moet Hennessy Louis Vuitton SE | 675 | 198,749 | Mitsubishi Gas Chemical Co Inc | 500 | 14,356 | ||
Moncler SpA | 729 | 22,812 | Mitsui Chemicals Inc | 900 | 28,955 | ||
$ | 374,482 | Novozymes A/S | 345 | 19,711 | |||
Shin-Etsu Chemical Co Ltd | 900 | 91,458 | |||||
Auto Manufacturers — 1.15% | Solvay SA | 402 | 55,903 | ||||
Nissan Motor Co Ltd | 12,360 | 123,243 | Tosoh Corp | 900 | 20,400 | ||
Suzuki Motor Corp | 900 | 52,191 | |||||
$ | 514,148 | ||||||
$ | 175,434 | ||||||
Commercial Services — 4.85% | |||||||
Auto Parts & Equipment — 2.99% | Adecco Group AG | 1,887 | 144,364 | ||||
Aisin Seiki Co Ltd | 600 | 33,708 | Ashtead Group PLC | 1,092 | 29,369 | ||
Brembo SpA | 639 | 9,714 | Atlantia SpA | 2,304 | 72,760 | ||
Bridgestone Corp | 1,740 | 80,889 | Bureau Veritas SA | 579 | 15,833 | ||
Cie Generale des Etablissements Michelin | 423 | 60,676 | Experian PLC | 2,418 | 53,410 | ||
Cie Plastic Omnium SA | 201 | 9,139 | Intertek Group PLC | 267 | 18,710 | ||
Continental AG | 306 | 82,628 | Persol Holdings Co Ltd | 500 | 12,532 | ||
Faurecia | 393 | 30,711 | Randstad Holding NV | 408 | 25,084 | ||
Hella GmbH & Co KGaA | 105 | 6,497 | Recruit Holdings Co Ltd | 2,700 | 67,096 | ||
Koito Manufacturing Co Ltd | 200 | 14,058 | RELX NV | 1,971 | 45,323 | ||
Linamar Corp | 81 | 4,718 | RELX PLC | 3,528 | 82,834 | ||
Magna International Inc | 438 | 24,823 | Rentokil Initial PLC | 3,561 | 15,289 | ||
Stanley Electric Co Ltd | 300 | 12,181 | SGS SA | 48 | 125,166 | ||
Sumitomo Electric Industries Ltd | 1,800 | 30,433 | Wirecard AG | 270 | 30,151 | ||
Sumitomo Rubber Industries Ltd | 800 | 14,882 | |||||
Valeo SA | 531 | 39,673 | $ | 737,921 | |||
$ | 454,730 | Computers — 1.59% | |||||
Atos SE | 255 | 37,128 | |||||
Banks — 12.61% | Capgemini SE | 486 | 57,665 | ||||
3i Group PLC | 2,340 | 28,861 | Computershare Ltd | 2,676 | 34,034 | ||
Bank of Montreal | 1,473 | 117,875 | Itochu Techno-Solutions Corp | 100 | 4,340 | ||
Bank of Nova Scotia/The | 2,274 | 146,752 | Logitech International SA | 1,464 | 49,428 | ||
Canadian Imperial Bank of Commerce | 1,464 | 142,719 | Nomura Research Institute Ltd | 300 | 13,952 | ||
Chiba Bank Ltd/The | 2,000 | 16,650 | Obic Co Ltd | 100 | 7,349 | ||
Danske Bank A/S | 1,932 | 75,229 | Otsuka Corp | 200 | 15,336 | ||
DBS Group Holdings Ltd | 3,400 | 63,172 | SCSK Corp | 200 | 9,230 | ||
FinecoBank Banca Fineco SpA | 1,239 | 12,688 | Teleperformance | 96 | 13,759 | ||
HSBC Holdings PLC | 22,238 | 230,259 | |||||
Intermediate Capital Group PLC | 582 | 9,005 | $ | 242,221 | |||
Intesa Sanpaolo SpA | 8,199 | 26,168 | Construction Materials — 2.66% | ||||
KBC Group NV | 1,263 | 107,761 | Asahi Glass Co Ltd | 700 | 30,317 | ||
Macquarie Group Ltd | 1,572 | 122,201 | Daikin Industries Ltd | 600 | 71,010 | ||
Mitsubishi UFJ Financial Group Inc | 33,900 | 248,635 | Geberit AG | 234 | 103,042 | ||
Nordea Bank AB | 4,191 | 50,733 | Kingspan Group PLC | 1,932 | 84,391 | ||
Oversea-Chinese Banking Corp Ltd | 5,100 | 47,246 | Sika AG | 13 | 103,258 | ||
Royal Bank of Canada | 2,457 | 200,645 | Xinyi Glass Holdings Ltd (b) | 10,000 | 13,030 | ||
Seven Bank Ltd | 3,300 | 11,305 | $ | 405,048 | |||
Swedbank AB | 2,232 | 53,847 | |||||
Toronto-Dominion Bank/The | 2,877 | 168,569 | Distribution/Wholesale — 1.20% | ||||
United Overseas Bank Ltd | 2,000 | 39,553 | Inchcape PLC | 867 | 9,160 | ||
ITOCHU Corp | 3,900 | 72,791 | |||||
$ | 1,919,873 | Marubeni Corp | 5,400 | 39,112 |
See accompanying notes.
40
Schedule of Investments Principal International Multi-Factor Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Distribution/Wholesale (continued) | Food Service — 0.47% | ||||||
Sumitomo Corp | 2,700 | $ | 45,889 | Compass Group PLC | 3,321 | $ | 71,742 |
Toyota Tsusho Corp | 400 | 16,099 | |||||
Forest Products & Paper — 0.29% | |||||||
$ | 183,051 | Mondi PLC | 1,422 | 37,074 | |||
Diversified Financial Services — 2.33% | West Fraser Timber Co Ltd | 117 | 7,220 | ||||
CI Financial Corp | 318 | 7,531 | $ | 44,294 | |||
Euronext NV (a) | 105 | 6,527 | |||||
Gas — 0.47% | |||||||
Japan Exchange Group Inc | 900 | 15,664 | |||||
Julius Baer Group Ltd (b) | 1,335 | 81,652 | China Gas Holdings Ltd | 4,000 | 11,059 | ||
Hong Kong & China Gas Co Ltd | 31,000 | 60,787 | |||||
Magellan Financial Group Ltd | 468 | 9,845 | |||||
Mebuki Financial Group Inc | 2,400 | 10,160 | $ | 71,846 | |||
Mitsubishi UFJ Lease & Finance Co Ltd | 900 | 5,360 | Hand/Machine Tools — 1.14% | ||||
Nomura Holdings Inc | 12,900 | 76,146 | Disco Corp | 100 | 22,250 | ||
ORIX Corp | 3,200 | 54,088 | Fuji Electric Co Ltd | 2,000 | 15,070 | ||
Partners Group Holding AG | 99 | 67,866 | Schindler Holding AG | 279 | 64,220 | ||
Schroders PLC | 420 | 19,938 | SMC Corp | 100 | 41,163 | ||
$ | 354,777 | Techtronic Industries Co Ltd | 2,500 | 16,303 | |||
THK Co Ltd | 400 | 15,017 | |||||
Electric — 1.42% | |||||||
CLP Holdings Ltd | 6,500 | 66,515 | $ | 174,023 | |||
Endesa SA | 2,379 | 50,966 | Healthcare — Products — 1.64% | ||||
Fortis Inc | 876 | 32,134 | Cochlear Ltd | 204 | 27,255 | ||
Red Electrica Corp SA | 2,991 | 67,146 | Essilor International Cie Generale d’Optique SA | 513 | 70,754 | ||
$ | 216,761 | Smith & Nephew PLC | 3,375 | 58,691 | |||
Sonova Holding AG | 381 | 59,509 | |||||
Electrical Components & Equipment — 1.03% | |||||||
Straumann Holding AG | 48 | 33,914 | |||||
Brother Industries Ltd | 600 | 14,804 | |||||
Legrand SA | 594 | 45,749 | $ | 250,123 | |||
Mabuchi Motor Co Ltd | 200 | 10,845 | Healthcare — Services — 0.58% | ||||
Nidec Corp | 400 | 56,126 | Fresenius SE & Co KGaA | 933 | 72,843 | ||
Prysmian SpA | 879 | 28,676 | Orpea | 132 | 15,569 | ||
$ | 156,200 | $ | 88,412 | ||||
Electronics — 2.45% | Holding Companies — Diversified — 0.19% | ||||||
Assa Abloy AB | 1,419 | 29,477 | Industrivarden AB | 366 | 9,035 | ||
Electrocomponents PLC | 1,170 | 9,897 | Melco International Development Ltd | 3,000 | 8,832 | ||
Hirose Electric Co Ltd | 100 | 14,617 | Wharf Holdings Ltd/The | 3,000 | 10,367 | ||
Hoya Corp | 700 | 34,964 | |||||
Keyence Corp | 200 | 112,039 | $ | 28,234 | |||
Koninklijke Philips NV | 2,151 | 81,401 | Home Builders — 1.50% | ||||
MINEBEA MITSUMI Inc | 1,800 | 37,749 | Barratt Developments PLC | 3,099 | 27,092 | ||
Omron Corp | 600 | 35,784 | Bellway PLC | 324 | 15,586 | ||
SCREEN Holdings Co Ltd | 200 | 16,366 | Berkeley Group Holdings PLC | 645 | 36,550 | ||
$ | 372,294 | Daiwa House Industry Co Ltd | 1,100 | 42,243 | |||
Haseko Corp | 1,200 | 18,648 | |||||
Engineering & Construction — 2.51% | Persimmon PLC | 1,128 | 41,699 | ||||
Aena SA (a) | 273 | 55,357 | Sekisui Chemical Co Ltd | 900 | 18,068 | ||
Eiffage SA | 282 | 30,906 | Taylor Wimpey PLC | 10,257 | 28,583 | ||
Flughafen Zurich AG | 114 | 26,077 | |||||
Fraport AG Frankfurt Airport Services Worldwide | 96 | 10,581 | $ | 228,469 | |||
Kajima Corp | 3,000 | 28,862 | Home Furnishings — 0.21% | ||||
Kinden Corp | 300 | 4,894 | Electrolux AB Series B | 588 | 18,945 | ||
Obayashi Corp | 1,600 | 19,369 | Howden Joinery Group PLC | 1,935 | 12,195 | ||
Shimizu Corp | 1,500 | 15,496 | $ | 31,140 | |||
Sydney Airport | 7,608 | 41,850 | |||||
Taisei Corp | 600 | 29,873 | Household Products — 4.40% | ||||
Vinci SA | 1,167 | 119,229 | Kao Corp | 1,200 | 81,143 | ||
L’Oreal SA | 699 | 155,117 | |||||
$ | 382,494 | Pigeon Corp | 300 | 11,422 | |||
Entertainment — 0.30% | Pola Orbis Holdings Inc | 400 | 14,040 | ||||
Aristocrat Leisure Ltd | 1,929 | 35,671 | Unilever NV | 3,717 | 209,412 | ||
Toho Co Ltd | 300 | 10,397 | Unilever PLC | 3,574 | 199,074 | ||
$ | 46,068 | $ | 670,208 | ||||
Food — 1.60% | Household Products/Wares — 0.84% | ||||||
Frutarom Industries Ltd | 615 | 57,706 | Reckitt Benckiser Group PLC | 1,365 | 127,514 | ||
George Weston Ltd | 135 | 11,724 | Insurance — 4.25% | ||||
Loblaw Cos Ltd | 492 | 26,702 | Allianz SE | 979 | 224,946 | ||
Marine Harvest ASA (b) | 2,700 | 45,709 | |||||
Assicurazioni Generali SpA | 5,907 | 107,730 | |||||
Metro Inc | 282 | 9,030 | Challenger Ltd | 2,943 | 32,217 | ||
NH Foods Ltd | 1,000 | 24,389 | Dai-ichi Life Holdings Inc | 3,800 | 78,378 | ||
Nichirei Corp | 400 | 11,058 | Hannover Rueck SE | 93 | 11,705 | ||
Saputo Inc | 333 | 11,969 | |||||
WH Group Ltd (a) | 40,500 | 45,721 | Industrial Alliance Insurance & Financial Services | ||||
Inc | 108 | 5,140 | |||||
$ | 244,008 | Medibank Pvt Ltd | 9,930 | 25,490 |
See accompanying notes.
41
�� Schedule of Investments Principal International Multi-Factor Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Insurance (continued) | Packaging & Containers — 0.06% | ||||||
MS&AD Insurance Group Holdings Inc | 1,700 | $ | 57,544 | CCL Industries Inc | 186 | $ | 8,594 |
Power Corp of Canada | 540 | 13,906 | Pharmaceuticals — 6.00% | ||||
Power Financial Corp | 360 | 9,892 | Astellas Pharma Inc | 5,400 | 68,869 | ||
Sampo OYJ | 1,212 | 66,603 | Bayer AG | 1,275 | 159,100 | ||
SCOR SE | 348 | 14,007 | GlaxoSmithKline PLC | 10,757 | 192,074 | ||
$ | 647,558 | Grifols SA | 627 | 18,375 | |||
Internet — 0.65% | Ipsen SA | 81 | 9,677 | ||||
Rightmove PLC | 312 | 18,956 | Merck KGaA | 396 | 42,644 | ||
SEEK Ltd | 1,470 | 21,804 | Mitsubishi Tanabe Pharma Corp | 800 | 16,557 | ||
Start Today Co Ltd | 600 | 18,238 | Nippon Shinyaku Co Ltd | 100 | 7,464 | ||
Trend Micro Inc (b) | 400 | 22,685 | Novo Nordisk A/S, Class B | 2,082 | 112,242 | ||
United Internet AG | 255 | 17,544 | Recordati SpA | 372 | 16,542 | ||
Sanofi | 2,214 | 190,867 | |||||
$ | 99,227 | Shionogi & Co Ltd | 1,100 | 59,523 | |||
Investment Companies — 0.24% | Sino Biopharmaceutical Ltd | 11,000 | 19,514 | ||||
Investor AB | 795 | 36,256 | $ | 913,448 | |||
Iron & Steel — 0.62% | Pipelines — 0.09% | ||||||
BlueScope Steel Ltd | 2,403 | 28,818 | Koninklijke Vopak NV | 294 | 12,900 | ||
Fortescue Metals Group Ltd | 17,220 | 65,567 | |||||
Real Estate — 1.89% | |||||||
$ | 94,385 | Aeon Mall Co Ltd | 400 | 7,824 | |||
Leisure Products & Services — 0.39% | CapitaLand Ltd | 9,300 | 24,546 | ||||
Carnival PLC | 510 | 33,685 | CK Asset Holdings Ltd | 8,500 | 74,307 | ||
Yamaha Motor Co Ltd | 800 | 26,235 | Daito Trust Construction Co Ltd | 252 | 51,384 | ||
$ | 59,920 | Henderson Land Development Co Ltd | 5,000 | 32,959 | |||
Hongkong Land Holdings Ltd | 1,500 | 10,560 | |||||
Lodging — 0.50% | LEG Immobilien AG | 111 | 12,691 | ||||
Crown Resorts Ltd | 2,841 | 28,861 | REA Group Ltd | 288 | 17,224 | ||
InterContinental Hotels Group PLC | 588 | 37,464 | Vonovia SE | 1,137 | 56,465 | ||
Melia Hotels International SA | 711 | 9,810 | |||||
$ | 287,960 | ||||||
$ | 76,135 | ||||||
REITs — 1.88% | |||||||
Machinery — Construction & Mining — 1.85% | CapitaLand Mall Trust | 13,800 | 21,978 | ||||
ABB Ltd | 8,888 | 238,242 | Dexus | 5,043 | 38,364 | ||
Atlas Copco AB | 1,008 | 43,524 | GPT Group/The | 9,579 | 38,192 | ||
$ | 281,766 | Link REIT | 7,500 | 69,549 | |||
Machinery — Diversified — 1.33% | Merlin Properties Socimi SA | 2,781 | 37,706 | ||||
ANDRITZ AG | 510 | 28,813 | Mirvac Group | 21,108 | 38,703 | ||
Daifuku Co Ltd | 400 | 21,797 | Vicinity Centres | 19,713 | 41,837 | ||
Duerr AG | 63 | 8,054 | $ | 286,329 | |||
Hexagon AB | 387 | 19,385 | Retail — 3.45% | ||||
Husqvarna AB | 780 | 7,426 | ABC-Mart Inc | 200 | 11,484 | ||
Kone OYJ | 885 | 47,551 | B&M European Value Retail SA | 2,577 | 14,739 | ||
Kubota Corp | 2,300 | 45,102 | Canadian Tire Corp Ltd | 138 | 17,994 | ||
Spirax-Sarco Engineering PLC | 147 | 11,154 | Cosmos Pharmaceutical Corp | 100 | 20,883 | ||
Sumitomo Heavy Industries Ltd | 300 | 12,700 | Dollarama Inc | 135 | 16,867 | ||
$ | 201,982 | Harvey Norman Holdings Ltd | 3,762 | 12,240 | |||
Media — 0.42% | Industria de Diseno Textil SA | 3,969 | 138,318 | ||||
Mediaset Espana Comunicacion SA | 1,155 | 12,970 | Kering | 171 | 80,633 | ||
Thomson Reuters Corp | 483 | 21,053 | Lawson Inc | 400 | 26,590 | ||
Wolters Kluwer NV | 585 | 30,519 | Matsumotokiyoshi Holdings Co Ltd | 200 | 8,236 | ||
Next PLC | 255 | 15,579 | |||||
$ | 64,542 | Nitori Holdings Co Ltd | 200 | 28,516 | |||
Metal Fabrication & Hardware — 0.32% | Pandora A/S | 348 | 37,886 | ||||
MISUMI Group Inc | 600 | 17,466 | Restaurant Brands International Inc | 210 | 12,909 | ||
SKF AB | 1,404 | 31,185 | Ryohin Keikaku Co Ltd | 100 | 31,152 | ||
$ | 48,651 | Salvatore Ferragamo SpA | 432 | 11,481 | |||
Shimamura Co Ltd | 100 | 11,005 | |||||
Mining — 2.79% | Sundrug Co Ltd | 200 | 9,301 | ||||
Boliden AB | 879 | 30,068 | Tsuruha Holdings Inc | 100 | 13,597 | ||
KAZ Minerals PLC (b) | 756 | 9,130 | USS Co Ltd | 300 | 6,353 | ||
Rio Tinto Ltd | 2,967 | 175,500 | |||||
Rio Tinto PLC | 3,069 | 163,341 | $ | 525,763 | |||
South32 Ltd | 17,262 | 47,006 | Semiconductors — 0.71% | ||||
$ | 425,045 | Tokyo Electron Ltd | 600 | 108,631 | |||
Miscellaneous Manufacture — 0.53% | Software — 3.02% | ||||||
Aalberts Industries NV | 270 | 13,734 | Amadeus IT Group SA | 846 | 61,016 | ||
Alfa Laval AB | 777 | 18,357 | Constellation Software Inc | 21 | 12,731 | ||
Smiths Group PLC | 1,065 | 21,425 | Micro Focus International PLC | 1,389 | 47,315 | ||
Wartsila OYJ Abp | 423 | 26,696 | Mixi Inc | 300 | 13,472 | ||
Nexon Co Ltd (b) | 300 | 8,733 | |||||
$ | 80,212 | Open Text Corp | 231 | 8,216 |
See accompanying notes.
42
Schedule of Investments Principal International Multi-Factor Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | |
Software (continued) | |||
Oracle Corp Japan | 100 | $ | 8,289 |
Playtech PLC | 1,431 | 16,626 | |
SAP SE | 1,977 | 221,673 | |
Temenos Group AG (b) | 396 | 50,798 | |
Ubisoft Entertainment SA (b) | 144 | 11,082 | |
$ | 459,951 | ||
Telecommunications — 3.97% | |||
BCE Inc | 1,500 | 72,052 | |
Eutelsat Communications SA | 444 | 10,279 | |
GN Store Nord A/S | 330 | 10,664 | |
Hikari Tsushin Inc | 100 | 14,378 | |
Inmarsat PLC | 1,137 | 7,534 | |
KDDI Corp | 5,600 | 139,385 | |
Nippon Telegraph & Telephone Corp | 2,500 | 117,617 | |
NTT DOCOMO Inc | 5,300 | 125,168 | |
Rogers Communications Inc | 678 | 34,547 | |
Telenor ASA | 1,797 | 38,498 | |
TELUS Corp | 906 | 34,323 | |
$ | 604,445 | ||
Toys, Games & Hobbies — 0.09% | |||
Bandai Namco Holdings Inc | 400 | 13,082 | |
Transportation — 2.02% | |||
Canadian National Railway Co | 957 | 78,912 | |
Canadian Pacific Railway Ltd | 255 | 46,590 | |
Central Japan Railway Co | 400 | 71,640 | |
Deutsche Post AG | 2,031 | 96,866 | |
Nippon Express Co Ltd | 200 | 13,295 | |
$ | 307,303 | ||
TOTAL COMMON STOCKS | $ | 15,120,796 | |
PREFERRED STOCKS — 0.41% | Shares Held | Value | |
Chemicals — 0.04% | |||
FUCHS PETROLUB SE | 114 | 6,053 | |
Household Products/Wares — 0.37% | |||
Henkel AG & Co KGaA | 432 | 57,198 | |
TOTAL PREFERRED STOCKS | $ | 63,251 | |
Total Investments | $ | 15,184,047 | |
Other Assets and Liabilities — 0.28% | $ | 43,247 | |
TOTAL NET ASSETS — 100% | $ | 15,227,294 |
(a) 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 $107,605 or 0.71% of net assets. (b) Non-income producing security
Portfolio Summary (unaudited) | ||
Country | Percent | |
Japan | 24.10 | % |
United Kingdom | 17.33 | % |
France | 9.05 | % |
Canada | 8.69 | % |
Germany | 8.24 | % |
Switzerland | 7.86 | % |
Australia | 5.08 | % |
Hong Kong | 2.99 | % |
Spain | 2.97 | % |
Sweden | 2.47 | % |
Italy | 2.14 | % |
Denmark | 1.68 | % |
Netherlands | 1.42 | % |
Singapore | 1.29 | % |
Belgium | 1.08 | % |
Finland | 0.92 | % |
Portfolio Summary (continued) | ||
Country | Percent | |
Ireland | 0.55 | % |
Norway | 0.55 | % |
Israel | 0.38 | % |
Austria | 0.26 | % |
South Africa | 0.24 | % |
United States | 0.22 | % |
Isle Of Man | 0.11 | % |
Luxembourg | 0.10 | % |
Other Assets & Liabilities | 0.28 | % |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
43
Schedule of Investments Principal Millennials Index ETF December 31, 2017 (unaudited)
COMMON STOCKS — 99.88% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Apparel — 3.60% | Internet (continued) | ||||||
adidas AG | 775 | $ | 155,430 | Netflix Inc (a) | 822 | $ | 157,791 |
Asics Corp | 1,600 | 25,504 | Pandora Media Inc (a) | 7,762 | 37,413 | ||
Carter’s Inc | 235 | 27,610 | Priceline Group Inc/The (a) | 103 | 178,987 | ||
Columbia Sportswear Co | 361 | 25,949 | Rightmove PLC | 529 | 32,140 | ||
Michael Kors Holdings Ltd (a) | 1,393 | 87,689 | SEEK Ltd | 2,174 | 32,246 | ||
NIKE Inc, Class B | 778 | 48,664 | Tencent Holdings Ltd | 7,800 | 405,332 | ||
YY Inc ADR (a) | 3,611 | 408,260 | |||||
$ | 370,846 | ||||||
Beverages — 4.75% | $ | 2,828,220 | |||||
Brown-Forman Corp, Class B | 939 | 64,481 | Leisure Products & Services — 2.39% | ||||
Constellation Brands Inc, Class A | 268 | 61,257 | Planet Fitness Inc, Class A (a) | 7,109 | 246,185 | ||
Davide Campari-Milano SpA | 9,136 | 70,649 | |||||
Media — 6.78% | |||||||
Pernod Ricard SA | 445 | 70,452 | AMC Networks Inc, Class A (a) | 370 | 20,009 | ||
Treasury Wine Estates Ltd | 17,862 | 222,432 | |||||
CBS Corp NVDR, Class B | 626 | 36,934 | |||||
$ | 489,271 | Comcast Corp, Class A | 1,154 | 46,218 | |||
Commercial Services — 14.01% | MSG Networks Inc, Class A (a) | 910 | 18,427 | ||||
Bright Horizons Family Solutions Inc (a) | 299 | 28,106 | Naspers Ltd, Class N | 857 | 239,039 | ||
Care.com Inc (a) | 10,932 | 197,213 | Sirius XM Holdings Inc | 8,430 | 45,185 | ||
EVERTEC Inc | 1,660 | 22,659 | Twenty-First Century Fox Inc, Class B | 1,366 | 46,608 | ||
Navitas Ltd | 32,784 | 139,410 | Vivendi SA | 7,599 | 204,418 | ||
New Oriental Education & Technology Group Inc | Walt Disney Co/The | 382 | 41,069 | ||||
ADR | 2,777 | 261,038 | $ | 697,907 | |||
PayPal Holdings Inc (a) | 2,826 | 208,050 | |||||
Real Estate — 0.68% | |||||||
RELX PLC | 8,507 | 199,737 | REA Group Ltd | 1,173 | 70,153 | ||
TAL Education Group ADR | 9,430 | 280,165 | |||||
Wirecard AG | 949 | 105,975 | REITs — 1.02% | ||||
$ | 1,442,353 | AvalonBay Communities Inc | 236 | 42,105 | |||
Education Realty Trust Inc | 520 | 18,158 | |||||
Computers — 1.93% | Essex Property Trust Inc | 187 | 45,136 | ||||
Apple Inc | 302 | 51,107 | |||||
Gemalto NV | 474 | 28,152 | $ | 105,399 | |||
HP Inc | 2,427 | 50,991 | Retail — 18.46% | ||||
Ingenico Group SA | 279 | 29,797 | At Home Group Inc (a) | 1,432 | 43,518 | ||
International Business Machines Corp | 249 | 38,202 | Bed Bath & Beyond Inc | 538 | 11,831 | ||
$ | 198,249 | Children’s Place Inc/The | 177 | 25,727 | |||
Chipotle Mexican Grill Inc (a) | 205 | 59,251 | |||||
Construction Materials — 0.47% | Dick’s Sporting Goods Inc | 436 | 12,531 | ||||
Fortune Brands Home & Security Inc | 713 | 48,798 | Domino’s Pizza Inc | 235 | 44,406 | ||
Diversified Financial Services — 1.99% | Fast Retailing Co Ltd | 500 | 199,290 | ||||
Discover Financial Services | 2,666 | 205,069 | Foot Locker Inc | 580 | 27,190 | ||
GameStop Corp, Class A | 942 | 16,909 | |||||
Electronics — 0.60% | Hennes & Mauritz AB, Class B | 5,758 | 118,837 | ||||
Garmin Ltd | 1,033 | 61,536 | Hibbett Sports Inc (a) | 720 | 14,688 | ||
Food — 3.08% | Home Depot Inc/The | 1,242 | 235,396 | ||||
Hain Celestial Group Inc/The (a) | 587 | 24,883 | Industria de Diseno Textil SA | 4,203 | 146,473 | ||
McCormick & Co Inc | 444 | 45,248 | JD Sports Fashion PLC | 5,481 | 24,879 | ||
Sprouts Farmers Market Inc (a) | 918 | 22,353 | Liberty Interactive Corp QVC Group, Class A (a) | 2,168 | 52,943 | ||
Takeaway.com NV (a),(b) | 3,293 | 201,032 | Lowe’s Cos Inc | 527 | 48,979 | ||
United Natural Foods Inc (a) | 491 | 24,192 | Mr Price Group Ltd | 9,295 | 183,962 | ||
OVS SpA (b) | 17,793 | 118,593 | |||||
$ | 317,708 | Pandora A/S | 497 | 54,108 | |||
Home Builders — 0.65% | Signet Jewelers Ltd | 373 | 21,093 | ||||
DR Horton Inc | 1,303 | 66,544 | Starbucks Corp | 743 | 42,671 | ||
Home Furnishings — 1.61% | Truworths International Ltd | 25,751 | 196,621 | ||||
Urban Outfitters Inc (a) | 894 | 31,344 | |||||
Electrolux AB Series B | 1,903 | 61,314 | Vitamin Shoppe Inc (a) | 1,053 | 4,633 | ||
Sleep Number Corp (a) | 876 | 32,929 | |||||
Tempur Sealy International Inc (a) | 467 | 29,276 | Williams-Sonoma Inc | 396 | 20,473 | ||
Zalando SE (a),(b) | 2,732 | 144,608 | |||||
Whirlpool Corp | 252 | 42,497 | |||||
$ | 166,016 | $ | 1,900,954 | ||||
Internet — 27.46% | Semiconductors — 3.15% | ||||||
Alibaba Group Holding Ltd ADR (a) | 1,372 | 236,574 | NVIDIA Corp | 1,678 | 324,693 | ||
Alphabet Inc, Class C (a) | 220 | 230,208 | Software — 6.74% | ||||
Amazon.com Inc (a) | 206 | 240,911 | Activision Blizzard Inc | 3,664 | 232,004 | ||
ASOS PLC (a) | 1,465 | 132,821 | Blackbaud Inc | 283 | 26,741 | ||
Baozun Inc ADR (a) | 1,777 | 56,082 | Changyou.com Ltd ADR (a) | 942 | 34,317 | ||
Ctrip.com International Ltd ADR (a) | 3,006 | 132,565 | Electronic Arts Inc (a) | 487 | 51,164 | ||
CyberAgent Inc | 800 | 31,240 | First Data Corp, Class A (a) | 1,400 | 23,394 | ||
eBay Inc (a) | 1,292 | 48,760 | Microsoft Corp | 658 | 56,285 | ||
Facebook Inc, Class A (a) | 1,284 | 226,575 | NetEase Inc ADR | 782 | 269,845 | ||
GrubHub Inc (a) | 659 | 47,316 | |||||
$ | 693,750 | ||||||
IAC/InterActiveCorp (a) | 1,236 | 151,138 | |||||
Match Group Inc (a) | 1,337 | 41,861 |
See accompanying notes.
44
Schedule of Investments
Principal Millennials Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | |
Textiles — 0.51% | |||
Mohawk Industries Inc (a) | 189 | $ | 52,145 |
TOTAL COMMON STOCKS | $ | 10,285,796 | |
Total Investments | $ | 10,285,796 | |
Other Assets and Liabilities — 0.12% | $ | 12,295 | |
TOTAL NET ASSETS — 100% | $ | 10,298,091 |
(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 $464,233 or 4.51% of net assets. |
Portfolio Summary (unaudited) | ||
Sector | Percent | |
Communications | 34.24 | % |
Consumer, Cyclical | 27.22 | % |
Consumer, Non-cyclical | 21.84 | % |
Technology | 11.81 | % |
Financial | 3.70 | % |
Industrial | 1.07 | % |
Other Assets and Liabilities | 0.12 | % |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
45
Schedule of Investments Principal Price Setters Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS — 99.79% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Advertising — 0.53% | Food — 3.08% | ||||||
Omnicom Group Inc | 1,632 | $ | 118,859 | General Mills Inc | 977 | $ | 57,926 |
Hershey Co/The | 1,281 | 145,406 | |||||
Aerospace & Defense — 1.89% | |||||||
JM Smucker Co/The | 980 | 121,755 | |||||
Northrop Grumman Corp | 238 | 73,045 | |||||
McCormick & Co Inc | 2,018 | 205,655 | |||||
Rockwell Collins Inc | 2,079 | 281,954 | |||||
Sysco Corp | 2,634 | 159,963 | |||||
TransDigm Group Inc | 250 | 68,655 | |||||
$ | 690,705 | ||||||
$ | 423,654 | ||||||
Food Service — 0.74% | |||||||
Agriculture — 0.84% | |||||||
Aramark | 3,902 | 166,771 | |||||
Altria Group Inc | 2,649 | 189,165 | |||||
Hand/Machine Tools — 0.62% | |||||||
Apparel — 0.29% | |||||||
Snap-on Inc | 347 | 60,482 | |||||
NIKE Inc, Class B | 1,033 | 64,614 | |||||
Stanley Black & Decker Inc | 464 | 78,736 | |||||
Banks — 0.24% | $ | 139,218 | |||||
First Republic Bank | 626 | 54,237 | |||||
Healthcare — Products — 8.44% | |||||||
Beverages — 5.27% | Align Technology Inc (a) | 1,347 | 299,290 | ||||
Brown-Forman Corp, Class A | 3,981 | 267,682 | Becton Dickinson and Co | 1,088 | 232,898 | ||
Brown-Forman Corp, Class B | 4,073 | 279,693 | Boston Scientific Corp (a) | 2,404 | 59,595 | ||
Dr Pepper Snapple Group Inc | 2,124 | 206,155 | Cooper Cos Inc/The | 699 | 152,298 | ||
Monster Beverage Corp (a) | 3,362 | 212,781 | Edwards Lifesciences Corp (a) | 1,483 | 167,149 | ||
PepsiCo Inc | 1,805 | 216,456 | Henry Schein Inc (a) | 1,617 | 112,996 | ||
$ | 1,182,767 | IDEXX Laboratories Inc (a) | 1,369 | 214,084 | |||
Intuitive Surgical Inc (a) | 563 | 205,461 | |||||
Biotechnology — 1.39% | Medtronic PLC | 1,715 | 138,486 | ||||
Amgen Inc | 1,118 | 194,420 | Stryker Corp | 458 | 70,917 | ||
Celgene Corp (a) | 1,126 | 117,510 | |||||
Teleflex Inc | 306 | 76,139 | |||||
$ | 311,930 | Thermo Fisher Scientific Inc | 875 | 166,145 | |||
Chemicals — 0.72% | $ | 1,895,458 | |||||
Air Products & Chemicals Inc | 987 | 161,947 | Healthcare — Services — 1.47% | ||||
Commercial Services — 7.55% | Laboratory Corp of America Holdings (a) | 415 | 66,197 | ||||
Automatic Data Processing Inc | 1,939 | 227,231 | UnitedHealth Group Inc | 1,202 | 264,993 | ||
Ecolab Inc | 1,126 | 151,087 | $ | 331,190 | |||
Equifax Inc | 1,514 | 178,531 | |||||
FleetCor Technologies Inc (a) | 811 | 156,061 | Household Products — 1.94% | ||||
Gartner Inc (a) | 1,351 | 166,376 | Colgate-Palmolive Co | 2,719 | 205,149 | ||
Rollins Inc | 3,820 | 177,745 | Estee Lauder Cos Inc/The, Class A | 709 | 90,213 | ||
S&P Global Inc | 1,534 | 259,859 | Procter & Gamble Co/The | 1,524 | 140,025 | ||
Total System Services Inc | 1,082 | 85,575 | $ | 435,387 | |||
Vantiv Inc, Class A (a) | 3,043 | 223,813 | |||||
Household Products/Wares — 3.17% | |||||||
Verisk Analytics Inc (a) | 709 | 68,064 | |||||
Church & Dwight Co Inc | 3,994 | 200,379 | |||||
$ | 1,694,342 | Clorox Co/The | 1,451 | 215,822 | |||
Computers — 1.10% | Kimberly-Clark Corp | 1,502 | 181,231 | ||||
Accenture PLC, Class A | 1,620 | 248,006 | Spectrum Brands Holdings Inc | 1,023 | 114,985 | ||
$ | 712,417 | ||||||
Diversified Financial Services — 3.16% | |||||||
CME Group Inc | 1,173 | 171,316 | Insurance — 3.02% | ||||
Mastercard Inc, Class A | 1,789 | 270,783 | Aflac Inc | 817 | 71,716 | ||
T Rowe Price Group Inc | 827 | 86,777 | American Financial Group Inc | 654 | 70,985 | ||
Visa Inc, Class A | 1,584 | 180,608 | Marsh & McLennan Cos Inc | 804 | 65,438 | ||
Reinsurance Group of America Inc | 1,061 | 165,442 | |||||
$ | 709,484 | ||||||
Torchmark Corp | 1,796 | 162,915 | |||||
Electric — 3.06% | WR Berkley Corp | 1,987 | 142,368 | ||||
CMS Energy Corp | 1,325 | 62,673 | |||||
$ | 678,864 | ||||||
DTE Energy Co | 1,374 | 150,398 | |||||
Eversource Energy | 1,005 | 63,496 | Internet — 3.69% | ||||
NextEra Energy Inc | 450 | 70,285 | Alphabet Inc, Class A (a) | 164 | 172,758 | ||
PG&E Corp | 2,080 | 93,246 | Alphabet Inc, Class C (a) | 169 | 176,841 | ||
PPL Corp | 1,601 | 49,551 | CDW Corp | 2,369 | 164,622 | ||
Southern Co/The | 2,744 | 131,959 | F5 Networks Inc (a) | 414 | 54,325 | ||
Xcel Energy Inc | 1,351 | 64,997 | Facebook Inc, Class A (a) | 1,469 | 259,220 | ||
$ | 686,605 | $ | 827,766 | ||||
Electrical Components & Equipment — 0.22% | Machinery — Diversified — 0.85% | ||||||
Acuity Brands Inc | 278 | 48,928 | Middleby Corp/The (a) | 1,422 | 191,899 | ||
Electronics — 3.67% | Media — 1.82% | ||||||
Amphenol Corp, Class A | 2,871 | 252,074 | Comcast Corp, Class A | 1,575 | 63,079 | ||
Corning Inc | 2,137 | 68,362 | Sirius XM Holdings Inc | 39,107 | 209,613 | ||
Mettler-Toledo International Inc (a) | 415 | 257,101 | Walt Disney Co/The | 1,261 | 135,570 | ||
Waters Corp (a) | 1,274 | 246,124 | $ | 408,262 | |||
$ | 823,661 | Miscellaneous Manufacture — 3.69% | |||||
Environmental Control — 1.04% | 3M Co | 1,068 | 251,375 | ||||
Waste Management Inc | 2,710 | 233,873 | AO Smith Corp | 2,771 | 169,807 |
See accompanying notes.
46
Schedule of Investments Principal Price Setters Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | |||
Miscellaneous Manufacture (continued) | Toys, Games & Hobbies — 0.83% | |||||||
Illinois Tool Works Inc | 1,497 | $ | 249,774 | Hasbro Inc | 2,058 | $ | 187,052 | |
Ingersoll-Rand PLC | 1,758 | 156,796 | ||||||
Transportation — 0.59% | ||||||||
$ | 827,752 | CH Robinson Worldwide Inc | 735 | 65,481 | ||||
Packaging & Containers — 0.65% | Expeditors International of Washington Inc | 1,047 | 67,731 | |||||
Crown Holdings Inc (a) | 2,601 | 146,306 | $ | 133,212 | ||||
Pharmaceuticals — 5.38% | ||||||||
AbbVie Inc | 2,235 | 216,147 | TOTAL COMMON STOCKS | $ | 22,406,499 | |||
AmerisourceBergen Corp | 1,515 | 139,107 | Total Investments | $ | 22,406,499 | |||
Bristol-Myers Squibb Co | 2,462 | 150,871 | Other Assets and Liabilities — 0.21% | $ | 46,902 | |||
Express Scripts Holding Co (a) | 1,962 | 146,444 | ||||||
TOTAL NET ASSETS — 100% | $ | 22,453,401 | ||||||
Johnson & Johnson | 1,616 | 225,788 | ||||||
Pfizer Inc | 1,728 | 62,588 | (a) Non-income producing security | |||||
Zoetis Inc | 3,708 | 267,124 | ||||||
$ | 1,208,069 | Portfolio Summary (unaudited) | ||||||
REITs — 2.26% | Sector | Percent | ||||||
AvalonBay Communities Inc | 319 | 56,913 | ||||||
Essex Property Trust Inc | 250 | 60,342 | Consumer, Non-cyclical | 38.53 | % | |||
Extra Space Storage Inc | 1,764 | 154,262 | Technology | 17.45 | % | |||
Public Storage | 607 | 126,863 | Industrial | 13.22 | % | |||
Realty Income Corp | 963 | 54,910 | Consumer, Cyclical | 11.01 | % | |||
Simon Property Group Inc | 319 | 54,785 | Financial | 8.69 | % | |||
Communications | 7.11 | % | ||||||
$ | 508,075 | Utilities | 3.06 | % | ||||
Retail — 9.15% | Basic Materials | 0.72 | % | |||||
AutoZone Inc (a) | 80 | 56,909 | Other Assets and Liabilities | 0.21 | % | |||
CVS Health Corp | 734 | 53,215 | TOTAL NET ASSETS | 100.00 | % | |||
Darden Restaurants Inc | 790 | 75,856 | ||||||
Dollar General Corp | 806 | 74,966 | ||||||
Domino’s Pizza Inc | 307 | 58,011 | ||||||
Home Depot Inc/The | 1,369 | 259,466 | ||||||
Lowe’s Cos Inc | 2,656 | 246,849 | ||||||
McDonald’s Corp | 1,548 | 266,442 | ||||||
O’Reilly Automotive Inc (a) | 729 | 175,354 | ||||||
Ross Stores Inc | 2,893 | 232,163 | ||||||
Starbucks Corp | 3,500 | 201,005 | ||||||
TJX Cos Inc/The | 750 | 57,345 | ||||||
Ulta Salon Cosmetics & Fragrance Inc (a) | 215 | 48,087 | ||||||
Yum! Brands Inc | 3,048 | 248,747 | ||||||
$ | 2,054,415 | |||||||
Semiconductors — 3.57% | ||||||||
Analog Devices Inc | 1,703 | 151,618 | ||||||
Applied Materials Inc | 3,850 | 196,812 | ||||||
Maxim Integrated Products Inc | 1,332 | 69,637 | ||||||
NVIDIA Corp | 586 | 113,391 | ||||||
Texas Instruments Inc | 2,580 | 269,455 | ||||||
$ | 800,913 | |||||||
Software — 12.78% | ||||||||
Adobe Systems Inc (a) | 1,681 | 294,578 | ||||||
ANSYS Inc (a) | 1,307 | 192,900 | ||||||
Broadridge Financial Solutions Inc | 852 | 77,174 | ||||||
CA Inc | 4,321 | 143,803 | ||||||
CDK Global Inc | 2,998 | 213,697 | ||||||
Cerner Corp (a) | 1,074 | 72,377 | ||||||
Citrix Systems Inc (a) | 1,766 | 155,408 | ||||||
Electronic Arts Inc (a) | 680 | 71,441 | ||||||
Fiserv Inc (a) | 1,719 | 225,413 | ||||||
Intuit Inc | 1,583 | 249,766 | ||||||
Jack Henry & Associates Inc | 2,121 | 248,072 | ||||||
MSCI Inc | 2,102 | 265,987 | ||||||
Paychex Inc | 3,235 | 220,239 | ||||||
Red Hat Inc (a) | 1,683 | 202,128 | ||||||
Synopsys Inc (a) | 2,765 | 235,689 | ||||||
$ | 2,868,672 | |||||||
Telecommunications — 1.08% | ||||||||
Arista Networks Inc (a) | 498 | 117,319 | ||||||
Cisco Systems Inc | 1,727 | 66,144 | ||||||
CommScope Holding Co Inc (a) | 1,548 | 58,561 | ||||||
$ | 242,024 |
See accompanying notes.
47
Schedule of Investments Principal Shareholder Yield Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS — 99.75% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Advertising — 1.14% | Diversified Financial Services (continued) | ||||||
Interpublic Group of Cos Inc/The | 1,559 | $ | 31,430 | Intercontinental Exchange Inc | 664 | $ | 46,852 |
Omnicom Group Inc | 840 | 61,177 | Legg Mason Inc | 1,003 | 42,106 | ||
$ | 92,607 | Mastercard Inc, Class A | 349 | 52,825 | |||
Navient Corp | 4,584 | 61,059 | |||||
Aerospace & Defense — 3.91% | Synchrony Financial | 1,043 | 40,270 | ||||
Boeing Co/The | 210 | 61,931 | T Rowe Price Group Inc | 541 | 56,767 | ||
HEICO Corp | 586 | 55,289 | |||||
HEICO Corp, Class A | 669 | 52,885 | $ | 647,380 | |||
Raytheon Co | 248 | 46,587 | Electric — 0.48% | ||||
Spirit AeroSystems Holdings Inc, Class A (a) | 1,149 | 100,250 | CenterPoint Energy Inc | 1,384 | 39,250 | ||
$ | 316,942 | Electrical Components & Equipment — 1.04% | |||||
Agriculture — 0.38% | AMETEK Inc | 713 | 51,671 | ||||
Bunge Ltd | 459 | 30,790 | Energizer Holdings Inc | 686 | 32,914 | ||
Airlines — 2.65% | $ | 84,585 | |||||
Alaska Air Group Inc | 731 | 53,736 | Electronics — 1.77% | ||||
Delta Air Lines Inc | 1,432 | 80,192 | Amphenol Corp, Class A | 548 | 48,115 | ||
Southwest Airlines Co | 1,237 | 80,961 | Honeywell International Inc | 306 | 46,928 | ||
$ | 214,889 | TE Connectivity Ltd | 509 | 48,375 | |||
$ | 143,418 | ||||||
Apparel — 3.31% | |||||||
Carter’s Inc | 804 | 94,462 | Food — 1.54% | ||||
Hanesbrands Inc | 3,543 | 74,084 | JM Smucker Co/The | 265 | 32,924 | ||
VF Corp | 1,351 | 99,974 | Tyson Foods Inc, Class A | 1,131 | 91,690 | ||
$ | 268,520 | $ | 124,614 | ||||
Auto Manufacturers — 1.86% | Hand/Machine Tools — 1.00% | ||||||
Ford Motor Co | 5,707 | 71,280 | Lincoln Electric Holdings Inc | 454 | 41,577 | ||
General Motors Co | 1,941 | 79,562 | Snap-on Inc | 225 | 39,218 | ||
$ | 150,842 | $ | 80,795 | ||||
Auto Parts & Equipment — 1.52% | �� | Healthcare — Services — 1.44% | |||||
Goodyear Tire & Rubber Co/The | 1,073 | 34,669 | Encompass Health Corp | 909 | 44,914 | ||
Lear Corp | 503 | 88,860 | Quest Diagnostics Inc | 386 | 38,017 | ||
Universal Health Services Inc, Class B | 299 | 33,892 | |||||
$ | 123,529 | ||||||
$ | 116,823 | ||||||
Banks — 5.04% | |||||||
Capital One Financial Corp | 762 | 75,880 | Home Builders — 0.64% | ||||
CIT Group Inc | 897 | 44,159 | Thor Industries Inc | 342 | 51,546 | ||
Citigroup Inc | 1,195 | 88,920 | Household Products/Wares — 0.68% | ||||
Home BancShares Inc | 1,335 | 31,039 | Avery Dennison Corp | 478 | 54,903 | ||
JPMorgan Chase & Co | 422 | 45,129 | |||||
Morgan Stanley | 828 | 43,445 | Housewares — 0.95% | ||||
Regions Financial Corp | 4,626 | 79,937 | Toro Co/The | 1,187 | 77,428 | ||
$ | 408,509 | Insurance — 10.27% | |||||
Biotechnology — 1.76% | Allstate Corp/The | 465 | 48,690 | ||||
Amgen Inc | 405 | 70,429 | AmTrust Financial Services Inc | 3,088 | 31,096 | ||
Gilead Sciences Inc | 1,006 | 72,070 | CNO Financial Group Inc | 3,389 | 83,674 | ||
Everest Re Group Ltd | 304 | 67,263 | |||||
$ | 142,499 | First American Financial Corp | 986 | 55,256 | |||
Chemicals — 3.14% | Hanover Insurance Group Inc/The | 430 | 46,474 | ||||
Cabot Corp | 653 | 40,218 | Lincoln National Corp | 1,019 | 78,331 | ||
Celanese Corp, Series A | 793 | 84,915 | Progressive Corp/The | 1,806 | 101,714 | ||
Eastman Chemical Co | 472 | 43,726 | Prudential Financial Inc | 348 | 40,013 | ||
LyondellBasell Industries NV, Class A | 775 | 85,498 | Torchmark Corp | 913 | 82,818 | ||
Travelers Cos Inc/The | 584 | 79,214 | |||||
$ | 254,357 | Voya Financial Inc | 917 | 45,364 | |||
Commercial Services — 1.14% | WR Berkley Corp | 1,018 | 72,940 | ||||
ManpowerGroup Inc | 731 | 92,186 | $ | 832,847 | |||
Computers — 2.25% | Internet — 1.03% | ||||||
Apple Inc | 279 | 47,215 | CDW Corp | 1,203 | 83,596 | ||
Hewlett Packard Enterprise Co | 2,893 | 41,544 | |||||
International Business Machines Corp | 398 | 61,061 | Leisure Products & Services — 2.03% | ||||
Seagate Technology PLC | 785 | 32,844 | Carnival Corp | 678 | 44,999 | ||
Harley-Davidson Inc | 1,254 | 63,804 | |||||
$ | 182,664 | Polaris Industries Inc | 451 | 55,919 | |||
Construction Materials — 1.04% | $ | 164,722 | |||||
Fortune Brands Home & Security Inc | 1,233 | 84,387 | |||||
Lodging — 0.66% | |||||||
Diversified Financial Services — 7.98% | Wyndham Worldwide Corp | 462 | 53,532 | ||||
Alliance Data Systems Corp (a) | 294 | 74,523 | |||||
American Express Co | 474 | 47,073 | Machinery Diversified — 1.93% | ||||
Discover Financial Services | 1,005 | 77,304 | Cummins Inc | 476 | 84,081 | ||
Federated Investors Inc, Class B | 2,608 | 94,097 | Wabtec Corp | 892 | 72,635 | ||
FNF Group | 1,389 | 54,504 | $ | 156,716 |
See accompanying notes.
48
Schedule of Investments Principal Shareholder Yield Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | |||
Media — 3.39% | Toys, Games & Hobbies — 0.44% | |||||||
FactSet Research Systems Inc | 215 | $ | 41,443 | Hasbro Inc | 394 | $ | 35,811 | |
TEGNA Inc | 2,312 | 32,553 | ||||||
Transportation — 0.58% | ||||||||
Twenty-First Century Fox Inc, Class A | 2,362 | 81,560 | ||||||
Union Pacific Corp | 351 | 47,069 | ||||||
Twenty-First Century Fox Inc, Class B | 2,408 | 82,161 | ||||||
Walt Disney Co/The | 345 | 37,091 | ||||||
TOTAL COMMON STOCKS | $ | 8,090,424 | ||||||
$ | 274,808 | |||||||
Total Investments | $ | 8,090,424 | ||||||
Miscellaneous Manufacture — 2.09% | Other Assets and Liabilities — 0.25% | $ | 20,596 | |||||
3M Co | 206 | 48,486 | ||||||
TOTAL NET ASSETS — 100% | $ | 8,111,020 | ||||||
Eaton Corp PLC | 527 | 41,638 | ||||||
Ingersoll-Rand PLC | 893 | 79,647 | ||||||
(a) Non-income producing security | ||||||||
$ | 169,771 | |||||||
Oil & Gas — 1.18% | Portfolio Summary (unaudited) | |||||||
Valero Energy Corp | 1,042 | 95,770 | ||||||
Sector | Percent | |||||||
Packaging & Containers — 2.18% | Consumer, Cyclical | 30.13 | % | |||||
Graphic Packaging Holding Co | 5,309 | 82,024 | Financial | 26.42 | % | |||
Packaging Corp of America | 417 | 50,269 | Industrial | 16.49 | % | |||
WestRock Co | 704 | 44,500 | Consumer, Non-cyclical | 8.66 | % | |||
$ | 176,793 | Technology | 7.17 | % | ||||
Pharmaceuticals — 1.73% | Communications | 6.08 | % | |||||
AmerisourceBergen Corp | 418 | 38,381 | Basic Materials | 3.14 | % | |||
Cardinal Health Inc | 463 | 28,368 | Energy | 1.18 | % | |||
McKesson Corp | 471 | 73,452 | Utilities | 0.48 | % | |||
Other Assets and Liabilities | 0.25 | % | ||||||
$ | 140,201 | |||||||
TOTAL NET ASSETS | 100.00 | % | ||||||
Real Estate — 0.84% | ||||||||
Realogy Holdings Corp | 2,575 | 68,238 | ||||||
REITs — 2.30% | ||||||||
Host Hotels & Resorts Inc | 3,928 | 77,971 | ||||||
New Residential Investment Corp | 2,243 | 40,105 | ||||||
RLJ Lodging Trust | 3,104 | 68,195 | ||||||
$ | 186,271 | |||||||
Retail — 16.06% | ||||||||
Bed Bath & Beyond Inc | 1,770 | 38,922 | ||||||
Best Buy Co Inc | 1,616 | 110,648 | ||||||
Cracker Barrel Old Country Store Inc | 241 | 38,292 | ||||||
CVS Health Corp | 887 | 64,307 | ||||||
Dollar General Corp | 969 | 90,127 | ||||||
GameStop Corp, Class A | 1,537 | 27,589 | ||||||
Gap Inc/The | 2,846 | 96,935 | ||||||
Home Depot Inc/The | 488 | 92,491 | ||||||
Kohl’s Corp | 1,657 | 89,859 | ||||||
Lowe’s Cos Inc | 952 | 88,479 | ||||||
Macy’s Inc | 1,131 | 28,490 | ||||||
Nu Skin Enterprises Inc, Class A | 765 | 52,196 | ||||||
PVH Corp | 420 | 57,628 | ||||||
Signet Jewelers Ltd | 1,112 | 62,884 | ||||||
Target Corp | 1,203 | 78,496 | ||||||
TJX Cos Inc/The | 484 | 37,007 | ||||||
Tractor Supply Co | 997 | 74,526 | ||||||
Wal-Mart Stores Inc | 998 | 98,552 | ||||||
Williams-Sonoma Inc | 1,455 | 75,223 | ||||||
$ | 1,302,651 | |||||||
Semiconductors — 2.81% | ||||||||
Lam Research Corp | 324 | 59,639 | ||||||
Skyworks Solutions Inc | 755 | 71,687 | ||||||
Texas Instruments Inc | 925 | 96,607 | ||||||
$ | 227,933 | |||||||
Shipbuilding — 0.95% | ||||||||
Huntington Ingalls Industries Inc | 327 | 77,074 | ||||||
Software — 2.10% | ||||||||
CDK Global Inc | 569 | 40,558 | ||||||
j2 Global Inc | 462 | 34,664 | ||||||
MSCI Inc | 755 | 95,538 | ||||||
$ | 170,760 | |||||||
Telecommunications — 0.52% | ||||||||
Cisco Systems Inc | 1,107 | 42,398 |
See accompanying notes.
49
Schedule of Investments
Principal Spectrum Preferred Securities Active ETF
December 31, 2017 (unaudited)
Principal | Principal | |||||||||
BONDS — 97.84% | Amount | Value | BONDS (continued) | Amount | Value | |||||
Auto Manufacturers — 2.07% | Insurance (continued) | |||||||||
General Motors Financial Co Inc | American International Group Inc | |||||||||
(3-month USD LIBOR + 3.60%), | (3-month USD LIBOR + 4.20%), | |||||||||
5.75%, 12/31/2099 (a),(b) | $ | 700,000 | $ | 720,881 | 8.18%, 05/15/2068 (b) | $ | 1,050,000 | $ | 1,428,000 | |
Dai-ichi Life Insurance Co Ltd/The | ||||||||||
Banks — 51.54% | ||||||||||
Bank of America Corp | (3-month USD LIBOR + 3.68%), | |||||||||
5.10%, 10/29/2049 (a),(b),(c) | 1,400,000 | 1,477,000 | ||||||||
(3-month USD LIBOR + 3.90%), | ||||||||||
6.10%, 12/29/2049 (a),(b) | 1,350,000 | 1,481,625 | Legal & General Group PLC | |||||||
Bank of New York Mellon Corp/The | (5-year Swap rate + 3.69%), | |||||||||
5.25%, 03/21/2047 (b) | 1,400,000 | 1,479,940 | ||||||||
(3-month USD LIBOR + 3.42%), | ||||||||||
4.95%, 12/29/2049 (a),(b) | 1,050,000 | 1,086,803 | MetLife Inc | |||||||
9.25%, 04/08/2038 (c) | 985,000 | 1,452,875 | ||||||||
Barclays Bank PLC | ||||||||||
Prudential Financial Inc | ||||||||||
(3-month USD LIBOR + 1.55%), | ||||||||||
6.28%, 12/29/2049 (a),(b) | 1,050,000 | 1,208,981 | (3-month USD LIBOR + 3.92%), | |||||||
5.63%, 06/15/2043 (b) | 1,050,000 | 1,137,150 | ||||||||
BNP Paribas SA | ||||||||||
(3-month USD LIBOR + 1.29%), | $ | 7,738,665 | ||||||||
7.20%, 12/31/2049 (a),(b),(c) | 1,400,000 | 1,617,000 | Mining — 4.34% | |||||||
Citigroup Inc | BHP Billiton Finance USA Ltd | |||||||||
(3-month USD LIBOR + 4.06%), | (5-year Swap rate + 4.971%), | |||||||||
5.88%, 12/29/2049 (a),(b) | 700,000 | 726,250 | 6.25%, 10/19/2075 (b),(c) | 1,400,000 | 1,515,500 | |||||
(3-month USD LIBOR + 3.42%), | ||||||||||
6.30%, 12/29/2049 (a),(b) | 700,000 | 749,875 | Miscellaneous Manufacture — 3.10% | |||||||
Credit Agricole SA | General Electric Co | |||||||||
(3-month USD LIBOR + 6.98%), | (3-month USD LIBOR + 3.33%), | |||||||||
5.00%, 12/29/2049 (a),(b) | 1,050,000 | 1,082,130 | ||||||||
8.38%, 10/29/2049 (a),(b),(c) | 1,050,000 | 1,144,500 | ||||||||
Dresdner Funding Trust I | Pipelines — 5.24% | |||||||||
8.15%, 06/30/2031 (c) | 1,000,000 | 1,324,628 | Enbridge Inc | |||||||
Goldman Sachs Group Inc/The | (3-month USD LIBOR + 3.89%), | |||||||||
(3-month USD LIBOR + 3.92%), | 6.00%, 01/15/2077 (b) | 1,050,000 | 1,092,000 | |||||||
5.38%, 12/29/2049 (a),(b) | 1,050,000 | 1,081,500 | Transcanada Trust | |||||||
HSBC Capital Funding Dollar 1 LP | (3-month USD LIBOR + 3.53%), | |||||||||
(3-month USD LIBOR + 4.98%), | 5.63%, 05/20/2075 (b) | 700,000 | 736,750 | |||||||
10.18%, 12/29/2049 (a),(b) | 700,000 | 1,128,750 | ||||||||
$ | 1,828,750 | |||||||||
JPMorgan Chase & Co | ||||||||||
(3-month USD LIBOR + 3.78%), | TOTAL BONDS | $ | 34,122,029 | |||||||
6.75%, 01/29/2049 (a),(b) | 700,000 | 792,750 | ||||||||
Lloyds Bank PLC | Total Investments | $ | 34,122,029 | |||||||
(3-month USD LIBOR + 11.76%), | Other Assets and Liabilities — 2.16% | $ | 756,781 | |||||||
12.00%, 12/29/2049 (a),(b),(c) | 1,000,000 | 1,341,509 | TOTAL NET ASSETS — 100% | $ | 34,878,810 | |||||
Morgan Stanley | ||||||||||
(3-month USD LIBOR + 3.81%), | (a) Perpetual security. Perpetual securities pay an indefinite stream of interest, | |||||||||
5.55%, 12/29/2049 (a),(b) | 1,050,000 | 1,090,687 | ||||||||
but they may be called by the issuer at an earlier date. | ||||||||||
Standard Chartered PLC | (b) Rate shown is the rate in effect as of period end. The rate may be based on a | |||||||||
(3-month USD LIBOR + 1.46%), | ||||||||||
7.01%, 07/29/2049 (a),(b),(c) | 1,400,000 | 1,664,250 | fixed rate and may convert to a variable rate or floating rate in the future. | |||||||
(c) Security exempt from registration under Rule 144A of the Securities Act of | ||||||||||
US Bancorp | ||||||||||
(3-month USD LIBOR + 2.91%), | 1933. These securities may be resold in transactions exempt from | |||||||||
5.30%, 12/31/2099 (a),(b) | 700,000 | 757,785 | registration, normally to qualified institutional buyers. At the end of the | |||||||
Wells Fargo & Co | period, the value of these securities totaled $11,537,262 or 33.08% of net | |||||||||
(3-month USD LIBOR + 3.99%), | assets. | |||||||||
5.88%, 12/29/2049 (a),(b) | 700,000 | 775,285 | ||||||||
$ | 17,972,178 | Portfolio Summary (unaudited) | ||||||||
Diversified Financial Services — 5.97% | Sector | Percent | ||||||||
American Express Co | ||||||||||
(3-month USD LIBOR + 3.43%), | Financial | 79.69 | % | |||||||
5.20%, 05/29/2049 (a),(b) | 1,050,000 | 1,078,875 | Energy | 5.24 | % | |||||
Charles Schwab Corp/The | Basic Materials | 4.35 | % | |||||||
(3-month USD LIBOR + 2.58%), | Utilities | 3.39 | % | |||||||
5.00%, 12/31/2099 (a),(b) | 1,000,000 | 1,003,800 | Industrial | 3.10 | % | |||||
Consumer, Cyclical | 2.07 | % | ||||||||
$ | 2,082,675 | Other Assets and Liabilities | 2.16 | % | ||||||
Electric — 3.39% | TOTAL NET ASSETS | 100.00 | % | |||||||
Emera Inc | ||||||||||
(3-month USD LIBOR + 5.44%), | ||||||||||
6.75%, 06/15/2076 (b) | 1,050,000 | 1,181,250 | ||||||||
Insurance — 22.19% | ||||||||||
Allstate Corp/The | ||||||||||
(3-month USD LIBOR + 2.94%), | ||||||||||
5.75%, 08/15/2053 (b) | 700,000 | 763,700 |
See accompanying notes.
50
Schedule of Investments Principal Sustainable Momentum Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS — 99.75% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Aerospace & Defense — 5.83% | Environmental Control — 1.93% | ||||||
Boeing Co/The | 153 | $ | 45,121 | Republic Services Inc | 546 | $ | 36,915 |
General Dynamics Corp | 146 | 29,704 | Waste Management Inc | 447 | 38,576 | ||
Harris Corp | 251 | 35,554 | $ | 75,491 | |||
HEICO Corp, Class A | 487 | 38,498 | |||||
Northrop Grumman Corp | 175 | 53,709 | Food — 1.82% | ||||
Teledyne Technologies Inc (a) | 141 | 25,542 | Conagra Brands Inc | 883 | 33,263 | ||
Pinnacle Foods Inc | 639 | 38,001 | |||||
$ | 228,128 | ||||||
$ | 71,264 | ||||||
Agriculture — 1.48% | |||||||
Altria Group Inc | 405 | 28,921 | Hand/Machine Tools — 0.77% | ||||
Philip Morris International Inc | 275 | 29,054 | Lincoln Electric Holdings Inc | 327 | 29,947 | ||
$ | 57,975 | Healthcare — Products — 2.70% | |||||
IDEXX Laboratories Inc (a) | 191 | 29,869 | |||||
Airlines — 0.11% | NuVasive Inc (a) | 370 | 21,641 | ||||
Alaska Air Group Inc | 60 | 4,411 | Teleflex Inc | 218 | 54,243 | ||
Banks — 18.84% | $ | 105,753 | |||||
Bank of America Corp | 1,121 | 33,092 | |||||
BB&T Corp | 570 | 28,340 | Healthcare — Services — 0.71% | ||||
Citizens Financial Group Inc | 735 | 30,855 | Quest Diagnostics Inc | 282 | 27,774 | ||
Comerica Inc | 388 | 33,682 | Holding Companies — Diversified — 0.78% | ||||
Commerce Bancshares Inc | 327 | 18,260 | Leucadia National Corp | 1,157 | 30,649 | ||
Cullen / Frost Bankers Inc | 297 | 28,111 | |||||
East West Bancorp Inc | 511 | 31,084 | Home Builders — 0.96% | ||||
Fifth Third Bancorp | 1,002 | 30,401 | Thor Industries Inc | 249 | 37,529 | ||
First Horizon National Corp | 1,377 | 27,526 | Housewares — 1.34% | ||||
Goldman Sachs Group Inc/The | 112 | 28,533 | Toro Co/The | 804 | 52,445 | ||
Huntington Bancshares Inc | 1,308 | 19,045 | |||||
JPMorgan Chase & Co | 303 | 32,403 | Insurance — 12.75% | ||||
Alleghany Corp (a) | 43 | 25,632 | |||||
KeyCorp | 1,464 | 29,529 | |||||
M&T Bank Corp | 165 | 28,213 | Allstate Corp/The | 336 | 35,183 | ||
Morgan Stanley | 605 | 31,744 | American Financial Group Inc | 300 | 32,562 | ||
Arch Capital Group Ltd (a) | 291 | 26,414 | |||||
PNC Financial Services Group Inc/The | 216 | 31,167 | |||||
Arthur J Gallagher & Co | 483 | 30,564 | |||||
Popular Inc | 420 | 14,906 | |||||
Assured Guaranty Ltd | 669 | 22,659 | |||||
Prosperity Bancshares Inc | 249 | 17,447 | |||||
Axis Capital Holdings Ltd | 396 | 19,903 | |||||
Regions Financial Corp | 1,811 | 31,294 | Erie Indemnity Co | 266 | 32,409 | ||
SunTrust Banks Inc | 462 | 29,841 | Everest Re Group Ltd | 118 | 26,109 | ||
SVB Financial Group (a) | 144 | 33,663 | |||||
Lincoln National Corp | 394 | 30,287 | |||||
Synovus Financial Corp | 651 | 31,209 | Progressive Corp/The | 644 | 36,270 | ||
US Bancorp | 503 | 26,951 | Prudential Financial Inc | 249 | 28,630 | ||
Webster Financial Corp | 501 | 28,136 | Reinsurance Group of America Inc | 212 | 33,057 | ||
Western Alliance Bancorp (a) | 535 | 30,292 | |||||
RenaissanceRe Holdings Ltd | 221 | 27,755 | |||||
Zions Bancorp | 612 | 31,108 | Torchmark Corp | 354 | 32,111 | ||
$ | 736,832 | Unum Group | 566 | 31,068 | |||
Biotechnology — 0.86% | WR Berkley Corp | 392 | 28,087 | ||||
Bio-Rad Laboratories Inc, Class A (a) | 141 | 33,652 | $ | 498,700 | |||
Commercial Services — 3.59% | Internet — 3.99% | ||||||
MarketAxess Holdings Inc | 141 | 28,447 | Amazon.com Inc (a) | 56 | 65,490 | ||
Quanta Services Inc (a) | 741 | 28,980 | CDW Corp | 469 | 32,591 | ||
Rollins Inc | 756 | 35,177 | IAC/InterActiveCorp (a) | 252 | 30,815 | ||
Vantiv Inc, Class A (a) | 650 | 47,807 | Symantec Corp | 968 | 27,162 | ||
$ | 140,411 | $ | 156,058 | ||||
Computers — 2.56% | Iron & Steel — 0.83% | ||||||
Apple Inc | 201 | 34,015 | Steel Dynamics Inc | 750 | 32,347 | ||
Leidos Holdings Inc | 348 | 22,471 | Machinery — Construction & Mining — 2.41% | ||||
NCR Corp (a) | 570 | 19,374 | |||||
BWX Technologies Inc | 595 | 35,992 | |||||
NetApp Inc | 441 | 24,396 | Caterpillar Inc | 369 | 58,147 | ||
$ | 100,256 | $ | 94,139 | ||||
Distribution/Wholesale — 0.80% | Machinery — Diversified — 1.70% | ||||||
Pool Corp | 240 | 31,116 | Cognex Corp | 716 | 43,791 | ||
Diversified Financial Services — 2.85% | Nordson Corp | 155 | 22,692 | ||||
CME Group Inc | 233 | 34,030 | $ | 66,483 | |||
Discover Financial Services | 261 | 20,076 | Media — 1.44% | ||||
Raymond James Financial Inc | 352 | 31,433 | Charter Communications Inc (a) | 86 | 28,893 | ||
SLM Corp (a) | 2,307 | 26,069 | |||||
Liberty Broadband Corp (a) | 321 | 27,336 | |||||
$ | 111,608 | $ | 56,229 | ||||
Electronics — 0.82% | Miscellaneous Manufacture — 1.81% | ||||||
Corning Inc | 1,002 | 32,054 | Illinois Tool Works Inc | 209 | 34,871 | ||
Entertainment — 1.07% | Parker-Hannifin Corp | 179 | 35,725 | ||||
Vail Resorts Inc | 197 | 41,857 | $ | 70,596 |
See accompanying notes.
51
Schedule of Investments Principal Sustainable Momentum Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | ||
Packaging & Containers — 0.92% | ||||
Packaging Corp of America | 299 | $ | 36,044 | |
Pharmaceuticals — 0.31% | ||||
TESARO Inc (a) | 147 | 12,182 | ||
Pipelines — 0.70% | ||||
ONEOK Inc | 511 | 27,313 | ||
REITs — 1.43% | ||||
Chimera Investment Corp | 1,428 | 26,390 | ||
New Residential Investment Corp | 1,640 | 29,323 | ||
$ | 55,713 | |||
Retail — 1.98% | ||||
Domino’s Pizza Inc | 270 | 51,019 | ||
MSC Industrial Direct Co Inc | 273 | 26,388 | ||
$ | 77,407 | |||
Semiconductors — 8.86% | ||||
Advanced Micro Devices Inc (a) | 1,899 | 19,522 | ||
Analog Devices Inc | 336 | 29,914 | ||
Applied Materials Inc | 763 | 39,005 | ||
Lam Research Corp | 232 | 42,704 | ||
Microchip Technology Inc | 381 | 33,482 | ||
NVIDIA Corp | 798 | 154,413 | ||
Teradyne Inc | 651 | 27,257 | ||
$ | 346,297 | |||
Shipbuilding — 0.77% | ||||
Huntington Ingalls Industries Inc | 127 | 29,934 | ||
Software — 6.72% | ||||
Aspen Technology Inc (a) | 475 | 31,445 | ||
Jack Henry & Associates Inc | 305 | 35,673 | ||
MSCI Inc | 317 | 40,113 | ||
PTC Inc (a) | 510 | 30,992 | ||
Synopsys Inc (a) | 387 | 32,988 | ||
Take-Two Interactive Software Inc (a) | 483 | 53,024 | ||
VMware Inc (a) | 306 | 38,348 | ||
$ | 262,583 | |||
Telecommunications — 1.66% | ||||
Arista Networks Inc (a) | 156 | 36,751 | ||
T-Mobile US Inc (a) | 442 | 28,071 | ||
$ | 64,822 | |||
Transportation — 1.65% | ||||
CSX Corp | 569 | 31,301 | ||
Norfolk Southern Corp | 228 | 33,037 | ||
$ | 64,338 | |||
TOTAL COMMON STOCKS | $ | 3,900,337 | ||
Total Investments | $ | 3,900,337 | ||
Other Assets and Liabilities — 0.25% | $ | 9,685 | ||
TOTAL NET ASSETS — 100% | $ | 3,910,022 | ||
(a) Non-income producing security | ||||
Portfolio Summary (unaudited) | ||||
Sector | Percent | |||
Financial | 35.88 | % | ||
Industrial | 18.60 | % | ||
Technology | 18.13 | % | ||
Consumer, Non-cyclical | 11.48 | % | ||
Communications | 7.09 | % | ||
Consumer, Cyclical | 6.26 | % | ||
Basic Materials | 0.83 | % | ||
Diversified | 0.78 | % | ||
Energy | 0.70 | % | ||
Other Assets and Liabilities | 0.25 | % | ||
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
52
Schedule of Investments Principal U.S. Mega-Cap Multi-Factor Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS — 99.81% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | |||
Aerospace & Defense — 2.81% | Pharmaceuticals — 13.06% | |||||||
Boeing Co/The | 24,288 | $ | 7,162,774 | Abbott Laboratories | 257,368 | $ | 14,687,992 | |
United Technologies Corp | 118,242 | 15,084,132 | AbbVie Inc | 69,734 | 6,743,975 | |||
$ | 22,246,906 | Bristol-Myers Squibb Co | 214,858 | 13,166,498 | ||||
Eli Lilly & Co | 160,503 | 13,556,083 | ||||||
Agriculture — 2.53% | Johnson & Johnson | 163,258 | 22,810,408 | |||||
Altria Group Inc | 97,650 | 6,973,186 | Merck & Co Inc | 331,374 | 18,646,415 | |||
Philip Morris International Inc | 123,684 | 13,067,215 | Pfizer Inc | 384,599 | 13,930,176 | |||
$ | 20,040,401 | $ | 103,541,547 | |||||
Banks — 8.38% | Retail — 6.08% | |||||||
Bank of America Corp | 244,652 | 7,222,127 | Home Depot Inc/The | 83,775 | 15,877,876 | |||
Citigroup Inc | 188,324 | 14,013,189 | McDonald’s Corp | 87,438 | 15,049,828 | |||
Goldman Sachs Group Inc/The | 57,744 | 14,710,861 | Wal-Mart Stores Inc | 175,345 | 17,315,319 | |||
JPMorgan Chase & Co | 143,709 | 15,368,240 | ||||||
Wells Fargo & Co | 248,962 | 15,104,525 | $ | 48,243,023 | ||||
$ | 66,418,942 | Semiconductors — 2.94% | ||||||
Intel Corp | 360,571 | 16,643,957 | ||||||
Beverages — 5.61% | NVIDIA Corp | 34,591 | 6,693,359 | |||||
Coca-Cola Co/The | 471,600 | 21,637,008 | ||||||
PepsiCo Inc | 190,771 | 22,877,258 | $ | 23,337,316 | ||||
$ | 44,514,266 | Software — 3.54% | ||||||
Microsoft Corp | 256,895 | 21,974,799 | ||||||
Biotechnology — 3.54% | Oracle Corp | 128,240 | 6,063,187 | |||||
Amgen Inc | 73,447 | 12,772,433 | ||||||
Celgene Corp (a) | 94,142 | 9,824,659 | $ | 28,037,986 | ||||
Gilead Sciences Inc | 76,425 | 5,475,087 | Telecommunications — 4.53% | |||||
$ | 28,072,179 | AT&T Inc | 350,614 | 13,631,872 | ||||
Cisco Systems Inc | 408,253 | 15,636,090 | ||||||
Computers — 5.51% | Verizon Communications Inc | 125,274 | 6,630,753 | |||||
Apple Inc | 172,335 | 29,164,252 | ||||||
International Business Machines Corp | 94,597 | 14,513,072 | $ | 35,898,715 | ||||
$ | 43,677,324 | Transportation — 2.00% | ||||||
Union Pacific Corp | 118,106 | 15,838,015 | ||||||
Diversified Financial Services — 3.73% | ||||||||
Mastercard Inc, Class A | 96,990 | 14,680,406 | TOTAL COMMON STOCKS | $ | 791,469,275 | |||
Visa Inc, Class A | 130,424 | 14,870,945 | ||||||
Total Investments | $ | 791,469,275 | ||||||
$ | 29,551,351 | Other Assets and Liabilities — 0.19% | $ | 1,521,451 | ||||
Electronics — 2.90% | TOTAL NET ASSETS — 100% | $ | 792,990,726 | |||||
Honeywell International Inc | 149,741 | 22,964,280 | ||||||
Food — 2.68% | (a) Non-income producing security | |||||||
Kraft Heinz Co/The | 273,690 | 21,282,134 | ||||||
Healthcare — Products — 1.79% | Portfolio Summary (unaudited) | |||||||
Medtronic PLC | 176,100 | 14,220,075 | Sector | Percent | ||||
Healthcare — Services — 3.02% | Consumer, Non-cyclical | 34.93 | % | |||||
UnitedHealth Group Inc | 108,541 | 23,928,949 | Financial | 15.00 | % | |||
Communications | 14.67 | % | ||||||
Household Products — 2.70% | Technology | 11.99 | % | |||||
Procter & Gamble Co/The | 233,285 | 21,434,226 | Industrial | 10.89 | % | |||
Insurance — 2.89% | Energy | 6.25 | % | |||||
Berkshire Hathaway Inc, Class B (a) | 115,783 | 22,950,506 | Consumer, Cyclical | 6.08 | % | |||
Other Assets and Liabilities | 0.19 | % | ||||||
Internet — 6.72% | ||||||||
Alphabet Inc, Class A (a) | 21,361 | 22,501,677 | TOTAL NET ASSETS | 100.00 | % | |||
Amazon.com Inc (a) | 14,250 | 16,664,948 | ||||||
Facebook Inc, Class A (a) | 80,164 | 14,145,739 | ||||||
$ | 53,312,364 | |||||||
Media — 3.42% | ||||||||
Charter Communications Inc (a) | 16,998 | 5,710,648 | ||||||
Comcast Corp, Class A | 161,065 | 6,450,654 | ||||||
Walt Disney Co/The | 139,324 | 14,978,723 | ||||||
$ | 27,140,025 | |||||||
Miscellaneous Manufacture — 3.19% | ||||||||
3M Co | 65,267 | 15,361,894 | ||||||
General Electric Co | 567,968 | 9,911,041 | ||||||
$ | 25,272,935 | |||||||
Oil & Gas — 4.57% | ||||||||
Chevron Corp | 116,579 | 14,594,525 | ||||||
Exxon Mobil Corp | 259,296 | 21,687,518 | ||||||
$ | 36,282,043 | |||||||
Oil & Gas Services — 1.67% | ||||||||
Schlumberger Ltd | 196,821 | 13,263,767 |
See accompanying notes.
53
Schedule of Investments Principal U.S. Small-Cap Multi-Factor Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS — 99.75% | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Aerospace & Defense — 1.55% | Beverages — 0.15% | ||||||
Aerojet Rocketdyne Holdings Inc (a) | 29,157 | $ | 909,698 | MGP Ingredients Inc | 6,086 | $ | 467,892 |
Aerovironment Inc (a) | 12,503 | 702,168 | |||||
Biotechnology — 3.05% | |||||||
Kaman Corp | 20,214 | 1,189,392 | Abeona Therapeutics Inc (a) | 8,226 | 130,382 | ||
KLX Inc (a) | 30,030 | 2,049,548 | |||||
Amicus Therapeutics Inc (a) | 72,802 | 1,047,621 | |||||
National Presto Industries Inc | 1,325 | 131,771 | Arena Pharmaceuticals Inc (a) | 16,117 | 547,495 | ||
$ | 4,982,577 | Cambrex Corp (a) | 17,659 | 847,632 | |||
Emergent BioSolutions Inc (a) | 15,808 | 734,598 | |||||
Apparel — 0.62% | |||||||
Enzo Biochem Inc (a) | 10,489 | 85,485 | |||||
Oxford Industries Inc | 6,256 | 470,389 | |||||
ImmunoGen Inc (a) | 49,437 | 316,891 | |||||
Steven Madden Ltd (a) | 32,158 | 1,501,778 | |||||
Innoviva Inc | 50,741 | 720,015 | |||||
$ | 1,972,167 | Ligand Pharmaceuticals Inc (a) | 16,149 | 2,211,283 | |||
Auto Manufacturers — 0.24% | Momenta Pharmaceuticals Inc (a) | 23,398 | 326,402 | ||||
Wabash National Corp | 35,471 | 769,721 | Myriad Genetics Inc (a) | 35,859 | 1,231,577 | ||
Omeros Corp (a) | 18,880 | 366,838 | |||||
Auto Parts & Equipment — 0.30% | PDL BioPharma Inc | 48,885 | 133,945 | ||||
Cooper-Standard Holdings Inc (a) | 6,377 | 781,183 | Pieris Pharmaceuticals Inc (a) | 13,855 | 104,605 | ||
Douglas Dynamics Inc | 5,099 | 192,742 | PTC Therapeutics Inc (a) | 17,690 | 295,069 | ||
$ | 973,925 | Retrophin Inc (a) | 12,986 | 273,615 | |||
Sangamo Therapeutics Inc (a) | 23,882 | 391,665 | |||||
Banks — 7.71% | |||||||
Ameris Bancorp | 18,243 | 879,313 | $ | 9,765,118 | |||
Atlantic Capital Bancshares Inc (a) | 9,948 | 175,085 | Chemicals — 2.91% | ||||
BancFirst Corp | 4,302 | 220,047 | American Vanguard Corp | 4,064 | 79,858 | ||
Banner Corp | 19,207 | 1,058,690 | Balchem Corp | 8,168 | 658,341 | ||
Blue Hills Bancorp Inc | 6,468 | 130,007 | HB Fuller Co | 32,595 | 1,755,893 | ||
Bryn Mawr Bank Corp | 5,747 | 254,017 | Ingevity Corp (a) | 13,900 | 979,533 | ||
Camden National Corp | 4,060 | 171,048 | Innophos Holdings Inc | 4,287 | 200,332 | ||
Cathay General Bancorp | 47,093 | 1,985,912 | KMG Chemicals Inc | 5,539 | 366,017 | ||
CenterState Bank Corp | 27,562 | 709,170 | Koppers Holdings Inc (a) | 5,368 | 273,231 | ||
Central Pacific Financial Corp | 14,172 | 422,751 | Kraton Corp (a) | 11,543 | 556,026 | ||
City Holding Co | 5,699 | 384,512 | Minerals Technologies Inc | 11,091 | 763,615 | ||
CoBiz Financial Inc | 11,048 | 220,850 | PolyOne Corp | 42,914 | 1,866,759 | ||
Columbia Banking System Inc | 28,752 | 1,248,987 | Quaker Chemical Corp | 4,568 | 688,809 | ||
Customers Bancorp Inc (a) | 15,038 | 390,838 | Rayonier Advanced Materials Inc | 28,541 | 583,663 | ||
Eagle Bancorp Inc (a) | 13,752 | 796,241 | Stepan Co | 6,884 | 543,629 | ||
Enterprise Financial Services Corp | 15,374 | 694,136 | $ | 9,315,706 | |||
Equity Bancshares Inc, Class A (a) | 6,469 | 229,067 | |||||
FCB Financial Holdings Inc, Class A (a) | 25,718 | 1,306,474 | Commercial Services — 7.50% | ||||
Aaron’s Inc | 19,739 | 786,599 | |||||
First Commonwealth Financial Corp | 50,690 | 725,881 | |||||
Adtalem Global Education Inc | 12,884 | 541,772 | |||||
First Connecticut Bancorp Inc | 4,007 | 104,783 | Alarm.com Holdings Inc (a) | 30,614 | 1,155,678 | ||
First Financial Bankshares Inc | 19,714 | 888,116 | AMN Healthcare Services Inc (a) | 27,146 | 1,336,940 | ||
First Foundation Inc (a) | 10,132 | 187,847 | |||||
B. Riley Financial Inc | 7,443 | 134,718 | |||||
First Merchants Corp | 29,146 | 1,225,881 | Barrett Business Services Inc | 2,472 | 159,419 | ||
German American Bancorp Inc | 4,629 | 163,543 | CAI International Inc (a) | 10,827 | 306,621 | ||
Great Western Bancorp Inc | 23,233 | 924,673 | Capella Education Co | 1,957 | 151,472 | ||
Green Bancorp Inc (a) | 15,601 | 316,700 | |||||
Care.com Inc (a) | 3,741 | 67,488 | |||||
Guaranty Bancorp | 15,733 | 435,017 | Carriage Services Inc | 4,981 | 128,062 | ||
Hanmi Financial Corp | 15,058 | 457,010 | CBIZ Inc (a) | 18,170 | 280,726 | ||
Heartland Financial USA Inc | 8,635 | 463,268 | CorVel Corp (a) | 1,756 | 92,892 | ||
Heritage Commerce Corp | 12,671 | 194,120 | CRA International Inc | 2,068 | 92,957 | ||
Heritage Financial Corp | 17,666 | 544,113 | Ennis Inc | 10,071 | 208,973 | ||
Horizon Bancorp | 8,871 | 246,614 | EVERTEC Inc | 30,679 | 418,768 | ||
Independent Bank Corp | 8,787 | 613,772 | Forrester Research Inc | 4,144 | 183,165 | ||
Independent Bank Group Inc | 11,924 | 806,062 | Graham Holdings Co, Class B | 1,289 | 719,713 | ||
Lakeland Bancorp Inc | 12,872 | 247,786 | Green Dot Corp, Class A (a) | 28,181 | 1,698,187 | ||
Lakeland Financial Corp | 8,607 | 417,353 | Hackett Group Inc/The | 8,339 | 131,006 | ||
Live Oak Bancshares Inc | 9,584 | 228,578 | HealthEquity Inc (a) | 37,351 | 1,742,798 | ||
National Bank Holdings Corp, Class A | 10,089 | 327,186 | HMS Holdings Corp (a) | 33,100 | 561,045 | ||
National Commerce Corp (a) | 4,884 | 196,581 | INC Research Holdings Inc, Class A (a) | 42,032 | 1,832,595 | ||
Nicolet Bankshares Inc (a) | 2,381 | 130,336 | Insperity Inc | 9,996 | 573,271 | ||
Old Second Bancorp Inc | 6,581 | 89,831 | Korn | 23,894 | 988,734 | ||
Peoples Bancorp Inc | 3,225 | 105,199 | LendingTree Inc (a) | 8,896 | 3,028,643 | ||
Preferred Bank | 7,299 | 429,035 | Medifast Inc | 3,276 | 228,698 | ||
QCR Holdings Inc | 5,909 | 253,201 | Nutrisystem Inc | 17,148 | 901,985 | ||
Republic First Bancorp Inc (a) | 12,521 | 105,802 | On Assignment Inc (a) | 21,703 | 1,394,852 | ||
ServisFirst Bancshares Inc | 13,023 | 540,454 | Paylocity Holding Corp (a) | 14,854 | 700,515 | ||
Southside Bancshares Inc | 11,059 | 372,467 | Sotheby’s (a) | 20,154 | 1,039,946 | ||
TriCo Bancshares | 6,410 | 242,683 | SP Plus Corp (a) | 6,842 | 253,838 | ||
Triumph Bancorp Inc (a) | 9,568 | 301,392 | Strayer Education Inc | 1,709 | 153,092 | ||
Veritex Holdings Inc (a) | 13,344 | 368,161 | TriNet Group Inc (a) | 15,329 | 679,688 | ||
Walker & Dunlop Inc (a) | 16,434 | 780,615 | Viad Corp | 6,620 | 366,748 | ||
Weight Watchers International Inc (a) | 22,850 | 1,011,798 | |||||
$ | 24,711,205 | ||||||
$ | 24,053,402 |
See accompanying notes.
54
Schedule of Investments Principal U.S. Small-Cap Multi-Factor Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Computers — 3.02% | Energy-Alternate Sources — 0.42% | ||||||
Barracuda Networks Inc (a) | 54,116 | $ | 1,488,190 | Pattern Energy Group Inc | 51,961 | $ | 1,116,642 |
CACI International Inc, Class A (a) | 12,644 | 1,673,433 | Renewable Energy Group Inc (a) | 20,692 | 244,166 | ||
Convergys Corp | 75,986 | 1,785,671 | $ | 1,360,808 | |||
ExlService Holdings Inc (a) | 19,561 | 1,180,506 | |||||
Insight Enterprises Inc (a) | 7,351 | 281,470 | Engineering & Construction — 0.70% | ||||
Mercury Systems Inc (a) | 24,417 | 1,253,813 | Argan Inc | 8,657 | 389,565 | ||
Qualys Inc (a) | 11,479 | 681,279 | Exponent Inc | 6,194 | 440,393 | ||
StarTek Inc (a) | 5,086 | 50,708 | NV5 Global Inc (a) | 2,383 | 129,039 | ||
TopBuild Corp (a) | 15,720 | 1,190,633 | |||||
TeleTech Holdings Inc | 8,716 | 350,819 | |||||
Varonis Systems Inc (a) | 19,131 | 928,810 | VSE Corp | 1,853 | 89,741 | ||
$ | 9,674,699 | $ | 2,239,371 | ||||
Construction Materials — 2.64% | Entertainment — 1.60% | ||||||
American Woodmark Corp (a) | 6,746 | 878,667 | Churchill Downs Inc | 4,468 | 1,039,704 | ||
Apogee Enterprises Inc | 17,739 | 811,205 | Dolby Laboratories Inc, Class A | 14,414 | 893,668 | ||
Armstrong World Industries Inc (a) | 27,368 | 1,657,132 | Eldorado Resorts Inc (a) | 23,282 | 771,798 | ||
Builders FirstSource Inc (a) | 57,947 | 1,262,665 | International Speedway Corp, Class A | 7,099 | 282,895 | ||
Patrick Industries Inc (a) | 6,447 | 447,744 | Marriott Vacations Worldwide Corp | 10,789 | 1,458,781 | ||
PGT Innovations Inc (a) | 23,915 | 402,968 | Pinnacle Entertainment Inc (a) | 19,494 | 638,039 | ||
Simpson Manufacturing Co Inc | 21,825 | 1,252,973 | RCI Hospitality Holdings Inc | 1,871 | 52,350 | ||
Trex Co Inc (a) | 15,995 | 1,733,698 | $ | 5,137,235 | |||
$ | 8,447,052 | Environmental Control — 0.78% | |||||
Distribution/Wholesale — 0.34% | Advanced Emissions Solutions Inc | 6,616 | 63,911 | ||||
Heritage-Crystal Clean Inc (a) | 5,290 | 115,057 | |||||
Systemax Inc | 2,757 | 91,725 | |||||
Triton International Ltd (a) | 26,748 | 1,001,713 | MSA Safety Inc | 17,869 | 1,385,205 | ||
Tetra Tech Inc | 19,368 | 932,569 | |||||
$ | 1,093,438 | ||||||
$ | 2,496,742 | ||||||
Diversified Financial Services — 4.72% | |||||||
Artisan Partners Asset Management Inc, Class A | 42,909 | 1,694,906 | Food — 0.69% | ||||
Chefs’ Warehouse Inc/The (a) | 3,023 | 61,972 | |||||
Cohen & Steers Inc | 18,028 | 852,544 | |||||
Diamond Hill Investment Group Inc | 1,980 | 409,187 | John B Sanfilippo & Son Inc | 4,020 | 254,265 | ||
Encore Capital Group Inc (a) | 16,172 | 680,841 | Sanderson Farms Inc | 13,626 | 1,891,016 | ||
Enova International Inc (a) | 23,466 | 356,683 | $ | 2,207,253 | |||
Evercore Inc, Class A | 27,349 | 2,461,410 | Forest Products & Paper — 0.32% | ||||
Federal Agricultural Mortgage Corp, Class C | 6,339 | 495,963 | Neenah Paper Inc | 6,857 | 621,587 | ||
Federated Investors Inc, Class B | 73,850 | 2,664,508 | Schweitzer-Mauduit International Inc | 8,609 | 390,504 | ||
Greenhill & Co Inc | 41,480 | 808,860 | |||||
Hannon Armstrong Sustainable Infrastructure | $ | 1,012,091 | |||||
Capital Inc | 35,381 | 851,267 | Gas — 0.36% | ||||
Houlihan Lokey Inc | 29,508 | 1,340,548 | Chesapeake Utilities Corp | 4,453 | 349,783 | ||
Moelis & Co, Class A | 34,872 | 1,691,292 | Northwest Natural Gas Co | 13,414 | 800,145 | ||
PJT Partners Inc, Class A | 11,588 | 528,413 | $ | 1,149,928 | |||
R1 RCM Inc (a) | 11,333 | 49,979 | |||||
Westwood Holdings Group Inc | 3,840 | 254,246 | Hand/Machine Tools — 0.14% | ||||
Franklin Electric Co Inc | 10,115 | 464,279 | |||||
$ | 15,140,647 | ||||||
Electric — 1.77% | Healthcare — Products — 5.69% | ||||||
El Paso Electric Co | 19,644 | 1,087,295 | Abaxis Inc | 7,026 | 347,928 | ||
NRG Yield Inc, Class C | 87,194 | 1,647,967 | Analogic Corp | 4,570 | 382,738 | ||
AngioDynamics Inc (a) | 7,741 | 128,733 | |||||
Ormat Technologies Inc | 10,540 | 674,138 | |||||
PNM Resources Inc | 54,267 | 2,195,100 | Atrion Corp | 304 | 191,702 | ||
AxoGen Inc (a) | 7,343 | 207,807 | |||||
Spark Energy Inc, Class A | 5,277 | 65,435 | |||||
BioTelemetry Inc (a) | 17,386 | 519,841 | |||||
$ | 5,669,935 | Cantel Medical Corp | 7,344 | 755,477 | |||
Electrical Components & Equipment — 0.45% | Cardiovascular Systems Inc (a) | 11,019 | 261,040 | ||||
Advanced Energy Industries Inc (a) | 21,413 | 1,444,949 | CONMED Corp | 7,707 | 392,826 | ||
CryoLife Inc (a) | 7,463 | 142,916 | |||||
Electronics — 3.10% | Cutera Inc (a) | 3,677 | 166,752 | ||||
Applied Optoelectronics Inc (a) | 34,001 | 1,285,918 | |||||
FONAR Corp (a) | 1,536 | 37,402 | |||||
Badger Meter Inc | 7,597 | 363,137 | Glaukos Corp (a) | 21,400 | 548,910 | ||
Brady Corp, Class A | 18,041 | 683,754 | Globus Medical Inc, Class A (a) | 37,487 | 1,540,716 | ||
Control4 Corp (a) | 25,862 | 769,653 | |||||
Haemonetics Corp (a) | 16,775 | 974,292 | |||||
II-VI Inc (a) | 31,477 | 1,477,845 | |||||
Halyard Health Inc (a) | 24,064 | 1,111,276 | |||||
Itron Inc (a) | 17,972 | 1,225,690 | |||||
Inogen Inc (a) | 9,722 | 1,157,696 | |||||
KEMET Corp (a) | 64,120 | 965,647 | |||||
Insulet Corp (a) | 19,308 | 1,332,252 | |||||
Kimball Electronics Inc (a) | 4,639 | 84,662 | |||||
Integer Holdings Corp (a) | 13,420 | 607,926 | |||||
Methode Electronics Inc | 17,175 | 688,717 | Intersect ENT Inc (a) | 10,400 | 336,960 | ||
NVE Corp | 971 | 83,506 | Invacare Corp | 13,591 | 229,008 | ||
Rogers Corp (a) | 7,705 | 1,247,594 | |||||
Lantheus Holdings Inc (a) | 14,636 | 299,306 | |||||
Stoneridge Inc (a) | 3,959 | 90,503 | |||||
LeMaitre Vascular Inc | 4,727 | 150,508 | |||||
TTM Technologies Inc (a) | 62,807 | 984,186 | |||||
Luminex Corp | 13,071 | 257,499 | |||||
$ | 9,950,812 | Meridian Bioscience Inc | 14,191 | 198,674 | |||
Merit Medical Systems Inc (a) | 17,406 | 751,939 | |||||
MiMedx Group Inc (a) | 78,230 | 986,480 |
See accompanying notes.
55
Schedule of Investments Principal U.S. Small-Cap Multi-Factor Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Healthcare — Products (continued) | Leisure Products & Services — 1.26% | ||||||
Nevro Corp (a) | 17,078 | $ | 1,179,065 | Callaway Golf Co | 43,226 | $ | 602,138 |
Novocure Ltd (a) | 26,172 | 528,674 | Fox Factory Holding Corp (a) | 18,962 | 736,674 | ||
OraSure Technologies Inc (a) | 21,641 | 408,149 | Johnson Outdoors Inc, Class A | 2,077 | 128,961 | ||
Quidel Corp (a) | 7,907 | 342,769 | LCI Industries | 6,016 | 782,080 | ||
Repligen Corp (a) | 13,317 | 483,141 | Malibu Boats Inc, Class A (a) | 8,535 | 253,746 | ||
Wright Medical Group NV (a) | 57,542 | 1,277,432 | MCBC Holdings Inc (a) | 5,293 | 117,610 | ||
Planet Fitness Inc, Class A (a) | 41,124 | 1,424,124 | |||||
$ | 18,237,834 | ||||||
Healthcare — Services — 2.35% | $ | 4,045,333 | |||||
Addus HomeCare Corp (a) | 1,760 | 61,248 | Lodging — 1.16% | ||||
Almost Family Inc (a) | 4,610 | 255,164 | Boyd Gaming Corp | 57,583 | 2,018,284 | ||
Amedisys Inc (a) | 11,871 | 625,720 | ILG Inc | 58,540 | 1,667,219 | ||
Chemed Corp | 5,639 | 1,370,390 | Monarch Casino & Resort Inc (a) | 1,087 | 48,720 | ||
Community Health Systems Inc (a) | 72,049 | 306,929 | |||||
$ | 3,734,223 | ||||||
Ensign Group Inc/The | 8,334 | 185,015 | |||||
Kindred Healthcare Inc | 38,316 | 371,665 | Machinery — Diversified — 1.06% | ||||
LHC Group Inc (a) | 7,226 | 442,592 | Alamo Group Inc | 4,419 | 498,773 | ||
Magellan Health Inc (a) | 7,216 | 696,705 | Altra Industrial Motion Corp | 11,313 | 570,175 | ||
National HealthCare Corp | 2,631 | 160,333 | Applied Industrial Technologies Inc | 17,419 | 1,186,234 | ||
Chart Industries Inc (a) | 8,454 | 396,155 | |||||
Providence Service Corp/The (a) | 2,553 | 151,495 | |||||
Ichor Holdings Ltd (a) | 16,552 | 407,179 | |||||
RadNet Inc (a) | 7,584 | 76,598 | |||||
Select Medical Holdings Corp (a) | 31,917 | 563,335 | Kadant Inc | 3,263 | 327,605 | ||
Surgery Partners Inc (a) | 9,688 | 117,225 | $ | 3,386,121 | |||
Teladoc Inc (a) | 30,808 | 1,073,659 | |||||
Media — 1.90% | |||||||
Tivity Health Inc (a) | 24,146 | 882,536 | |||||
Central European Media Enterprises Ltd, | |||||||
US Physical Therapy Inc | 2,695 | 194,579 | Class A (a) | 17,227 | 80,106 | ||
$ | 7,535,188 | EW Scripps Co/The Class A (a) | 13,888 | 217,069 | |||
Gray Television Inc (a) | 21,744 | 364,212 | |||||
Home Builders — 2.22% | |||||||
Cavco Industries Inc (a) | 1,995 | 304,437 | John Wiley & Sons Inc, Class A | 12,476 | 820,297 | ||
Installed Building Products Inc (a) | 7,243 | 550,106 | Meredith Corp | 17,477 | 1,154,356 | ||
KB Home | 91,008 | 2,907,705 | New York Times Co/The Class A | 47,323 | 875,475 | ||
LGI Homes Inc (a) | 14,887 | 1,116,972 | Sinclair Broadcast Group Inc, Class A | 46,457 | 1,758,397 | ||
MDC Holdings Inc | 36,861 | 1,175,113 | World Wrestling Entertainment Inc, Class A | 26,339 | 805,447 | ||
Winnebago Industries Inc | 19,176 | 1,066,186 | $ | 6,075,359 | |||
$ | 7,120,519 | Metal Fabrication & Hardware — 0.59% | |||||
Home Furnishings — 1.27% | Global Brass & Copper Holdings Inc | 5,605 | 185,526 | ||||
Hooker Furniture Corp | 1,863 | 79,085 | Mueller Industries Inc | 11,512 | 407,870 | ||
iRobot Corp (a) | 27,991 | 2,146,910 | Omega Flex Inc | 752 | 53,700 | ||
RBC Bearings Inc (a) | 6,540 | 826,656 | |||||
La-Z-Boy Inc | 17,776 | 554,611 | |||||
Sleep Number Corp (a) | 34,092 | 1,281,518 | Sun Hydraulics Corp | 6,611 | 427,666 | ||
$ | 4,062,124 | $ | 1,901,418 | ||||
Household Products/Wares — 0.25% | Mining — 0.42% | ||||||
Central Garden & Pet Co, Class A (a) | 6,881 | 259,483 | Kaiser Aluminum Corp | 11,154 | 1,191,805 | ||
Smart Sand Inc (a) | 18,167 | 157,326 | |||||
WD-40 Co | 4,554 | 537,372 | |||||
$ | 796,855 | $ | 1,349,131 | ||||
Insurance — 1.28% | Miscellaneous Manufacture — 2.66% | ||||||
American Equity Investment Life Holding Co | 58,622 | 1,801,454 | Barnes Group Inc | 24,063 | 1,522,466 | ||
Employers Holdings Inc | 9,614 | 426,862 | Chase Corp | 1,281 | 154,361 | ||
NMI Holdings Inc, Class A (a) | 32,299 | 549,083 | Harsco Corp (a) | 21,626 | 403,325 | ||
Selective Insurance Group Inc | 20,676 | 1,213,681 | Hillenbrand Inc | 14,841 | 663,393 | ||
Trupanion Inc (a) | 4,150 | 121,470 | John Bean Technologies Corp | 13,158 | 1,457,906 | ||
Proto Labs Inc (a) | 12,951 | 1,333,953 | |||||
$ | 4,112,550 | Raven Industries Inc | 8,743 | 300,322 | |||
Internet — 3.27% | Standex International Corp | 3,126 | 318,383 | ||||
Blucora Inc (a) | 21,437 | 473,758 | Trinseo SA | 32,700 | 2,374,020 | ||
Cogent Communications Holdings Inc | 24,492 | 1,109,487 | $ | 8,528,129 | |||
ePlus Inc (a) | 5,117 | 384,798 | |||||
Match Group Inc (a) | 78,225 | 2,449,225 | Office Furnishings — 0.65% | ||||
NIC Inc | 34,241 | 568,401 | Herman Miller Inc | 24,703 | 989,355 | ||
Quotient Technology Inc (a) | 11,473 | 134,808 | Interface Inc | 19,997 | 502,924 | ||
RingCentral Inc, Class A (a) | 35,342 | 1,710,553 | Kimball International Inc, Class B | 4,397 | 82,092 | ||
Stamps.com Inc (a) | 5,300 | 996,400 | Steelcase Inc, Class A | 34,398 | 522,850 | ||
Trade Desk Inc/The Class A (a) | 18,771 | 858,398 | $ | 2,097,221 | |||
Web.com Group Inc (a) | 17,349 | 378,208 | |||||
Oil & Gas — 2.88% | |||||||
Yelp Inc (a) | 33,416 | 1,402,135 | |||||
CVR Energy Inc | 16,417 | 611,369 | |||||
$ | 10,466,171 | Delek US Holdings Inc | 36,719 | 1,282,962 | |||
Diamond Offshore Drilling Inc (a) | 67,208 | 1,249,397 | |||||
Investment Companies — 0.34% | |||||||
Gulfport Energy Corp (a) | 114,483 | 1,460,803 | |||||
BBX Capital Corp | 19,536 | 155,702 | |||||
Matador Resources Co (a) | 41,976 | 1,306,713 | |||||
TPG Specialty Lending Inc | 46,948 | 929,570 | |||||
Par Pacific Holdings Inc (a) | 12,564 | 242,234 | |||||
$ | 1,085,272 | Ring Energy Inc (a) | 13,148 | 182,757 |
See accompanying notes.
56
Schedule of Investments Principal U.S. Small-Cap Multi-Factor Index ETF
December 31, 2017 (unaudited)
COMMON STOCKS (continued) | Shares Held | Value | COMMON STOCKS (continued) | Shares Held | Value | ||
Oil & Gas (continued) | Retail (continued) | ||||||
Southwestern Energy Co (a) | 359,026 | $ | 2,003,365 | Haverty Furniture Cos Inc | 2,027 | $ | 45,912 |
SRC Energy Inc (a) | 65,033 | 554,731 | Ollie’s Bargain Outlet Holdings Inc (a) | 22,069 | 1,175,174 | ||
Unit Corp (a) | 10,269 | 225,918 | PetMed Express Inc | 27,433 | 1,248,202 | ||
W&T Offshore Inc (a) | 32,710 | 108,270 | Pier 1 Imports Inc | 35,827 | 148,324 | ||
$ | 9,228,519 | Ruth’s Hospitality Group Inc | 7,616 | 164,886 | |||
Tailored Brands Inc | 23,795 | 519,445 | |||||
Oil & Gas Services — 0.99% | Wingstop Inc | 14,574 | 568,095 | ||||
Archrock Inc | 15,658 | 164,409 | |||||
Basic Energy Services Inc (a) | 9,041 | 212,192 | $ | 20,994,452 | |||
Exterran Corp (a) | 6,798 | 213,729 | Savings & Loans — 0.91% | ||||
Key Energy Services Inc (a) | 3,494 | 41,194 | Meridian Bancorp Inc | 20,552 | 423,371 | ||
McDermott International Inc (a) | 100,894 | 663,883 | Northfield Bancorp Inc | 11,618 | 198,435 | ||
MRC Global Inc (a) | 41,309 | 698,949 | Washington Federal Inc | 47,328 | 1,620,984 | ||
Newpark Resources Inc (a) | 17,885 | 153,811 | Waterstone Financial Inc | 9,577 | 163,288 | ||
Oceaneering International Inc | 48,686 | 1,029,222 | WSFS Financial Corp | 10,822 | 517,833 | ||
$ | 3,177,389 | $ | 2,923,911 | ||||
Pharmaceuticals — 1.29% | Semiconductors — 2.50% | ||||||
Anika Therapeutics Inc (a) | 4,494 | 242,272 | Axcelis Technologies Inc (a) | 13,101 | 375,999 | ||
Antares Pharma Inc (a) | 49,772 | 99,046 | AXT Inc (a) | 16,658 | 144,924 | ||
Calithera Biosciences Inc (a) | 11,928 | 99,599 | Brooks Automation Inc | 25,587 | 610,250 | ||
Corcept Therapeutics Inc (a) | 29,851 | 539,109 | Cabot Microelectronics Corp | 11,629 | 1,094,056 | ||
Eagle Pharmaceuticals Inc (a) | 8,917 | 476,346 | CEVA Inc (a) | 9,712 | 448,209 | ||
MyoKardia Inc (a) | 4,039 | 170,042 | Cohu Inc | 9,119 | 200,162 | ||
Natural Health Trends Corp | 1,842 | 27,980 | FormFactor Inc (a) | 30,443 | 476,433 | ||
Neogen Corp (a) | 6,577 | 540,695 | Nanometrics Inc (a) | 11,039 | 275,092 | ||
Owens & Minor Inc | 48,057 | 907,316 | Power Integrations Inc | 13,694 | 1,007,194 | ||
Phibro Animal Health Corp, Class A | 8,302 | 278,117 | Rudolph Technologies Inc (a) | 12,030 | 287,517 | ||
Supernus Pharmaceuticals Inc (a) | 19,173 | 764,044 | Semtech Corp (a) | 32,776 | 1,120,939 | ||
Silicon Laboratories Inc (a) | 13,998 | 1,236,023 | |||||
$ | 4,144,566 | ||||||
Ultra Clean Holdings Inc (a) | 31,618 | 730,060 | |||||
Pipelines — 0.36% | |||||||
SemGroup Corp, Class A | 38,017 | 1,148,113 | $ | 8,006,858 | |||
Software — 2.65% | |||||||
Real Estate — 0.17% | 2U Inc (a) | 22,648 | 1,461,022 | ||||
Maui Land & Pineapple Co Inc (a) | 4,250 | 73,525 | |||||
CommerceHub Inc, Series C (a) | 16,966 | 349,330 | |||||
RE/MAX Holdings Inc, Class A | 6,466 | 313,601 | |||||
CSG Systems International Inc | 16,081 | 704,669 | |||||
RMR Group Inc/The, Class A | 2,838 | 168,293 | |||||
Ebix Inc | 9,122 | 722,918 | |||||
$ | 555,419 | HubSpot Inc (a) | 14,599 | 1,290,552 | |||
REITs — 7.17% | Omnicell Inc (a) | 9,427 | 457,210 | ||||
AG Mortgage Investment Trust Inc | 36,632 | 696,374 | Progress Software Corp | 38,835 | 1,653,206 | ||
Alexander’s Inc | 1,318 | 521,730 | RealPage Inc (a) | 37,003 | 1,639,233 | ||
Anworth Mortgage Asset Corp | 118,800 | 646,272 | Simulations Plus Inc | 3,367 | 54,209 | ||
Apollo Commercial Real Estate Finance Inc | 121,125 | 2,234,756 | Upland Software Inc (a) | 8,176 | 177,092 | ||
Arbor Realty Trust Inc | 58,377 | 504,377 | $ | 8,509,441 | |||
ARMOUR Residential REIT Inc | 81,670 | 2,100,552 | |||||
Telecommunications — 1.60% | |||||||
Blackstone Mortgage Trust Inc, Class A | 70,792 | 2,278,087 | |||||
ADTRAN Inc | 20,372 | 394,198 | |||||
CareTrust REIT Inc | 79,364 | 1,330,141 | |||||
Comtech Telecommunications Corp | 6,553 | 144,953 | |||||
Cherry Hill Mortgage Investment Corp | 26,556 | 477,742 | Extreme Networks Inc (a) | 63,675 | 797,211 | ||
CorEnergy Infrastructure Trust Inc | 8,428 | 321,950 | GTT Communications Inc (a) | 22,019 | 1,033,792 | ||
EastGroup Properties Inc | 24,909 | 2,201,457 | Iridium Communications Inc (a) | 49,574 | 584,973 | ||
Invesco Mortgage Capital Inc | 128,053 | 2,283,185 | |||||
Plantronics Inc | 9,869 | 497,200 | |||||
Potlatch Corp | 33,530 | 1,673,147 | |||||
Telephone & Data Systems Inc | 60,386 | 1,678,731 | |||||
Redwood Trust Inc | 75,885 | 1,124,616 | |||||
Ryman Hospitality Properties Inc | 26,441 | 1,824,958 | $ | 5,131,058 | |||
Terreno Realty Corp | 60,644 | 2,126,179 | Transportation — 0.31% | ||||
Universal Health Realty Income Trust | 8,327 | 625,441 | CryoPort Inc (a) | 5,544 | 47,623 | ||
$ | 22,970,964 | Forward Air Corp | 12,961 | 744,480 | |||
Marten Transport Ltd | 9,873 | 200,422 | |||||
Retail — 6.55% | |||||||
Bassett Furniture Industries Inc | 1,254 | 47,150 | $ | 992,525 | |||
Big 5 Sporting Goods Corp | 24,534 | 186,458 | Trucking & Leasing — 0.92% | ||||
Big Lots Inc | 40,977 | 2,300,859 | GATX Corp | 23,519 | 1,461,941 | ||
Bloomin’ Brands Inc | 54,929 | 1,172,185 | Greenbrier Cos Inc/The | 27,628 | 1,472,572 | ||
Cheesecake Factory Inc/The | 52,094 | 2,509,889 | |||||
Chico’s FAS Inc | 74,528 | 657,337 | $ | 2,934,513 | |||
Children’s Place Inc/The | 15,098 | 2,194,494 | |||||
Conn’s Inc (a) | 7,036 | 250,130 | TOTAL COMMON STOCKS | $ | 319,752,128 | ||
Dave & Buster’s Entertainment Inc (a) | 30,183 | 1,665,196 | Total Investments | $ | 319,752,128 | ||
FirstCash Inc | 34,736 | 2,342,943 | Other Assets and Liabilities — 0.25% | $ | 795,816 | ||
Five Below Inc (a) | 30,585 | 2,028,397 | TOTAL NET ASSETS — 100% | $ | 320,547,944 | ||
Francesca’s Holdings Corp (a) | 26,424 | 193,159 | |||||
GMS Inc (a) | 27,684 | 1,042,026 | |||||
(a) Non-income producing security | |||||||
Group 1 Automotive Inc | 7,527 | 534,191 |
See accompanying notes.
57
Schedule of Investments | ||
Principal U.S. Small-Cap Multi-Factor Index ETF | ||
December 31, 2017 (unaudited) | ||
Portfolio Summary (unaudited) | ||
Sector | Percent | |
Financial | 22.31 | % |
Consumer, Non-cyclical | 20.97 | % |
Consumer, Cyclical | 16.22 | % |
Industrial | 14.90 | % |
Technology | 8.17 | % |
Communications | 6.76 | % |
Energy | 4.65 | % |
Basic Materials | 3.64 | % |
Utilities | 2.13 | % |
Other Assets and Liabilities | 0.25 | % |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
58
Financial Highlights | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Active Global Dividend ETF | ||||||
For a share outstanding for the period ended June 30 (except as noted): | ||||||
Period ended | Period ended | |||||
December 31, 2017 (b) | June 30, 2017 (a) | |||||
Net asset value, beginning of period | $ | 25.36 | $ | 25.00 | ||
Investment Operations: | ||||||
Net investment income (loss) (c) | 0.25 | 0.17 | ||||
Net realized and change in unrealized gain (loss) | 2.73 | 0.19 | ||||
Total from investment operations | 2.98 | 0.36 | ||||
Dividends and Distributions to Shareholders from: | ||||||
Net investment income | (0.37 | ) | — | |||
Net realized gains | (0.13 | ) | — | |||
Total dividends and distributions to stockholders | (0.50 | ) | — | |||
Net asset value, end of period | $ | 27.84 | $ | 25.36 | ||
Total Return: (d) | 11.85 | % | 1.43 | % | ||
Ratios/Supplemental Data: | ||||||
Net assets, end of period (000s) | $ | 626,422 | $ | 428,567 | ||
Ratio of expenses to average net assets (e) | 0.58 | % | 0.58 | % | ||
Ratio of net investment income (loss) to average net assets (e) | 1.89 | % | 4.56 | % | ||
Portfolio turnover rate (e)(f) | 21.5 | % | 0.0 | % |
(a) | Period from May 9, 2017, date operations commenced, through June 30, 2017. |
(b) | Six months ended December 31, 2017. |
(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.
59
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 | |||
December 31, 2017 (a) | |||
Net asset value, beginning of period | $ | 25.00 | |
Investment Operations: | |||
Net investment income (loss) (b) | 0.12 | ||
Net realized and change in unrealized gain (loss) | 1.25 | ||
Total from investment operations | 1.37 | ||
Dividends and Distributions to Shareholders from: | |||
Net investment income | (0.11 | ) | |
Total dividends and distributions to stockholders | (0.11 | ) | |
Net asset value, end of period | $ | 26.26 | |
Total Return: (c) | 5.48 | % | |
Ratios/Supplemental Data: | |||
Net assets, end of period (000s) | $ | 3,938 | |
Ratio of expenses to average net assets (d) | 0.29 | % | |
Ratio of net investment income (loss) to average net assets (d) | 2.19 | % | |
Portfolio turnover rate (d)(e) | 1.7 | % |
(a) | Period from October 18, 2017, date operations commenced, through December 31, 2017. |
(b) | Calculated on average shares outstanding during the period. |
(c) | Total return amounts have not been annualized. |
(d) | Computed on an annualized basis. |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
60
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 | Period ended | |||||||
December 31, 2017 (b) | June 30, 2017 | June 30, 2016 (a) | |||||||
Net asset value, beginning of period | $ | 41.31 | $ | 39.12 | $ | 40.00 | |||
Investment Operations: | |||||||||
Net investment income (loss) (c) | 0.95 | 1.95 | 2.13 | ||||||
Net realized and change in unrealized gain (loss) | 0.50 | 2.22 | (1.39 | ) | |||||
Total from investment operations | 1.45 | 4.17 | 0.74 | ||||||
Dividends and Distributions to Shareholders from: | |||||||||
Net investment income | (1.11 | ) | (1.98 | ) | (1.62 | ) | |||
Net realized gains | (0.45 | ) | — | — | |||||
Total dividends and distributions to stockholders | (1.56 | ) | (1.98 | ) | (1.62 | ) | |||
Net asset value, end of period | $ | 41.20 | $ | 41.31 | $ | 39.12 | |||
Total Return: | 3.52 | % (d) | 10.92 | % | 2.13 | % (d) | |||
Ratios/Supplemental Data: | |||||||||
Net assets, end of period (000s) | $ | 291,457 | $ | 286,084 | $ | 265,013 | |||
Ratio of expenses to average net assets (e) | 0.65 | % (f) | 0.77 | % | 0.85 | % (f) | |||
Ratio of gross expenses to average net assets | 0.72 | % (f) | 0.80 | % | 1.34 | % (f) | |||
Ratio of net investment income (loss) to average net assets | 4.54 | % (f) | 4.82 | % | 5.99 | % (f) | |||
Portfolio turnover rate (g) | 11.8 | % (f) | 30.7 | % | 34.3 | % (f) |
(a) | Period from July 8, 2015, date operations commenced, through June 30, 2016. |
(b) | Six months ended December 31, 2017. |
(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.
61
Financial Highlights | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Healthcare Innovators Index ETF | ||||||
For a share outstanding for the period ended June 30 (except as noted): | ||||||
Period ended | Period ended | |||||
December 31, 2017 (b) | June 30, 2017 (a) | |||||
Net asset value, beginning of period | $ | 28.56 | $ | 25.00 | ||
Investment Operations: | ||||||
Net investment (loss) (c) | (0.06 | ) | (0.08 | ) | ||
Net realized and change in unrealized gain (loss) | 2.82 | 3.64 | ||||
Total from investment operations | 2.76 | 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 | $ | 31.27 | $ | 28.56 | ||
Total Return: (d) | 9.67 | % | 14.24 | % | ||
Ratios/Supplemental Data: | ||||||
Net assets, end of period (000s) | $ | 48,468 | $ | 7,140 | ||
Ratio of expenses to average net assets (e) | 0.42 | % | 0.42 | % | ||
Ratio of net investment loss to average net assets (e) | (0.40 | )% | (0.32 | )% | ||
Portfolio turnover rate (e)(f) | 18.1 | % | 18.2 | % |
(a) | Period from August 19, 2016, date operations commenced, through June 30, 2017. |
(b) | Six months ended December 31, 2017. |
(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.
62
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 | |||
December 31, 2017 (a) | |||
Net asset value, beginning of period | $ | 100.00 | |
Investment Operations: | |||
Net investment income (loss) (b) | 0.14 | ||
Net realized and change in unrealized gain (loss) | 1.52 | ||
Total from investment operations | 1.66 | ||
Dividends and Distributions to Shareholders from: | |||
Net investment income | (0.15 | ) | |
Total dividends and distributions to stockholders | (0.15 | ) | |
Net asset value, end of period | $ | 101.51 | |
Total Return: (c) | 1.67 | % | |
Ratios/Supplemental Data: | |||
Net assets, end of period (000s) | $ | 15,227 | |
Ratio of expenses to average net assets (d) | 0.39 | % | |
Ratio of net investment income (loss) to average net assets (d) | 0.94 | % | |
Portfolio turnover rate (d)(e) | 14.9 | % |
(a) | Period from November 8, 2017, date operations commenced, through December 31, 2017. |
(b) | Calculated on average shares outstanding during the period. |
(c) | Total return amounts have not been annualized. |
(d) | Computed on an annualized basis. |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
63
Financial Highlights | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Millennials Index ETF | ||||||
For a share outstanding for the period ended June 30 (except as noted): | ||||||
Period ended | Period ended | |||||
December 31, 2017 (b) | June 30, 2017 (a) | |||||
Net asset value, beginning of period | $ | 28.92 | $ | 25.00 | ||
Investment Operations: | ||||||
Net investment income (loss) (c) | 0.06 | 0.17 | ||||
Net realized and change in unrealized gain (loss) | 5.61 | 3.87 | ||||
Total from investment operations | 5.67 | 4.04 | ||||
Dividends and Distributions to Shareholders from: | ||||||
Net investment income | (0.19 | ) | (0.09 | ) | ||
Net realized gains | (0.07 | ) | (0.03 | ) | ||
Total dividends and distributions to stockholders | (0.26 | ) | (0.12 | ) | ||
Net asset value, end of period | $ | 34.33 | $ | 28.92 | ||
Total Return: (d) | 19.71 | % | 16.23 | % | ||
Ratios/Supplemental Data: | ||||||
Net assets, end of period (000s) | $ | 10,298 | $ | 7,230 | ||
Ratio of expenses to average net assets (e) | 0.45 | % | 0.45 | % | ||
Ratio of net investment income (loss) to average net assets (e) | 0.38 | % | 0.71 | % | ||
Portfolio turnover rate (f) | 16.8% | (e) | 5.1 | % |
(a) | Period from August 19, 2016, date operations commenced, through June 30, 2017. |
(b) | Six months ended December 31, 2017. |
(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.
64
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 | Period ended | ||||||
December 31, 2017 (b) | June 30, 2017 | June 30, 2016 (a) | ||||||
Net asset value, beginning of period | $ | 29.03 | $ | 26.08 | $ | 25.00 | ||
Investment Operations: | ||||||||
Net investment income (loss) (c) | 0.20 | 0.34 | 0.09 | |||||
Net realized and change in unrealized gain (loss) | 3.06 | 3.06 | 0.99 | |||||
Total from investment operations | 3.26 | 3.40 | 1.08 | |||||
Dividends and Distributions to Shareholders from: | ||||||||
Net investment income | (0.18 | ) | (0.39 | ) | — | |||
Net realized gains | (0.03 | ) | (0.06 | ) | — | |||
Total dividends and distributions to stockholders | (0.21 | ) | (0.45 | ) | — | |||
Net asset value, end of period | $ | 32.08 | $ | 29.03 | $ | 26.08 | ||
Total Return: | 11.23 | % | (d) | 13.23 | % | 4.31% (d) | ||
Ratios/Supplemental Data: | ||||||||
Net assets, end of period (000s) | $ | 22,453 | $7,257 | $ | 6,519 | |||
Ratio of expenses to average net assets | 0.29% | (e) | (f) | 0.40 | % | 0.40% (e) | ||
Ratio of gross expenses to average net assets | 0.40% (e) | 0.40 | % | 0.40% (e) | ||||
Ratio of net investment income (loss) to average net assets | 1.33% (e) | 1.26 | % | 1.32% (e) | ||||
Portfolio turnover rate (g) | 3.3% (e) | 2.0 | % | 0.0% (e) |
(a) | Period from March 21, 2016, date operations commenced, through June 30, 2016. |
(b) | Six months ended December 31, 2017. |
(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.
65
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 | Period ended | |||||||
December 31, 2017 (b) | June 30, 2017 | June 30, 2016 (a) | |||||||
Net asset value, beginning of period | $ | 29.16 | $ | 24.65 | $ | 25.00 | |||
Investment Operations: | |||||||||
Net investment income (loss) (c) | 0.29 | 0.54 | 0.18 | ||||||
Net realized and change in unrealized gain (loss) | 3.36 | 4.67 | (0.53 | ) | |||||
Total from investment operations | 3.65 | 5.21 | (0.35 | ) | |||||
Dividends and Distributions to Shareholders from: | |||||||||
Net investment income | (0.35 | ) | (0.67 | ) | — | ||||
Net realized gains | (0.02 | ) | (0.03 | ) | — | ||||
Total dividends and distributions to stockholders | (0.37 | ) | (0.70 | ) | — | ||||
Net asset value, end of period | $ | 32.44 | $ | 29.16 | $ | 24.65 | |||
Total Return: | 12.58% (d) | 21.42 | % | (1.39 | )% (d) | ||||
Ratios/Supplemental Data: | |||||||||
Net assets, end of period (000s) | $ | 8,111 | $ | 7,290 | $ | 6,163 | |||
Ratio of expenses to average net assets | 0.29% (e)(f) | 0.40 | % | 0.40 | % (e) | ||||
Ratio of gross expenses to average net assets | 0.40% (e) | 0.40 | % | 0.40 | % (e) | ||||
Ratio of net investment income (loss) to average net assets | 1.91% (e) | 1.98 | % | 2.73 | % (e) | ||||
Portfolio turnover rate (g) | 2.1% (e) | 3.0 | % | 7.1 | % (e) |
(a) | Period from March 21, 2016, date operations commenced, through June 30, 2016. |
(b) | Six months ended December 31, 2017. |
(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.
66
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 | |||
December 31, 2017 (a) | |||
Net asset value, beginning of period | $ | 100.00 | |
Investment Operations: | |||
Net investment income (loss) (b) | 2.27 | ||
Net realized and change in unrealized gain (loss) | (0.27 | ) | |
Total from investment operations | 2.00 | ||
Dividends and Distributions to Shareholders from: | |||
Net investment income | (2.33 | ) | |
Net realized gains | (0.02 | ) | |
Total dividends and distributions to stockholders | (2.35 | ) | |
Net asset value, end of period | $ | 99.65 | |
Total Return: (c) | 2.03 | % | |
Ratios/Supplemental Data: | |||
Net assets, end of period (000s) | $ | 34,879 | |
Ratio of expenses to average net assets (d) | 0.55 | % | |
Ratio of net investment income (loss) to average net assets (d) | 4.74 | % | |
Portfolio turnover rate (d)(e) | 40.8 | % |
(a) | Period from July 7, 2017, date operations commenced, through December 31, 2017. |
(b) | Calculated on average shares outstanding during the period. |
(c) | Total return amounts have not been annualized. |
(d) | Computed on an annualized basis. |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
67
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 | |||
December 31, 2017 (a) | |||
Net asset value, beginning of period | $ | 25.00 | |
Investment Operations: | |||
Net investment income (loss) (b) | 0.08 | ||
Net realized and change in unrealized gain (loss) | 1.07 | ||
Total from investment operations | 1.15 | ||
Dividends and Distributions to Shareholders from: | |||
Net investment income | (0.08 | ) | |
Total dividends and distributions to stockholders | (0.08 | ) | |
Net asset value, end of period | $ | 26.07 | |
Total Return: (c) | 4.59 | % | |
Ratios/Supplemental Data: | |||
Net assets, end of period (000s) | $ | 3,910 | |
Ratio of expenses to average net assets (d) | 0.29 | % | |
Ratio of net investment income (loss) to average net assets (d) | 1.50 | % | |
Portfolio turnover rate (d)(e) | 0.5 | % |
(a) | Period from October 18, 2017, date operations commenced, through December 31, 2017. |
(b) | Calculated on average shares outstanding during the period. |
(c) | Total return amounts have not been annualized. |
(d) | Computed on an annualized basis. |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
68
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 | |||
December 31, 2017 (a) | |||
Net asset value, beginning of period | $ | 25.00 | |
Investment Operations: | |||
Net investment income (loss) (b) | 0.12 | ||
Net realized and change in unrealized gain (loss) | 1.07 | ||
Total from investment operations | 1.19 | ||
Dividends and Distributions to Shareholders from: | |||
Net investment income | (0.06 | ) | |
Total dividends and distributions to stockholders | (0.06 | ) | |
Net asset value, end of period | $ | 26.13 | |
Total Return: (c) | 4.76 | % | |
Ratios/Supplemental Data: | |||
Net assets, end of period (000s) | $ | 792,991 | |
Ratio of expenses to average net assets (d)(e) | 0.12 | % | |
Ratio of gross expenses to average net assets (d) | 0.15 | % | |
Ratio of net investment income (loss) to average net assets (d) | 2.07 | % | |
Portfolio turnover rate (d)(f) | 38.5 | % |
(a) | Period from October 11, 2017, date operations commenced, through December 31, 2017. |
(b) | Calculated on average shares outstanding during the period. |
(c) | Total return amounts have not been annualized. |
(d) | Computed on an annualized basis. |
(e) | Includes Reimbursements from the Manager |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See accompanying notes.
69
Financial Highlights | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal U.S. Small Cap Multi-Factor Index ETF (a) | ||||||
For a share outstanding for the period ended June 30 (except as noted): | ||||||
Period ended | Period ended | |||||
December 31, 2017 (c) | June 30, 2017 (b) | |||||
Net asset value, beginning of period | $ | 28.84 | $ | 25.00 | ||
Investment Operations: | ||||||
Net investment income (loss) (d) | 0.16 | 0.26 | ||||
Net realized and change in unrealized gain (loss) | 2.20 | 3.75 | ||||
Total from investment operations | 2.36 | 4.01 | ||||
Dividends and Distributions to Shareholders from: | ||||||
Net investment income | (0.21 | ) | (0.17 | ) | ||
Net realized gains | (0.02 | ) | — | |||
Total dividends and distributions to stockholders | (0.23 | ) | (0.17 | ) | ||
Net asset value, end of period | $ | 30.97 | $ | 28.84 | ||
Total Return: (e) | 8.19 | % | 16.08 | % | ||
Ratios/Supplemental Data: | ||||||
Net assets, end of period (000s) | $ | 320,548 | $ | 275,466 | ||
Ratio of expenses to average net assets (f) | 0.38 | % | 0.38 | % | ||
Ratio of net investment income (loss) to average net assets (f) | 1.04 | % | 1.21 | % | ||
Portfolio turnover rate (f)(g) | 77.4 | % | 44.7 | % |
(a) | Effective October 27, 2017, Principal U.S. Small Cap Index ETF changed its name to 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, 2017. |
(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.
70
Shareholder Expense Example
Principal Exchange-Traded Funds
December 31, 2017 (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; in the case of Principal EDGE Active Income ETF, other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds 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, 2017 through December 31, 2017, except as footnoted in the table below.
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 Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
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 funds. In addition, if these transaction costs were included, your costs would have been higher.
Annualized | ||||||||
Beginning | Ending | Expense | Expenses Paid | |||||
Account Value | Account Value | Ratio | During Period | |||||
Principal Active Global Dividend Income ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 1,118.50 | 0.58 | % | $ | 3.10 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,022.28 | 0.58 | % | $ | 2.96 |
Principal Contrarian Value Index ETF (a) | ||||||||
Actual Fund Return | $ | 1,000 | $ | 1,054.80 | 0.29 | % | $ | 0.60 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,009.55 | 0.29 | % | $ | 0.59 |
Principal EDGE Active Income ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 1,035.20 | 0.65 | % | $ | 3.33 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,021.93 | 0.65 | % | $ | 3.31 |
Principal Healthcare Innovators Index ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 1,096.70 | 0.42 | % | $ | 2.22 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,023.09 | 0.42 | % | $ | 2.14 |
Principal International Multi-Factor Index ETF (b) | ||||||||
Actual Fund Return | $ | 1,000 | $ | 1,016.70 | 0.39 | % | $ | 0.57 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,006.69 | 0.39 | % | $ | 0.57 |
Principal Millennials Index ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 1,197.10 | 0.45 | % | $ | 2.49 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,022.94 | 0.45 | % | $ | 2.29 |
Principal Price Setters Index ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 1,112.30 | 0.29 | % | $ | 1.54 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,023.74 | 0.29 | % | $ | 1.48 |
Principal Shareholder Yield Index ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 1,125.80 | 0.29 | % | $ | 1.55 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,023.74 | 0.29 | % | $ | 1.48 |
71
Shareholder Expense Example | ||||||||
Principal Exchange-Traded Funds | ||||||||
December 31, 2017 (unaudited) | ||||||||
Annualized | ||||||||
Beginning | Ending | Expense | Expenses Paid | |||||
Account Value | Account Value | Ratio | During Period | |||||
Principal Spectrum Preferred Securities Active ETF (c) | ||||||||
Actual Fund Return | $ | 1,000 | $ | 1,020.30 | 0.55 | % | $ | 2.66 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,021.34 | 0.55 | % | $ | 2.67 |
Principal Sustainable Momentum Index ETF (a) | ||||||||
Actual Fund Return | $ | 1,000 | $ | 1,045.90 | 0.29 | % | $ | 0.60 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,009.55 | 0.29 | % | $ | 0.59 |
Principal U.S. Mega-Cap Multi-Factor Index ETF (d) | ||||||||
Actual Fund Return | $ | 1,000 | $ | 1,047.60 | 0.12 | % | $ | 0.27 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,010.83 | 0.12 | % | $ | 0.27 |
Principal U.S. Small-Cap Multi-Factor Index ETF | ||||||||
Actual Fund Return | $ | 1,000 | $ | 1,081.90 | 0.38 | % | $ | 1.99 |
Hypothetical 5% Annual Return | $ | 1,000 | $ | 1,023.29 | 0.38 | % | $ | 1.94 |
(a) | The Fund commenced operations on October 18, 2017. Expenses are equal to the Fund’s annualized expense ratio for the period, multiplied by the average account value over the period, multiplied by the number of days since inception (74), then divided by the number of days in the year (365) to reflect the period. |
(b) | The Fund commenced operations on November 8, 2017. Expenses are equal to the Fund’s annualized expense ratio for the period, multiplied by the average account value over the period, multiplied by the number of days since inception (53), then divided by the number of days in the year (365) to reflect the period. |
(c) | The Fund commenced operations on July 7, 2017. Expenses are equal to the Fund’s annualized expense ratio for the period, multiplied by the average account value over the period, multiplied by the number of days since inception (175), then divided by the number of days in the year (365) to reflect the period. |
(d) | The Fund commenced operations on October 11, 2017. Expenses are equal to the Fund’s annualized expense ratio for the period, multiplied by the average account value over the period, multiplied by the number of days since inception (81), then divided by the number of days in the year (365) to reflect the period. |
72
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 2017 and December 2017 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 2017 | |||||||
Fund | Net Income | Realized Gain | Capital Sources | ||||
Principal Millennials Index ETF | 55.92 | % | 44.08 | % | 0.00 | % | |
December 2017 | |||||||
Fund | Net Income | Realized Gain | Capital Sources | ||||
Principal Contrarian Value Index ETF | 99.80 | % | 0.20 | % | 0.00 | % | |
Principal International Multi-Factor Index ETF | 88.94 | 0.00 | 11.06 | ||||
Principal Millennials Index ETF | 0.00 | 100.00 | 0.00 | ||||
Principal Spectrum Preferred Securities Active ETF | 92.12 | 0.00 | 7.88 | ||||
Principal Sustainable Momentum Index ETF | 97.57 | 2.43 | 0.00 | ||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 97.30 | 2.70 | 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.
73
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 | 134 | Durango Herald, Inc; |
Trustee since 2014 | McClatchy | ||
Member, Nominating and Governance | Newspapers, Inc. | ||
Committee | |||
1948 | |||
Leroy T. Barnes, Jr. | Retired. | 134 | McClatchy |
Trustee since 2014 | Newspapers, Inc.; | ||
Member, Audit Committee | Herbalife Ltd.; Frontier | ||
1951 | Communications, Inc. | ||
Craig Damos | President, The Damos Company | 134 | Hardin Construction |
Trustee since 2014 | |||
Member, Audit Committee | |||
Member, 15(c) Committee | |||
1954 | |||
Mark A. Grimmett | Formerly, Executive Vice President | 134 | None |
Trustee since 2014 | and CFO, Merle Norman | ||
Member, Nominating and Governance | Cosmetics, Inc. | ||
Committee | |||
Member, 15(c) Committee | |||
Member, Executive Committee | |||
1960 | |||
Fritz S. Hirsch | Formerly, CEO, MAM USA | 134 | Focus Products Group; |
Trustee since 2014 | MAM USA | ||
Member, Operations Committee | |||
Member, 15(c) Committee | |||
1951 | |||
Tao Huang | Retired. | 134 | Armstrong World |
Trustee since 2014 | Industries, Inc. | ||
Member, Operations Committee | |||
Member, 15(c) Committee | |||
1962 | |||
Karen (“Karrie”) McMillan | Managing Director, Patomak Global | 134 | None |
Trustee since 2014 | Partners, LLC. Formerly, General | ||
Member, Operations Committee | Counsel, Investment Company | ||
1961 | Institute | ||
Elizabeth A. Nickels | Formerly, Executive Director, | 134 | Charlotte Russe; Follet |
Trustee since 2015 | Herman Miller Foundation; | Corporation; PetSmart; | |
Member, Audit Committee | Formerly President, Herman Miller | SpartanNash; | |
1962 | Healthcare | Spectrum Health | |
Systems |
74
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 | 134 | None |
Trustee since 2013 | Funds Distributor, Inc. (“PFD”) since | ||
President, Chief Executive Officer | 2015 | ||
Member, Executive Committee | Executive Director — Funds, Principal | ||
1961 | 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 | |||
Nora M. Everett | Director, Finisterre Capital LLP since | 134 | None |
Trustee since 2013 | 2011 | ||
Chair | Director, Origin Asset Management | ||
Member, Executive Committee | LLP since 2011 | ||
1959 | 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, | 134 | None |
Trustee since 2017 | Inc. (“Morley”) since 2017 | ||
Member, Executive Committee | Chair, Post Advisory Group, LLC | ||
1959 | (“Post”) since 2017 | ||
Chief Operating Officer, PGI since 2017 | |||
Director, PGI since 2003 | |||
Chair, PREI since 2004 | |||
Chief Executive Officer, 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, IA 50392.
75
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 | Assistant Counsel (2010-2017) | |
Vice President, Counsel and Assistant | Counsel, PFD (2009-2013) | |
Secretary | Counsel, PLIC | |
Des Moines, IA 50392 | Counsel, PMC (2009-2013, 2014-2017) | |
1973 | 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) | ||
Ashley Fuhrmeister | Council, PLIC since 2017 | |
Assistant Counsel | Prior thereto, Attorney in Private Practice | |
Des Moines, IA 50392 | ||
1982 | ||
Gina L. Graham | Vice President/Treasurer, PFA since 2016 | |
Treasurer | Vice President/Treasurer, PFD since 2016 | |
Des Moines, IA 50392 | Vice President/Treasurer, PGI since 2016 | |
1965 | 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 | ||
Layne A. Rasmussen | Vice President/Controller, PMC | |
Vice President | ||
Des Moines, IA 50392 | ||
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 | ||
Greg Reymann | Assistant General Counsel, PLIC since 2014 | |
Assistant Counsel | Assistant General Counsel, PMC(2015-2017) | |
Des Moines, IA 50392 | VP, Chief Compliance Officer and Chief Risk Officer, | |
1958 | Transamerica Asset Management, Inc. (“TAM”) (2010-2012) | |
Assistant General Counsel, Transamerica Asset Management | ||
Group (2013-2014) | ||
Vice President/CFTC Principal, TAM (2013-2014) | ||
Teri R. Root | Deputy Chief Compliance Officer, PGI since 2017 | |
Interim Chief Compliance Officer | Vice President and Chief Compliance Officer, PMC (2015- | |
Des Moines, IA 50392 | 2017 | ) |
1979 | Compliance Officer, PMC (2010-2013) | |
Vice President, PSS since 2015 |
76
Name, | |
Position Held with the Trust, | Principal Occupation(s) |
Address, and Year of Birth | During past 5 years |
Britney L. Schnathorst | Counsel, PLIC since 2013 |
Assistant Counsel and Assistant | Prior thereto, Attorney in Private Practice |
Secretary | |
Des Moines, IA 50392 | |
1981 | |
Adam U. Shaikh | Counsel, PFD (2006-2013) |
Assistant Counsel | Counsel, PLIC |
Des Moines, IA 50392 | Counsel, PMC (2007-2013, 2014-2017) |
1972 | Counsel, PSI (2007-2013) |
Counsel, PSS (2007-2013) | |
Dan Westholm | Assistant Vice President/Treasury, PFA since 2013 |
Assistant Treasurer | Director — Treasury, PFA (2011-2013) |
Des Moines, IA 50392 | Assistant Vice President/Treasury, PFD since 2013 |
1966 | 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 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) |
Associate General Counsel, AEGON (2003-2012) | |
Jared Yepsen | Counsel, PGI since 2017 |
Assistant Tax Counsel | Counsel, PLIC since 2015 |
Des Moines, IA 50392 | Senior Attorney, Transamerica Life Insurance Company |
1981 | (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.
Additional information about the Trust is available in the Prospectuses dated November 1, 2017, and the Statements of Additional Information dated November 1, 2017. 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.
77
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.
78
Board Consideration of Investment Advisory Contracts
During the period covered by this report, the Board of Trustees of Principal Exchange-Traded Funds (“PETF”) approved: (1) a management agreement between PETF and Principal Global Investors, LLC (“PGI” or “Manager”) and a subadvisory agreement between PGI and Spectrum Asset Management, Inc. related to the addition of the Principal Spectrum Preferred Securities Active Exchange-Traded Fund; (2) a management agreement between PETF and PGI related to the addition of Principal U.S. Mega-Cap Multi-Factor Index Exchange-Traded Fund, Principal Contrarian Value Index Exchange-Traded Fund, Principal Sustainable Momentum Index Exchange-Traded Fund, and the Principal International Multi-Factor Index Exchange-Traded Fund; and (3) the annual review and renewal of the Management Agreement and various subadvisory agreements for all series of the PETF Funds.
On May 1, 2017, each of Principal Management Corporation (“PMC”) and Edge Asset Management Inc. (“Edge”), each an affiliate of PGI, merged with and into PGI. Prior to May 1, 2017, PMC served as the investment adviser to the Funds and PGI and Edge served as subadvisers to certain of the Funds. References herein to the “Manager” mean PMC for periods prior to May 1, 2017 and PGI for periods on and after May 1, 2017.
Management Agreement and Subadvisory Agreement for Principal Spectrum Preferred Securities Active ETF
On June 13, 2017, the Board considered, on behalf of the newly established Principal Spectrum Preferred Securities Active ETF series of PETF (the “Fund”), the approval of: (1) a management agreement (the “Management Agreement”) between PETF, for the Fund, and the Manager and (2) a subadvisory agreement (the “Subadvisory Agreement”) between the Manager and Spectrum Asset Management, Inc. (the “Subadvisor”). (The Management Agreement and the Subadvisory Agreement are together referred to as the “Advisory Agreements.”)
Based upon their review, the Board concluded that it was in the best interests of the Fund to approve the Advisory Agreements. In reaching this conclusion, no single factor was determinative in the Board’s analysis, but rather the Board considered a variety of factors.
With respect to the Management Agreement, the Board considered, among other factors, that the Manager serves as the investment adviser to the existing PETF series, that the Manager and PMC, the previous investment adviser to the Principal Funds (as defined below), which merged with and into the Manager on May 1, 2017, have had a long-term relationship with Principal Funds, Inc. (“PFI”) and Principal Variable Contracts Funds, Inc. (“PVC” and together with PETF and PFI, the “Principal Funds”), which are also overseen by the Board, and that the Manager and PMC have demonstrated a commitment to support the Principal Funds. The Board concluded that a long-term relationship with a capable, conscientious adviser is in the best interests of the Fund. The Board considered various factors, including the following, and made certain findings and conclusions with regard thereto, in approving the Advisory Agreements.
Nature, Quality and Extent of Services
The Board considered the nature, quality and extent of the services to be provided under the Management Agreement, including administrative services. The Board noted that, in connection with the 2016 annual renewal of the management agreements for the Principal Funds, the Board had: (1) reviewed the services provided by PMC to PETF and to the other series of Principal Funds under the management agreements; (2) considered the experience and skills of senior management leading fund operations, the experience and skills of the personnel performing the functions under the management agreements and the resources made available to such personnel, the ability of PMC to attract and retain high-quality personnel, and the organizational depth and stability of PMC and concluded that appropriate resources were provided under the management agreements for the Principal Funds; (3) considered that PMC’s process emphasizes the selection of Principal-affiliated subadvisors that are determined to be qualified under its due diligence process; and (4) considered the compliance program established by PMC for the Principal Funds and their respective series and the level of compliance attained by the Principal Funds. The Board noted that, following the effectiveness of the merger of PMC with and into the Manager, these observations continued with respect to the Manager. Based upon all relevant factors, the Board concluded that the nature, quality and extent of the services to be provided by the Manager to the Fund under the Management Agreement are expected to be satisfactory.
The Board considered the nature, quality and extent of the services to be provided under the Subadvisory Agreement. The Board considered the reputation, qualifications and background of the Subadvisor, the investment approach of the Subadvisor, the experience and skills of the Subadvisor’s investment personnel who would be responsible for the day-to-day management of the Fund, and the resources made available to such personnel. The Board noted that the Subadvisor provides subadvisory services for four other series of Principal Funds, and that the Board had reviewed and had approved for renewal those subadvisory agreements at its September 2016 Board meeting. In addition, the Board considered the Manager’s program for recommending, monitoring and replacing subadvisors and that the Manager recommended the Subadvisor based upon that program. Based upon all relevant factors, the Board concluded that the nature, quality and extent of the services to be provided by the Subadvisor to the Fund under the Subadvisory Agreement are expected to be satisfactory.
79
Investment Performance
As the Fund is a newly created series, the Board did not review performance of the Fund since no track record was available. The Board reviewed the historical one-year, three-year, five-year and ten-year performance, net of fees, as of March 31, 2017 of a series of PFI that is managed by the Subadvisor in accordance with a strategy that is a close proxy to the strategy that will be used in managing the Fund’s portfolio, as compared to a relevant benchmark index, a relevant blended index (one-year and three-year only) that will be used for the purpose of performance monitoring and a relevant Morningstar category. The Board also reviewed the historical annual performance of the same series of PFI for each of the last five calendar years, net of fees, as compared to the relevant benchmark index, the relevant blended index (last three calendar years only) and the relevant Morningstar category. The Board concluded, based upon the information provided, that the Subadvisor is qualified.
Fees, Economies of Scale and Profitability
The Board considered the Fund’s proposed management and subadvisory fees. The Board noted that the Manager proposed a unitary management fee for the Fund, and considered the Manager’s statement that it believes a unitary fee structure is standard practice in the industry. The Board also received information from the Manager, based upon data supplied by Broadridge, comparing the proposed unitary management fee to the total expense ratios of funds in the same asset category. The Board also considered whether there are economies of scale with respect to the services to be provided to the Fund under the Management Agreement. The Board concluded that, although the proposed management fee schedule does not include breakpoints, the management fee schedule is appropriate at currently anticipated asset levels.
With respect to the subadvisory fee proposed to be paid to the Subadvisor, the Board noted that the Manager compensates the Subadvisor, an affiliated company, from its own management fee so that shareholders pay only the management fee. The Board considered whether there are economies of scale with respect to the subadvisory services to be provided under the Subadvisory Agreement. The Board concluded that, although the proposed subadvisory fee schedule does not include breakpoints, the Subadvisor’s fee schedule is appropriate at currently anticipated asset levels. The Board considered the Subadvisor’s representation that it does not offer other clients a lower fee for comparable strategies and services and the Manager’s statement that it found the proposed subadvisory fee schedule to be competitive.
In addition, in evaluating the management and subadvisory fees, the Board considered the Manager’s forecasted profitability for the Fund. On the basis of the information provided, the Board concluded that the proposed management and subadvisory fees were reasonable.
Other Benefits
The Board also considered the character and amount of other fall-out benefits to be received by the Manager and the Subadvisor. The Board noted that the Subadvisor did not intend to engage in soft dollar trading in connection with the Fund. The Board concluded that, on the basis of the information provided, the proposed management and subadvisory fees were reasonable.
Overall Conclusions
Based upon all of the information considered and the conclusions reached, the Board determined that the terms of each Advisory Agreement are fair and reasonable and that approval of each of the Advisory Agreements is in the best interests of the Fund.
Management Agreement and Subadvisory Agreement for Principal U.S. Mega-Cap Multi-Factor Index Exchange-Traded Fund, Principal Contrarian Value Index Exchange-Traded Fund, Principal Sustainable Momentum Index Exchange-Traded Fund and Principal International Multi-Factor Index Exchange-Traded Fund
On September 12, 2017, the Board considered, on behalf of the newly established Principal U.S. Mega-Cap Multi-Factor Index Exchange-Traded Fund, Principal Contrarian Value Index Exchange-Traded Fund, Principal Sustainable Momentum Index Exchange-Traded Fund and Principal International Multi-Factor Index Exchange-Traded Fund series of PETF (the “Funds”), the approval of a management agreement (the “Management Agreement”) between PETF, for each Fund, and the “Manager.
Based upon their review, the Board concluded that it was in the best interests of each Fund to approve the Management Agreement for each Fund. In reaching this conclusion, no single factor was determinative in the Board’s analysis, but rather the Board considered a variety of factors.
With respect to the Management Agreement, the Board considered, among other factors, that the Manager serves as the investment adviser to the existing PETF series, that the Manager and PMC, the previous investment adviser to the Principal Funds, which merged with and into the Manager on May 1, 2017, have had a long-term relationship with the Principal Funds, all of which are also overseen by the Board, and that the Manager and PMC have demonstrated a commitment to support the
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Principal Funds. The Board concluded that a long-term relationship with a capable and conscientious adviser is in the best interests of each Fund. The Board considered various factors, including the following, and made certain findings and conclusions with regard thereto, in approving the Management Agreement.
Nature, Quality and Extent of Services
The Board considered the nature, quality and extent of the services to be provided under the Management Agreement, including administrative services. The Board noted that, in connection with the 2017 annual renewal of the management agreements for the Principal Funds, the Board had: (1) reviewed the services provided by the Manager to the other series of Principal Funds under the management agreements; (2) considered the experience and skills of senior management leading fund operations, the experience and skills of the personnel performing the functions under the management agreements 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 and concluded that appropriate resources were provided under the management agreements for the Principal Funds; (3) noted that the Manager’s process emphasizes the selection of Principal-affiliated subadvisers that are determined to be qualified under the Manager’s due diligence process and concluded that this due diligence process was working well; and (4) considered the compliance program established by the Manager for the Principal Funds and their respective series and the level of compliance attained by the Principal Funds. Based upon all relevant factors, the Board concluded that the nature, quality and extent of the services to be provided by the Manager to each Fund under the Management Agreement are expected to be satisfactory.
Investment Performance
As each Fund is a newly created series, the Board did not review performance of the Fund since no track record was available.
Fees, Economies of Scale and Profitability
The Board considered each Fund’s proposed management fee. The Board noted that the Manager proposed a unitary management fee for each Fund and considered the Manager’s statement that a unitary fee structure is consistent with the fee structures of a majority of other index exchange-traded funds. For each Fund, the Board also received information from the Manager, based upon data supplied by Broadridge, comparing the proposed unitary management fee for the Fund to the total expense ratios of funds in the same asset category. The Board also considered whether there are economies of scale with respect to the services to be provided to each Fund under the Management Agreement. The Board concluded that, although the proposed management fee schedule for each Fund does not include breakpoints, the management fee schedule is appropriate at currently anticipated asset levels.
In addition, in evaluating the management fee, the Board considered the Manager’s statements regarding the expected asset levels and timing that will be required for each Fund to break even. On the basis of the information provided, the Board concluded that the proposed management fee for each Fund was reasonable.
Other Benefits
The Board also considered the character and amount of other fall-out benefits to be received by the Manager. The Board noted the Manager’s statements that the Manager does not intend to engage in soft dollar trading in connection with the Funds and that there would be no known fall-out benefits to the Manager in connection with its management of the Funds. The Board concluded that, on the basis of the information provided, the proposed management fee for each Fund was reasonable.
Overall Conclusions
Based upon all of the information considered and the conclusions reached, the Board determined that the terms of the Management Agreement are fair and reasonable and that approval of the Management Agreement is in the best interests of each Fund.
Annual Review and Renewal of Management Agreement and Subadvisory Agreements
At its September 13, 2017 meeting, the Board of Trustees (the “Board”) of Principal Exchange-Traded Funds (“PETF”) approved the annual review and renewal of the management agreement and subadvisory agreements for the nine (9) series of PETF Funds (referred to herein as “Fund” and collectively as the “Funds”).
Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”) requires the Board, including a majority of the Trustees 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 annually to review and to consider the continuation of: (1) the Management Agreement between the
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Manager and PETF, on behalf of the Funds; and (2) the Subadvisory Agreement between the Manager and Spectrum Asset Management, Inc. (“Spectrum” or the “Subadvisor”). The Management Agreement and the Subadvisory Agreement are collectively referred to as the “Advisory Agreements.”
The Board considered the factors and reached the conclusions described below relating to the continuation of the Advisory Agreements. In evaluating the Advisory Agreements, the Board, reviewed a broad range of information requested for this purpose by the Board, including, among other information, information regarding 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.
Nature, Extent and Quality of Services
The Board considered the nature, quality and extent of the services provided under the Management Agreements, including administrative services. 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 Agreements 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 Agreements. The Board also considered that, during the periods reviewed, the Manager had delegated day-to-day portfolio management responsibility for the Spectrum Preferred Securities Active ETF to the Subadvisor. 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. The Board also considered the compliance program established by the Manager for the Funds and the level of compliance attained by the Funds. The Board noted that they had previously reviewed the annual best execution and soft dollar reports and included those findings in their consideration of the renewal of the Advisory Agreements. 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.
The Board considered the nature, quality and extent of the services provided under the Subadvisory Agreement. The Board considered the reputation, qualifications and background of the Subadvisor, the investment approach of the Subadvisor, the experience and skills of investment personnel responsible for the day-to-day management of the Spectrum Preferred Securities Active ETF and the resources made available to such personnel. The Board also considered the Subadvisor’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 the Subadvisor to the Spectrum Preferred Securities Active ETF under the Subadvisory Agreement is satisfactory.
Investment Performance
The Board reviewed each Fund’s investment performance for a one-year period ended March 31, 2017, respectively, if available. The Board also compared each Fund’s investment performance over the one-year periods ended March 31, 2017, as available, to one or more relevant benchmark indices. The Board noted that certain Funds had commenced operations recently and, accordingly, no performance information was considered. The Board also considered whether investment results were consistent with a Fund’s investment objective(s) and policies. The Board concluded that the Funds’ investment returns met acceptable levels of investment performance. The Board considered the Manager’s due diligence process for evaluating performance applied to all Funds.
Fees
The Board considered each Fund’s management fee, noting that such fees were unitary. The Board received information comparing the management fee and total expense ratio for the Fund’s common shares to advisory fees and expense ratios of funds in an appropriate Broadridge peer group.
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 as well as other funds managed by the Manager, subadvisory fees paid, services provided, investment performance, total net expense ratios and profitability.
With regard to the Principal EDGE Active Income ETF, the Board considered management’s proposal to adopt a unitary fee for the Fund and that the proposed unitary fee rate was equal to the Fund’s current expense cap and lower than the Fund’s current management fee rate at all asset levels.
Considering all factors they deemed relevant, the Board concluded that the 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.
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Profitability
The Board reviewed detailed information regarding revenues the Manager receives under the Management Agreements, as well as the estimated direct and indirect costs the Manager incurs in providing to each Fund the services described in the applicable Advisory Agreements, for the year ended June 30, 2017. The Board also considered the returns on revenue generated in connection with the payment of subadvisory fees to affiliated Subadvisor (Spectrum), and the aggregated return on revenue to the Manager and its affiliates. 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 then reviewed the levels at which breakpoints occur and the amount of the reductions. The Board considered whether the effective management fee rate for each Fund under the applicable Management Agreement is reasonable in relation to the asset size of such Fund. The Board also noted management’s explanation of efficiencies in the Manager’s cost structure and the impact on the Manager’s profitability. The Board concluded that the fee schedule for each Fund reflects an appropriate level of sharing of any economies of scale.
The Board determined that no breakpoints are necessary, at this time, for the Principal Active Global Dividend Income ETF or the Principal U.S. Small Cap Index ETF , among other factors, to their current asset levels and levels of profitability to the Manager.
Subadvisory Fees, Economies of Scale and Profitability
For the Spectrum Preferred Securities Active ETF, the Board considered the subadvisory fee, noting that the Manager compensates Spectrum from its own management fee, so that shareholders pay only the management fee. The Board also received industry data supplied by Broadridge. The Board considered whether there are economies of scale with respect to the subadvisory services provided to the Spectrum Preferred Securities Active ETF and, if so, whether the subadvisory fees reflect such economies of scale through breakpoints in fees. The Board considered the profitability of Spectrum in conjunction with their review of the profitability of the Manager. On the basis of the information provided, the Board concluded that the subadvisory fees were reasonable.
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 were 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 – 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 2/13/2018
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 2/13/2018
By /s/ Tracy W. Bollin
Tracy W. Bollin, Chief Financial Officer
Date 2/13/2018