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, 2021 | |
Date of reporting period: | December 31, 2020 |
ITEM 1 – REPORT TO STOCKHOLDERS
![](https://capedge.com/proxy/N-CSRS/0001572661-21-000011/finalreportfrombroadridgx1x1.jpg)
Rev. 01/2020 | ||||
FACTS | WHAT DOES PRINCIPAL FUNDS DO WITH YOUR PERSONAL INFORMATION? | |||
Financial companies choose how they share your personal information. Federal law gives | ||||
Why? | consumers the right to limit some but not all sharing. Federal law also requires us to tell you | |||
how we collect, share, and protect your personal information. Please read this notice carefully | ||||
to understand what we do. | ||||
The types of personal information we collect and share depend on the product or service you | ||||
have with us. This information can include: | ||||
• | Social Security number and income | |||
What? | • | Assets and transaction history | ||
• | Account transactions and account balances | |||
When you are no longer our customer, we continue to share your information as described in | ||||
this notice | ||||
All financial companies need to share customers’ personal information to run their everyday | ||||
How? | business. In the section below, we list the reasons financial companies can share their | |||
customers’ personal information; the reasons Principal Funds chooses to share; and whether | ||||
you can limit this sharing. | ||||
REASONS WE CAN SHARE YOUR PERSONAL | DOES PRINCIPAL | CAN YOU LIMIT THIS | ||
INFORMATION | FUNDS SHARE? | SHARING? | ||
For our everyday business purposes—such as to | ||||
process your transactions, maintain your account(s), | ||||
Yes | No | |||
respond to court orders and legal investigations, or report | ||||
to credit bureaus | ||||
For our marketing purposes—to offer our products and | ||||
Yes | No | |||
services to you | ||||
For joint marketing with other financial companies | No | We don’t share | ||
For our affiliates’ everyday business purposes— | ||||
Yes | No | |||
information about your transactions and experiences | ||||
For our affiliates’ everyday business purposes— | ||||
No | We don’t share | |||
information about your creditworthiness | ||||
For nonaffiliates to market to you | No | We don’t share | ||
Questions? | Call 1-800-222-5852 or go to www.principalfunds.com/customer-support/contact-us |
EE11865PFI-03
Page 2 | ||
Who we are | ||
Who is providing this notice? | Principal Funds includes Principal Funds, Inc., Principal Funds Distributor, Inc., | |
and Principal Diversified Select Real Asset Fund. | ||
What we do | ||
How does Principal Funds | To protect your personal information from unauthorized access and use, we | |
protect my personal | use security measures that comply with federal law. These measures include | |
information? | computer safeguards and secured files and buildings. | |
How does Principal Funds | We collect your personal information, for example, when you | |
collect my personal | • | Open an account or seek advice about your investments |
information? | ||
• | Direct us to buy securities or make deposits, or withdrawals from your account | |
• | Give us your contact information or show your government issued ID | |
We also collect your personal information from others, such as affiliates, or | ||
other companies. | ||
Why can’t I limit all sharing? | Federal law gives you the right to limit only | |
• | sharing for affiliates’ everyday business purposes—information about your | |
creditworthiness | ||
• | affiliates from using your information to market to you | |
• | sharing for nonaffiliates to market to you | |
State laws and individual companies may give you additional rights to limit | ||
sharing. | ||
Definitions | ||
Affiliates | Companies related by common ownership or control. They can be financial | |
and nonfinancial companies. | ||
• | Our affiliates include companies of Principal Financial Group® | |
Nonaffiliates | Companies not related by common ownership or control. They can be financial | |
and nonfinancial companies. | ||
• | Principal Funds does not share with nonaffiliates so they can market to you. | |
Joint marketing | A formal agreement between nonaffiliated financial companies that together | |
market financial products or services to you. | ||
• | Principal Funds does not jointly market. |
This Privacy Notice governs information that you provide to Principal (or that we otherwise receive) when you apply for or receive a product or service used primarily for personal, family or household purposes. We may collect additional information depending on the nature of your relationship with Principal or if you interact with us through our website or other digital technologies. Details about how we protect and use this additional information, including information about your privacy rights under California law such as the California Consumer Privacy Act, are available online at www.principal.com/privacy-policies.
If you do not have access to www.principal.com/privacy-policies, please contact us at 1-800-986-3343 to have a copy mailed to you.
EE11865PFI-03 | 01/2020
Table of Contents
Financial Statements | 1 |
Notes to Financial Statements | 24 |
Schedules of Investments | 40 |
Financial Highlights (Includes performance information) | 122 |
Shareholder Expense Example | 135 |
Supplemental Information | 137 |
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, 2020 (unaudited) | ||||||||
Principal | Principal | |||||||
Active Global | Principal | Healthcare | ||||||
Dividend | Active | Innovators | ||||||
Income ETF | Income ETF | Index ETF | ||||||
Investment in securities — at cost | $ | 128,409,382 | $ | 213,342,160 | $ | 120,250,676 | ||
Investment in affiliated funds — at cost | $ | — | $ | 4,993,548 | $ | 9,386,341 | ||
Foreign currency — at cost | $ | 27,735 | $ | — | $ | — | ||
Assets | ||||||||
Investment in securities — at value | $ | 158,603,145 | $ | 230,558,400 | (a) | $ | 155,372,237 | (a) |
Investment in affiliated funds — at value | — | 4,993,548 | 9,386,341 | |||||
Foreign currency — at value | 27,810 | — | — | |||||
Receivables: | ||||||||
Dividends | 1,409,569 | 197,530 | 12,350 | |||||
Interest | — | 1,774,378 | — | |||||
Securities lending income | 2,798 | 4,508 | 19,927 | |||||
Investment securities sold | 1,375,429 | — | — | |||||
Total Assets | 161,418,751 | 237,528,364 | 164,790,855 | |||||
Liabilities | ||||||||
Accrued management and investment advisory fees | 107,770 | 105,794 | 57,381 | |||||
Accrued income distribution | 3,403,301 | 574,526 | — | |||||
Accrued other expenses | 4,517 | — | — | |||||
Payables: | ||||||||
Investment securities purchased | 291 | — | — | |||||
Collateral obligation on securities loaned — at value | — | 4,993,548 | 9,386,341 | |||||
Total Liabilities | 3,515,879 | 5,673,868 | 9,443,722 | |||||
Net Assets Applicable to Outstanding Shares | $ | 157,902,872 | $ | 231,854,496 | $ | 155,347,133 | ||
Net Assets Consist of: | ||||||||
Capital shares and additional paid-in-capital | $ | 69,916,193 | $ | 231,074,981 | $ | 114,481,766 | ||
Total distributable earnings (accumulated loss) | 87,986,679 | 779,515 | 40,865,367 | |||||
Total Net Assets | $ | 157,902,872 | $ | 231,854,496 | $ | 155,347,133 | ||
Net Asset Value Per Share: | ||||||||
Net assets | $ | 157,902,872 | $ | 231,854,496 | $ | 155,347,133 | ||
Shares issued and outstanding | 5,000,001 | 5,825,000 | 2,650,001 | |||||
Net asset value per share | $ | 31.58 | $ | 39.80 | $ | 58.62 | ||
(a) Includes fair market value of securities loaned, see 'Securities Lending' in Notes to Financial Statements. |
See accompanying notes. |
1
Statements of Assets and Liabilities | |||||||||
Principal Exchange-Traded Funds | |||||||||
December 31, 2020 (unaudited) | |||||||||
Principal | |||||||||
Principal | Investment | ||||||||
International | Grade | Principal | |||||||
Multi-Factor | Corporate | Millennials | |||||||
ETF (a) | Active ETF | Index ETF | |||||||
Investment in securities — at cost | $ | 56,444,982 | $ | 316,719,493 | $ | 59,448,068 | |||
Investment in affiliated funds — at cost | $ | 214,164 | $ | — | $ | 1,064,005 | |||
Foreign currency — at cost | $ | 5,439 | $ | — | $ | 644 | |||
Assets | |||||||||
Investment in securities — at value | $ | 62,885,309 | (b) | $ | 330,461,086 | $ | 75,323,648 | (b) | |
Investment in affiliated funds — at value | 214,164 | — | 1,064,005 | ||||||
Foreign currency — at value | 5,443 | — | 640 | ||||||
Deposits with counterparty | — | 174,000 | — | ||||||
Receivables: | |||||||||
Dividends | 82,014 | 90 | 12,095 | ||||||
Interest | — | 2,557,824 | — | ||||||
Securities lending income | 1,859 | 39 | 346 | ||||||
Investment securities sold | 32,802 | — | 154,992 | ||||||
Total Assets | 63,221,591 | 333,193,039 | 76,555,726 | ||||||
Liabilities | |||||||||
Accrued management and investment advisory fees | 14,467 | 80,725 | 31,001 | ||||||
Accrued income distribution | 205,363 | 730,288 | 239,959 | ||||||
Payables: | |||||||||
Investment securities purchased | 108 | — | — | ||||||
Variation margin on financial derivative instruments | — | 15,000 | — | ||||||
Collateral obligation on securities loaned — at value | 214,164 | — | 1,064,005 | ||||||
Total Liabilities | 434,102 | 826,013 | 1,334,965 | ||||||
Net Assets Applicable to Outstanding Shares | $ | 62,787,489 | $ | 332,367,026 | $ | 75,220,761 | |||
Net Assets Consist of: | |||||||||
Capital shares and additional paid-in-capital | $ | 55,667,902 | $ | 318,485,482 | $ | 57,440,997 | |||
Total distributable earnings (accumulated loss) | 7,119,587 | 13,881,544 | 17,779,764 | ||||||
Total Net Assets | $ | 62,787,489 | $ | 332,367,026 | $ | 75,220,761 | |||
Net Asset Value Per Share: | |||||||||
Net assets | $ | 62,787,489 | $ | 332,367,026 | $ | 75,220,761 | |||
Shares issued and outstanding | 2,200,001 | 12,150,001 | 1,300,001 | ||||||
Net asset value per share | $ | 28.54 | $ | 27.36 | $ | 57.86 |
(a) | Effective September 30, 2020, Principal International Multi-Factor Core Index ETF changed its name to Principal International Multi-Factor ETF. |
(b) | Includes fair market value of securities loaned, see 'Securities Lending' in Notes to Financial Statements. |
See accompanying notes. |
2
Statements of Assets and Liabilities | ||||||||
Principal Exchange-Traded Funds | ||||||||
December 31, 2020 (unaudited) | ||||||||
Principal | ||||||||
Principal | Spectrum | |||||||
Spectrum | Tax- | |||||||
Preferred | Advantaged | |||||||
Principal | Securities | Dividend | ||||||
Quality ETF (a) | Active ETF | Active ETF | ||||||
Investment in securities — at cost | $ | 26,065,474 | $ | 231,377,661 | $ | 20,890,237 | ||
Investment in affiliated funds — at cost | $ | — | $ | 916,680 | $ | — | ||
Assets | ||||||||
Investment in securities — at value | $ | 30,764,934 | $ | 243,417,988 | (b) | $ | 22,384,311 | |
Investment in affiliated funds — at value | — | 916,680 | — | |||||
Cash | — | 2,703,040 | — | |||||
Receivables: | ||||||||
Dividends | 16,366 | 370 | 16,744 | |||||
Interest | — | 2,497,073 | 197,921 | |||||
Securities lending income | — | 433 | — | |||||
Fund shares sold | — | 1,028,848 | — | |||||
Investment securities sold | 37,030 | — | — | |||||
Total Assets | 30,818,330 | 250,564,432 | 22,598,976 | |||||
Liabilities | ||||||||
Accrued management and investment advisory fees | 4,044 | 114,785 | 12,570 | |||||
Accrued income distribution | 87,123 | 546,175 | 95,699 | |||||
Payables: | ||||||||
Investment securities purchased | — | 2,911,136 | — | |||||
Collateral obligation on securities loaned — at value | — | 916,680 | — | |||||
Total Liabilities | 91,167 | 4,488,776 | 108,269 | |||||
Net Assets Applicable to Outstanding Shares | $ | 30,727,163 | $ | 246,075,656 | $ | 22,490,707 | ||
Net Assets Consist of: | ||||||||
Capital shares and additional paid-in-capital | $ | 27,664,884 | $ | 237,143,732 | $ | 21,070,152 | ||
Total distributable earnings (accumulated loss) | 3,062,279 | 8,931,924 | 1,420,555 | |||||
Total Net Assets | $ | 30,727,163 | $ | 246,075,656 | $ | 22,490,707 | ||
Net Asset Value Per Share: | ||||||||
Net assets | $ | 30,727,163 | $ | 246,075,656 | $ | 22,490,707 | ||
Shares issued and outstanding | 650,001 | 11,950,005 | 1,050,001 | |||||
Net asset value per share | $ | 47.27 | $ | 20.59 | $ | 21.42 |
(a) | Effective September 30, 2020, Principal Price Setters Index ETF changed its name to Principal Quality ETF. |
(b) | Includes fair market value of securities loaned, see 'Securities Lending' in Notes to Financial Statements. |
See accompanying notes. |
3
Statements of Assets and Liabilities | ||||||||||
Principal Exchange-Traded Funds | ||||||||||
December 31, 2020 (unaudited) | ||||||||||
Principal | Principal U.S. | |||||||||
Ultra-Short | Principal U.S. | Small-Cap | ||||||||
Active | Mega-Cap | Multi-Factor | ||||||||
Income ETF | ETF (a) | ETF (b) | ||||||||
Investment in securities — at cost | $ | 12,364,412 | $ | 1,448,557,862 | $ | 703,050,366 | ||||
Investment in affiliated funds — at cost | $ | — | $ | — | $ | 17,992,026 | ||||
Assets | ||||||||||
Investment in securities — at value | $ | 12,395,430 | $ | 1,798,527,075 | $ | 861,183,854 | (c) | |||
Investment in affiliated funds — at value | — | — | 17,992,026 | |||||||
Receivables: | ||||||||||
Dividends | 5 | 929,599 | 830,644 | |||||||
Interest | 46,098 | — | — | |||||||
Securities lending income | — | — | 203,292 | |||||||
Investment securities sold | — | 2,661,862 | 1,685,559 | |||||||
Expense reimbursement from Advisor | — | 48,551 | — | |||||||
Total Assets | 12,441,533 | 1,802,167,087 | 881,895,375 | |||||||
Liabilities | ||||||||||
Accrued management and investment advisory fees | 2,086 | 242,755 | 293,868 | |||||||
Accrued income distribution | 16,686 | 6,519,232 | 3,516,259 | |||||||
Payables: | ||||||||||
Investment securities purchased | — | — | 44,363 | |||||||
Collateral obligation on securities loaned — at value | — | — | 17,992,026 | |||||||
Total Liabilities | 18,772 | 6,761,987 | 21,846,516 | |||||||
Net Assets Applicable to Outstanding Shares | $ | 12,422,761 | $ | 1,795,405,100 | $ | 860,048,859 | ||||
Net Assets Consist of: | ||||||||||
Capital shares and additional paid-in-capital | $ | 12,503,901 | $ | 1,480,836,069 | $ | 784,383,697 | ||||
Total distributable earnings (accumulated loss) | (81,140 | ) | 314,569,031 | 75,665,162 | ||||||
Total Net Assets | $ | 12,422,761 | $ | 1,795,405,100 | $ | 860,048,859 | ||||
Net Asset Value Per Share: | ||||||||||
Net assets | $ | 12,422,761 | $ | 1,795,405,100 | $ | 860,048,859 | ||||
Shares issued and outstanding | 500,001 | 50,300,001 | 23,650,001 | |||||||
Net asset value per share | $ | 24.85 | $ | 35.69 | $ | 36.37 |
(a) | Effective September 30, 2020, Principal U.S. Mega-Cap Multi-Factor Index ETF changed its name to Principal U.S. Mega-Cap ETF. |
(b) | Effective September 30, 2020, Principal U.S. Small-Cap Multi-Factor Index ETF changed its name to Principal U.S. Small-Cap Multi-Factor ETF. |
(c) | Includes fair market value of securities loaned, see 'Securities Lending' in Notes to Financial Statements. |
See accompanying notes. |
4
Statement of Assets and Liabilities | ||||
Principal Exchange-Traded Funds | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
Value ETF (a) | ||||
Investment in securities — at cost | $ | 14,690,241 | ||
Investment in affiliated funds — at cost | $ | 88,841 | ||
Assets | ||||
Investment in securities — at value | $ | 16,947,464 | (b) | |
Investment in affiliated funds — at value | 88,841 | |||
Receivables: | ||||
Dividends | 44,161 | |||
Securities lending income | 15 | |||
Investment securities sold | 93,722 | |||
Total Assets | 17,174,203 | |||
Liabilities | ||||
Accrued management and investment advisory fees | 2,360 | |||
Accrued income distribution | 115,485 | |||
Collateral obligation on securities loaned — at value | 88,841 | |||
Total Liabilities | 206,686 | |||
Net Assets Applicable to Outstanding Shares | $ | 16,967,517 | ||
Net Assets Consist of: | ||||
Capital shares and additional paid-in-capital | $ | 12,860,271 | ||
Total distributable earnings (accumulated loss) | 4,107,246 | |||
Total Net Assets | $ | 16,967,517 | ||
Net Asset Value Per Share: | ||||
Net assets | $ | 16,967,517 | ||
Shares issued and outstanding | 500,001 | |||
Net asset value per share | $ | 33.93 |
(a) | Effective September 30, 2020, Principal Shareholder Yield Index ETF changed its name to Principal Value ETF. |
(b) | Includes fair market value of securities loaned, see 'Securities Lending' in Notes to Financial Statements. |
See accompanying notes. |
5
Statements of Operations | |||||||||
Principal Exchange-Traded Funds | |||||||||
Six Months Ended December 31, 2020 (unaudited) | |||||||||
Principal | Principal | ||||||||
Active Global | Principal | Healthcare | |||||||
Dividend | Active | Innovators | |||||||
Income ETF | Income ETF | Index ETF | |||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividend | $ | 3,656,060 | $ | 1,096,505 | $ | 13,273 | |||
Withholding tax | (206,178 | ) | (6,242 | ) | — | ||||
Interest | — | 4,379,164 | — | ||||||
Securities lending — net | 25,670 | 63,638 | 108,898 | ||||||
Total Income | 3,475,552 | 5,533,065 | 122,171 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 1,077,106 | 600,640 | 240,808 | ||||||
Other expenses | 4,516 | — | — | ||||||
Total Expenses | 1,081,622 | 600,640 | 240,808 | ||||||
Net Investment Income (Loss) | 2,393,930 | 4,932,425 | (118,637 | ) | |||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency: | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 187,385 | (8,618,832 | ) | 6,021,384 | |||||
In-kind redemptions | 135,723,837 | — | 4,911,517 | ||||||
Foreign currency transactions | 74,711 | 51 | — | ||||||
Change in unrealized appreciation (depreciation) of: | |||||||||
Investments | (43,887,895 | ) | 34,134,190 | 20,840,588 | |||||
Foreign currency transactions | 81,810 | 1 | — | ||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | 92,179,848 | 25,515,410 | 31,773,489 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 94,573,778 | $ | 30,447,835 | $ | 31,654,852 |
See accompanying notes. |
6
Statements of Operations | |||||||||
Principal Exchange-Traded Funds | |||||||||
Six Months Ended December 31, 2020 (unaudited) | |||||||||
Principal | |||||||||
Principal | Investment | ||||||||
International | Grade | Principal | |||||||
Multi-Factor | Corporate | Millennials | |||||||
ETF (a) | Active ETF | Index ETF | |||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividend | $ | 501,651 | $ | 869 | $ | 263,894 | |||
Withholding tax | (54,038 | ) | — | (3,342 | ) | ||||
Interest | — | 3,678,682 | — | ||||||
Securities lending — net | 3,194 | 1,024 | 1,658 | ||||||
Total Income | 450,807 | 3,680,575 | 262,210 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 54,858 | 374,630 | 121,547 | ||||||
Total Expenses | 54,858 | 374,630 | 121,547 | ||||||
Net Investment Income (Loss) | 395,949 | 3,305,945 | 140,663 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Futures: | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 1,147,825 | 3,108,283 | 47,853 | ||||||
In-kind redemptions | — | — | 3,621,685 | ||||||
Foreign currency transactions | 528 | — | 285 | ||||||
Futures contracts | — | (59,947 | ) | — | |||||
Change in unrealized appreciation (depreciation) of: | |||||||||
Investments | 7,033,221 | 5,830,034 | 12,004,971 | ||||||
Futures contracts | — | 119,537 | — | ||||||
Foreign currency transactions | 1,403 | — | 1,680 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and | |||||||||
Futures | 8,182,977 | 8,997,907 | 15,676,474 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 8,578,926 | $ | 12,303,852 | $ | 15,817,137 |
(a) Effective September 30, 2020, Principal International Multi-Factor Core Index ETF changed its name to Principal International Multi-Factor ETF.
See accompanying notes. |
7
Statements of Operations | ||||||
Principal Exchange-Traded Funds | ||||||
Six Months Ended December 31, 2020 (unaudited) | ||||||
Principal | ||||||
Principal | Spectrum | |||||
Spectrum | Tax- | |||||
Preferred | Advantaged | |||||
Principal | Securities | Dividend | ||||
Quality ETF (a) | Active ETF | Active ETF | ||||
Net Investment Income (Loss) | ||||||
Income: | ||||||
Dividend | $ | 166,138 | $ | 755 | $ | 85,551 |
Interest | — | 3,628,016 | 443,388 | |||
Securities lending — net | 33 | 8,943 | — | |||
Total Income | 166,171 | 3,637,714 | 528,939 | |||
Expenses: | ||||||
Management and investment advisory fees | 18,207 | 480,195 | 67,354 | |||
Total Expenses | 18,207 | 480,195 | 67,354 | |||
Net Investment Income (Loss) | 147,964 | 3,157,519 | 461,585 | |||
Net Realized and Unrealized Gain (Loss) on Investments: | ||||||
Net realized gain (loss) from: | ||||||
Investment transactions | 4,131 | 321,276 | 46,341 | |||
Change in unrealized appreciation (depreciation) of: | ||||||
Investments | 3,957,575 | 11,583,264 | 1,641,914 | |||
Net Realized and Unrealized Gain (Loss) on Investments | 3,961,706 | 11,904,540 | 1,688,255 | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 4,109,670 | $ | 15,062,059 | $ | 2,149,840 |
(a) Effective September 30, 2020, Principal Price Setters Index ETF changed its name to Principal Quality ETF. |
See accompanying notes. |
8
Statements of Operations | |||||||||
Principal Exchange-Traded Funds | |||||||||
Six Months Ended December 31, 2020 (unaudited) | |||||||||
Principal | Principal U.S. | ||||||||
Ultra-Short | Principal U.S. | Small-Cap | |||||||
Active | Mega-Cap | Multi-Factor | |||||||
Income ETF | ETF (a) | ETF (b) | |||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividend | $ | 55 | $ | 14,132,203 | $ | 6,744,652 | |||
Withholding tax | — | — | (230 | ) | |||||
Interest | 67,933 | — | — | ||||||
Securities lending — net | 13 | — | 657,718 | ||||||
Total Income | 68,001 | 14,132,203 | 7,402,140 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 11,497 | 1,240,346 | 1,223,565 | ||||||
Total Gross Expenses | 11,497 | 1,240,346 | 1,223,565 | ||||||
Less: Reimbursement from Advisor | — | (248,069 | ) | — | |||||
Total Net Expenses | 11,497 | 992,277 | 1,223,565 | ||||||
Net Investment Income (Loss) | 56,504 | 13,139,926 | 6,178,575 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments: | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 6,238 | 13,195,471 | (18,929,625 | ) | |||||
In-kind redemptions | — | 32,363,266 | — | ||||||
Change in unrealized appreciation (depreciation) of: | |||||||||
Investments | (13,273 | ) | 244,044,203 | 198,864,220 | |||||
Net Realized and Unrealized Gain (Loss) on Investments | (7,035 | ) | 289,602,940 | 179,934,595 | |||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 49,469 | $ | 302,742,866 | $ | 186,113,170 |
(a) | Effective September 30, 2020, Principal U.S. Mega-Cap Multi-Factor Index ETF changed its name to Principal U.S. Mega-Cap ETF. |
(b) | Effective September 30, 2020, Principal U.S. Small-Cap Multi-Factor Index ETF changed its name to Principal U.S. Small-Cap Multi-Factor ETF. |
See accompanying notes. |
9
Statement of Operations
Principal Exchange-Traded Funds
Six Months Ended December 31, 2020 (unaudited)
Principal | |||
Value ETF (a) | |||
Net Investment Income (Loss) | |||
Income: | |||
Dividend | $ | 353,014 | |
Withholding tax | (143 | ) | |
Securities lending — net | 731 | ||
Total Income | 353,602 | ||
Expenses: | |||
Management and investment advisory fees | 16,552 | ||
Total Expenses | 16,552 | ||
Net Investment Income (Loss) | 337,050 | ||
Net Realized and Unrealized Gain (Loss) on Investments: | |||
Net realized gain (loss) from: | |||
Investment transactions | (44,581 | ) | |
In-kind redemptions | 3,870,608 | ||
Change in unrealized appreciation (depreciation) of: | |||
Investments | 1,263,739 | ||
Net Realized and Unrealized Gain (Loss) on Investments | 5,089,766 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 5,426,816 |
(a) | Effective September 30, 2020, Principal Shareholder Yield Index ETF changed its name to Principal Value ETF. |
See accompanying notes. |
10
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Active Global Dividend | ||||||
Income ETF | ||||||
Period ended | Year ended | |||||
December 31, 2020 | June 30, 2020 | |||||
Operations | ||||||
Net investment income (loss) | $ | 2,393,930 | $ | 15,312,676 | ||
Net realized gain (loss) on investments and foreign currency | 135,985,933 | (67,103,556 | ) | |||
Change in unrealized appreciation (depreciation) of investments and foreign currency | (43,806,085 | ) | 33,884,661 | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | 94,573,778 | (17,906,219 | ) | |||
Dividends to Shareholders | ||||||
From net investment income and net realized gain on investments | (9,899,426 | ) | (21,484,757 | ) | ||
Total Dividends | (9,899,426 | ) | (21,484,757 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | (634,863,786 | ) | 30,294,631 | |||
Total Increase (Decrease) in Net Assets | (550,189,434 | ) | (9,096,345 | ) | ||
Net Assets | ||||||
Beginning of period | 708,092,306 | 717,188,651 | ||||
End of period | $ | 157,902,872 | $ | 708,092,306 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 1,540,727 | $ | 30,294,631 | ||
Redeemed | (636,404,513 | ) | — | |||
Net Increase (Decrease) | $ | (634,863,786 | ) | $ | 30,294,631 | |
Shares: | ||||||
Sold | 50,000 | 1,100,000 | ||||
Redeemed | (22,100,000 | ) | — | |||
Net Increase (Decrease) | (22,050,000 | ) | 1,100,000 |
See accompanying notes.
11
Statement of Changes in Net Assets | |||||||
Principal Exchange-Traded Funds | |||||||
(unaudited) | |||||||
Principal Active Income ETF | |||||||
Period ended | Year ended | ||||||
December 31, 2020 | June 30, 2020 | ||||||
Operations | |||||||
Net investment income (loss) | $ | 4,932,425 | $ | 13,044,523 | |||
Net realized gain (loss) on investments and foreign currency | (8,618,781 | ) | (6,438,943 | ) | |||
Change in unrealized appreciation (depreciation) of investments and foreign currency | 34,134,191 | (21,774,093 | ) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 30,447,835 | (15,168,513 | ) | ||||
Dividends to Shareholders | |||||||
From net investment income and net realized gain on investments | (6,195,743 | ) | (13,270,230 | ) | |||
Total Dividends | (6,195,743 | ) | (13,270,230 | ) | |||
Capital Share Transactions | |||||||
Net increase (decrease) in capital share transactions | (62,493,644 | ) | 82,015,573 | ||||
Total Increase (Decrease) in Net Assets | (38,241,552 | ) | 53,576,830 | ||||
Net Assets | |||||||
Beginning of period | 270,096,048 | 216,519,218 | |||||
End of period | $ | 231,854,496 | $ | 270,096,048 | |||
Capital Share Transactions | |||||||
Dollars: | |||||||
Sold | $ | — | $ | 83,568,006 | |||
Redeemed | (62,493,644 | ) | (1,552,433 | ) | |||
Net Increase (Decrease) | $ | (62,493,644 | ) | $ | 82,015,573 | ||
Shares: | |||||||
Sold | — | 2,100,000 | |||||
Redeemed | (1,650,000 | ) | (50,000 | ) | |||
Net Increase (Decrease) | (1,650,000 | ) | 2,050,000 |
See accompanying notes. | |
12 |
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Healthcare Innovators Index | ||||||
ETF | ||||||
Period ended | Year ended | |||||
December 31, 2020 | June 30, 2020 | |||||
Operations | ||||||
Net investment income (loss) | $ | (118,637 | ) | $ | (169,265 | ) |
Net realized gain (loss) on investments | 10,932,901 | 6,249,529 | ||||
Change in unrealized appreciation (depreciation) of investment | 20,840,588 | 10,242,069 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 31,654,852 | 16,322,333 | ||||
Dividends to Shareholders | ||||||
From net investment income and net realized gain on investments | (527,787 | ) | — | |||
Total Dividends | (527,787 | ) | — | |||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 28,881,807 | 22,302,643 | ||||
Total Increase (Decrease) in Net Assets | 60,008,872 | 38,624,976 | ||||
Net Assets | ||||||
Beginning of period | 95,338,261 | 56,713,285 | ||||
End of period | $ | 155,347,133 | $ | 95,338,261 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 40,280,929 | $ | 43,226,695 | ||
Redeemed | (11,399,122 | ) | (20,924,052 | ) | ||
Net Increase (Decrease) | $ | 28,881,807 | $ | 22,302,643 | ||
Shares: | ||||||
Sold | 750,000 | 1,100,000 | ||||
Redeemed | (250,000 | ) | (600,000 | ) | ||
Net Increase (Decrease) | 500,000 | 500,000 |
See accompanying notes.
13
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal International Multi-Factor | ||||||
ETF (a) | ||||||
Period ended | Period ended | |||||
December 31, 2020 | June 30, 2020 (b) | |||||
Operations | ||||||
Net investment income (loss) | $ | 395,949 | $ | 378,838 | ||
Net realized gain (loss) on investments and foreign currency | 1,148,353 | (236,359 | ) | |||
Change in unrealized appreciation (depreciation) of investments and foreign currency | 7,034,624 | (592,573 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | 8,578,926 | (450,094 | ) | |||
Dividends to Shareholders | ||||||
From net investment income and net realized gain on investments | (516,765 | ) | (286,121 | ) | ||
Total Dividends | (516,765 | ) | (286,121 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 38,064,638 | 17,396,905 | ||||
Total Increase (Decrease) in Net Assets | 46,126,799 | 16,660,690 | ||||
Net Assets | ||||||
Beginning of period | 16,660,690 | — | ||||
End of period | $ | 62,787,489 | $ | 16,660,690 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 38,064,638 | $ | 19,968,892 | ||
Redeemed | — | (2,571,987 | ) | |||
Net Increase (Decrease) | $ | 38,064,638 | $ | 17,396,905 | ||
Shares: | ||||||
Sold | 1,500,000 | 800,001 | ||||
Redeemed | — | (100,000 | ) | |||
Net Increase (Decrease) | 1,500,000 | 700,001 |
(a) | Effective September 30, 2020, Principal International Multi-Factor Core Index ETF changed its name to Principal International Multi-Factor ETF. |
(b) | Period from July 23, 2019, date operations commenced, through June 30, 2020. |
See accompanying notes. |
14
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Investment Grade Corporate | ||||||
Active ETF | ||||||
Period ended | Year ended | |||||
December 31, 2020 | June 30, 2020 | |||||
Operations | ||||||
Net investment income (loss) | $ | 3,305,945 | $ | 3,950,555 | ||
Net realized gain (loss) on investments and futures | 3,048,336 | 5,659,953 | ||||
Change in unrealized appreciation (depreciation) of investments and futures | 5,949,571 | 872,812 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 12,303,852 | 10,483,320 | ||||
Dividends to Shareholders | ||||||
From net investment income and net realized gain on investments | (10,047,774 | ) | (8,211,758 | ) | ||
Total Dividends | (10,047,774 | ) | (8,211,758 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 219,418,413 | (12,119,128 | ) | |||
Total Increase (Decrease) in Net Assets | 221,674,491 | (9,847,566 | ) | |||
Net Assets | ||||||
Beginning of period | 110,692,535 | 120,540,101 | ||||
End of period | $ | 332,367,026 | $ | 110,692,535 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 219,418,413 | $ | 3,894,368 | ||
Redeemed | — | (16,013,496 | ) | |||
Net Increase (Decrease) | $ | 219,418,413 | $ | (12,119,128 | ) | |
Shares: | ||||||
Sold | 8,000,000 | 150,000 | ||||
Redeemed | — | (600,000 | ) | |||
Net Increase (Decrease) | 8,000,000 | (450,000 | ) |
See accompanying notes.
15
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Millennials Index ETF | ||||||
Period ended | Year ended | |||||
December 31, 2020 | June 30, 2020 | |||||
Operations | ||||||
Net investment income (loss) | $ | 140,663 | $ | 192,829 | ||
Net realized gain (loss) on investments and foreign currency | 3,669,823 | (975,862 | ) | |||
Change in unrealized appreciation (depreciation) of investments and foreign currency | 12,006,651 | 3,510,428 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 15,817,137 | 2,727,395 | ||||
Dividends to Shareholders | ||||||
From net investment income and net realized gain on investments | (453,660 | ) | (175,301 | ) | ||
Total Dividends | (453,660 | ) | (175,301 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 34,148,904 | 2,125,336 | ||||
Total Increase (Decrease) in Net Assets | 49,512,381 | 4,677,430 | ||||
Net Assets | ||||||
Beginning of period | 25,708,380 | 21,030,950 | ||||
End of period | $ | 75,220,761 | $ | 25,708,380 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 44,047,161 | $ | 2,125,336 | ||
Redeemed | (9,898,257 | ) | — | |||
Net Increase (Decrease) | $ | 34,148,904 | $ | 2,125,336 | ||
Shares: | ||||||
Sold | 900,000 | 50,000 | ||||
Redeemed | (200,000 | ) | — | |||
Net Increase (Decrease) | 700,000 | 50,000 |
See accompanying notes.
16
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Quality ETF (a) | ||||||
Period ended | Year ended | |||||
December 31, 2020 | June 30, 2020 | |||||
Operations | ||||||
Net investment income (loss) | $ | 147,964 | $ | 269,166 | ||
Net realized gain (loss) on investments | 4,131 | 612,248 | ||||
Change in unrealized appreciation (depreciation) of investment | 3,957,575 | (392,815 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | 4,109,670 | 488,599 | ||||
Dividends to Shareholders | ||||||
From net investment income and net realized gain on investments | (208,123 | ) | (260,900 | ) | ||
Total Dividends | (208,123 | ) | (260,900 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 8,874,407 | (3,062,580 | ) | |||
Total Increase (Decrease) in Net Assets | 12,775,954 | (2,834,881 | ) | |||
Net Assets | ||||||
Beginning of period | 17,951,209 | 20,786,090 | ||||
End of period | $ | 30,727,163 | $ | 17,951,209 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 8,874,407 | $ | 25,326,160 | ||
Redeemed | — | (28,388,740 | ) | |||
Net Increase (Decrease) | $ | 8,874,407 | $ | (3,062,580 | ) | |
Shares: | ||||||
Sold | 200,000 | 650,000 | ||||
Redeemed | — | (750,000 | ) | |||
Net Increase (Decrease) | 200,000 | (100,000 | ) |
(a) | Effective September 30, 2020, Principal Price Setters Index ETF changed its name to Principal Quality ETF. |
See accompanying notes.
17
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Spectrum Preferred | ||||||
Securities Active ETF | ||||||
Period ended | Year ended | |||||
December 31, 2020 | June 30, 2020 | |||||
Operations | ||||||
Net investment income (loss) | $ | 3,157,519 | $ | 4,190,654 | ||
Net realized gain (loss) on investments | 321,276 | (138,163 | ) | |||
Change in unrealized appreciation (depreciation) of investment | 11,583,264 | 225,581 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 15,062,059 | 4,278,072 | ||||
Dividends to Shareholders | ||||||
From net investment income and net realized gain on investments | (4,336,200 | ) | (4,757,405 | ) | ||
Total Dividends | (4,336,200 | ) | (4,757,405 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 95,354,717 | 72,724,847 | ||||
Total Increase (Decrease) in Net Assets | 106,080,576 | 72,245,514 | ||||
Net Assets | ||||||
Beginning of period | 139,995,080 | 67,749,566 | ||||
End of period | $ | 246,075,656 | $ | 139,995,080 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 95,354,717 | $ | 87,341,857 | ||
Redeemed | — | (14,617,010 | ) | |||
Net Increase (Decrease) | $ | 95,354,717 | $ | 72,724,847 | ||
Shares: | ||||||
Sold | 4,700,000 | 4,500,000 | (a) | |||
Redeemed | — | (750,000 | ) (a) | |||
Net Increase (Decrease) | 4,700,000 | 3,750,000 |
(a) | Effective July 22, 2020, Principal Spectrum Preferred Securities Active ETF issued a 5 to 1 stock split. The stock split, has been retroactively reflected on the Statement of Changes in Net Assets and Financial Highlights. |
See accompanying notes.
18
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Spectrum Tax-Advantaged | ||||||
Dividend Active ETF | ||||||
Period ended | Period ended | |||||
December 31, 2020 June 30, 2020 (a) | ||||||
Operations | ||||||
Net investment income (loss) | $ | 461,585 | $ | 33,207 | ||
Net realized gain (loss) on investments | 46,341 | 62,208 | ||||
Change in unrealized appreciation (depreciation) of investment | 1,641,914 | (147,840 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,149,840 | (52,425 | ) | |||
Dividends to Shareholders | ||||||
From net investment income and net realized gain on investments | (606,860 | ) | — | |||
Total Dividends | (606,860 | ) | — | |||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 1,000,132 | 20,000,020 | ||||
Total Increase (Decrease) in Net Assets | 2,543,112 | 19,947,595 | ||||
Net Assets | ||||||
Beginning of period | 19,947,595 | — | ||||
End of period | $ | 22,490,707 | $ | 19,947,595 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 1,000,132 | $ | 20,000,020 | ||
Redeemed | — | — | ||||
Net Increase (Decrease) | $ | 1,000,132 | $ | 20,000,020 | ||
Shares: | ||||||
Sold | 50,000 | 1,000,001 | ||||
Redeemed | — | — | ||||
Net Increase (Decrease) | 50,000 | 1,000,001 |
(a) | Period from June 16, 2020, date operations commenced, through June 30, 2020. |
See accompanying notes.
19
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Ultra-Short Active | ||||||
Income ETF | ||||||
Period ended | Year ended | |||||
December 31, 2020 | June 30, 2020 | |||||
Operations | ||||||
Net investment income (loss) | $ | 56,504 | $ | 273,078 | ||
Net realized gain (loss) on investments | 6,238 | 13,894 | ||||
Change in unrealized appreciation (depreciation) of investment | (13,273 | ) | 26,421 | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | 49,469 | 313,393 | ||||
Dividends to Shareholders | ||||||
From net investment income and net realized gain on investments | (136,186 | ) | (346,501 | ) | ||
Total Dividends | (136,186 | ) | (346,501 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | — | — | ||||
Total Increase (Decrease) in Net Assets | (86,717 | ) | (33,108 | ) | ||
Net Assets | ||||||
Beginning of period | 12,509,478 | 12,542,586 | ||||
End of period | $ | 12,422,761 | $ | 12,509,478 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | — | $ | — | ||
Redeemed | — | — | ||||
Net Increase (Decrease) | $ | — | $ | — | ||
Shares: | ||||||
Sold | — | — | ||||
Redeemed | — | — | ||||
Net Increase (Decrease) | — | — |
See accompanying notes.
20
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal U.S. Mega-Cap ETF (a) | ||||||
Period ended | Year ended | |||||
December 31, 2020 | June 30, 2020 | |||||
Operations | ||||||
Net investment income (loss) | $ | 13,139,926 | $ | 29,796,945 | ||
Net realized gain (loss) on investments | 45,558,737 | 37,623,191 | ||||
Change in unrealized appreciation (depreciation) of investment | 244,044,203 | 3,750,721 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 302,742,866 | 71,170,857 | ||||
Dividends to Shareholders | ||||||
From net investment income and net realized gain on investments | (20,078,362 | ) | (31,719,706 | ) | ||
Total Dividends | (20,078,362 | ) | (31,719,706 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 7,694,713 | (153,346,324 | ) | |||
Total Increase (Decrease) in Net Assets | 290,359,217 | (113,895,173 | ) | |||
Net Assets | ||||||
Beginning of period | 1,505,045,883 | 1,618,941,056 | ||||
End of period | $ | 1,795,405,100 | $ | 1,505,045,883 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 125,388,273 | $ | 413,860,349 | ||
Redeemed | (117,693,560 | ) | (567,206,673 | ) | ||
Net Increase (Decrease) | $ | 7,694,713 | $ | (153,346,324 | ) | |
Shares: | ||||||
Sold | 3,700,000 | 13,900,000 | ||||
Redeemed | (3,500,000 | ) | (19,500,000 | ) | ||
Net Increase (Decrease) | 200,000 | (5,600,000 | ) |
(a) | Effective September 30, 2020, Principal U.S. Mega-Cap Multi-Factor Index ETF changed its name to Principal U.S. Mega-Cap ETF. |
See accompanying notes.
21
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal U.S. Small-Cap Multi-Factor | ||||||
ETF (a) | ||||||
Period ended | Year ended | |||||
December 31, 2020 | June 30, 2020 | |||||
Operations | ||||||
Net investment income (loss) | $ | 6,178,575 | $ | 5,411,731 | ||
Net realized gain (loss) on investments | (18,929,625 | ) | (11,982,621 | ) | ||
Change in unrealized appreciation (depreciation) of investment | 198,864,220 | (38,339,811 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | 186,113,170 | (44,910,701 | ) | |||
Dividends to Shareholders | ||||||
From net investment income and net realized gain on investments | (7,433,766 | ) | (4,965,930 | ) | ||
Total Dividends | (7,433,766 | ) | (4,965,930 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | 353,064,238 | 22,981,970 | ||||
Total Increase (Decrease) in Net Assets | 531,743,642 | (26,894,661 | ) | |||
Net Assets | ||||||
Beginning of period | 328,305,217 | 355,199,878 | ||||
End of period | $ | 860,048,859 | $ | 328,305,217 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | 353,064,238 | $ | 113,314,051 | ||
Redeemed | — | (90,332,081 | ) | |||
Net Increase (Decrease) | 353,064,238 | $ | 22,981,970 | |||
Shares: | ||||||
Sold | 11,650,000 | 3,650,000 | ||||
Redeemed | — | (2,950,000 | ) | |||
Net Increase (Decrease) | 11,650,000 | 700,000 |
(a) | Effective September 30, 2020, Principal U.S. Small-Cap Multi-Factor Index ETF changed its name to Principal U.S. Small-Cap Multi-Factor ETF. |
See accompanying notes.
22
Statement of Changes in Net Assets | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Value ETF (a) | ||||||
Period ended | Year ended | |||||
December 31, 2020 | June 30, 2020 | |||||
Operations | ||||||
Net investment income (loss) | $ | 337,050 | $ | 417,491 | ||
Net realized gain (loss) on investments | 3,826,027 | (430,875 | ) | |||
Change in unrealized appreciation (depreciation) of investment | 1,263,739 | 1,221,147 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 5,426,816 | 1,207,763 | ||||
Dividends to Shareholders | ||||||
From net investment income and net realized gain on investments | (550,787 | ) | (284,301 | ) | ||
Total Dividends | (550,787 | ) | (284,301 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in capital share transactions | (19,815,479 | ) | 16,588,925 | |||
Total Increase (Decrease) in Net Assets | (14,939,450 | ) | 17,512,387 | |||
Net Assets | ||||||
Beginning of period | 31,906,967 | 14,394,580 | ||||
End of period | $ | 16,967,517 | $ | 31,906,967 | ||
Capital Share Transactions | ||||||
Dollars: | ||||||
Sold | $ | — | $ | 24,375,394 | ||
Redeemed | (19,815,479 | ) | (7,786,469 | ) | ||
Net Increase (Decrease) | $ | (19,815,479 | ) | $ | 16,588,925 | |
Shares: | ||||||
Sold | — | 950,000 | ||||
Redeemed | (650,000 | ) | (250,000 | ) | ||
Net Increase (Decrease) | (650,000 | ) | 700,000 | |||
(a) Effective September 30, 2020, Principal Shareholder Yield Index ETF changed its name to Principal Value ETF. | ||||||
See accompanying notes.
23
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2020 (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 Trust currently consists of thirteen series, Principal Active Global Dividend Income ETF, Principal Active Income ETF, Principal Healthcare Innovators Index ETF, Principal International Multi-Factor ETF, Principal Investment Grade Corporate Active ETF, Principal Millennials Index ETF, Principal Quality ETF, Principal Spectrum Preferred Securities Active ETF, Principal Spectrum Tax-Advantaged Dividend Active ETF, Principal Ultra-Short Active Income ETF, Principal U.S. Mega-Cap ETF, Principal U.S. Small-Cap Multi-Factor ETF and Principal Value ETF (collectively, the “Funds” and individually, a “Fund”). The Funds are “diversified”, and as such, the Funds' investments are required to meet certain diversification requirements under the Investment Company Act of 1940. The shares of the Funds are referred to herein as “Shares”.
Each of the Funds is an investment company and applies specialized accounting and reporting under Accounting Standards Codification Topic 946, Financial Services - Investment Companies. The Funds have not provided financial support and are not contractually required to provide financial support to any investee.
The Trust issues and redeems Shares at net asset value (“NAV”) only with Authorized Participants (“APs”) and only in aggregations of 50,000 Shares with the exception of Principal International Multi-Factor ETF which is issued and redeemed in aggregations of 100,000 shares (each a “Creation Unit” or multiples thereof “Creation Unit Aggregations”), which is subject to change. The Trust issues and redeems Creation Unit Aggregations in exchange for portfolio securities and/or cash, plus a fixed and/or variable transaction fee.
Shares trade on exchanges at market prices that may be below, at, or above NAV. Shares are listed on the respective exchanges as listed below:
Fund | Exchange |
Principal Active Global Dividend Income ETF | Cboe BZX Exchange, Inc. |
Principal Active Income ETF | NYSE Arca |
Principal Healthcare Innovators Index ETF | The Nasdaq Stock Market LLC |
Principal International Multi-Factor ETF | The Nasdaq Stock Market LLC |
Principal Investment Grade Corporate Active ETF | NYSE Arca |
Principal Millennials Index ETF | The Nasdaq Stock Market LLC |
Principal Quality ETF | The Nasdaq Stock Market LLC |
Principal Spectrum Preferred Securities Active ETF * | NYSE Arca |
Principal Spectrum Tax-Advantaged Dividend Active ETF | NYSE Arca |
Principal Ultra-Short Active Income ETF | NYSE Arca |
Principal U.S. Mega-Cap ETF | The Nasdaq Stock Market LLC |
Principal U.S. Small-Cap Multi-Factor ETF | The Nasdaq Stock Market LLC |
Principal Value ETF | The Nasdaq Stock Market LLC |
* Effective August 17, 2020, Principal Spectrum Preferred Securities Active ETF changed its primary listing exchange to NYSE Arca from Cboe BZX Exchange, Inc..
Principal Ultra-Short Active Income ETF initial investment and commencement of operations was April 24, 2019. Principal International Multi-Factor ETF initial investment and commencement of operations was July 23, 2019. Principal Spectrum Tax-Advantaged Dividend Active ETF initial investment and commencement of operations was June 16, 2020.
24
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2020 (unaudited)
1. Organization (continued)
Effective July 22, 2020, Principal Spectrum Preferred Securities Active ETF issued a 5 to 1 stock split. The stock split, has been retroactively reflected on the Statement of Changes in Net Assets and Financial Highlights.
Effective September 30, 2020, the following Funds changed their names as shown below:
Previous Name | New Name |
Principal International Multi-Factor Core Index ETF | Principal International Multi-Factor ETF |
Principal Price Setters Index ETF | Principal Quality ETF |
Principal Shareholder Yield Index ETF | Principal Value ETF |
Principal U.S. Mega-Cap Multi-Factor Index ETF | Principal U.S. Mega-Cap ETF |
Principal U.S. Small-Cap Multi-Factor Index ETF | Principal U.S. Small-Cap Multi-Factor ETF |
2. Significant Accounting Policies
The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Funds:
Security Valuation. The Funds value securities for which market quotations are readily available at fair value, which is determined using the last reported sale price. If no sales are reported, as is regularly the case for some securities traded over-the-counter, securities are valued using the last reported bid price or an evaluated bid price provided by a pricing service. Pricing services use modeling techniques that incorporate security characteristics, market conditions and dealer-supplied valuations to determine an evaluated bid price. When reliable market quotations are not considered to be readily available, which may be the case, for example, with respect to restricted securities, certain debt securities, preferred stocks, and foreign securities, the investments are valued at their fair value. The Funds invest in other publicly traded investment funds, which are valued at the respective fund's NAV.
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 Fund’s NAV are reflected in the Fund’s NAV and these securities are valued at fair value. 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 Fund’s NAV could be significantly affected on days when shares are able to be issued or redeemed by APs.
Certain securities issued by companies in emerging market countries may have more than one quoted valuation at any given point in time, sometimes referred to as a “local” price and a “premium” price. The premium price is often a negotiated price, which may not consistently represent a price at which a specific transaction can be effected. It is the policy of the Funds to value such securities at prices at which it is expected those shares may be sold, and Principal Global Investors, LLC (“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.
25
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2020 (unaudited)
2. Significant Accounting Policies (continued)
Income and Investment Transactions. The Funds record investment transactions on a trade date basis. The identified cost basis has been used in determining the net realized gain or loss from investment transactions and unrealized appreciation or depreciation of investments. The Funds record dividend income on the ex-dividend date, except dividend income from foreign securities whereby the ex-dividend date has passed; such dividends are recorded as soon as the Funds are informed of the ex-dividend date. Interest income is recognized on an accrual basis. Discounts and premiums on securities are accreted/amortized, respectively, on the level yield method over the expected lives of the respective securities. Callable debt securities purchased at a premium are amortized to the earliest call date and to the callable amount, if other than par.
Capital Share Transactions. Capital shares are issued and redeemed by the Funds only in a Creation Unit or Creation Unit Aggregations. Except when aggregated into at least a Creation Unit, Shares are not redeemable.
The consideration for the purchase of a Creation Unit or Creation Unit Aggregations 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 Unit Aggregations, APs are subject to standard creation and redemption transaction fees.
Expenses. For all Funds, a unitary investment management and advisory fee is charged. The Advisor covers all operating expenses through the investment management and advisory fee with the exception of 12b-1 fees, brokerage commissions and other expenses connected to the execution of portfolio transactions, interest expense, taxes, acquired fund fees and expenses, litigation expenses and other extraordinary expenses, if applicable.
Dividends to Shareholders. Dividends to shareholders of the Funds are recorded on the ex-dividend date. Dividends to shareholders from net investment income and net realized gain from investments and foreign currency transactions are determined in accordance with federal tax regulations, which may differ from U.S. GAAP. These differences are primarily due to differing treatments for futures contracts, net operating losses, sales of passive foreign investment companies, partnership investments, foreign currency transactions, losses deferred due to wash sales, tax straddles, mortgage-backed securities, certain preferred securities, redemptions-in-kind, real estate investment trust’s (“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 (“IRC”). 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 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 each intend to qualify as a “regulated investment company” under the IRC 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 period ended December 31, 2020, the Funds did not record any such tax benefit or expense in the accompanying financial statements. The statute of limitations remains open for the last three years, once a return is filed. No examinations are in progress at this time.
Foreign Taxes. Certain Funds are subject to foreign income taxes imposed by certain countries in which they invest. Foreign income taxes are accrued by the Funds as a reduction of income. These amounts are shown as withholding tax on the Statements of Operations.
26
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2020 (unaudited)
2. Significant Accounting Policies (continued)
Recent Accounting Pronouncements. In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform (Topic 848); Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The guidance is applicable to contracts referencing LIBOR or another reference rate that is expected to be discontinued due to reference rate reform. The ASU is effective as of March 12, 2020 and generally can be applied through December 31, 2022. Management is evaluating the underlying securities referencing LIBOR or another reference rate that is expected to be discontinued over the period of time the ASU is effective.
3. Operating Policies
Contingent Convertible Securities ("CoCos"). As footnoted in the schedules of investments, certain of the Funds invest in contingent convertible securities. CoCos are hybrid debt securities that may convert into equity or have their principal written down upon the occurrence of certain "triggers". Although a contingent convertible security's equity conversion and principal write-down features are tailored to the particular issuing banking institution and its regulatory requirements, triggers are generally linked to regulatory capital thresholds or regulatory actions calling into question such institution's continued viability as a going-concern. CoCos may have no stated maturity and fully discretionary coupons, which means coupon payments can be canceled at the issuing banking institution's discretion or at the request of the relevant regulatory authority without causing a default. To provide the appropriate regulatory capital treatment, CoCos are usually issued in the form of subordinated debt instruments that rank junior to the claims of holders of more senior obligations in the event of the issuer's liquidation. If CoCos are converted into equity securities due to a trigger event, holders will be further subordinated. The future value of CoCos is unpredictable and is influenced by many factors including, without limitation: the creditworthiness of the issuer and/or fluctuations in such issuer's applicable capital ratios; supply and demand for CoCos; general market conditions and available liquidity; and economic, financial and political events that affect the issuer, its particular market or the financial markets in general. Due to these features, CoCos may have substantially greater risk than other securities in times of financial stress. Because of the uncertainty regarding whether a conversion event will occur, it may be difficult to predict when, if at all, a contingent convertible security will be converted to equity, and a fund may suffer losses as a result. If the trigger level is breached, the issuer's decision to write down, write off or convert a contingent convertible security may result in the fund's complete loss on an investment in CoCos with no chance of recovery even if the issuer remains in existence.
Cross Trades. The Funds may engage in cross trades. A cross trade is a purchase or sale transaction between affiliated portfolios executed directly or through an intermediary. Mutual funds and other managed portfolios may be considered affiliated if they have a common investment advisor, so a fund may be considered affiliated with any portfolio for which the fund's sub-advisor acts as an investment advisor. Such transactions are permissible provided that the conditions of Rule 17a-7 under the Investment Company Act of 1940 are satisfied. There were no Funds with cross trades during the period.
Deposits with Counterparty. Cash pledged as collateral is reflected as an asset on the Statements of Assets and Liabilities as deposits with counterparty. There are a variety of security types which require varying levels of pledged collateral. Customer account agreements govern cleared derivatives transactions such as futures contracts. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission. As of December 31, 2020, deposits with counterparty for Principal Investment Grade Corporate Active ETF were $174,000.
27
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2020 (unaudited)
3. Operating Policies (continued)
Futures Contracts. The Funds are subject to equity price risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Funds may enter into futures contracts to hedge against changes in or to gain exposure to, change in the value of equities, interest rates and foreign currencies. Initial margin deposits are made by cash deposits or segregation of specific securities as may be required by the exchange on which the transaction was conducted. Pursuant to the contracts, typically a Fund agree to receive from or pay to the broker, an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as “variation margin” and are recorded by the Funds as variation margin receivable or payable on financial derivative instruments. For those contracts where daily variation margin payments are not received from or paid to the broker, the cumulative unrealized gains or losses are included in variation margin receivable or payable on financial derivative instruments. Futures contracts are marked to market daily at the closing settlement price or in the absence of such a price, the most recent quoted bid price. If there are no quotations available, the security is valued at the last available closing settlement price. During the period the futures contracts are open, daily changes in the fair value of the contracts are recognized as unrealized gains or losses. These unrealized gains or losses are included as a component of net unrealized appreciation (depreciation) of investments on the Statements of Assets and Liabilities. When the contracts are closed, the Funds recognize a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s cost basis in the contract. There is minimal counterparty credit risk to the Funds because futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
Long and short U.S. Treasury futures contracts are used to obtain interest rate exposure in order to manage duration of the Principal Investment Grade Corporate Active ETF. The notional values of the futures contracts will vary in accordance with changing duration of this Fund.
Illiquid Securities. Illiquid securities generally cannot be sold or disposed of in the ordinary course of business (within seven calendar days) at approximately the value at which each of the Funds has valued the investments. This may have an adverse effect on each of the Funds’ ability to dispose of particular illiquid securities at fair value and may limit each of the Funds’ ability to obtain accurate market quotations for purposes of valuing the securities.
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.
Securities Lending. To earn additional income, certain of the Funds may lend portfolio securities to approved brokerage firms. The Funds receive collateral, in the form of cash, against the loaned securities. During the period of the loan, the borrower must maintain collateral in an amount not less than 102% of the market value of the domestic and foreign fixed income loaned securities and 105% of the market value of the foreign equity loaned securities. The market value of the loaned securities is determined at the close of business of the Funds and any additional required collateral is delivered to the Funds on the next business day. The cash collateral received is usually invested in a SEC-registered money market mutual fund and the Funds could realize a loss on such investments. Further, the Funds could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. Securities lending income, net of related fees, is shown on the Statements of Operations. As of December 31, 2020, the Funds had securities on loan as follows:
Fund | Market Value | Collateral Value | ||
Principal Active Income ETF | $ | 4,888,831 | $ | 4,993,548 |
Principal Healthcare Innovators Index ETF | 8,910,058 | 9,386,341 | ||
Principal International Multi-Factor ETF | 202,523 | 214,164 |
28
Notes to Financial Statements | ||||
Principal Exchange-Traded Funds | ||||
December 31, 2020 (unaudited) | ||||
3. Operating Policies (continued) | ||||
Fund | Market Value | Collateral Value | ||
Principal Millennials Index ETF | $ | 993,341 | $ | 1,064,005 |
Principal Spectrum Preferred Securities Active ETF | 896,855 | 916,680 | ||
Principal U.S. Small-Cap Multi-Factor ETF | 16,703,023 | 17,992,026 | ||
Principal Value ETF | 84,752 | 88,841 |
Underlying Funds. Series of Principal Funds, Inc. and Principal Variable Contracts Funds, Inc., affiliates of the Advisor, may invest in certain of the Funds (the “underlying funds”).
An underlying fund may experience relatively large redemptions or purchases as the investee fund periodically reallocates or rebalances its assets. These transactions may accelerate the realization of taxable income if sales of portfolio securities result in gains and could increase transaction costs.
The Advisor is the advisor to Principal Funds, Inc., Principal Variable Contracts Funds, Inc., and the underlying funds. The Advisor is committed to minimizing the potential impact of underlying fund risk to the underlying funds to the extent consistent with pursuing the investment objectives of the investee funds which it manages. Each may face conflicts of interest in fulfilling its responsibilities to all such funds.
As of December 31, 2020, Principal Funds, Inc. and Principal Variable Contracts Funds, Inc. owned the following percentages, in aggregate, of the outstanding Shares of the underlying funds listed below:
Total Percentage of | ||
Fund | Outstanding Shares Owned | |
Principal Active Global Dividend Income ETF | 90.00 | % |
Principal Active Income ETF | 85.79 | |
Principal Investment Grade Corporate Active ETF | 96.30 | |
Principal U.S. Mega-Cap ETF | 88.67 | |
Principal U.S. Small-Cap Multi-Factor ETF | 96.83 |
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 U.S. Government) include FNMA and 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.
29
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2020 (unaudited)
3. Operating Policies (continued)
Derivatives. The following tables provide information about where on the Statements of Assets and Liabilities and Statements of Operations information about derivatives can be found:
Asset Derivatives | Liability Derivatives | |||||
December 31, 2020 | December 31, 2020 | |||||
Derivatives not accounted | ||||||
for as | Statement of Assets and | Statement of Assets and | ||||
hedging instruments | Liabilities Location | Fair Value | Liabilities Location | Fair Value | ||
Principal Investment Grade Corporate Active ETF | ||||||
Interest rate contracts | Receivables, Total | Payables, Total | ||||
distributable earnings | distributable earnings | |||||
$ | 34,589 | * | $ | — | ||
(accumulated loss) | (accumulated loss) |
* Includes cumulative unrealized appreciation (depreciation) of futures contracts as shown in the Schedule of Investments. Only the portion of the unrealized appreciation (depreciation) not yet cash settled is shown in the Statements of Assets and Liabilities as variation margin.
Derivatives | Net Realized Gain or | Net Change in Unrealized | ||||
not accounted | Location of Gain or (Loss) on | (Loss) on Derivatives | Appreciation (Depreciation) | |||
for as hedging | Derivatives Recognized in | Recognized in | of Derivatives Recognized in | |||
instruments | Statement of Operations | Statement of Operations | Statement of Operations | |||
Principal Investment Grade Corporate Active ETF | ||||||
Interest rate | Net realized gain (loss) from Futures | |||||
contracts | contracts/Net change in unrealized | |||||
appreciation/(depreciation) of Futures $ | (59,947 | ) | $ | 119,537 | ||
contracts |
The following table includes a summary of the monthly average outstanding notional by derivative instrument type for the period ended December 31, 2020:
Contract Type | Derivative Type | Average Notional | |
Principal Investment Grade Corporate Active ETF | |||
Interest rate contracts | Futures — Long | $ | 659,538 |
Futures — Short | 4,274,108 | ||
4. Fair Valuation |
Fair value is defined as the price that the Funds would receive upon selling a security or transferring a liability 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 approaches: market, income and/or cost. A hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Funds. Unobservable inputs are inputs that reflect the Fund’s own estimates about the estimates market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
30
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2020 (unaudited)
4. Fair Valuation (continued)
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. Investments which are generally included in this category include listed equities and listed derivatives.
Level 2 — Other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.). Investments which are generally included in this category include certain corporate bonds, OTC derivatives, mortgage-backed securities 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.
Fair value is a market based measure considered from the perspective of a market participant who holds the asset rather than an entity specific measure. Therefore, even when market assumptions are not readily available, the Funds’ own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Funds use prices and inputs that are current as of the measurement date, to the extent available.
Investments which are included in the Level 3 category may be valued using quoted indicative 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, pandemics, accidents, conflicts, etc.).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those instruments.
During the period there were no significant purchases, sales, or transfers into or out of Level 3.
31
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2020 (unaudited)
4. Fair Valuation (continued)
The following is a summary of the inputs used as of December 31, 2020 in valuing the Funds' securities carried at fair value:
Level 2 — Other | Level 3 — | |||||||
Level 1 — | Significant | Significant | ||||||
Quoted | Observable | Unobservable | ||||||
Fund | Prices | Inputs | Inputs | Totals (Level 1,2,3) | ||||
Principal Active Global Dividend Income ETF | ||||||||
Common Stocks* | $ | 153,540,701 | $ | — $ | — $ | 153,540,701 | ||
Investment Companies | 5,062,444 | — | — | 5,062,444 | ||||
Total investments in securities | $ | 158,603,145 | $ | — $ | — $ | 158,603,145 | ||
Principal Active Income ETF | ||||||||
Common Stocks* | $ | 49,265,570 | $ | — $ | — $ | 49,265,570 | ||
Preferred Stocks* | 19,848,950 | — | — | 19,848,950 | ||||
Bonds* | — | 159,170,118 | — | 159,170,118 | ||||
Investment Companies | 7,267,310 | — | — | 7,267,310 | ||||
Total investments in securities | $ | 76,381,830 | $ | 159,170,118 | $ | — $ | 235,551,948 | |
Principal Healthcare Innovators Index ETF | ||||||||
Common Stocks* | $ | 155,042,970 | $ | — $ | — $ | 155,042,970 | ||
Investment Companies | 9,715,608 | — | — | 9,715,608 | ||||
Total investments in securities | $ | 164,758,578 | $ | — $ | — $ | 164,758,578 | ||
Principal International Multi-Factor ETF | ||||||||
Common Stocks* | $ | 61,917,097 | $ | — $ | — $ | 61,917,097 | ||
Preferred Stocks* | 677,708 | — | — | 677,708 | ||||
Investment Companies | 504,668 | — | — | 504,668 | ||||
Total investments in securities | $ | 63,099,473 | $ | — $ | — $ | 63,099,473 | ||
Principal Investment Grade Corporate Active ETF | ||||||||
Bonds* | $ | — $ | 325,756,905 | $ | — $ | 325,756,905 | ||
Investment Companies | 4,704,181 | — | — | 4,704,181 | ||||
Total investments in securities | $ | 4,704,181 | $ | 325,756,905 | $ | — $ | 330,461,086 | |
Assets | ||||||||
Interest rate contracts | ||||||||
Futures | $ | 34,589 | $ | — $ | — $ | 34,589 | ||
Principal Millennials Index ETF | ||||||||
Common Stocks* | $ | 75,152,681 | $ | — $ | — $ | 75,152,681 | ||
Investment Companies | 1,234,972 | — | — | 1,234,972 | ||||
Total investments in securities | $ | 76,387,653 | $ | — $ | — $ | 76,387,653 | ||
Principal Quality ETF | ||||||||
Common Stocks* | $ | 30,664,975 | $ | — $ | — $ | 30,664,975 | ||
Investment Companies | 99,959 | — | — | 99,959 | ||||
Total investments in securities | $ | 30,764,934 | $ | — $ | — $ | 30,764,934 | ||
Principal Spectrum Preferred Securities Active ETF | ||||||||
Bonds* | $ | — $ | 227,310,525 | $ | — $ | 227,310,525 | ||
U.S. Government & Government | ||||||||
Agency Obligations | — | 4,994,141 | — | 4,994,141 | ||||
Investment Companies | 12,030,002 | — | — | 12,030,002 | ||||
Total investments in securities | $ | 12,030,002 | $ | 232,304,666 | $ | — $ | 244,334,668 |
32
Notes to Financial Statements | |||||||||
Principal Exchange-Traded Funds | |||||||||
December 31, 2020 (unaudited) | |||||||||
4. Fair Valuation (continued) | |||||||||
Level 2 — Other | Level 3 — | ||||||||
Level 1 — | Significant | Significant | |||||||
Quoted | Observable | Unobservable | |||||||
Fund | Prices | Inputs | Inputs | Totals (Level 1,2,3) | |||||
Principal Spectrum Tax-Advantaged Dividend Active ETF | |||||||||
Preferred Stocks* | $ | 3,822,666 | $ | — $ | — $ | 3,822,666 | |||
Bonds* | — | 18,471,272 | — | 18,471,272 | |||||
Investment Companies | 90,373 | — | — | 90,373 | |||||
Total investments in securities | $ | 3,913,039 | $ | 18,471,272 | $ | — $ | 22,384,311 | ||
Principal Ultra-Short Active Income ETF | |||||||||
Bonds* | $ | — $ | 12,117,187 | $ | — $ | 12,117,187 | |||
Investment Companies | 278,243 | — | — | 278,243 | |||||
Total investments in securities | $ | 278,243 | $ | 12,117,187 | $ | — $ | 12,395,430 | ||
Principal U.S. Mega-Cap ETF | |||||||||
Common Stocks* | $ | 1,792,852,550 | $ | — $ | — $ | 1,792,852,550 | |||
Investment Companies | 5,674,525 | — | — | 5,674,525 | |||||
Total investments in securities | $ | 1,798,527,075 | $ | — $ | — $ | 1,798,527,075 | |||
Principal U.S. Small-Cap Multi-Factor ETF | |||||||||
Common Stocks* | $ | 857,861,360 | $ | — $ | — $ | 857,861,360 | |||
Investment Companies | 21,314,520 | — | — | 21,314,520 | |||||
Total investments in securities | $ | 879,175,880 | $ | — $ | — $ | 879,175,880 | |||
Principal Value ETF | |||||||||
Common Stocks* | $ | 16,888,654 | $ | — $ | — $ | 16,888,654 | |||
Investment Companies | 147,651 | — | — | 147,651 | |||||
Total investments in securities | $ | 17,036,305 | $ | — $ | — $ | 17,036,305 |
* | 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, which is also an affiliate of the Advisor. The management fee schedule for the Funds is as follows:
First | Next | Next | Over | |||||
Fund | $500 Million | $500 Million | $500 Million | $1.5 Billion | ||||
Principal Healthcare Innovators Index ETF | 0.42 | % | 0.40 | % | 0.38 | % | 0.37 | % |
Principal Millennials Index ETF | 0.45 | 0.43 | 0.41 | 0.40 |
33
Notes to Financial Statements | ||
Principal Exchange-Traded Funds | ||
December 31, 2020 (unaudited) | ||
5. Management Agreement and Transactions with Affiliates (continued) | ||
Fund | All Assets | |
Principal Active Global Dividend Income ETF | 0.58 | % |
Principal Active Income ETF | 0.49 | |
Principal International Multi-Factor ETF | 0.25 | |
Principal Investment Grade Corporate Active ETF | 0.26 | |
Principal Quality ETF | 0.15 | |
Principal Spectrum Preferred Securities Active ETF | 0.55 | |
Principal Spectrum Tax-Advantaged Dividend Active ETF | 0.60 | |
Principal Ultra-Short Active Income ETF | 0.18 | |
Principal U.S. Mega-Cap ETF | 0.15 | |
Principal U.S. Small-Cap Multi-Factor ETF | 0.38 | |
Principal Value ETF | 0.15 |
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 limit is expressed as a percentage of average daily net assets attributable to each Fund on an annualized basis during the reporting period. The expenses borne by the Advisor are subject to reimbursement by the Fund through the fiscal year end, provided no reimbursement will be made if it would result in the Fund exceeding the total operating expense limit. Any amount outstanding at the end of the period are shown as an expense reimbursement from Advisor or expense reimbursement to Advisor on the Statements of Assets and Liabilities. The expense limit for Principal U.S. Mega-Cap ETF is 0.12% through October 31, 2021.
Affiliated Ownership. At December 31, 2020, Principal Financial Services, Inc., Principal Funds, Inc., and Principal Variable Contracts Funds, Inc. (each an affiliate of the Advisor) owned Shares as follows:
Fund | Shares |
Principal Active Global Dividend Income ETF | 4,500,000 |
Principal Active Income ETF | 4,997,100 |
Principal International Multi-Factor ETF | 581,897 |
Principal Investment Grade Corporate Active ETF | 11,700,00 |
Principal Spectrum Tax-Advantaged Dividend Active ETF | 995,521 |
Principal Ultra-Short Active Income ETF | 399,681 |
Principal U.S. Mega-Cap ETF | 44,600,000 |
Principal U.S. Small-Cap Multi-Factor ETF | 22,900,000 |
34
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2020 (unaudited)
6. Investment Transactions
For the period ended December 31, 2020, 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 | $ | 45,419,785 | $ | 77,601,069 | $ | — | $ | — | |
Principal Active Income ETF | 28,137,134 | 90,443,141 | — | — | |||||
Principal Healthcare Innovators Index | |||||||||
ETF | 33,362,675 | 34,126,308 | — | — | |||||
Principal International Multi-Factor ETF | 18,709,055 | 17,793,348 | — | — | |||||
Principal Investment Grade Corporate | |||||||||
Active ETF | 293,461,598 | 84,119,396 | — | — | |||||
Principal Millennials Index ETF | 1,330,993 | 1,043,546 | — | — | |||||
Principal Quality ETF | 16,300 | 79,676 | — | — | |||||
Principal Spectrum Preferred Securities | |||||||||
Active ETF | 58,276,674 | 4,393,440 | 11,700,625 | 6,925,416 | |||||
Principal Spectrum Tax-Advantaged | |||||||||
Dividend Active ETF | 1,332,267 | 1,228,676 | 200,000 | 214,500 | |||||
Principal Ultra-Short Active Income ETF | 5,104,912 | 3,038,094 | 203,406 | 306,078 | |||||
Principal U.S. Mega-Cap ETF | 429,601,798 | 434,707,466 | — | — | |||||
Principal U.S. Small-Cap Multi-Factor | |||||||||
ETF | 258,412,045 | 260,782,868 | — | — | |||||
Principal Value ETF | 344,358 | 456,885 | — | — | |||||
For the period ended December 31, 2020, in-kind transactions were as follows: | |||||||||
Fund | Purchases | Sales | |||||||
Principal Active Global Dividend Income ETF | $ | 1,479,459 | $ | 605,612,474 | |||||
Principal Healthcare Innovators Index ETF | 40,280,548 | 11,398,430 | |||||||
Principal International Multi-Factor ETF | 36,958,718 | — | |||||||
Principal Millennials Index ETF | 43,270,323 | 9,725,605 | |||||||
Principal Quality ETF | 8,874,947 | — | |||||||
Principal Spectrum Preferred Securities Active ETF | 25,363,118 | — | |||||||
Principal Spectrum Tax-Advantaged Dividend Active ETF | 954,222 | — | |||||||
Principal U.S. Mega-Cap ETF | 125,456,851 | 117,528,225 | |||||||
Principal U.S. Small-Cap Multi-Factor ETF | 353,040,868 | — | |||||||
Principal Value ETF | — | 19,824,942 |
Unsettled in-kind purchases and sales at the end of the period are included in investments securities purchased and investments securities sold, respectively, on the Statements of Assets and Liabilities.
35
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2020 (unaudited)
7. Federal Tax Information
Distributions to Shareholders. The federal income tax character of distributions paid to shareholders for the periods ended June 30, 2020, and December 31, 2020 was as follows:
Ordinary Income | Long-Term Capital Gain* | |||||||
Period ended | Period ended | Period ended | Period ended | |||||
Fund | December 31, 2020 | June 30, 2020 | December 31, 2020 | June 30, 2020 | ||||
Principal Active Global Dividend | ||||||||
Income ETF | $ | 9,899,426 | $ | 21,484,757 | $ | — | $ | — |
Principal Active Income ETF | 6,195,743 | 13,270,230 | — | — | ||||
Principal Healthcare Innovators | ||||||||
Index ETF | 527,787 | — | — | — | ||||
Principal International Multi- | ||||||||
Factor ETF | 516,765 | 286,121 | — | — | ||||
Principal Investment Grade | ||||||||
Corporate Active ETF | 6,274,032 | 7,184,698 | 3,773,742 | 1,027,060 | ||||
Principal Millennials Index ETF | 453,660 | 175,301 | — | — | ||||
Principal Quality ETF | 208,123 | 260,900 | — | — | ||||
Principal Spectrum Preferred | ||||||||
Securities Active ETF | 4,336,200 | 4,757,405 | — | — | ||||
Principal Spectrum Tax- | ||||||||
Advantaged Dividend Active ETF | 606,860 | — | — | — | ||||
Principal Ultra-Short Active | ||||||||
Income ETF | 136,186 | 346,501 | — | — | ||||
Principal U.S. Mega-Cap ETF | 20,078,362 | 31,719,706 | — | — | ||||
Principal U.S. Small-Cap Multi- | ||||||||
Factor ETF | 7,433,766 | 4,965,930 | — | — | ||||
Principal Value ETF | 550,787 | 284,301 | — | — |
* 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, 2020, the components of distributable earnings on a federal income tax basis were:
Late Year | |||||||||||||
Ordinary and | |||||||||||||
Undistributed | Undistributed | Unrealized | Post Oct | ||||||||||
Ordinary | Long-Term | Appreciation/ | Capital Loss | Capital Loss | |||||||||
Fund | Income | Capital Gains | (Depreciation) | Deferrals | Carryforward | ||||||||
Principal Active Global | |||||||||||||
Dividend Income ETF | $ | 6,444,257 | $ | — | $ | 68,313,182 | $ | — | $ | (71,445,112 | ) | ||
Principal Active Income ETF | 1,081,908 | — | (17,582,436 | ) | — | (6,972,049 | ) | ||||||
Principal Healthcare | |||||||||||||
Innovators Index ETF | — | — | 14,152,967 | (73,221 | ) | (4,341,444 | ) |
36
Notes to Financial Statements | |||||||||||||
Principal Exchange-Traded Funds | |||||||||||||
December 31, 2020 (unaudited) | |||||||||||||
7. Federal Tax Information (continued) | |||||||||||||
Late Year | |||||||||||||
Ordinary and | |||||||||||||
Undistributed Undistributed | Unrealized | Post Oct | |||||||||||
Ordinary | Long-Term | Appreciation/ Capital Loss | Capital Loss | ||||||||||
Fund | Income | Capital Gains (Depreciation) | Deferrals | Carryforward | |||||||||
Principal International Multi- | |||||||||||||
Factor ETF | $ | 107,572 | $ | — | $ | (615,174 | ) | $ | (434,972 | ) $ | — | ||
Principal Investment Grade | |||||||||||||
Corporate Active ETF | 1,962,336 | 1,913,776 | 7,749,354 | — | — | ||||||||
Principal Millennials Index | |||||||||||||
ETF | 151,077 | — | 3,711,326 | — | (1,446,116 | ) | |||||||
Principal Quality ETF | 59,666 | — | 455,757 | — | (1,354,691 | ) | |||||||
Principal Spectrum Preferred | |||||||||||||
Securities Active ETF | 604,872 | — | (775,864 | ) | — | (1,622,943 | ) | ||||||
Principal Spectrum Tax- | |||||||||||||
Advantaged Dividend Active | |||||||||||||
ETF | 48,638 | — | (165,171 | ) | — | (5,892 | ) | ||||||
Principal Ultra-Short Active | |||||||||||||
Income ETF | 23,530 | — | 4,406 | — | (22,359 | ) | |||||||
Principal U.S. Mega-Cap ETF | 6,941,485 | — | 105,434,052 | — | (80,471,010 | ) | |||||||
Principal U.S. Small-Cap | |||||||||||||
Multi-Factor ETF | 1,513,125 | — | (40,922,534 | ) | — | (63,604,833 | ) | ||||||
Principal Value ETF | 213,753 | — | 989,042 | — | (1,971,578 | ) |
Capital Loss Carryforwards. As of June 30, 2020, the following Funds had net realized capital loss carryforwards, for U.S. federal income tax purposes, available to be used to offset future realized capital gains:
No Expiration No Expiration | Annual | ||||||||
Fund | Short-Term | Long-Term | Total | Limitations* | |||||
Principal Active Global Dividend Income ETF | $ | 10,018,097 | $ | 61,427,015 | $ | 71,445,112 | $ | — | |
Principal Active Income ETF | 1,309,661 | 5,662,388 | 6,972,049 | — | |||||
Principal Healthcare Innovators Index ETF | 1,409,906 | 2,931,538 | 4,341,444 | — | |||||
Principal International Multi-Factor ETF | — | — | — | — | |||||
Principal Investment Grade Corporate Active ETF | — | — | — | — | |||||
Principal Millennials Index ETF | 938,931 | 507,185 | 1,446,116 | — | |||||
Principal Quality ETF | 1,068,758 | 285,933 | 1,354,691 | 294,429 | |||||
Principal Spectrum Preferred Securities Active ETF | 618,548 | 1,004,395 | 1,622,943 | — | |||||
Principal Spectrum Tax-Advantaged Dividend Active ETF | 5,892 | — | 5,892 | — | |||||
Principal Ultra-Short Active Income ETF | 22,271 | 88 | 22,359 | — | |||||
Principal U.S. Mega-Cap ETF | 61,853,968 | 18,617,042 | 80,471,010 | — | |||||
Principal U.S. Small-Cap Multi-Factor ETF | 52,479,933 | 11,124,900 | 63,604,833 | — | |||||
Principal Value ETF | 804,006 | 1,167,572 | 1,971,578 | 230,798 |
* In accordance with IRC Sections 381-384, a portion of certain Funds’ losses have been subjected to an annual limitation.
37
Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2020 (unaudited)
7. Federal Tax Information (continued)
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, 2020, the Funds had late-year capital and ordinary losses as follows:
Fund | Late Year Ordinary Loss | Post October Loss Capital Loss | ||||
Principal Healthcare Innovators Index ETF | $ | (73,221 | ) | $ | — | |
Principal International Multi-Factor ETF | — | (434,972 | ) |
Reclassification of Capital Accounts. The Funds may record reclassifications in their capital accounts. These reclassifications have no impact on the total net assets of the Funds. The reclassifications are a result of permanent differences between U.S. GAAP and tax accounting. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Funds’ distributions may be shown in the accompanying Statement of Changes in Net Assets as from net investment income and net realized gains on investments or from tax return of capital depending on the type of book and tax differences that exist. For the year ended June 30, 2020, the Funds recorded reclassifications as follows:
Total | ||||
Distributable Earnings | ||||
Fund | (Accumulated Loss) Paid In Capital | |||
Principal Active Global Dividend Income ETF | $ | — $ | — | |
Principal Active Income ETF | (297,922 | ) | 297,922 | |
Principal Healthcare Innovators Index ETF | (7,613,224 | ) | 7,613,224 | |
Principal International Multi-Factor ETF | (206,359 | ) | 206,359 | |
Principal Investment Grade Corporate Active ETF | (357,784 | ) | 357,784 | |
Principal Millennials Index ETF | — | — | ||
Principal Quality ETF | (1,632,456 | ) | 1,632,456 | |
Principal Spectrum Preferred Securities Active ETF | (256,739 | ) | 256,739 | |
Principal Spectrum Tax-Advantaged Dividend Active ETF | (70,000 | ) | 70,000 | |
Principal Ultra-Short Active Income ETF | — | — | ||
Principal U.S. Mega-Cap ETF | (76,422,483 | ) | 76,422,483 | |
Principal U.S. Small-Cap Multi-Factor ETF | (17,901,905 | ) | 17,901,905 | |
Principal Value ETF | (610,963 | ) | 610,963 |
Federal Income Tax Basis. As of December 31, 2020, the net federal income tax unrealized appreciation (depreciation) and federal tax cost of investments held by each Fund were as follows:
Cost for | |||||||||
Net Unrealized | Federal | ||||||||
Unrealized | Unrealized | Appreciation | Income Tax | ||||||
Fund | Appreciation | Depreciation | (Depreciation) | Purposes | |||||
Principal Active Global Dividend | |||||||||
Income ETF | $ | 38,475,280 | $ | (8,281,517 | ) | $ | 30,193,763 | $ | 128,409,382 |
Principal Active Income ETF | 24,343,895 | (7,127,655 | ) | 17,216,240 | 213,342,160 | ||||
Principal Healthcare Innovators | |||||||||
Index ETF | 43,064,603 | (7,943,042 | ) | 35,121,561 | 120,250,676 | ||||
Principal International Multi-Factor | |||||||||
ETF | 7,024,273 | (583,946 | ) | 6,440,327 | 56,444,982 |
38
Notes to Financial Statements | ||||||||
Principal Exchange-Traded Funds | ||||||||
December 31, 2020 (unaudited) | ||||||||
7. Federal Tax Information (continued) | ||||||||
Cost for | ||||||||
Net Unrealized | Federal | |||||||
Unrealized | Unrealized | Appreciation | Income Tax | |||||
Fund | Appreciation | Depreciation | (Depreciation) | Purposes | ||||
Principal Investment Grade | ||||||||
Corporate Active ETF | $ | 14,083,733 | $ | (342,140 | ) $ | 13,741,593 | $ | 316,719,493 |
Principal Millennials Index ETF | 16,608,097 | (732,517 | ) | 15,875,580 | 59,448,068 | |||
Principal Quality ETF | 4,835,181 | (135,721 | ) | 4,699,460 | 26,065,474 | |||
Principal Spectrum Preferred | ||||||||
Securities Active ETF | 12,353,289 | (312,962 | ) | 12,040,327 | 231,377,661 | |||
Principal Spectrum Tax- | ||||||||
Advantaged Dividend Active ETF | 1,503,392 | (9,318 | ) | 1,494,074 | 20,890,237 | |||
Principal Ultra-Short Active Income | ||||||||
ETF | 77,269 | (46,251 | ) | 31,018 | 12,364,412 | |||
Principal U.S. Mega-Cap ETF | 357,753,654 | (7,784,441 | ) | 349,969,213 | 1,448,557,862 | |||
Principal U.S. Small-Cap Multi- | ||||||||
Factor ETF | 175,997,505 | (17,864,017 | ) | 158,133,488 | 703,050,366 | |||
Principal Value ETF | 2,761,622 | (504,399 | ) | 2,257,223 | 14,690,241 | |||
8. Other Matters |
As of the date these financial statements were available to be issued, the outbreak of the novel coronavirus (“COVID-19”) in many countries continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets. The global impact of the outbreak has been rapidly evolving and many countries have reacted by instituting quarantines and restrictions on travel. Such measures, as well as the general uncertainty surrounding the dangers and impact of COVID-19, are creating significant disruption in supply chains and economic activity. As COVID-19 continues to spread, the potential impacts, including a global, regional or other economic recession, are increasingly difficult to assess. These events, or fear of such an event, present material uncertainty and risk with respect to the Funds’ performance and financial results.
9. 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. The Board of Trustees approved a Plan of Liquidation and Termination (the “Plan”) for Principal Active Global Dividend Income ETF. Pursuant to the Plan, the Fund will liquidate on January 22, 2021. There were no additional items requiring adjustment of the financial statements or additional disclosure.
39
Schedule of Investments | |||
Principal Active Global Dividend Income ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS — 97.24% | Shares Held | Value | |
Apparel — 4.82% | |||
LVMH Moet Hennessy Louis Vuitton SE | 5,392 | $ | 3,365,368 |
NIKE Inc, Class B | 30,000 | 4,244,100 | |
$ | 7,609,468 | ||
Auto Manufacturers — 2.57% | |||
Ferrari NV | 5,700 | 1,308,264 | |
PACCAR Inc | 31,801 | 2,743,790 | |
$ | 4,052,054 | ||
Auto Parts & Equipment — 2.96% | |||
Bridgestone Corp | 60,000 | 1,966,394 | |
Magna International Inc | 38,134 | 2,699,548 | |
$ | 4,665,942 | ||
Banks — 4.87% | |||
First Republic Bank | 26,407 | 3,879,980 | |
JPMorgan Chase & Co | 30,000 | 3,812,100 | |
$ | 7,692,080 | ||
Beverages — 4.73% | |||
Ambev SA ADR | 720,121 | 2,203,570 | |
Coca-Cola Co/The | 49,987 | 2,741,287 | |
Diageo PLC | 64,298 | 2,530,556 | |
$ | 7,475,413 | ||
Biotechnology — 1.55% | |||
CSL Ltd | 11,226 | 2,450,834 | |
Chemicals — 2.73% | |||
Givaudan SA | 382 | 1,609,466 | |
Kansai Paint Co Ltd | 88,000 | 2,705,922 | |
$ | 4,315,388 | ||
Commercial Services — 2.87% | |||
Experian PLC | 55,188 | 2,095,792 | |
Ritchie Bros Auctioneers Inc | 35,102 | 2,441,344 | |
$ | 4,537,136 | ||
Computers — 3.82% | |||
Apple Inc | 45,492 | 6,036,333 | |
Construction Materials — 1.13% | |||
James Hardie Industries PLC (a) | 60,605 | 1,791,084 | |
Diversified Financial Services — 7.42% | |||
BlackRock Inc | 5,501 | 3,969,192 | |
Deutsche Boerse AG | 15,500 | 2,636,779 | |
Discover Financial Services | 27,500 | 2,489,575 | |
Visa Inc, Class A | 12,000 | 2,624,760 | |
$ | 11,720,306 | ||
Electric — 1.86% | |||
NextEra Energy Inc | 38,000 | 2,931,700 | |
Electrical Components & Equipment — 1.04% | |||
Energizer Holdings Inc | 38,763 | 1,635,023 | |
Electronics — 2.76% | |||
nVent Electric PLC | 75,813 | 1,765,685 | |
TE Connectivity Ltd | 21,390 | 2,589,687 | |
$ | 4,355,372 |
See accompanying notes.
40
Schedule of Investments | |||
Principal Active Global Dividend Income ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Healthcare — Products — 4.52% | |||
Coloplast A/S, Class B | 21,155 | $ | 3,227,905 |
Medtronic PLC | 33,380 | 3,910,133 | |
$ | 7,138,038 | ||
Household Products/Wares — 1.03% | |||
Avery Dennison Corp | 10,500 | 1,628,655 | |
Insurance — 3.90% | |||
Chubb Ltd | 17,500 | 2,693,600 | |
Fidelity National Financial Inc | 43,698 | 1,708,155 | |
Swiss Re AG | 18,609 | 1,751,806 | |
$ | 6,153,561 | ||
Machinery — Diversified — 1.04% | |||
Kone OYJ, Class B | 20,199 | 1,639,974 | |
Media — 1.00% | |||
Comcast Corp, Class A | 30,000 | 1,572,000 | |
Oil & Gas — 4.62% | |||
Chevron Corp | 25,309 | 2,137,345 | |
Marathon Petroleum Corp | 41,773 | 1,727,731 | |
Neste OYJ | 50,000 | 1,826,000 | |
Royal Dutch Shell PLC, Class B | 93,018 | 1,601,985 | |
$ | 7,293,061 | ||
Pharmaceuticals — 4.68% | |||
Novo Nordisk A/S, Class B | 29,618 | 2,074,145 | |
Pfizer Inc | 68,382 | 2,517,141 | |
Roche Holding AG | 8,000 | 2,792,274 | |
$ | 7,383,560 | ||
REITs — 1.91% | |||
Keppel DC REIT | 501,200 | 1,065,657 | |
Terreno Realty Corp | 33,380 | 1,953,064 | |
$ | 3,018,721 | ||
Retail — 3.25% | |||
Starbucks Corp | 27,359 | 2,926,866 | |
Target Corp | 12,500 | 2,206,625 | |
$ | 5,133,491 | ||
Semiconductors — 7.50% | |||
Lam Research Corp | 6,289 | 2,970,106 | |
Microchip Technology Inc | 13,175 | 1,819,599 | |
Taiwan Semiconductor Manufacturing Co Ltd ADR | 64,740 | 7,059,250 | |
$ | 11,848,955 | ||
Software — 6.95% | |||
Broadridge Financial Solutions Inc | 12,534 | 1,920,209 | |
Microsoft Corp | 25,917 | 5,764,459 | |
SAP SE | 25,104 | 3,288,255 | |
$ | 10,972,923 | ||
Telecommunications — 5.45% | |||
BCE Inc | 69,988 | 2,992,731 | |
Telenor ASA | 140,000 | 2,382,249 | |
Verizon Communications Inc | 55,000 | 3,231,250 | |
$ | 8,606,230 | ||
Toys, Games & Hobbies — 3.24% | |||
Hasbro Inc | 27,500 | 2,572,350 |
See accompanying notes.
41
Schedule of Investments | |||||||
Principal Active Global Dividend Income ETF | |||||||
December 31, 2020 (unaudited) | |||||||
COMMON STOCKS (continued) | Shares Held | Value | |||||
Toys, Games & Hobbies (continued) | |||||||
Nintendo Co Ltd | 4,000 | $ | 2,550,191 | ||||
$ | 5,122,541 | ||||||
Transportation — 3.02% | |||||||
Expeditors International of Washington Inc | 17,119 | 1,628,188 | |||||
Union Pacific Corp | 15,045 | 3,132,670 | |||||
$ | 4,760,858 | ||||||
TOTAL COMMON STOCKS | $ | 153,540,701 | |||||
INVESTMENT COMPANIES — 3.20% | Shares Held | Value | |||||
Money Market Fund — 3.20% | |||||||
State Street Institutional U.S. Government Money Market Fund — Institutional | |||||||
Class 0.03% (b) | 5,062,444 | $ | 5,062,444 | ||||
TOTAL INVESTMENT COMPANIES | $ | 5,062,444 | |||||
Total Investments | $ | 158,603,145 | |||||
Other Assets and Liabilities — (0.44)% | (700,273 | ) | |||||
Total Net Assets — 100.00% | $ | 157,902,872 | |||||
(a) | Non-income producing security. | ||||||
(b) | Current yield shown is as of period end. | ||||||
Portfolio Summary (unaudited) | |||||||
Location | Percent | ||||||
United States | 52.94 | % | |||||
Switzerland | 7.24 | % | |||||
Canada | 5.15 | % | |||||
Ireland | 4.94 | % | |||||
Japan | 4.57 | % | |||||
Taiwan | 4.47 | % | |||||
Germany | 3.75 | % | |||||
Denmark | 3.36 | % | |||||
United Kingdom | 2.72 | % | |||||
Finland | 2.20 | % | |||||
France | 2.13 | % | |||||
Australia | 1.55 | % | |||||
Norway | 1.51 | % | |||||
Brazil | 1.40 | % | |||||
Netherlands | 1.01 | % | |||||
Italy | 0.83 | % | |||||
Singapore | 0.67 | % | |||||
Other Assets and Liabilities | (0.44 | )% | |||||
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
42
Schedule of Investments | |||||||||
Principal Active Global Dividend Income ETF | |||||||||
December 31, 2020 (unaudited) | |||||||||
June 30, 2020 | Purchases | Sales | December 31, 2020 | ||||||
Affiliated Securities | Value | Cost | Proceeds | Value | |||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | — | $ | 14,742,325 | $ | 14,742,325 | $ | — |
$ | — | $ | 14,742,325 | $ | 14,742,325 | $ | — | ||
Realized Gain | |||||||||
Realized | from | Change in | |||||||
Gain/Loss on | Capital Gain | Unrealized | |||||||
Income (a) | Investments | Distributions | Gain/Loss | ||||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | — | $ | — $ | — | $ | — | |
$ | — | $ | — $ | — | $ | — |
(a) | Amount excludes earnings from securities lending collateral. |
See accompanying notes.
43
Schedule of Investments | ||||
Principal Active Income ETF | ||||
December 31, 2020 (unaudited) | ||||
COMMON STOCKS — 21.25% | Shares Held | Value | ||
Advertising — 0.51% | ||||
Interpublic Group of Cos Inc/The | 50,717 | $ | 1,192,864 | |
Apparel — 0.31% | ||||
VF Corp | 8,479 | 724,191 | ||
Auto Manufacturers — 0.46% | ||||
PACCAR Inc | 12,247 | 1,056,671 | ||
Auto Parts & Equipment — 0.32% | ||||
Magna International Inc | 10,369 | 734,125 | ||
Banks — 1.78% | ||||
Bank of Hawaii Corp | 843 | 64,591 | ||
Columbia Banking System Inc | 5,275 | 189,373 | ||
Cullen / Frost Bankers Inc | 3,849 | 335,748 | ||
East West Bancorp Inc | 23,419 | 1,187,577 | ||
JPMorgan Chase & Co | 14,575 | 1,852,045 | ||
PacWest Bancorp | 6,629 | 168,377 | ||
US Bancorp | 3,604 | 167,910 | ||
Washington Trust Bancorp Inc | 3,459 | 154,963 | ||
$ | 4,120,584 | |||
Chemicals — 0.44% | ||||
Air Products & Chemicals Inc | 3,758 | 1,026,761 | ||
Computers — 0.68% | ||||
Apple Inc | 11,848 | 1,572,111 | ||
Diversified Financial Services — 1.09% | ||||
BlackRock Inc | 1,851 | 1,335,570 | ||
KKR & Co Inc, Class A | 29,740 | 1,204,173 | ||
$ | 2,539,743 | |||
Electric — 1.41% | ||||
ALLETE Inc | 14,108 | 873,850 | ||
Eversource Energy | 7,812 | 675,816 | ||
WEC Energy Group Inc | 7,464 | 686,912 | ||
Xcel Energy Inc | 15,402 | 1,026,851 | ||
$ | 3,263,429 | |||
Electronics — 0.47% | ||||
Honeywell International Inc | 5,097 | 1,084,132 | ||
Food — 0.62% | ||||
Hormel Foods Corp | 15,130 | 705,209 | ||
Tyson Foods Inc, Class A | 11,289 | 727,463 | ||
$ | 1,432,672 | |||
Hand/Machine Tools — 0.52% | ||||
Lincoln Electric Holdings Inc | 6,497 | 755,276 | ||
Snap-on Inc | 2,618 | 448,045 | ||
$ | 1,203,321 | |||
Healthcare — Products — 1.53% | ||||
Abbott Laboratories | 10,895 | 1,192,893 | ||
Medtronic PLC | 12,169 | 1,425,477 | ||
Teleflex Inc | 2,280 | 938,380 | ||
$ | 3,556,750 | |||
Home Builders — 0.24% | ||||
LCI Industries | 4,291 | 556,457 | ||
Insurance — 0.75% | ||||
Chubb Ltd | 6,054 | 931,832 |
See accompanying notes.
44
Schedule of Investments | ||||
Principal Active Income ETF | ||||
December 31, 2020 (unaudited) | ||||
COMMON STOCKS (continued) | Shares Held | Value | ||
Insurance (continued) | ||||
Fidelity National Financial Inc | 20,926 | $ | 817,997 | |
$ | 1,749,829 | |||
Leisure Time — 0.29% | ||||
Acushnet Holdings Corp | 16,381 | 664,086 | ||
Machinery — Diversified — 1.07% | ||||
Deere & Co | 5,358 | 1,441,570 | ||
Nordson Corp | 5,143 | 1,033,486 | ||
$ | 2,475,056 | |||
Media — 0.64% | ||||
Comcast Corp, Class A | 28,211 | 1,478,256 | ||
Oil & Gas — 1.17% | ||||
Chevron Corp | 4,195 | 354,268 | ||
EOG Resources Inc | 9,595 | 478,503 | ||
Exxon Mobil Corp | 3,325 | 137,056 | ||
HollyFrontier Corp | 11,293 | 291,924 | ||
Marathon Petroleum Corp | 12,089 | 500,001 | ||
Whiting Petroleum Corp (a) | 38,475 | 961,875 | ||
$ | 2,723,627 | |||
Packaging & Containers — 0.57% | ||||
Packaging Corp of America | 9,563 | 1,318,833 | ||
Pharmaceuticals — 0.99% | ||||
Johnson & Johnson | 3,674 | 578,214 | ||
Merck & Co Inc | 13,049 | 1,067,408 | ||
Pfizer Inc | 17,889 | 658,494 | ||
$ | 2,304,116 | |||
REITs — 1.63% | ||||
Alexandria Real Estate Equities Inc | 5,599 | 997,854 | ||
Digital Realty Trust Inc | 8,881 | 1,238,988 | ||
Medical Properties Trust Inc | 70,998 | 1,547,047 | ||
$ | 3,783,889 | |||
Retail — 1.71% | ||||
Costco Wholesale Corp | 3,241 | 1,221,144 | ||
Home Depot Inc/The | 3,883 | 1,031,402 | ||
Starbucks Corp | 10,425 | 1,115,267 | ||
Tractor Supply Co | 4,298 | 604,213 | ||
$ | 3,972,026 | |||
Semiconductors — 0.87% | ||||
Applied Materials Inc | 8,055 | 695,147 | ||
Microchip Technology Inc | 9,513 | 1,313,840 | ||
$ | 2,008,987 | |||
Software — 0.55% | ||||
Broadridge Financial Solutions Inc | 3,922 | 600,851 | ||
SAP SE | 5,103 | 665,380 | ||
$ | 1,266,231 | |||
Telecommunications — 0.35% | ||||
BCE Inc | 19,089 | 817,009 | ||
Toys, Games & Hobbies — 0.28% | ||||
Hasbro Inc | 6,840 | 639,814 | ||
TOTAL COMMON STOCKS | $ | 49,265,570 |
See accompanying notes.
45
Schedule of Investments | |||
Principal Active Income ETF | |||
December 31, 2020 (unaudited) | |||
PREFERRED STOCKS — 8.56% | Shares Held | Value | |
Banks — 3.79% | |||
Bank of America Corp; Series EE | |||
6.00%, 04/25/2021 (b),(c) | 10,000 | $ | 253,400 |
Bank of America Corp; Series KK | |||
5.38%, 06/25/2024 (b) | 30,000 | 819,300 | |
Bank of America Corp; Series NN | |||
4.38%, 11/03/2025 (b) | 20,000 | 531,000 | |
Goldman Sachs Group Inc/The; Series N | |||
6.30%, 05/10/2021 (b),(c) | 40,000 | 1,060,800 | |
JPMorgan Chase & Co; Series BB | |||
6.15%, 03/01/2021 (b),(c) | 25,000 | 648,000 | |
KeyCorp; Series F | |||
5.65%, 12/15/2023 (b) | 40,000 | 1,111,200 | |
Morgan Stanley; Series E | |||
(3-month USD LIBOR + 4.32%), | |||
7.13%, 10/15/2023 (b),(c),(d) | 30,000 | 882,300 | |
Morgan Stanley; Series I | |||
(3-month USD LIBOR + 3.71%), | |||
6.38%, 10/15/2024 (b),(c),(d) | 10,000 | 287,000 | |
Truist Financial Corp; Series O | |||
5.25%, 06/01/2025 (b) | 40,000 | 1,112,800 | |
US Bancorp; Series L | |||
3.75%, 01/15/2026 (b),(c) | 40,000 | 1,009,200 | |
Wells Fargo & Co; Series Z | |||
4.75%, 03/15/2025 (b) | 20,000 | 528,400 | |
Wells Fargo & Co; Series Y | |||
5.63%, 06/15/2022 (b),(c) | 20,000 | 534,800 | |
$ | 8,778,200 | ||
Electric — 1.38% | |||
Alabama Power Co; Series A | |||
5.00%, 10/01/2022 (b) | 40,000 | 1,118,000 | |
Duke Energy Corp; Series A | |||
5.75%, 06/15/2024 (b) | 35,000 | 997,850 | |
Entergy Louisiana LLC | |||
4.88%, 09/01/2066 | 20,000 | 537,600 | |
Entergy Mississippi LLC | |||
4.90%, 10/01/2066 (c) | 20,000 | 538,400 | |
$ | 3,191,850 | ||
Gas — 0.49% | |||
NiSource Inc | |||
(5-year Treasury Constant Maturity Rate + 3.63%), | |||
6.50%, 03/15/2024 (b),(c) | 40,000 | 1,139,600 | |
Insurance — 0.95% | |||
Allstate Corp/The; Series H | |||
5.10%, 10/15/2024 (b) | 40,000 | 1,118,000 | |
MetLife Inc; Series F | |||
4.75%, 03/15/2025 (b) | 40,000 | 1,088,000 | |
$ | 2,206,000 | ||
REITs — 1.95% | |||
Kimco Realty Corp; Series L | |||
5.13%, 08/16/2022 (b) | 40,000 | 1,050,800 | |
PS Business Parks Inc; Series W | |||
5.20%, 10/20/2021 (b) | 20,000 | 524,800 | |
PS Business Parks Inc; Series Y | |||
5.20%, 12/07/2022 (b) | 20,000 | 522,000 | |
Public Storage; Series E | |||
4.90%, 10/14/2021 (b) | 10,000 | 261,600 | |
Public Storage; Series H | |||
5.60%, 03/11/2024 (b),(c) | 30,000 | 863,700 |
See accompanying notes.
46
Schedule of Investments | ||||
Principal Active Income ETF | ||||
December 31, 2020 (unaudited) | ||||
PREFERRED STOCKS (continued) | Shares Held | Value | ||
REITs (continued) | ||||
Public Storage; Series O | ||||
3.90%, 11/17/2025 (b) | 10,000 | $ | 256,000 | |
Vornado Realty Trust; Series M | ||||
5.25%, 12/13/2022 (b) | 40,000 | 1,054,400 | ||
$ | 4,533,300 | |||
TOTAL PREFERRED STOCKS | $ | 19,848,950 | ||
Principal | ||||
BONDS — 68.65% | Amount | Value | ||
Apparel — 1.74% | ||||
Under Armour Inc | ||||
3.25%, 06/15/2026 (c) | $ | 4,000,000 | $ | 4,025,000 |
Auto Parts & Equipment — 1.60% | ||||
Titan International Inc | ||||
6.50%, 11/30/2023 | 4,000,000 | 3,700,000 | ||
Banks — 5.38% | ||||
Citigroup Inc | ||||
(5-year Treasury Constant Maturity Rate + 3.60%), | ||||
4.00%, 12/10/2025 (b),(d) | 4,000,000 | 4,105,000 | ||
Goldman Sachs Group Inc/The | ||||
(5-year Treasury Constant Maturity Rate + 3.22%), | ||||
4.95%, 02/10/2025 (b),(d) | 4,000,000 | 4,231,680 | ||
JPMorgan Chase & Co | ||||
(3-month USD LIBOR + 3.25%), | ||||
5.15%, 05/01/2023 (b),(d) | 4,000,000 | 4,130,080 | ||
$ | 12,466,760 | |||
Chemicals — 5.57% | ||||
HB Fuller Co | ||||
4.25%, 10/15/2028 | 4,500,000 | 4,612,500 | ||
Kraton Polymers LLC / Kraton Polymers Capital Corp | ||||
4.25%, 12/15/2025 (e) | 4,000,000 | 4,080,400 | ||
7.00%, 04/15/2025 (e) | 4,000,000 | 4,212,000 | ||
$ | 12,904,900 | |||
Diversified Financial Services — 1.73% | ||||
Jefferies Group LLC | ||||
6.25%, 01/15/2036 | 3,000,000 | 4,000,997 | ||
Electric — 5.46% | ||||
Emera Inc | ||||
(3-month USD LIBOR + 5.44%), | ||||
6.75%, 06/15/2076 (d) | 3,000,000 | 3,506,250 | ||
GenOn Energy Inc | ||||
0.00%, 10/15/2049 (a),(f),(g),(h) | 3,100,000 | — | ||
PPL Capital Funding Inc | ||||
(3-month USD LIBOR + 2.67%), | ||||
2.91%, 03/30/2067 (d) | 5,000,000 | 4,312,405 | ||
Talen Energy Supply LLC | ||||
4.60%, 12/15/2021 | 5,000,000 | 4,834,625 | ||
$ | 12,653,280 | |||
Environmental Control — 2.66% | ||||
Covanta Holding Corp | ||||
5.88%, 07/01/2025 | 2,000,000 | 2,080,000 | ||
Waste Pro USA Inc | ||||
5.50%, 02/15/2026 (e) | 4,000,000 | 4,090,000 | ||
$ | 6,170,000 |
See accompanying notes.
47
Schedule of Investments | ||||
Principal Active Income ETF | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
BONDS (continued) | Amount | Value | ||
Food — 1.81% | ||||
Post Holdings Inc | ||||
4.63%, 04/15/2030 (e) | $ | 4,000,000 | $ | 4,207,840 |
Healthcare — Products — 1.83% | ||||
Hologic Inc | ||||
4.63%, 02/01/2028 (e) | 4,000,000 | 4,245,000 | ||
Healthcare — Services — 5.70% | ||||
Encompass Health Corp | ||||
4.75%, 02/01/2030 | 2,000,000 | 2,142,500 | ||
5.75%, 09/15/2025 | 2,000,000 | 2,067,500 | ||
HCA Inc | ||||
5.63%, 09/01/2028 | 4,000,000 | 4,720,000 | ||
MEDNAX Inc | ||||
6.25%, 01/15/2027 (e) | 4,000,000 | 4,289,840 | ||
$ | 13,219,840 | |||
Home Builders — 1.77% | ||||
PulteGroup Inc | ||||
6.38%, 05/15/2033 | 3,000,000 | 4,110,300 | ||
Insurance — 1.31% | ||||
MetLife Inc | ||||
9.25%, 04/08/2068 (e) | 2,000,000 | 3,049,277 | ||
Iron & Steel — 0.94% | ||||
Allegheny Technologies Inc | ||||
7.88%, 08/15/2023 | 2,000,000 | 2,188,680 | ||
Lodging — 1.79% | ||||
Boyd Gaming Corp | ||||
4.75%, 12/01/2027 | 3,000,000 | 3,116,250 | ||
6.00%, 08/15/2026 | 1,000,000 | 1,037,500 | ||
$ | 4,153,750 | |||
Media — 7.87% | ||||
Cable One Inc | ||||
4.00%, 11/15/2030 (e) | 4,750,000 | 4,934,062 | ||
CCO Holdings LLC / CCO Holdings Capital Corp | ||||
5.13%, 05/01/2027 (e) | 1,000,000 | 1,061,190 | ||
5.38%, 06/01/2029 (e) | 2,000,000 | 2,192,500 | ||
CSC Holdings LLC | ||||
6.75%, 11/15/2021 | 3,000,000 | 3,135,000 | ||
DISH DBS Corp | ||||
5.88%, 11/15/2024 | 2,000,000 | 2,097,070 | ||
Sirius XM Radio Inc | ||||
4.13%, 07/01/2030 (e) | 1,500,000 | 1,596,563 | ||
5.00%, 08/01/2027 (e) | 1,000,000 | 1,062,510 | ||
ViacomCBS Inc | ||||
(3-month USD LIBOR + 3.90%), | ||||
5.88%, 02/28/2057 (d) | 1,000,000 | 1,037,500 | ||
(3-month USD LIBOR + 3.90%), | ||||
6.25%, 02/28/2057 (d) | 1,000,000 | 1,122,650 | ||
$ | 18,239,045 | |||
Mining — 0.46% | ||||
Hudbay Minerals Inc | ||||
6.13%, 04/01/2029 (e) | 1,000,000 | 1,077,500 | ||
Mortgage-Backed Securities — 2.53% | ||||
GS Mortgage Securities Trust 2013-GC13 | ||||
4.08%, 07/10/2046 (e),(i) | 500,000 | 492,345 | ||
GS Mortgage Securities Trust 2014-GC24 | ||||
4.53%, 09/10/2047 (i) | 500,000 | 414,607 |
See accompanying notes.
48
Schedule of Investments | ||||
Principal Active Income ETF | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
BONDS (continued) | Amount | Value | ||
Mortgage-Backed Securities (continued) | ||||
JP Morgan Chase Commercial Mortgage Securities Trust 2012-LC9 | ||||
4.42%, 12/15/2047 (e),(i) | $ | 1,750,000 | $ | 1,337,340 |
Wells Fargo Commercial Mortgage Trust 2013-LC12 | ||||
4.28%, 07/15/2046 (i) | 1,000,000 | 871,724 | ||
Wells Fargo Commercial Mortgage Trust 2014-LC16 | ||||
4.46%, 08/15/2050 | 1,000,000 | 929,513 | ||
Wells Fargo Commercial Mortgage Trust 2015-SG1 | ||||
4.46%, 09/15/2048 (i) | 1,600,000 | 1,405,398 | ||
WFRBS Commercial Mortgage Trust 2014-C22 | ||||
3.90%, 09/15/2057 (e),(i) | 500,000 | 415,530 | ||
$ | 5,866,457 | |||
Office & Business Equipment — 1.31% | ||||
CDW LLC / CDW Finance Corp | ||||
4.25%, 04/01/2028 | 750,000 | 791,820 | ||
5.50%, 12/01/2024 | 2,000,000 | 2,235,980 | ||
$ | 3,027,800 | |||
Oil & Gas — 0.92% | ||||
W&T Offshore Inc | ||||
9.75%, 11/01/2023 (e) | 3,000,000 | 2,122,500 | ||
Packaging & Containers — 3.66% | ||||
Graphic Packaging International LLC | ||||
3.50%, 03/15/2028 (e) | 5,000,000 | 5,181,250 | ||
Reynolds Group Issuer Inc / Reynolds Group Issuer LLC / Reynolds Group | ||||
Issuer (Luxembourg) S.A. | ||||
5.13%, 07/15/2023 (e) | 112,000 | 113,378 | ||
Sealed Air Corp | ||||
4.00%, 12/01/2027 (e) | 3,000,000 | 3,202,500 | ||
$ | 8,497,128 | |||
Pharmaceuticals — 1.83% | ||||
HLF Financing Sarl LLC / Herbalife International Inc | ||||
7.25%, 08/15/2026 (e) | 4,000,000 | 4,243,740 | ||
Pipelines — 5.27% | ||||
Buckeye Partners LP | ||||
3.95%, 12/01/2026 | 4,000,000 | 4,052,000 | ||
EnLink Midstream Partners LP | ||||
4.15%, 06/01/2025 | 4,000,000 | 3,900,000 | ||
4.85%, 07/15/2026 | 1,000,000 | 976,340 | ||
Transcanada Trust | ||||
(3-month USD LIBOR + 3.53%), | ||||
5.63%, 05/20/2075 (d) | 3,000,000 | 3,287,604 | ||
$ | 12,215,944 | |||
REITs — 1.02% | ||||
CBL & Associates LP | ||||
0.00%, 12/15/2026 (a),(h) | 6,000,000 | 2,370,000 | ||
Telecommunications — 2.70% | ||||
CommScope Technologies LLC | ||||
5.00%, 03/15/2027 (e) | 4,000,000 | 3,940,000 | ||
Sprint Corp | ||||
7.88%, 09/15/2023 | 2,000,000 | 2,315,600 | ||
$ | 6,255,600 | |||
Transportation — 1.79% | ||||
XPO Logistics Inc | ||||
6.25%, 05/01/2025 (e) | 2,000,000 | 2,152,280 |
See accompanying notes.
49
Schedule of Investments | |||||||
Principal Active Income ETF | |||||||
December 31, 2020 (unaudited) | |||||||
Principal | |||||||
BONDS (continued) | Amount | Value | |||||
Transportation (continued) | |||||||
XPO Logistics Inc (continued) | |||||||
6.50%, 06/15/2022 (e) | $ | 2,000,000 | $ | 2,006,500 | |||
$ | 4,158,780 | ||||||
TOTAL BONDS | $ | 159,170,118 | |||||
INVESTMENT COMPANIES — 3.13% | Shares Held | Value | |||||
Money Market Funds — 3.13% | |||||||
Principal Government Money Market Fund — Institutional Class 0.00% (a),(j),(k),(l) | 4,993,548 | $ | 4,993,548 | ||||
State Street Institutional U.S. Government Money Market Fund — Institutional | |||||||
Class 0.03% (l) | 2,273,762 | 2,273,762 | |||||
TOTAL INVESTMENT COMPANIES | $ | 7,267,310 | |||||
Total Investments | $ | 235,551,948 | |||||
Other Assets and Liabilities — (1.59)% | (3,697,452 | ) | |||||
Total Net Assets — 100.00% | $ | 231,854,496 | |||||
(a) | Non-income producing security. | ||||||
(b) | Perpetual security. Perpetual securities pay an indefinite stream of interest, but they may be called by the issuer at an earlier | ||||||
date. Date shown, if any, reflects the next call date or final legal maturity date. Rate shown is as of period end. | |||||||
(c) | Security or a portion of the security was on loan at the end of the period. | ||||||
(d) | Rate shown is as of period end. The rate may be a variable or floating rate or a fixed rate which may convert to a variable or | ||||||
floating rate in the future. | |||||||
(e) | 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 $65,306,045 or 28.17% of net assets. | |||||||
(f) | The value of these investments was determined using significant unobservable inputs. | ||||||
(g) | Fair value of the investment is determined in good faith by the Advisor under procedures established and periodically | ||||||
reviewed by the Board of Trustees. Certain inputs used in the valuation may be unobservable; however, each security is | |||||||
evaluated individually for purposes of ASC 820 which results in not all securities being identified as Level 3 of the fair value | |||||||
hierarchy. As of December 31, 2020, the fair value of these securities totaled $0 or 0.00% of net assets. | |||||||
(h) | Security is defaulted. | ||||||
(i) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or | ||||||
agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their | |||||||
description. Rate shown is the rate in effect as of period end. | |||||||
(j) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate | ||||||
as defined by the Investment Company Act of 1940 (controls 5.00% or more of the outstanding voting shares of the security). | |||||||
Please see Affiliated Securities sub-schedule for transactional information. | |||||||
(k) | Security or a portion of the security was pledged as collateral for securities lending. At the end of the period, the value of | ||||||
these securities totaled $4,993,548 or 2.15% of net assets. | |||||||
(l) | Current yield shown is as of period end. | ||||||
Portfolio Summary (unaudited) | |||||||
Sector | Percent | ||||||
Financial | 20.87 | % | |||||
Consumer, Non-cyclical | 14.32 | % | |||||
Communications | 12.07 | % | |||||
Industrial | 11.26 | % | |||||
Consumer, Cyclical | 10.50 | % | |||||
Utilities | 8.24 | % | |||||
Energy | 7.85 | % | |||||
Basic Materials | 7.42 | % | |||||
Technology | 3.40 | % | |||||
Money Market Funds | 3.13 | % | |||||
Mortgage Securities | 2.53 | % | |||||
Other Assets and Liabilities | (1.59 | )% | |||||
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
50
Schedule of Investments | |||||||||
Principal Active Income ETF | |||||||||
December 31, 2020 (unaudited) | |||||||||
June 30, 2020 | Purchases | Sales | December 31, 2020 | ||||||
Affiliated Securities | Value | Cost | Proceeds | Value | |||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | 2,918,957 | $ | 19,028,936 | $ | 16,954,345 | $ | 4,993,548 |
$ | 2,918,957 | $ | 19,028,936 | $ | 16,954,345 | $ | 4,993,548 | ||
Realized Gain | |||||||||
Realized | from | Change in | |||||||
Gain/Loss on | Capital Gain | Unrealized | |||||||
Income (a) | Investments | Distributions | Gain/Loss | ||||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | — | $ | — $ | — | $ | — | |
$ | — | $ | — $ | — | $ | — |
(a) | Amount excludes earnings from securities lending collateral. |
See accompanying notes.
51
Schedule of Investments | |||
Principal Healthcare Innovators Index ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS — 99.81% | Shares Held | Value | |
Biotechnology — 57.27% | |||
ACADIA Pharmaceuticals Inc (a) | 32,553 | $ | 1,740,283 |
Acceleron Pharma Inc (a) | 12,358 | 1,581,083 | |
Actinium Pharmaceuticals Inc (a),(b) | 2,801 | 21,848 | |
ADMA Biologics Inc (a),(b) | 17,836 | 34,780 | |
Adverum Biotechnologies Inc (a) | 19,654 | 213,049 | |
Agenus Inc (a) | 37,888 | 120,484 | |
Akero Therapeutics Inc (a) | 7,165 | 184,857 | |
Albireo Pharma Inc (a) | 3,929 | 147,377 | |
Aldeyra Therapeutics Inc (a) | 7,979 | 54,736 | |
Allakos Inc (a) | 10,086 | 1,412,040 | |
Allogene Therapeutics Inc (a) | 29,151 | 735,771 | |
Alnylam Pharmaceuticals Inc (a) | 23,983 | 3,117,071 | |
Altimmune Inc (a),(b) | 6,794 | 76,636 | |
Amicus Therapeutics Inc (a) | 54,163 | 1,250,624 | |
AnaptysBio Inc (a) | 5,639 | 121,239 | |
Apellis Pharmaceuticals Inc (a) | 15,618 | 893,350 | |
Applied Molecular Transport Inc (a) | 7,196 | 221,421 | |
Applied Therapeutics Inc (a) | 4,634 | 101,994 | |
Arcturus Therapeutics Holdings Inc (a) | 5,036 | 218,462 | |
Arcus Biosciences Inc (a) | 13,406 | 348,020 | |
Ardelyx Inc (a) | 18,412 | 119,126 | |
Arena Pharmaceuticals Inc (a) | 12,058 | 926,416 | |
Arrowhead Pharmaceuticals Inc (a) | 21,110 | 1,619,770 | |
Assembly Biosciences Inc (a) | 6,784 | 41,043 | |
Atara Biotherapeutics Inc (a) | 15,350 | 301,321 | |
Avidity Biosciences Inc (a) | 7,747 | 197,703 | |
Avrobio Inc (a) | 7,529 | 104,954 | |
Axsome Therapeutics Inc (a) | 7,701 | 627,400 | |
Beam Therapeutics Inc (a),(b) | 10,681 | 871,997 | |
BioCryst Pharmaceuticals Inc (a) | 36,467 | 271,679 | |
Biohaven Pharmaceutical Holding Co Ltd (a) | 12,489 | 1,070,432 | |
BioMarin Pharmaceutical Inc (a) | 37,503 | 3,288,638 | |
Black Diamond Therapeutics Inc (a) | 7,414 | 237,619 | |
Bluebird Bio Inc (a) | 13,679 | 591,890 | |
Blueprint Medicines Corp (a) | 11,556 | 1,296,005 | |
BrainStorm Cell Therapeutics Inc (a),(b) | 6,510 | 29,458 | |
Bridgebio Pharma Inc (a),(b) | 25,248 | 1,795,385 | |
Cara Therapeutics Inc (a) | 9,683 | 146,504 | |
CEL-SCI Corp (a),(b) | 7,979 | 93,035 | |
Celldex Therapeutics Inc (a) | 8,081 | 141,579 | |
ChemoCentryx Inc (a) | 14,229 | 881,060 | |
Constellation Pharmaceuticals Inc (a) | 9,812 | 282,586 | |
Cortexyme Inc (a),(b) | 6,091 | 169,208 | |
CRISPR Therapeutics AG (a) | 14,499 | 2,219,942 | |
Cymabay Therapeutics Inc (a) | 14,224 | 81,646 | |
CytomX Therapeutics Inc (a) | 9,539 | 62,480 | |
Deciphera Pharmaceuticals Inc (a) | 11,642 | 664,409 | |
Denali Therapeutics Inc (a) | 21,882 | 1,832,836 | |
Dicerna Pharmaceuticals Inc (a) | 15,378 | 338,777 | |
Dynavax Technologies Corp (a) | 22,616 | 100,641 | |
Editas Medicine Inc (a) | 12,864 | 901,895 | |
Emergent BioSolutions Inc (a) | 11,076 | 992,410 | |
Epizyme Inc (a) | 20,960 | 227,626 | |
Equillium Inc (a),(b) | 5,008 | 26,793 | |
Esperion Therapeutics Inc (a),(b) | 5,747 | 149,422 | |
Exact Sciences Corp (a) | 31,072 | 4,116,729 | |
Fate Therapeutics Inc (a) | 17,939 | 1,631,193 | |
FibroGen Inc (a) | 18,663 | 692,211 | |
Forma Therapeutics Holdings Inc (a) | 8,492 | 296,371 | |
Global Blood Therapeutics Inc (a) | 12,675 | 548,954 | |
Gossamer Bio Inc (a) | 15,665 | 151,481 | |
Guardant Health Inc (a) | 20,552 | 2,648,742 | |
Halozyme Therapeutics Inc (a) | 28,302 | 1,208,778 |
See accompanying notes.
52
Schedule of Investments | |||
Principal Healthcare Innovators Index ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Biotechnology (continued) | |||
Homology Medicines Inc (a) | 9,341 | $ | 105,460 |
iBio Inc (a) | 24,447 | 25,669 | |
IGM Biosciences Inc (a),(b) | 5,003 | 441,715 | |
Immunic Inc (a) | 3,093 | 47,292 | |
ImmunoGen Inc (a) | 36,052 | 232,535 | |
Immunovant Inc (a) | 18,150 | 838,348 | |
Inmune Bio Inc (a),(b) | 2,779 | 47,854 | |
Inovio Pharmaceuticals Inc (a),(b) | 34,598 | 306,192 | |
Insmed Inc (a) | 20,961 | 697,792 | |
Intercept Pharmaceuticals Inc (a) | 6,812 | 168,256 | |
Intra-Cellular Therapies Inc (a) | 13,899 | 441,988 | |
Ionis Pharmaceuticals Inc (a) | 29,188 | 1,650,290 | |
Iovance Biotherapeutics Inc (a) | 30,199 | 1,401,234 | |
Karuna Therapeutics Inc (a) | 5,498 | 558,542 | |
Karyopharm Therapeutics Inc (a) | 15,175 | 234,909 | |
Kiniksa Pharmaceuticals Ltd, Class A (a) | 6,470 | 114,325 | |
Kodiak Sciences Inc (a) | 9,217 | 1,354,069 | |
Krystal Biotech Inc (a) | 4,062 | 243,720 | |
Ligand Pharmaceuticals Inc (a),(b) | 3,321 | 330,273 | |
MacroGenics Inc (a) | 11,178 | 255,529 | |
Mersana Therapeutics Inc (a) | 14,132 | 376,053 | |
Mirati Therapeutics Inc (a) | 9,199 | 2,020,468 | |
Moderna Inc (a) | 56,005 | 5,850,842 | |
Myriad Genetics Inc (a) | 15,430 | 305,128 | |
NantKwest Inc (a),(b) | 22,300 | 297,259 | |
Nektar Therapeutics (a) | 36,952 | 628,184 | |
NeoGenomics Inc (a) | 23,121 | 1,244,835 | |
NextCure Inc (a) | 5,691 | 62,032 | |
NGM Biopharmaceuticals Inc (a) | 14,214 | 430,613 | |
Novavax Inc (a),(b) | 12,643 | 1,409,821 | |
Omeros Corp (a),(b) | 12,897 | 184,234 | |
Onconova Therapeutics Inc (a),(b) | 37,104 | 17,283 | |
Ovid therapeutics Inc (a),(b) | 13,083 | 30,222 | |
Pacific Biosciences of California Inc (a) | 36,506 | 946,966 | |
Precigen Inc (a),(b) | 35,590 | 363,018 | |
Provention Bio Inc (a) | 11,624 | 196,911 | |
PTC Therapeutics Inc (a) | 13,986 | 853,566 | |
Puma Biotechnology Inc (a) | 8,196 | 84,091 | |
Radius Health Inc (a) | 9,599 | 171,438 | |
REGENXBIO Inc (a) | 7,714 | 349,907 | |
REVOLUTION Medicines Inc (a) | 13,618 | 539,137 | |
Rigel Pharmaceuticals Inc (a) | 34,893 | 122,126 | |
Rocket Pharmaceuticals Inc (a) | 11,401 | 625,231 | |
Sage Therapeutics Inc (a) | 10,734 | 928,598 | |
Sangamo Therapeutics Inc (a) | 29,118 | 454,386 | |
Satsuma Pharmaceuticals Inc (a) | 3,592 | 16,559 | |
Seagen Inc (a) | 20,227 | 3,542,557 | |
Sorrento Therapeutics Inc (a),(b) | 52,950 | 361,384 | |
SpringWorks Therapeutics Inc (a) | 8,883 | 644,195 | |
TCR2 Therapeutics Inc (a) | 6,884 | 212,922 | |
TG Therapeutics Inc (a) | 26,157 | 1,360,687 | |
Theravance Biopharma Inc (a) | 13,117 | 233,089 | |
Translate Bio Inc (a) | 15,331 | 282,550 | |
Travere Therapeutics Inc (a) | 10,515 | 286,586 | |
Turning Point Therapeutics Inc (a) | 8,713 | 1,061,679 | |
Twist Bioscience Corp (a) | 9,225 | 1,303,400 | |
Ultragenyx Pharmaceutical Inc (a) | 12,514 | 1,732,313 | |
UNITY Biotechnology Inc (a),(b) | 10,743 | 56,293 | |
Vaxart Inc (a),(b) | 22,554 | 128,783 | |
Veracyte Inc (a) | 11,685 | 571,864 | |
Verastem Inc (a) | 35,012 | 74,576 | |
Vericel Corp (a) | 9,349 | 288,697 | |
Viela Bio Inc (a),(b) | 11,303 | 406,569 |
See accompanying notes.
53
Schedule of Investments | |||
Principal Healthcare Innovators Index ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Biotechnology (continued) | |||
Viking Therapeutics Inc (a),(b) | 15,031 | $ | 84,625 |
Vir Biotechnology Inc (a),(b) | 26,245 | 702,841 | |
Xencor Inc (a) | 11,827 | 516,012 | |
Y-mAbs Therapeutics Inc (a) | 8,263 | 409,101 | |
ZIOPHARM Oncology Inc (a),(b) | 44,229 | 111,457 | |
$ | 88,970,349 | ||
Chemicals — 0.17% | |||
Amyris Inc (a),(b) | 42,285 | 261,110 | |
Commercial Services — 1.20% | |||
HealthEquity Inc (a) | 15,880 | 1,106,995 | |
Progyny Inc (a) | 17,758 | 752,762 | |
$ | 1,859,757 | ||
Electronics — 0.06% | |||
Fluidigm Corp (a) | 14,728 | 88,368 | |
Healthcare — Products — 20.28% | |||
10X Genomics Inc, Class A (a) | 14,904 | 2,110,406 | |
Accelerate Diagnostics Inc (a),(b) | 11,637 | 88,208 | |
Adaptive Biotechnologies Corp (a) | 28,025 | 1,657,118 | |
AtriCure Inc (a) | 9,282 | 516,729 | |
Avanos Medical Inc (a) | 9,881 | 453,340 | |
AxoGen Inc (a) | 8,278 | 148,176 | |
Axonics Modulation Technologies Inc (a),(b) | 8,165 | 407,597 | |
BioLife Solutions Inc (a) | 6,609 | 263,633 | |
Cantel Medical Corp | 8,707 | 686,634 | |
Cardiovascular Systems Inc (a) | 8,196 | 358,657 | |
CareDx Inc (a) | 10,111 | 732,542 | |
Castle Biosciences Inc (a) | 4,063 | 272,830 | |
Cerus Corp (a) | 34,322 | 237,508 | |
Co-Diagnostics Inc (a),(b) | 5,797 | 53,912 | |
CONMED Corp | 5,901 | 660,912 | |
CryoLife Inc (a) | 7,821 | 184,654 | |
DENTSPLY SIRONA Inc | 45,144 | 2,363,740 | |
GenMark Diagnostics Inc (a) | 14,679 | 214,313 | |
Glaukos Corp (a) | 9,229 | 694,575 | |
Inari Medical Inc (a) | 10,022 | 874,820 | |
Inogen Inc (a) | 4,559 | 203,696 | |
Inspire Medical Systems Inc (a) | 5,536 | 1,041,266 | |
Intersect ENT Inc (a) | 6,752 | 154,621 | |
iRhythm Technologies Inc (a) | 5,730 | 1,359,213 | |
Merit Medical Systems Inc (a) | 11,462 | 636,256 | |
NanoString Technologies Inc (a) | 7,848 | 524,874 | |
Natera Inc (a) | 16,484 | 1,640,488 | |
Natus Medical Inc (a) | 6,994 | 140,160 | |
Nevro Corp (a) | 7,178 | 1,242,512 | |
NuVasive Inc (a) | 10,582 | 596,084 | |
OraSure Technologies Inc (a) | 14,779 | 156,436 | |
Orthofix Medical Inc (a) | 3,995 | 171,705 | |
OrthoPediatrics Corp (a) | 4,038 | 166,568 | |
Patterson Cos Inc | 19,900 | 589,637 | |
Penumbra Inc (a) | 7,536 | 1,318,800 | |
Quanterix Corp (a) | 6,513 | 302,855 | |
Shockwave Medical Inc (a) | 7,024 | 728,529 | |
Sientra Inc (a) | 10,393 | 40,429 | |
Silk Road Medical Inc (a) | 6,957 | 438,152 | |
SmileDirectClub Inc (a),(b) | 22,867 | 273,032 | |
STAAR Surgical Co (a) | 9,460 | 749,421 | |
T2 Biosystems Inc (a),(b) | 30,559 | 37,893 | |
Tactile Systems Technology Inc (a) | 4,008 | 180,120 | |
Tandem Diabetes Care Inc (a) | 12,725 | 1,217,528 | |
Varex Imaging Corp (a) | 8,076 | 134,708 |
See accompanying notes.
54
Schedule of Investments | |||
Principal Healthcare Innovators Index ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Healthcare — Products (continued) | |||
Zimmer Biomet Holdings Inc | 29,083 | $ | 4,481,399 |
$ | 31,506,686 | ||
Healthcare — Services — 5.89% | |||
Brookdale Senior Living Inc (a) | 37,849 | 167,671 | |
Community Health Systems Inc (a) | 24,708 | 183,580 | |
Fulgent Genetics Inc (a) | 4,527 | 235,857 | |
Invitae Corp (a),(b) | 27,562 | 1,152,367 | |
Magellan Health Inc (a) | 5,225 | 432,839 | |
MEDNAX Inc (a) | 17,650 | 433,131 | |
Ontrak Inc (a) | 3,562 | 220,096 | |
OPKO Health Inc (a),(b) | 138,348 | 546,475 | |
Personalis Inc (a) | 7,942 | 290,757 | |
Providence Service Corp/The (a) | 2,900 | 402,027 | |
RadNet Inc (a) | 10,654 | 208,499 | |
Surgery Partners Inc (a) | 10,441 | 302,893 | |
Teladoc Health Inc (a),(b) | 16,800 | 3,359,328 | |
Tenet Healthcare Corp (a) | 21,768 | 869,196 | |
Tivity Health Inc (a) | 10,030 | 196,488 | |
Vapotherm Inc (a),(b) | 5,277 | 141,740 | |
$ | 9,142,944 | ||
Pharmaceuticals — 14.03% | |||
AdaptHealth Corp (a) | 11,631 | 436,860 | |
Aerie Pharmaceuticals Inc (a) | 9,610 | 129,831 | |
Agile Therapeutics Inc (a),(b) | 18,031 | 51,749 | |
Agios Pharmaceuticals Inc (a) | 14,274 | 618,492 | |
Akebia Therapeutics Inc (a) | 29,600 | 82,880 | |
Alector Inc (a) | 16,370 | 247,678 | |
Alkermes PLC (a) | 32,850 | 655,358 | |
Amneal Pharmaceuticals Inc (a) | 30,473 | 139,262 | |
Aquestive Therapeutics Inc (a),(b) | 6,940 | 37,129 | |
Arvinas Inc (a) | 8,102 | 688,103 | |
Athenex Inc (a) | 16,882 | 186,715 | |
Aytu BioScience Inc (a),(b) | 2,483 | 14,848 | |
BioDelivery Sciences International Inc (a) | 20,849 | 87,566 | |
Bioxcel Therapeutics Inc (a) | 4,617 | 213,305 | |
Clovis Oncology Inc (a),(b) | 18,218 | 87,446 | |
Collegium Pharmaceutical Inc (a) | 7,132 | 142,854 | |
Corbus Pharmaceuticals Holdings Inc (a) | 16,879 | 21,099 | |
Cytokinetics Inc (a) | 14,564 | 302,640 | |
Eagle Pharmaceuticals Inc (a) | 2,806 | 130,675 | |
Elanco Animal Health Inc (a) | 82,433 | 2,528,220 | |
Enanta Pharmaceuticals Inc (a) | 4,146 | 174,547 | |
Endo International PLC (a) | 47,468 | 340,820 | |
Evofem Biosciences Inc (a),(b) | 16,785 | 40,452 | |
Flexion Therapeutics Inc (a) | 10,182 | 117,500 | |
G1 Therapeutics Inc (a) | 7,852 | 141,257 | |
Heat Biologics Inc (a) | 4,632 | 24,828 | |
Heron Therapeutics Inc (a) | 18,766 | 397,182 | |
Heska Corp (a) | 1,952 | 284,309 | |
Horizon Therapeutics PLC (a) | 45,129 | 3,301,186 | |
Intellia Therapeutics Inc (a) | 12,136 | 660,198 | |
Jounce Therapeutics Inc (a) | 7,035 | 49,245 | |
Kadmon Holdings Inc (a) | 35,344 | 146,678 | |
Kala Pharmaceuticals Inc (a),(b) | 11,575 | 78,479 | |
Kura Oncology Inc (a) | 11,625 | 379,673 | |
Lannett Co Inc (a) | 8,307 | 54,162 | |
Madrigal Pharmaceuticals Inc (a) | 3,190 | 354,632 | |
MannKind Corp (a) | 47,334 | 148,155 | |
Marinus Pharmaceuticals Inc (a),(b) | 6,306 | 76,933 | |
MediciNova Inc (a),(b) | 9,164 | 48,203 | |
Ocular Therapeutix Inc (a) | 12,999 | 269,079 |
See accompanying notes.
55
Schedule of Investments | |||||||
Principal Healthcare Innovators Index ETF | |||||||
December 31, 2020 (unaudited) | |||||||
COMMON STOCKS (continued) | Shares Held | Value | |||||
Pharmaceuticals (continued) | |||||||
Odonate Therapeutics Inc (a) | 6,634 | $ | 127,373 | ||||
Option Care Health Inc (a) | 38,564 | 603,141 | |||||
Owens & Minor Inc | 13,171 | 356,276 | |||||
Pacira BioSciences Inc (a) | 8,830 | 528,387 | |||||
PetIQ Inc (a),(b) | 5,146 | 197,864 | |||||
Protagonist Therapeutics Inc (a) | 7,600 | 153,216 | |||||
Reata Pharmaceuticals Inc, Class A (a) | 5,901 | 729,482 | |||||
Relmada Therapeutics Inc (a),(b) | 3,311 | 106,184 | |||||
Revance Therapeutics Inc (a) | 13,619 | 385,962 | |||||
Rhythm Pharmaceuticals Inc (a) | 9,113 | 270,929 | |||||
Sarepta Therapeutics Inc (a) | 16,230 | 2,767,053 | |||||
Seres Therapeutics Inc (a) | 18,440 | 451,780 | |||||
Spectrum Pharmaceuticals Inc (a) | 30,099 | 102,638 | |||||
TFF Pharmaceuticals Inc (a) | 4,492 | 64,325 | |||||
TherapeuticsMD Inc (a),(b) | 56,241 | 68,052 | |||||
Tonix Pharmaceuticals Holding Corp (a) | 26,902 | 18,159 | |||||
Trevena Inc (a),(b) | 27,187 | 58,180 | |||||
Tricida Inc (a) | 10,339 | 72,890 | |||||
uniQure NV (a) | 9,182 | 331,746 | |||||
Vaxcyte Inc (a),(b) | 10,517 | 279,437 | |||||
Zogenix Inc (a) | 11,455 | 228,985 | |||||
$ | 21,792,287 | ||||||
Software — 0.91% | |||||||
1Life Healthcare Inc (a) | 26,072 | 1,138,043 | |||||
Evolent Health Inc, Class A (a) | 17,681 | 283,426 | |||||
$ | 1,421,469 | ||||||
TOTAL COMMON STOCKS | $ | 155,042,970 | |||||
INVESTMENT COMPANIES — 6.25% | Shares Held | Value | |||||
Money Market Funds — 6.25% | |||||||
Principal Government Money Market Fund — Institutional Class 0.00% (a),(c),(d),(e) | 9,386,341 | $ | 9,386,341 | ||||
State Street Institutional U.S. Government Money Market Fund — Institutional | |||||||
Class 0.03% (e) | 329,267 | 329,267 | |||||
TOTAL INVESTMENT COMPANIES | $ | 9,715,608 | |||||
Total Investments | $ | 164,758,578 | |||||
Other Assets and Liabilities — (6.06)% | (9,411,445 | ) | |||||
Total Net Assets — 100.00% | $ | 155,347,133 | |||||
(a) | Non-income producing security. | ||||||
(b) | Security or a portion of the security was on loan at the end of the period. | ||||||
(c) | Security or a portion of the security was pledged as collateral for securities lending. At the end of the period, the value of | ||||||
these securities totaled $9,386,341 or 6.04% of net assets. | |||||||
(d) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate | ||||||
as defined by the Investment Company Act of 1940 (controls 5.00% or more of the outstanding voting shares of the security). | |||||||
Please see Affiliated Securities sub-schedule for transactional information. | |||||||
(e) | Current yield shown is as of period end. | ||||||
Portfolio Summary (unaudited) | |||||||
Sector | Percent | ||||||
Consumer, Non-cyclical | 98.66 | % | |||||
Money Market Funds | 6.25 | % | |||||
Technology | 0.92 | % | |||||
Basic Materials | 0.17 | % | |||||
Industrial | 0.06 | % | |||||
Other Assets and Liabilities | (6.06 | )% | |||||
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
56
Schedule of Investments | |||||||||
Principal Healthcare Innovators Index ETF | |||||||||
December 31, 2020 (unaudited) | |||||||||
June 30, 2020 | Purchases | Sales | December 31, 2020 | ||||||
Affiliated Securities | Value | Cost | Proceeds | Value | |||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | 4,074,103 | $ | 39,742,137 | $ | 34,429,899 | $ | 9,386,341 |
$ | 4,074,103 | $ | 39,742,137 | $ | 34,429,899 | $ | 9,386,341 | ||
Realized Gain | |||||||||
Realized | from | Change in | |||||||
Gain/Loss on | Capital Gain | Unrealized | |||||||
Income (a) | Investments | Distributions | Gain/Loss | ||||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | — | $ | — $ | — | $ | — | |
$ | — | $ | — $ | — | $ | — |
(a) | Amount excludes earnings from securities lending collateral. |
See accompanying notes.
57
Schedule of Investments | |||
Principal International Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS — 98.61% | Shares Held | Value | |
Advertising — 0.78% | |||
Dentsu Group Inc | 2,100 | $ | 62,336 |
DKSH Holding AG | 1,938 | 145,684 | |
Hakuhodo DY Holdings Inc | 4,600 | 63,038 | |
Publicis Groupe SA | 2,213 | 110,195 | |
WPP PLC | 9,626 | 105,309 | |
$ | 486,562 | ||
Aerospace & Defense — 0.91% | |||
Airbus SE (a) | 500 | 54,840 | |
BAE Systems PLC | 12,136 | 81,121 | |
CAE Inc | 5,200 | 144,084 | |
Rolls-Royce Holdings PLC (a) | 46,517 | 70,768 | |
Safran SA (a) | 946 | 134,001 | |
Thales SA | 948 | 86,744 | |
$ | 571,558 | ||
Agriculture — 0.85% | |||
British American Tobacco PLC | 10,120 | 374,763 | |
Imperial Brands PLC | 4,277 | 89,809 | |
Japan Tobacco Inc (b) | 3,300 | 67,179 | |
$ | 531,751 | ||
Airlines — 0.37% | |||
International Consolidated Airlines Group SA | 61,472 | 134,332 | |
Japan Airlines Co Ltd (a) | 3,400 | 65,692 | |
Singapore Airlines Ltd (a),(b) | 10,100 | 32,709 | |
$ | 232,733 | ||
Apparel — 1.47% | |||
adidas AG (a) | 565 | 205,620 | |
Hermes International | 114 | 122,500 | |
Kering SA | 59 | 42,843 | |
LVMH Moet Hennessy Louis Vuitton SE | 885 | 552,365 | |
$ | 923,328 | ||
Auto Manufacturers — 1.92% | |||
Daimler AG | 736 | 51,961 | |
Honda Motor Co Ltd | 5,800 | 161,634 | |
Toyota Motor Corp | 9,100 | 701,261 | |
Volvo AB, Class B (a) | 12,443 | 293,093 | |
$ | 1,207,949 | ||
Auto Parts & Equipment — 1.06% | |||
Bridgestone Corp | 1,900 | 62,269 | |
Cie Generale des Etablissements Michelin SCA | 665 | 85,261 | |
Continental AG | 661 | 97,911 | |
Magna International Inc | 1,745 | 123,531 | |
NGK Insulators Ltd | 4,200 | 64,756 | |
Rheinmetall AG | 795 | 84,088 | |
Sumitomo Electric Industries Ltd | 5,300 | 70,141 | |
Toyota Industries Corp | 1,000 | 79,318 | |
$ | 667,275 | ||
Banks — 9.71% | |||
Australia & New Zealand Banking Group Ltd | 9,285 | 162,493 | |
Banca Mediolanum SpA | 9,933 | 86,156 | |
Banco Bilbao Vizcaya Argentaria SA | 25,715 | 126,758 | |
Banco Santander SA (a) | 51,215 | 158,795 | |
Bank Hapoalim BM (a) | 3,708 | 25,374 | |
Bank Leumi Le-Israel BM | 4,500 | 26,467 | |
Bank of Montreal | 2,161 | 164,303 | |
Bank of Nova Scotia/The | 3,997 | 216,037 |
See accompanying notes.
58
Schedule of Investments | |||
Principal International Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Banks (continued) | |||
Bankinter SA | 16,602 | $ | 89,727 |
Banque Cantonale Vaudoise | 1,336 | 145,326 | |
Barclays PLC (a) | 59,758 | 119,866 | |
BNP Paribas SA (a) | 3,517 | 185,202 | |
Canadian Imperial Bank of Commerce | 1,443 | 123,248 | |
Commerzbank AG (a) | 14,566 | 93,706 | |
Commonwealth Bank of Australia | 3,355 | 212,381 | |
Credit Suisse Group AG | 13,527 | 174,187 | |
Danske Bank A/S (a) | 5,856 | 96,744 | |
DBS Group Holdings Ltd | 1,800 | 34,104 | |
Erste Group Bank AG (a) | 3,414 | 104,018 | |
FinecoBank Banca Fineco SpA (a) | 5,176 | 84,732 | |
Hang Seng Bank Ltd | 2,940 | 50,704 | |
HSBC Holdings PLC (a) | 58,917 | 305,236 | |
ING Groep NV (a) | 12,745 | 118,970 | |
Intesa Sanpaolo SpA (a) | 59,756 | 139,622 | |
Japan Post Bank Co Ltd | 7,600 | 62,343 | |
KBC Group NV (a) | 1,426 | 99,786 | |
Lloyds Banking Group PLC (a) | 222,135 | 110,694 | |
Mitsubishi UFJ Financial Group Inc | 72,900 | 322,015 | |
Mizrahi Tefahot Bank Ltd | 1,121 | 25,902 | |
Mizuho Financial Group Inc | 16,910 | 214,128 | |
National Australia Bank Ltd | 2,177 | 37,931 | |
Natwest Group PLC (a) | 55,164 | 126,470 | |
Nordea Bank Abp (a) | 9,348 | 76,374 | |
Oversea-Chinese Banking Corp Ltd | 4,200 | 31,970 | |
Raiffeisen Bank International AG (a) | 4,669 | 95,141 | |
Resona Holdings Inc | 17,500 | 61,082 | |
Royal Bank of Canada | 4,631 | 380,514 | |
Skandinaviska Enskilda Banken AB, Class A (a) | 4,327 | 44,440 | |
Societe Generale SA (a) | 5,388 | 112,043 | |
Standard Chartered PLC (a) | 16,421 | 104,621 | |
Sumitomo Mitsui Financial Group Inc | 8,400 | 259,350 | |
Sumitomo Mitsui Trust Holdings Inc | 2,400 | 73,844 | |
Svenska Handelsbanken AB, Class A (a) | 4,588 | 46,061 | |
Swedbank AB, Class A (a) | 2,458 | 43,056 | |
Toronto-Dominion Bank/The | 5,946 | 335,954 | |
UBS Group AG | 12,619 | 177,746 | |
United Overseas Bank Ltd | 1,900 | 32,476 | |
Westpac Banking Corp | 11,808 | 176,332 | |
$ | 6,094,429 | ||
Beverages — 1.56% | |||
Anheuser-Busch InBev SA | 3,580 | 249,334 | |
Asahi Group Holdings Ltd | 1,700 | 69,874 | |
Coca-Cola Amatil Ltd | 8,750 | 87,223 | |
Coca-Cola HBC AG | 3,061 | 99,499 | |
Davide Campari-Milano NV | 6,529 | 74,497 | |
Diageo PLC | 3,524 | 138,693 | |
Pernod Ricard SA | 583 | 111,677 | |
Royal Unibrew A/S | 769 | 89,189 | |
Suntory Beverage & Food Ltd | 1,600 | 56,559 | |
$ | 976,545 | ||
Biotechnology — 0.85% | |||
CSL Ltd | 1,510 | 329,660 | |
Genmab A/S (a) | 214 | 86,515 | |
H Lundbeck A/S | 2,414 | 82,733 | |
Swedish Orphan Biovitrum AB (a) | 1,596 | 32,220 | |
$ | 531,128 | ||
Chemicals — 2.74% | |||
Air Liquide SA | 1,578 | 258,802 |
See accompanying notes.
59
Schedule of Investments | ||||
Principal International Multi-Factor ETF | ||||
December 31, 2020 (unaudited) | ||||
COMMON STOCKS (continued) | Shares Held | Value | ||
Chemicals (continued) | ||||
Arkema SA | 675 | $ | 77,101 | |
BASF SE | 2,896 | 228,973 | ||
Brenntag AG | 1,125 | 87,052 | ||
Kansai Paint Co Ltd | 2,400 | 73,798 | ||
Koninklijke DSM NV | 592 | 101,829 | ||
LANXESS AG | 1,248 | 95,685 | ||
Nissan Chemical Corp | 1,100 | 68,820 | ||
Nitto Denko Corp | 900 | 80,451 | ||
Novozymes A/S, Class B | 910 | 52,204 | ||
Nutrien Ltd | 2,025 | 97,424 | ||
Shin-Etsu Chemical Co Ltd | 1,100 | 192,184 | ||
Symrise AG | 515 | 68,200 | ||
Taiyo Nippon Sanso Corp | 4,100 | 76,080 | ||
Toray Industries Inc | 13,100 | 77,505 | ||
Tosoh Corp | 3,900 | 60,735 | ||
Yara International ASA | 618 | 25,659 | ||
$ | 1,722,502 | |||
Commercial Services — 3.09% | ||||
Adecco Group AG | 2,569 | 171,673 | ||
Adyen NV (a),(c) | 151 | 351,414 | ||
Amadeus IT Group SA | 1,282 | 93,280 | ||
Ashtead Group PLC | 2,092 | 98,355 | ||
Brambles Ltd | 7,923 | 64,747 | ||
Bureau Veritas SA (a) | 3,169 | 84,242 | ||
Dai Nippon Printing Co Ltd | 2,900 | 52,099 | ||
Experian PLC | 110 | 4,177 | ||
Intertek Group PLC | 925 | 71,444 | ||
Randstad NV (a) | 1,372 | 89,236 | ||
Recruit Holdings Co Ltd | 5,500 | 230,163 | ||
RELX PLC | 6,000 | 147,075 | ||
Ritchie Bros Auctioneers Inc | 1,328 | 92,310 | ||
Secom Co Ltd | 700 | 64,519 | ||
Securitas AB, Class B | 2,520 | 40,659 | ||
SGS SA | 52 | 156,828 | ||
Sohgo Security Services Co Ltd | 1,300 | 67,357 | ||
Toppan Printing Co Ltd | 4,200 | 59,184 | ||
$ | 1,938,762 | |||
Computers — 1.31% | ||||
Avast PLC (c) | 2,344 | 17,229 | ||
Capgemini SE | 557 | 86,282 | ||
Computershare Ltd | 6,806 | 76,555 | ||
Fujitsu Ltd | 400 | 57,741 | ||
Itochu Techno-Solutions Corp | 1,600 | 57,101 | ||
Logitech International SA | 1,803 | 174,984 | ||
NEC Corp | 1,100 | 59,019 | ||
Nomura Research Institute Ltd | 2,100 | 75,149 | ||
Otsuka Corp | 1,200 | 63,338 | ||
SCSK Corp | 200 | 11,428 | ||
Softwareone Holding AG | 4,837 | 143,149 | ||
$ | 821,975 | |||
Construction Materials — 1.76% | ||||
Buzzi Unicem SpA | 3,070 | 73,134 | ||
Cie de Saint-Gobain (a) | 1,697 | 77,743 | ||
CRH PLC (a) | 2,567 | 106,686 | ||
Daikin Industries Ltd | 900 | 199,777 | ||
Geberit AG | 230 | 143,981 | ||
HeidelbergCement AG | 1,168 | 87,354 | ||
LafargeHolcim Ltd | 2,978 | 163,549 | ||
LIXIL Group Corp | 3,000 | 64,907 | ||
Rinnai Corp | 600 | 69,614 |
See accompanying notes.
60
Schedule of Investments | |||
Principal International Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Construction Materials (continued) | |||
Sika AG | 439 | $ | 119,903 |
$ | 1,106,648 | ||
Distribution/Wholesale — 1.35% | |||
Bunzl PLC | 2,336 | 78,041 | |
Ferguson PLC | 750 | 91,117 | |
ITOCHU Corp | 8,900 | 255,480 | |
Jardine Cycle & Carriage Ltd | 2,000 | 29,585 | |
Mitsubishi Corp | 4,700 | 115,662 | |
Mitsui & Co Ltd | 5,400 | 98,817 | |
Toromont Industries Ltd | 1,354 | 94,883 | |
Toyota Tsusho Corp | 2,100 | 84,708 | |
$ | 848,293 | ||
Diversified Financial Services — 2.56% | |||
Acom Co Ltd | 13,800 | 58,939 | |
Amundi SA (a),(c) | 1,014 | 82,749 | |
ASX Ltd | 1,026 | 56,952 | |
Brookfield Asset Management Inc, Class A | 1,727 | 71,392 | |
Daiwa Securities Group Inc | 14,200 | 64,636 | |
Deutsche Boerse AG | 546 | 92,883 | |
EQT AB | 1,987 | 50,812 | |
Hargreaves Lansdown PLC | 3,734 | 77,870 | |
Hong Kong Exchanges & Clearing Ltd | 3,964 | 217,312 | |
IGM Financial Inc | 3,404 | 92,287 | |
Japan Exchange Group Inc | 2,100 | 53,652 | |
Magellan Financial Group Ltd | 1,469 | 60,771 | |
Nomura Holdings Inc | 13,100 | 69,144 | |
Onex Corp | 1,717 | 98,550 | |
ORIX Corp | 4,800 | 73,658 | |
Partners Group Holding AG | 148 | 173,862 | |
Schroders PLC | 2,171 | 99,070 | |
Singapore Exchange Ltd | 3,800 | 26,683 | |
Tokyo Century Corp | 1,105 | 87,540 | |
$ | 1,608,762 | ||
Electric — 2.41% | |||
A2A SpA | 49,230 | 78,455 | |
ACEA SpA | 3,396 | 71,151 | |
AGL Energy Ltd | 6,098 | 56,180 | |
BKW AG | 1,269 | 142,194 | |
Canadian Utilities Ltd, Class A | 3,233 | 78,965 | |
Chubu Electric Power Co Inc | 4,900 | 58,987 | |
Enel SpA | 24,077 | 243,427 | |
Fortis Inc | 1,900 | 77,618 | |
Fortum OYJ | 3,535 | 85,075 | |
Hydro One Ltd (c) | 3,600 | 81,028 | |
Iberdrola SA | 8,958 | 128,039 | |
Origin Energy Ltd | 19,327 | 70,925 | |
Power Assets Holdings Ltd | 9,000 | 48,759 | |
Red Electrica Corp SA | 3,810 | 78,079 | |
Tohoku Electric Power Co Inc | 5,900 | 48,569 | |
Tokyo Electric Power Co Holdings Inc (a) | 21,700 | 57,163 | |
Verbund AG | 1,303 | 111,188 | |
$ | 1,515,802 | ||
Electrical Components & Equipment — 0.91% | |||
Brother Industries Ltd | 4,000 | 82,359 | |
Legrand SA | 895 | 79,817 | |
Prysmian SpA | 2,460 | 87,393 | |
Schneider Electric SE | 1,733 | 250,455 |
See accompanying notes.
61
Schedule of Investments | |||
Principal International Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Electrical Components & Equipment (continued) | |||
Varta AG (a),(b) | 507 | $ | 73,210 |
$ | 573,234 | ||
Electronics — 1.54% | |||
ABB Ltd | 6,235 | 174,028 | |
Assa Abloy AB, Class B | 1,646 | 40,512 | |
Halma PLC | 2,487 | 83,290 | |
Hoya Corp | 1,200 | 165,842 | |
Murata Manufacturing Co Ltd | 2,200 | 198,576 | |
Nidec Corp | 1,700 | 213,704 | |
Spectris PLC | 2,400 | 92,486 | |
$ | 968,438 | ||
Energy — Alternate Sources — 0.23% | |||
Vestas Wind Systems A/S | 610 | 144,130 | |
Engineering & Construction — 1.83% | |||
Ackermans & van Haaren NV | 549 | 82,495 | |
ACS Actividades de Construccion y Servicios SA | 3,152 | 104,545 | |
Aena SME SA (a),(c) | 511 | 88,770 | |
Bouygues SA | 2,061 | 84,725 | |
CIMIC Group Ltd (a) | 4,467 | 83,926 | |
CK Infrastructure Holdings Ltd | 10,000 | 53,725 | |
COMSYS Holdings Corp | 2,300 | 71,391 | |
HOCHTIEF AG | 918 | 89,213 | |
HomeServe PLC | 4,719 | 66,146 | |
Kajima Corp | 4,900 | 65,583 | |
Obayashi Corp | 6,500 | 56,026 | |
Shimizu Corp | 7,900 | 57,382 | |
Taisei Corp | 1,800 | 61,973 | |
Vinci SA | 1,821 | 180,996 | |
$ | 1,146,896 | ||
Entertainment — 0.20% | |||
Genting Singapore Ltd | 52,500 | 33,766 | |
Oriental Land Co Ltd | 100 | 16,503 | |
Tabcorp Holdings Ltd | 24,906 | 74,885 | |
$ | 125,154 | ||
Food — 5.55% | |||
Associated British Foods PLC (a) | 3,133 | 96,998 | |
Axfood AB | 1,678 | 39,117 | |
Calbee Inc | 1,800 | 54,215 | |
Carrefour SA | 4,465 | 76,529 | |
Chocoladefabriken Lindt & Spruengli AG | 16 | 155,970 | |
Coles Group Ltd | 4,890 | 68,387 | |
Danone SA | 3,848 | 252,721 | |
Emmi AG | 140 | 144,143 | |
Empire Co Ltd | 2,702 | 73,849 | |
George Weston Ltd | 1,094 | 81,717 | |
HelloFresh SE (a) | 1,278 | 98,672 | |
J Sainsbury PLC | 30,547 | 94,198 | |
Jeronimo Martins SGPS SA | 4,450 | 75,130 | |
Koninklijke Ahold Delhaize NV | 7,046 | 198,925 | |
Loblaw Cos Ltd | 1,500 | 74,016 | |
MEIJI Holdings Co Ltd | 800 | 56,249 | |
Metro Inc | 1,600 | 71,396 | |
Mowi ASA | 1,345 | 29,961 | |
Nestle SA | 8,950 | 1,054,024 | |
NH Foods Ltd | 1,300 | 57,160 | |
Nichirei Corp | 2,400 | 67,383 | |
Nisshin Seifun Group Inc | 3,700 | 58,803 | |
Orkla ASA | 2,356 | 23,906 |
See accompanying notes.
62
Schedule of Investments | |||
Principal International Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Food (continued) | |||
Saputo Inc | 3,209 | $ | 89,824 |
Seven & i Holdings Co Ltd | 2,000 | 70,873 | |
Tate & Lyle PLC | 8,768 | 80,862 | |
Toyo Suisan Kaisha Ltd | 1,100 | 53,479 | |
WH Group Ltd (c) | 53,500 | 44,857 | |
Wm Morrison Supermarkets PLC | 34,281 | 83,140 | |
Yakult Honsha Co Ltd | 1,100 | 55,397 | |
$ | 3,481,901 | ||
Food Service — 0.13% | |||
Sodexo SA | 1,000 | 84,563 | |
Forest Products & Paper — 0.61% | |||
Mondi PLC | 3,571 | 83,969 | |
Nine Dragons Paper Holdings Ltd | 36,000 | 51,081 | |
Oji Holdings Corp | 13,000 | 73,904 | |
Smurfit Kappa Group PLC | 1,822 | 84,671 | |
Stora Enso Oyj, Class R | 4,549 | 86,944 | |
$ | 380,569 | ||
Gas — 0.73% | |||
Enagas SA | 3,099 | 68,013 | |
Italgas SpA | 11,299 | 71,778 | |
National Grid PLC | 1,221 | 14,443 | |
Naturgy Energy Group SA | 3,565 | 82,574 | |
Rubis SCA | 1,777 | 82,450 | |
Snam SpA | 13,906 | 78,163 | |
Tokyo Gas Co Ltd | 2,600 | 60,030 | |
$ | 457,451 | ||
Hand/Machine Tools — 0.23% | |||
Schindler Holding AG | 351 | 94,599 | |
Techtronic Industries Co Ltd | 3,500 | 49,933 | |
$ | 144,532 | ||
Healthcare — Products — 0.84% | |||
ConvaTec Group PLC (c) | 32,721 | 89,134 | |
EssilorLuxottica SA | 974 | 151,770 | |
Fisher & Paykel Healthcare Corp Ltd | 1,243 | 29,486 | |
Getinge AB | 1,763 | 41,163 | |
Koninklijke Philips NV (a) | 661 | 35,353 | |
Lifco AB, Class B | 498 | 47,756 | |
Olympus Corp | 2,900 | 63,376 | |
Sysmex Corp | 600 | 72,055 | |
$ | 530,093 | ||
Healthcare — Services — 0.45% | |||
Fresenius Medical Care AG & Co KGaA | 847 | 70,569 | |
Fresenius SE & Co KGaA | 1,572 | 72,669 | |
Lonza Group AG | 66 | 42,405 | |
NMC Health PLC (a),(d),(e) | 708 | — | |
Ryman Healthcare Ltd | 2,950 | 32,241 | |
Sonic Healthcare Ltd | 2,498 | 61,916 | |
$ | 279,800 | ||
Holding Companies — Diversified — 0.22% | |||
CK Hutchison Holdings Ltd | 7,000 | 48,849 | |
Jardine Matheson Holdings Ltd | 700 | 39,200 | |
Swire Pacific Ltd, Class A | 9,000 | 49,920 | |
$ | 137,969 |
See accompanying notes.
63
Schedule of Investments | |||
Principal International Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Home Builders — 0.53% | |||
Daiwa House Industry Co Ltd | 2,300 | $ | 68,250 |
Sekisui Chemical Co Ltd | 3,700 | 70,019 | |
Sekisui House Ltd | 3,600 | 73,217 | |
Taylor Wimpey PLC (a) | 53,941 | 122,301 | |
$ | 333,787 | ||
Home Furnishings — 1.10% | |||
De' Longhi SpA | 2,083 | 65,602 | |
Hoshizaki Corp | 800 | 73,372 | |
Panasonic Corp | 7,000 | 80,708 | |
SEB SA | 438 | 79,728 | |
Sony Corp | 3,900 | 388,470 | |
$ | 687,880 | ||
Household Products — 1.07% | |||
Essity AB, Class B | 1,141 | 36,681 | |
Kao Corp | 1,500 | 115,781 | |
L'Oreal SA | 818 | 310,585 | |
Unilever PLC | 3,521 | 211,474 | |
$ | 674,521 | ||
Household Products/Wares — 0.34% | |||
Reckitt Benckiser Group PLC | 2,376 | 212,561 | |
Insurance — 6.13% | |||
Admiral Group PLC | 2,234 | 88,778 | |
AIA Group Ltd | 36,707 | 449,815 | |
Allianz SE | 1,304 | 319,721 | |
ASR Nederland NV | 2,120 | 85,078 | |
Assicurazioni Generali SpA | 5,074 | 88,393 | |
Aviva PLC | 20,484 | 91,095 | |
AXA SA | 6,801 | 162,114 | |
Direct Line Insurance Group PLC | 21,717 | 94,737 | |
Fairfax Financial Holdings Ltd | 262 | 89,299 | |
Great-West Lifeco Inc | 3,909 | 93,203 | |
Helvetia Holding AG | 1,595 | 168,274 | |
Japan Post Holdings Co Ltd | 8,700 | 67,642 | |
Japan Post Insurance Co Ltd | 3,800 | 77,726 | |
M&G PLC | 36,570 | 98,994 | |
Manulife Financial Corp | 14,398 | 256,198 | |
Mapfre SA | 45,629 | 88,798 | |
Medibank Pvt Ltd | 33,107 | 76,827 | |
MS&AD Insurance Group Holdings Inc | 2,200 | 66,924 | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 427 | 126,655 | |
NN Group NV | 1,905 | 82,687 | |
Power Corp of Canada | 3,953 | 90,774 | |
Prudential PLC | 498 | 9,173 | |
RSA Insurance Group PLC | 12,913 | 119,619 | |
Sompo Holdings Inc | 1,700 | 68,705 | |
Sun Life Financial Inc | 1,910 | 84,929 | |
Suncorp Group Ltd | 9,806 | 73,634 | |
Swiss Re AG | 1,828 | 172,083 | |
T&D Holdings Inc | 6,000 | 70,718 | |
Talanx AG (a) | 2,216 | 85,980 | |
Tokio Marine Holdings Inc | 2,300 | 118,235 | |
Tryg A/S | 2,525 | 79,616 | |
Zurich Insurance Group AG | 478 | 201,664 | |
$ | 3,848,088 | ||
Internet — 1.21% | |||
Adevinta ASA (a) | 1,393 | 23,395 | |
Auto Trader Group PLC (c) | 10,360 | 84,437 | |
Iliad SA | 388 | 79,680 |
See accompanying notes.
64
Schedule of Investments | |||
Principal International Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Internet (continued) | |||
Kakaku.com Inc | 2,300 | $ | 63,038 |
Mercari Inc (a) | 1,300 | 57,600 | |
Rakuten Inc (a) | 5,600 | 53,909 | |
Shopify Inc, Class A (a) | 219 | 247,288 | |
Trend Micro Inc (a) | 400 | 23,011 | |
United Internet AG | 353 | 14,848 | |
Z Holdings Corp | 9,400 | 56,843 | |
ZOZO Inc | 2,200 | 54,310 | |
$ | 758,359 | ||
Investment Companies — 0.85% | |||
EXOR NV | 1,309 | 105,895 | |
Groupe Bruxelles Lambert SA | 792 | 79,842 | |
Investor AB, Class B | 2,274 | 165,611 | |
Kinnevik AB | 949 | 47,925 | |
L E Lundbergforetagen AB, Class B (a) | 775 | 41,502 | |
Wendel SE | 785 | 93,934 | |
$ | 534,709 | ||
Iron & Steel — 0.15% | |||
Fortescue Metals Group Ltd | 5,104 | 92,195 | |
Leisure Time — 0.11% | |||
Shimano Inc | 300 | 69,977 | |
Lodging — 0.47% | |||
Accor SA (a) | 2,542 | 91,921 | |
MGM China Holdings Ltd | 35,200 | 60,479 | |
NagaCorp Ltd | 36,000 | 47,180 | |
Sands China Ltd | 11,236 | 49,350 | |
Wynn Macau Ltd (a) | 27,200 | 45,682 | |
$ | 294,612 | ||
Machinery — Construction & Mining — 0.74% | |||
Epiroc AB, Class A | 2,659 | 48,364 | |
Hitachi Ltd | 3,200 | 125,980 | |
Metso Outotec OYJ | 10,150 | 101,368 | |
Mitsubishi Electric Corp | 7,000 | 105,554 | |
Mitsubishi Heavy Industries Ltd | 2,800 | 85,582 | |
$ | 466,848 | ||
Machinery — Diversified — 1.96% | |||
Atlas Copco AB, Class A | 2,972 | 152,111 | |
Beijer Ref AB | 1,163 | 53,205 | |
GEA Group AG | 2,036 | 72,828 | |
Hexagon AB, Class B | 1,032 | 94,049 | |
Husqvarna AB | 3,491 | 45,188 | |
Keyence Corp | 600 | 337,030 | |
KION Group AG | 835 | 72,589 | |
Kone OYJ, Class B | 1,541 | 125,115 | |
Kubota Corp | 3,400 | 74,121 | |
SMC Corp | 200 | 121,931 | |
Valmet Oyj | 2,879 | 82,160 | |
$ | 1,230,327 | ||
Media — 1.12% | |||
Bollore SA | 19,087 | 78,860 | |
Informa PLC (a) | 15,534 | 116,623 | |
Pearson PLC (b) | 10,654 | 99,130 | |
Quebecor Inc, Class B | 3,224 | 82,974 | |
RTL Group SA (a) | 1,809 | 87,824 | |
Shaw Communications Inc | 4,200 | 73,712 | |
Telenet Group Holding NV | 1,842 | 78,940 |
See accompanying notes.
65
Schedule of Investments | |||
Principal International Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Media (continued) | |||
Vivendi SA | 2,565 | $ | 82,663 |
$ | 700,726 | ||
Metal Fabrication & Hardware — 0.26% | |||
SKF AB, Class B | 1,864 | 48,347 | |
Tenaris SA | 14,312 | 115,815 | |
$ | 164,162 | ||
Mining — 2.19% | |||
Barrick Gold Corp | 5,783 | 131,752 | |
BHP Group Ltd | 9,802 | 320,637 | |
BHP Group PLC | 6,218 | 163,685 | |
Evolution Mining Ltd | 14,411 | 55,440 | |
Kirkland Lake Gold Ltd | 1,597 | 65,993 | |
Newcrest Mining Ltd | 2,663 | 52,927 | |
Northern Star Resources Ltd | 6,075 | 59,434 | |
Polymetal International PLC | 3,452 | 79,519 | |
Rio Tinto Ltd | 881 | 77,314 | |
Rio Tinto PLC | 4,924 | 368,326 | |
$ | 1,375,027 | ||
Miscellaneous Manufacture — 0.90% | |||
Aalberts NV | 1,982 | 88,281 | |
Alfa Laval AB (a) | 1,739 | 47,831 | |
JSR Corp | 2,600 | 72,368 | |
Siemens AG | 2,484 | 356,624 | |
$ | 565,104 | ||
Office & Business Equipment — 0.32% | |||
FUJIFILM Holdings Corp | 1,300 | 68,466 | |
Ricoh Co Ltd | 8,800 | 57,698 | |
Seiko Epson Corp | 5,200 | 77,102 | |
$ | 203,266 | ||
Oil & Gas — 3.69% | |||
BP PLC | 63,251 | 220,391 | |
Canadian Natural Resources Ltd | 5,051 | 121,384 | |
Cenovus Energy Inc | 19,924 | 121,307 | |
DCC PLC | 970 | 68,685 | |
ENEOS Holdings Inc | 16,700 | 59,907 | |
Eni SpA | 9,129 | 95,331 | |
Equinor ASA | 1,674 | 28,299 | |
Galp Energia SGPS SA | 7,708 | 82,432 | |
Imperial Oil Ltd | 6,450 | 122,423 | |
Inpex Corp | 11,100 | 59,770 | |
Lundin Energy AB | 1,930 | 52,146 | |
Oil Search Ltd | 31,495 | 90,083 | |
Royal Dutch Shell PLC, Class A | 25,552 | 453,482 | |
Santos Ltd | 17,047 | 82,403 | |
Suncor Energy Inc | 6,395 | 107,262 | |
TOTAL SE | 10,823 | 466,734 | |
Woodside Petroleum Ltd | 4,727 | 82,871 | |
$ | 2,314,910 | ||
Packaging & Containers — 0.69% | |||
CCL Industries Inc, Class B | 2,024 | 91,890 | |
DS Smith PLC (a) | 19,859 | 101,731 | |
Huhtamaki OYJ | 1,449 | 74,808 | |
SIG Combibloc Group AG | 6,996 | 162,315 | |
$ | 430,744 |
See accompanying notes.
66
Schedule of Investments | |||
Principal International Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Pharmaceuticals — 8.42% | |||
Astellas Pharma Inc | 4,100 | $ | 63,294 |
AstraZeneca PLC | 2,990 | 299,466 | |
Bayer AG | 3,015 | 177,368 | |
Chugai Pharmaceutical Co Ltd | 2,200 | 117,250 | |
Daiichi Sankyo Co Ltd | 2,400 | 82,165 | |
Eisai Co Ltd | 700 | 49,977 | |
GlaxoSmithKline PLC | 21,278 | 390,491 | |
Hikma Pharmaceuticals PLC | 2,258 | 77,751 | |
Ipsen SA | 683 | 56,655 | |
Medipal Holdings Corp | 3,200 | 60,061 | |
Merck KGaA | 1,412 | 242,100 | |
Novartis AG | 9,381 | 886,390 | |
Novo Nordisk A/S, Class B | 8,712 | 610,100 | |
Ono Pharmaceutical Co Ltd | 1,900 | 57,190 | |
Orion OYJ, Class B | 1,578 | 72,349 | |
Otsuka Holdings Co Ltd | 1,400 | 59,902 | |
Recordati Industria Chimica e Farmaceutica SpA | 1,395 | 77,251 | |
Roche Holding AG | 3,158 | 1,102,250 | |
Sanofi | 3,549 | 341,215 | |
Shionogi & Co Ltd | 1,100 | 60,031 | |
Sumitomo Dainippon Pharma Co Ltd | 4,515 | 66,596 | |
Taisho Pharmaceutical Holdings Co Ltd | 900 | 60,578 | |
Takeda Pharmaceutical Co Ltd | 5,300 | 192,741 | |
Teva Pharmaceutical Industries Ltd (a) | 2,189 | 20,811 | |
UCB SA | 629 | 64,916 | |
$ | 5,288,898 | ||
Pipelines — 0.69% | |||
Enbridge Inc | 6,754 | 216,007 | |
Pembina Pipeline Corp | 3,800 | 89,858 | |
TC Energy Corp | 3,153 | 128,186 | |
$ | 434,051 | ||
Real Estate — 1.25% | |||
Aroundtown SA | 14,184 | 106,047 | |
CapitaLand Ltd | 13,000 | 32,264 | |
CK Asset Holdings Ltd | 9,516 | 48,854 | |
Daito Trust Construction Co Ltd | 700 | 65,353 | |
Henderson Land Development Co Ltd | 12,000 | 46,824 | |
Hongkong Land Holdings Ltd | 6,900 | 28,497 | |
Hulic Co Ltd | 6,300 | 69,129 | |
Mitsubishi Estate Co Ltd | 3,900 | 62,586 | |
Mitsui Fudosan Co Ltd | 3,400 | 71,075 | |
Sumitomo Realty & Development Co Ltd | 2,000 | 61,614 | |
Sun Hung Kai Properties Ltd | 3,500 | 45,147 | |
Swiss Prime Site AG | 1,494 | 146,649 | |
$ | 784,039 | ||
REITs — 1.56% | |||
British Land Co PLC/The | 17,342 | 115,968 | |
CapitaLand Mall Trust | 18,300 | 29,909 | |
Covivio | 1,012 | 93,156 | |
Derwent London PLC | 2,269 | 96,065 | |
Gecina SA | 541 | 83,473 | |
Goodman Group | 4,618 | 67,324 | |
ICADE | 1,269 | 97,512 | |
Inmobiliaria Colonial Socimi SA | 8,625 | 84,557 | |
Klepierre SA | 5,087 | 114,286 | |
Link REIT | 5,300 | 48,266 | |
Scentre Group | 37,812 | 81,040 | |
Stockland | 22,007 | 70,919 | |
$ | 982,475 |
See accompanying notes.
67
Schedule of Investments | ||||
Principal International Multi-Factor ETF | ||||
December 31, 2020 (unaudited) | ||||
COMMON STOCKS (continued) | Shares Held | Value | ||
Retail — 3.58% | ||||
ABC-Mart Inc | 1,200 | $ | 66,709 | |
Alimentation Couche-Tard Inc, Class B | 6,748 | 229,970 | ||
B&M European Value Retail SA | 12,952 | 91,429 | ||
Canadian Tire Corp Ltd, Class A | 767 | 100,827 | ||
Cie Financiere Richemont SA | 1,878 | 169,875 | ||
Cosmos Pharmaceutical Corp | 300 | 48,462 | ||
Dollarama Inc | 2,032 | 82,819 | ||
Domino's Pizza Enterprises Ltd | 1,046 | 69,900 | ||
Fielmann AG (a) | 891 | 72,330 | ||
Hennes & Mauritz AB, Class B (a) | 2,235 | 46,723 | ||
Industria de Diseno Textil SA | 7,676 | 244,187 | ||
JD Sports Fashion PLC (a) | 7,206 | 84,746 | ||
Lawson Inc | 1,300 | 60,496 | ||
Man Wah Holdings Ltd | 32,800 | 71,164 | ||
Next PLC (a) | 985 | 95,448 | ||
Nitori Holdings Co Ltd | 300 | 62,815 | ||
Pandora A/S | �� | 1,106 | 123,627 | |
Restaurant Brands International Inc | 1,365 | 83,461 | ||
Sugi Holdings Co Ltd | 900 | 60,142 | ||
Sundrug Co Ltd | 1,600 | 63,842 | ||
Tsuruha Holdings Inc | 400 | 56,869 | ||
USS Co Ltd | 3,300 | 66,668 | ||
Welcia Holdings Co Ltd | 1,400 | 52,811 | ||
Wesfarmers Ltd | 3,697 | 143,650 | ||
$ | 2,248,970 | |||
Semiconductors — 1.67% | ||||
Advantest Corp | 1,300 | 97,322 | ||
ams AG (a) | 3,132 | 68,492 | ||
ASM International NV | 500 | 109,918 | ||
ASML Holding NV | 1,196 | 580,858 | ||
Infineon Technologies AG | 199 | 7,631 | ||
Tokyo Electron Ltd | 500 | 185,947 | ||
$ | 1,050,168 | |||
Shipbuilding — 0.14% | ||||
Wartsila OYJ Abp | 9,084 | 90,444 | ||
Software — 1.08% | ||||
Dassault Systemes SE | 499 | 101,285 | ||
Nemetschek SE | 191 | 14,093 | ||
Nexon Co Ltd | 2,500 | 76,994 | ||
SAP SE | 3,417 | 447,577 | ||
TeamViewer AG (a),(c) | 394 | 21,097 | ||
TIS Inc | 800 | 16,379 | ||
$ | 677,425 | |||
Telecommunications — 5.11% | ||||
1&1 Drillisch AG | 3,226 | 80,555 | ||
BCE Inc | 5,512 | 235,697 | ||
BT Group PLC | 59,445 | 107,507 | ||
Deutsche Telekom AG | 17,294 | 315,957 | ||
Elisa OYJ | 1,210 | 66,327 | ||
Hikari Tsushin Inc | 300 | 70,253 | ||
KDDI Corp | 9,500 | 282,088 | ||
Koninklijke KPN NV | 30,401 | 92,366 | ||
Nippon Telegraph & Telephone Corp | 14,200 | 363,819 | ||
Nokia OYJ (a) | 18,164 | 69,921 | ||
Orange SA | 6,873 | 81,731 | ||
Proximus SADP | 3,906 | 77,350 | ||
Rogers Communications Inc, Class B | 2,022 | 94,134 | ||
Softbank Corp | 5,300 | 66,369 | ||
SoftBank Group Corp | 3,200 | 249,727 |
See accompanying notes.
68
Schedule of Investments | ||||
Principal International Multi-Factor ETF | ||||
December 31, 2020 (unaudited) | ||||
COMMON STOCKS (continued) | Shares Held | Value | ||
Telecommunications (continued) | ||||
Spark New Zealand Ltd | 8,831 | $ | 29,863 | |
Swisscom AG | 255 | 137,423 | ||
Telecom Italia SpA/Milano | 178,404 | 82,253 | ||
Telefonaktiebolaget LM Ericsson, Class B | 1,043 | 12,378 | ||
Telefonica Deutschland Holding AG | 27,877 | 76,796 | ||
Telefonica SA | 20,761 | 82,302 | ||
Telekom Austria AG | 10,119 | 78,251 | ||
Telenor ASA | 1,426 | 24,265 | ||
Telstra Corp Ltd | 29,807 | 68,479 | ||
TELUS Corp | 4,600 | 91,104 | ||
Vodafone Group PLC | 165,755 | 274,135 | ||
$ | 3,211,050 | |||
Toys, Games & Hobbies — 0.61% | ||||
Nintendo Co Ltd | 600 | 382,529 | ||
Transportation — 2.37% | ||||
AP Moller - Maersk A/S, Class B | 51 | 113,805 | ||
Aurizon Holdings Ltd | 19,556 | 58,799 | ||
Canadian National Railway Co | 1,986 | 218,337 | ||
Canadian Pacific Railway Ltd | 794 | 275,414 | ||
Central Japan Railway Co | 700 | 98,910 | ||
Deutsche Post AG | 5,460 | 270,144 | ||
DSV PANALPINA A/S | 675 | 113,010 | ||
Kuehne + Nagel International AG | 698 | 158,317 | ||
SG Holdings Co Ltd | 2,400 | 65,361 | ||
Tokyu Corp | 4,600 | 57,068 | ||
Yamato Holdings Co Ltd | 2,300 | 58,605 | ||
$ | 1,487,770 | |||
Water — 0.13% | ||||
Veolia Environnement SA | 3,303 | 80,743 | ||
TOTAL COMMON STOCKS | $ | 61,917,097 | ||
PREFERRED STOCKS — 1.08% | Shares Held | Value | ||
Auto Manufacturers — 0.52% | ||||
Volkswagen AG | ||||
2.84%, 09/29/2023 | 1,750 | $ | 325,857 | |
Chemicals — 0.13% | ||||
Fuchs Petrolub SE | ||||
1.88%, 07/09/2021 | 1,402 | 79,540 | ||
Household Products/Wares — 0.43% | ||||
Henkel AG & Co KGaA | ||||
1.98%, 08/07/2022 | 2,415 | 272,311 | ||
TOTAL PREFERRED STOCKS | $ | 677,708 | ||
INVESTMENT COMPANIES — 0.81% | Shares Held | Value | ||
Money Market Funds — 0.81% | ||||
Principal Government Money Market Fund — Institutional Class 0.00% (a),(f),(g),(h) | 214,164 | $ | 214,164 | |
State Street Institutional U.S. Government Money Market Fund — Institutional | ||||
Class 0.03% (h) | 290,504 | 290,504 | ||
TOTAL INVESTMENT COMPANIES | $ | 504,668 | ||
Total Investments | $ | 63,099,473 | ||
Other Assets and Liabilities — (0.50)% | (311,984 | ) | ||
Total Net Assets — 100.00% | $ | 62,787,489 |
See accompanying notes.
69
Schedule of Investments | |||
Principal International Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
(a) | Non-income producing security. | ||
(b) | Security or a portion of the security was on loan at the end of the period. | ||
(c) | 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 $860,715 or 1.37% of net assets. | |||
(d) | The value of these investments was determined using significant unobservable inputs. | ||
(e) | Fair value of the investment is determined in good faith by the Advisor under procedures established and periodically | ||
reviewed by the Board of Trustees. Certain inputs used in the valuation may be unobservable; however, each security is | |||
evaluated individually for purposes of ASC 820 which results in not all securities being identified as Level 3 of the fair value | |||
hierarchy. As of December 31, 2020, the fair value of these securities totaled $0 or 0.00% of net assets. | |||
(f) | Security or a portion of the security was pledged as collateral for securities lending. At the end of the period, the value of | ||
these securities totaled $214,164 or 0.34% of net assets. | |||
(g) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate | ||
as defined by the Investment Company Act of 1940 (controls 5.00% or more of the outstanding voting shares of the security). | |||
Please see Affiliated Securities sub-schedule for transactional information. | |||
(h) | Current yield shown is as of period end. | ||
Portfolio Summary (unaudited) | |||
Location | Percent | ||
Japan | 22.16 | % | |
Switzerland | 11.31 | % | |
United Kingdom | 10.84 | % | |
Canada | 10.02 | % | |
France | 9.56 | % | |
Germany | 8.04 | % | |
Australia | 5.52 | % | |
Netherlands | 3.97 | % | |
Sweden | 2.57 | % | |
Denmark | 2.53 | % | |
Spain | 2.42 | % | |
Italy | 2.38 | % | |
Hong Kong | 2.22 | % | |
Finland | 1.48 | % | |
Belgium | 1.17 | % | |
United States | 0.80 | % | |
Austria | 0.73 | % | |
Luxembourg | 0.49 | % | |
Singapore | 0.45 | % | |
Ireland | 0.42 | % | |
Portugal | 0.25 | % | |
Macau | 0.25 | % | |
Norway | 0.25 | % | |
Israel | 0.16 | % | |
New Zealand | 0.15 | % | |
Cyprus | 0.13 | % | |
Jordan | 0.12 | % | |
Cambodia | 0.08 | % | |
Czech Republic | 0.03 | % | |
Other Assets and Liabilities | (0.50 | )% | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
70
Schedule of Investments | |||||||||
Principal International Multi-Factor ETF | |||||||||
December 31, 2020 (unaudited) | |||||||||
June 30, 2020 | Purchases | Sales | December 31, 2020 | ||||||
Affiliated Securities | Value | Cost | Proceeds | Value | |||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | 158,531 | $ | 3,011,704 | $ | 2,956,071 | $ | 214,164 |
$ | 158,531 | $ | 3,011,704 | $ | 2,956,071 | $ | 214,164 | ||
Realized Gain | |||||||||
Realized | from | Change in | |||||||
Gain/Loss on | Capital Gain | Unrealized | |||||||
Income (a) | Investments | Distributions | Gain/Loss | ||||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | — | $ | — $ | — | $ | — | |
$ | — | $ | — $ | — | $ | — |
(a) | Amount excludes earnings from securities lending collateral. |
See accompanying notes.
71
Schedule of Investments | ||||
Principal Investment Grade Corporate Active ETF | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
BONDS — 98.01% | Amount | Value | ||
Aerospace & Defense — 2.74% | ||||
Boeing Co/The | ||||
2.70%, 02/01/2027 | $ | 4,435,000 | $ | 4,613,052 |
2.80%, 03/01/2024 | 300,000 | 315,044 | ||
3.25%, 02/01/2028 | 1,155,000 | 1,239,141 | ||
3.50%, 03/01/2039 | 350,000 | 354,090 | ||
4.88%, 05/01/2025 | 335,000 | 381,869 | ||
L3Harris Technologies Inc | ||||
1.80%, 01/15/2031 | 845,000 | 857,793 | ||
Lockheed Martin Corp | ||||
1.85%, 06/15/2030 | 180,000 | 188,846 | ||
Raytheon Technologies Corp | ||||
3.50%, 03/15/2027 | 930,000 | 1,061,463 | ||
5.40%, 05/01/2035 | 75,000 | 103,122 | ||
$ | 9,114,420 | |||
Agriculture — 3.36% | ||||
Altria Group Inc | ||||
2.35%, 05/06/2025 | 960,000 | 1,019,986 | ||
5.80%, 02/14/2039 | 345,000 | 454,563 | ||
5.95%, 02/14/2049 | 120,000 | 168,115 | ||
BAT Capital Corp | ||||
2.26%, 03/25/2028 | 2,500,000 | 2,595,115 | ||
3.22%, 08/15/2024 | 2,380,000 | 2,576,641 | ||
3.22%, 09/06/2026 | 440,000 | 484,604 | ||
3.56%, 08/15/2027 | 2,360,000 | 2,627,810 | ||
Philip Morris International Inc | ||||
0.88%, 05/01/2026 | 1,120,000 | 1,124,653 | ||
Reynolds American Inc | ||||
5.85%, 08/15/2045 | 95,000 | 121,481 | ||
$ | 11,172,968 | |||
Airlines — 1.73% | ||||
Continental Airlines 2012-1 Class A Pass Through Trust | ||||
4.15%, 10/11/2025 | 706,563 | 711,087 | ||
Delta Air Lines Inc / SkyMiles IP Ltd | ||||
4.50%, 10/20/2025 (a) | 550,000 | 587,872 | ||
JetBlue 2019-1 Class AA Pass Through Trust | ||||
2.75%, 11/15/2033 | 221,587 | 221,437 | ||
Southwest Airlines Co | ||||
4.75%, 05/04/2023 | 1,375,000 | 1,494,465 | ||
5.13%, 06/15/2027 | 1,130,000 | 1,344,265 | ||
5.25%, 05/04/2025 | 210,000 | 243,214 | ||
United Airlines 2014-2 Class A Pass Through Trust | ||||
3.75%, 03/03/2028 | 538,576 | 547,019 | ||
United Airlines 2019-2 Class AA Pass Through Trust | ||||
2.70%, 11/01/2033 | 201,972 | 194,866 | ||
US Airways 2013-1 Class A Pass Through Trust | ||||
3.95%, 05/15/2027 | 435,435 | 402,939 | ||
$ | 5,747,164 | |||
Auto Manufacturers — 1.88% | ||||
General Motors Financial Co Inc | ||||
1.70%, 08/18/2023 | 2,000,000 | 2,051,507 | ||
3.95%, 04/13/2024 | 3,650,000 | 3,975,622 | ||
6.25%, 10/02/2043 | 170,000 | 229,325 | ||
$ | 6,256,454 |
See accompanying notes.
72
Schedule of Investments | ||||
Principal Investment Grade Corporate Active ETF | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
BONDS (continued) | Amount | Value | ||
Banks — 21.02% | ||||
Australia & New Zealand Banking Group Ltd | ||||
(5-year Treasury Constant Maturity Rate + 1.70%), | ||||
2.57%, 11/25/2035 (a),(b) | $ | 1,695,000 | $ | 1,729,189 |
Banco Santander SA | ||||
2.75%, 12/03/2030 | 1,800,000 | 1,855,308 | ||
Bank of America Corp | ||||
2.68%, 06/19/2041 (c) | 4,195,000 | 4,370,756 | ||
2.83%, 10/24/2051 (c) | 500,000 | 521,537 | ||
(3-month USD LIBOR + 1.19%), | ||||
2.88%, 10/22/2030 (b) | 535,000 | 587,489 | ||
(3-month USD LIBOR + 1.18%), | ||||
3.19%, 07/23/2030 (b) | 465,000 | 521,121 | ||
(3-month USD LIBOR + 0.97%), | ||||
3.46%, 03/15/2025 (b) | 15,000 | 16,332 | ||
4.20%, 08/26/2024 | 225,000 | 251,883 | ||
4.25%, 10/22/2026 | 1,310,000 | 1,536,587 | ||
Bank of Montreal | ||||
(5-year Swap rate + 1.43%), | ||||
3.80%, 12/15/2032 (b) | 1,295,000 | 1,467,872 | ||
Barclays PLC | ||||
(3-month USD LIBOR + 2.45%), | ||||
2.85%, 05/07/2026 (b) | 2,400,000 | 2,577,457 | ||
5.20%, 05/12/2026 | 400,000 | 465,088 | ||
BNP Paribas SA | ||||
2.22%, 06/09/2026 (a),(c) | 2,250,000 | 2,354,921 | ||
Citigroup Inc | ||||
(3-month USD LIBOR + 1.15%), | ||||
3.52%, 10/27/2028 (b) | 2,040,000 | 2,306,332 | ||
Credit Suisse Group AG | ||||
(5-year Treasury Constant Maturity Rate + 4.89%), | ||||
5.25%, 02/11/2027 (a),(b),(d) | 3,715,000 | 3,928,613 | ||
First Republic Bank | ||||
4.63%, 02/13/2047 | 2,235,000 | 2,950,083 | ||
Goldman Sachs Group Inc/The | ||||
3.85%, 01/26/2027 | 2,160,000 | 2,464,981 | ||
HSBC Holdings PLC | ||||
1.59%, 05/24/2027 (c) | 4,410,000 | 4,484,605 | ||
JPMorgan Chase & Co | ||||
3.11%, 04/22/2041 (c) | 750,000 | 838,325 | ||
5.50%, 10/15/2040 | 1,280,000 | 1,882,223 | ||
Morgan Stanley | ||||
0.99%, 12/10/2026 (c) | 1,925,000 | 1,939,326 | ||
2.19%, 04/28/2026 (c) | 250,000 | 264,061 | ||
3.62%, 04/01/2031 (c) | 285,000 | 331,484 | ||
(3-month USD LIBOR + 3.81%), | ||||
4.05%, 04/15/2021 (b),(d) | 3,325,000 | 3,291,750 | ||
5.00%, 11/24/2025 | 1,515,000 | 1,810,924 | ||
National Australia Bank Ltd | ||||
2.33%, 08/21/2030 (a) | 1,995,000 | 2,028,172 | ||
Natwest Group PLC | ||||
5.13%, 05/28/2024 | 3,550,000 | 4,010,762 | ||
(5-year Treasury Constant Maturity Rate + 5.63%), | ||||
6.00%, 12/29/2025 (b),(d) | 2,165,000 | 2,371,476 | ||
NatWest Markets PLC | ||||
2.38%, 05/21/2023 (a) | 500,000 | 520,136 | ||
Santander UK Group Holdings PLC | ||||
(1-year Treasury Constant Maturity Rate + 1.25%), | ||||
1.53%, 08/21/2026 (b) | 3,000,000 | 3,045,229 | ||
Societe Generale SA | ||||
(1-year Treasury Constant Maturity Rate + 1.10%), | ||||
1.49%, 12/14/2026 (a),(b) | 1,505,000 | 1,518,295 |
See accompanying notes.
73
Schedule of Investments | ||||
Principal Investment Grade Corporate Active ETF | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
BONDS (continued) | Amount | Value | ||
Banks (continued) | ||||
Standard Chartered PLC | ||||
(3-month USD LIBOR + 1.21%), | ||||
2.82%, 01/30/2026 (a),(b) | $ | 1,900,000 | $ | 2,012,590 |
(5-year Treasury Constant Maturity Rate + 2.30%), | ||||
3.27%, 02/18/2036 (a),(b) | 1,540,000 | 1,612,351 | ||
6.00%, 07/26/2025 (a),(c),(d) | 1,335,000 | 1,426,781 | ||
US Bancorp | ||||
3.00%, 07/30/2029 | 300,000 | 335,071 | ||
Wells Fargo & Co | ||||
2.39%, 06/02/2028 (c) | 860,000 | 915,575 | ||
3.07%, 04/30/2041 (c) | 1,685,000 | 1,832,941 | ||
3.75%, 01/24/2024 | 650,000 | 709,598 | ||
4.40%, 06/14/2046 | 290,000 | 363,032 | ||
Westpac Banking Corp | ||||
2.96%, 11/16/2040 | 2,034,000 | 2,165,954 | ||
(5-year Treasury Constant Maturity Rate + 2.00%), | ||||
4.11%, 07/24/2034 (b) | 220,000 | 251,048 | ||
$ | 69,867,258 | |||
Beverages — 2.96% | ||||
Anheuser-Busch Cos LLC / Anheuser-Busch InBev Worldwide Inc | ||||
3.65%, 02/01/2026 | 1,075,000 | 1,215,147 | ||
4.90%, 02/01/2046 | 385,000 | 500,589 | ||
Anheuser-Busch InBev Worldwide Inc | ||||
4.38%, 04/15/2038 | 2,800,000 | 3,466,954 | ||
4.60%, 04/15/2048 | 360,000 | 455,545 | ||
5.45%, 01/23/2039 | 295,000 | 400,770 | ||
Constellation Brands Inc | ||||
2.88%, 05/01/2030 | 150,000 | 164,367 | ||
3.70%, 12/06/2026 | 2,630,000 | 3,009,856 | ||
4.40%, 11/15/2025 | 525,000 | 609,597 | ||
$ | 9,822,825 | |||
Biotechnology — 0.77% | ||||
Amgen Inc | ||||
2.20%, 02/21/2027 | 1,090,000 | 1,168,494 | ||
3.38%, 02/21/2050 | 465,000 | 519,535 | ||
Gilead Sciences Inc | ||||
1.20%, 10/01/2027 | 875,000 | 881,061 | ||
$ | 2,569,090 | |||
Chemicals — 1.07% | ||||
DuPont de Nemours Inc | ||||
5.32%, 11/15/2038 | 1,425,000 | 1,930,030 | ||
Nutrition & Biosciences Inc | ||||
1.23%, 10/01/2025 (a) | 495,000 | 500,254 | ||
1.83%, 10/15/2027 (a) | 670,000 | 690,545 | ||
2.30%, 11/01/2030 (a) | 435,000 | 448,060 | ||
$ | 3,568,889 | |||
Commercial Services — 0.71% | ||||
CoStar Group Inc | ||||
2.80%, 07/15/2030 (a) | 1,010,000 | 1,049,426 | ||
Global Payments Inc | ||||
2.65%, 02/15/2025 | 1,230,000 | 1,317,188 | ||
$ | 2,366,614 | |||
Computers — 1.19% | ||||
Apple Inc | ||||
4.65%, 02/23/2046 | 1,790,000 | 2,544,406 |
See accompanying notes.
74
Schedule of Investments | ||||
Principal Investment Grade Corporate Active ETF | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
BONDS (continued) | Amount | Value | ||
Computers (continued) | ||||
Dell International LLC / EMC Corp | ||||
4.90%, 10/01/2026 (a) | $ | 1,005,000 | $ | 1,186,742 |
8.35%, 07/15/2046 (a) | 155,000 | 234,487 | ||
$ | 3,965,635 | |||
Construction Materials — 0.45% | ||||
Carrier Global Corp | ||||
2.24%, 02/15/2025 | 400,000 | 423,265 | ||
Martian Marietta Material Inc | ||||
2.50%, 03/15/2030 | 1,015,000 | 1,081,447 | ||
$ | 1,504,712 | |||
Diversified Financial Services — 6.56% | ||||
AerCap Ireland Capital DAC / AerCap Global Aviation Trust | ||||
3.15%, 02/15/2024 | 5,000,000 | 5,241,318 | ||
Air Lease Corp | ||||
2.88%, 01/15/2026 | 1,860,000 | 1,968,129 | ||
3.38%, 07/01/2025 | 1,080,000 | 1,161,430 | ||
Ally Financial Inc | ||||
4.63%, 03/30/2025 | 1,310,000 | 1,493,160 | ||
5.75%, 11/20/2025 | 750,000 | 873,181 | ||
5.80%, 05/01/2025 | 3,265,000 | 3,877,026 | ||
Blackstone Holdings Finance Co LLC | ||||
2.80%, 09/30/2050 (a) | 810,000 | 826,862 | ||
Brookfield Finance Inc | ||||
3.45%, 04/15/2050 | 340,000 | 360,927 | ||
4.00%, 04/01/2024 | 950,000 | 1,042,803 | ||
4.85%, 03/29/2029 | 1,130,000 | 1,384,293 | ||
GE Capital International Funding Co Unlimited Co | ||||
4.42%, 11/15/2035 | 480,000 | 572,902 | ||
Nuveen Finance LLC | ||||
4.13%, 11/01/2024 (a) | 2,650,000 | 2,986,657 | ||
$ | 21,788,688 | |||
Electric — 6.71% | ||||
Alabama Power Co | ||||
3.45%, 10/01/2049 | 655,000 | 768,480 | ||
American Electric Power Co Inc | ||||
1.00%, 11/01/2025 | 500,000 | 505,951 | ||
CMS Energy Corp | ||||
3.00%, 05/15/2026 | 445,000 | 490,500 | ||
Commonwealth Edison Co | ||||
4.00%, 03/01/2049 | 1,490,000 | 1,907,383 | ||
Dominion Energy Inc | ||||
4.25%, 06/01/2028 | 455,000 | 545,734 | ||
DTE Electric Co | ||||
3.95%, 03/01/2049 | 330,000 | 428,053 | ||
DTE Energy Co | ||||
3.40%, 06/15/2029 | 1,295,000 | 1,468,061 | ||
Duke Energy Florida LLC | ||||
3.80%, 07/15/2028 | 800,000 | 938,978 | ||
Duke Energy Ohio Inc | ||||
4.30%, 02/01/2049 | 455,000 | 588,465 | ||
Evergy Inc | ||||
2.90%, 09/15/2029 | 780,000 | 854,983 | ||
Florida Power & Light Co | ||||
3.15%, 10/01/2049 | 450,000 | 518,644 | ||
Georgia Power Co | ||||
3.70%, 01/30/2050 | 120,000 | 143,605 | ||
MidAmerican Energy Co | ||||
3.15%, 04/15/2050 | 750,000 | 862,210 |
See accompanying notes.
75
Schedule of Investments | ||||
Principal Investment Grade Corporate Active ETF | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
BONDS (continued) | Amount | Value | ||
Electric (continued) | ||||
NextEra Energy Capital Holdings Inc | ||||
2.75%, 11/01/2029 | $ | 1,595,000 | $ | 1,737,709 |
3.50%, 04/01/2029 | 560,000 | 641,157 | ||
NRG Energy Inc | ||||
2.00%, 12/02/2025 (a) | 275,000 | 285,169 | ||
2.45%, 12/02/2027 (a) | 590,000 | 621,167 | ||
Pacific Gas and Electric Co | ||||
1.75%, 06/16/2022 | 905,000 | 907,554 | ||
Public Service Co of Colorado | ||||
4.05%, 09/15/2049 | 310,000 | 403,341 | ||
Southern California Edison Co | ||||
4.88%, 03/01/2049 | 705,000 | 930,358 | ||
Southern Co/The | ||||
(3-month USD LIBOR + 3.63%), | ||||
5.50%, 03/15/2057 (b) | 2,045,000 | 2,126,094 | ||
Tucson Electric Power Co | ||||
4.85%, 12/01/2048 | 410,000 | 558,304 | ||
Virginia Electric & Power Co | ||||
2.45%, 12/15/2050 | 475,000 | 477,992 | ||
3.80%, 04/01/2028 | 1,095,000 | 1,281,501 | ||
4.60%, 12/01/2048 | 300,000 | 422,213 | ||
WEC Energy Group Inc | ||||
1.38%, 10/15/2027 | 1,030,000 | 1,043,246 | ||
Xcel Energy Inc | ||||
2.60%, 12/01/2029 | 790,000 | 854,671 | ||
$ | 22,311,523 | |||
Environmental Control — 0.17% | ||||
Waste Management Inc | ||||
1.15%, 03/15/2028 | 550,000 | 551,572 | ||
Food — 1.12% | ||||
Mars Inc | ||||
2.38%, 07/16/2040 (a) | 1,485,000 | 1,520,894 | ||
McCormick & Co Inc | ||||
3.15%, 08/15/2024 | 1,350,000 | 1,463,516 | ||
Sysco Corp | ||||
6.60%, 04/01/2050 | 470,000 | 723,876 | ||
$ | 3,708,286 | |||
Gas — 1.72% | ||||
CenterPoint Energy Resources Corp | ||||
1.75%, 10/01/2030 | 1,825,000 | 1,842,597 | ||
Dominion Energy Gas Holdings LLC | ||||
3.00%, 11/15/2029 | 170,000 | 188,326 | ||
NiSource Inc | ||||
0.95%, 08/15/2025 | 1,510,000 | 1,519,120 | ||
Piedmont Natural Gas Co Inc | ||||
3.50%, 06/01/2029 | 1,240,000 | 1,423,447 | ||
Southern California Gas Co | ||||
2.55%, 02/01/2030 | 690,000 | 747,501 | ||
$ | 5,720,991 | |||
Healthcare — Products — 0.99% | ||||
Abbott Laboratories | ||||
4.90%, 11/30/2046 | 830,000 | 1,230,479 | ||
Boston Scientific Corp | ||||
2.65%, 06/01/2030 | 1,880,000 | 2,013,673 |
See accompanying notes.
76
Schedule of Investments | ||||
Principal Investment Grade Corporate Active ETF | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
BONDS (continued) | Amount | Value | ||
Healthcare — Products (continued) | ||||
Medtronic Inc | ||||
4.63%, 03/15/2045 | $ | 39,000 | $ | 55,332 |
$ | 3,299,484 | |||
Healthcare — Services — 0.43% | ||||
Centene Corp | ||||
3.38%, 02/15/2030 | 290,000 | 305,106 | ||
UnitedHealth Group Inc | ||||
2.75%, 05/15/2040 | 895,000 | 970,919 | ||
3.50%, 08/15/2039 | 120,000 | 142,754 | ||
$ | 1,418,779 | |||
Insurance — 4.43% | ||||
AIA Group Ltd | ||||
3.20%, 09/16/2040 (a) | 595,000 | 623,786 | ||
American International Group Inc | ||||
4.50%, 07/16/2044 | 1,165,000 | 1,492,811 | ||
Arch Capital Group Ltd | ||||
3.64%, 06/30/2050 | 1,300,000 | 1,512,904 | ||
Athene Global Funding | ||||
2.55%, 11/19/2030 (a) | 1,210,000 | 1,210,910 | ||
Markel Corp | ||||
3.35%, 09/17/2029 | 25,000 | 28,108 | ||
4.30%, 11/01/2047 | 1,385,000 | 1,752,627 | ||
Massachusetts Mutual Life Insurance Co | ||||
3.38%, 04/15/2050 (a) | 185,000 | 202,096 | ||
New York Life Insurance Co | ||||
3.75%, 05/15/2050 (a) | 705,000 | 843,345 | ||
Progressive Corp/The | ||||
3.95%, 03/26/2050 | 440,000 | 570,649 | ||
Swiss Re Finance Luxembourg SA | ||||
(5-year Treasury Constant Maturity Rate + 3.58%), | ||||
5.00%, 04/02/2049 (a),(b) | 200,000 | 232,803 | ||
Willis North America Inc | ||||
3.88%, 09/15/2049 | 600,000 | 731,583 | ||
XLIT Ltd | ||||
4.45%, 03/31/2025 | 2,920,000 | 3,332,277 | ||
5.50%, 03/31/2045 | 1,575,000 | 2,203,423 | ||
$ | 14,737,322 | |||
Internet — 1.24% | ||||
Alphabet Inc | ||||
2.25%, 08/15/2060 | 585,000 | 565,677 | ||
Amazon.com Inc | ||||
2.70%, 06/03/2060 | 470,000 | 502,590 | ||
Expedia Group Inc | ||||
3.60%, 12/15/2023 (a) | 805,000 | 857,892 | ||
3.80%, 02/15/2028 | 975,000 | 1,047,280 | ||
4.63%, 08/01/2027 (a) | 1,015,000 | 1,133,760 | ||
$ | 4,107,199 | |||
Iron & Steel — 0.30% | ||||
Nucor Corp | ||||
2.70%, 06/01/2030 | 165,000 | 181,439 | ||
Vale Overseas Ltd | ||||
3.75%, 07/08/2030 | 745,000 | 828,820 | ||
$ | 1,010,259 | |||
Machinery — Diversified — 0.37% | ||||
CNH Industrial Capital LLC | ||||
1.95%, 07/02/2023 | 1,180,000 | 1,214,746 |
See accompanying notes.
77
Schedule of Investments | ||||
Principal Investment Grade Corporate Active ETF | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
BONDS (continued) | Amount | Value | ||
Media — 6.21% | ||||
Charter Communications Operating LLC / Charter Communications Operating | ||||
Capital | ||||
3.70%, 04/01/2051 | $ | 1,985,000 | $ | 2,061,333 |
4.80%, 03/01/2050 | 375,000 | 447,900 | ||
4.91%, 07/23/2025 | 1,905,000 | 2,212,558 | ||
Comcast Corp | ||||
2.80%, 01/15/2051 | 450,000 | 469,119 | ||
3.75%, 04/01/2040 | 515,000 | 622,133 | ||
3.95%, 10/15/2025 | 985,000 | 1,131,647 | ||
3.97%, 11/01/2047 | 1,390,000 | 1,742,949 | ||
4.60%, 10/15/2038 | 670,000 | 882,943 | ||
Discovery Communications LLC | ||||
4.00%, 09/15/2055 (a) | 1,735,000 | 1,941,983 | ||
Fox Corp | ||||
5.58%, 01/25/2049 | 495,000 | 723,560 | ||
Time Warner Cable LLC | ||||
5.88%, 11/15/2040 | 1,350,000 | 1,801,925 | ||
ViacomCBS Inc | ||||
2.90%, 01/15/2027 | 3,030,000 | 3,324,825 | ||
4.95%, 05/19/2050 | 200,000 | 259,064 | ||
5.25%, 04/01/2044 | 1,165,000 | 1,513,909 | ||
Walt Disney Co/The | ||||
3.50%, 05/13/2040 | 1,275,000 | 1,498,753 | ||
$ | 20,634,601 | |||
Mining — 1.21% | ||||
Newmont Corp | ||||
2.25%, 10/01/2030 | 1,435,000 | 1,510,235 | ||
Teck Resources Ltd | ||||
3.90%, 07/15/2030 | 760,000 | 846,406 | ||
5.40%, 02/01/2043 | 1,390,000 | 1,660,166 | ||
$ | 4,016,807 | |||
Miscellaneous Manufacture — 0.74% | ||||
General Electric Co | ||||
3.45%, 05/01/2027 | 940,000 | 1,063,183 | ||
5.88%, 01/14/2038 | 1,030,000 | 1,395,998 | ||
$ | 2,459,181 | |||
Oil & Gas — 3.58% | ||||
BP Capital Markets America Inc | ||||
3.59%, 04/14/2027 | 1,365,000 | 1,552,460 | ||
4.23%, 11/06/2028 | 25,000 | 29,877 | ||
Canadian Natural Resources Ltd | ||||
4.95%, 06/01/2047 | 330,000 | 419,121 | ||
Chevron Corp | ||||
2.00%, 05/11/2027 | 1,235,000 | 1,309,705 | ||
Exxon Mobil Corp | ||||
2.44%, 08/16/2029 | 905,000 | 982,370 | ||
3.00%, 08/16/2039 | 280,000 | 303,922 | ||
Marathon Oil Corp | ||||
4.40%, 07/15/2027 | 1,390,000 | 1,545,167 | ||
6.60%, 10/01/2037 | 314,000 | 388,129 | ||
Occidental Petroleum Corp | ||||
2.90%, 08/15/2024 | 810,000 | 779,625 | ||
3.20%, 08/15/2026 | 420,000 | 392,700 | ||
Shell International Finance BV | ||||
3.13%, 11/07/2049 | 280,000 | 309,288 | ||
Total Capital International SA | ||||
2.83%, 01/10/2030 | 1,535,000 | 1,710,563 |
See accompanying notes.
78
Schedule of Investments | ||||
Principal Investment Grade Corporate Active ETF | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
BONDS (continued) | Amount | Value | ||
Oil & Gas (continued) | ||||
WPX Energy Inc | ||||
4.50%, 01/15/2030 | $ | 2,055,000 | $ | 2,178,300 |
$ | 11,901,227 | |||
Packaging & Containers — 0.11% | ||||
WRKCo Inc | ||||
3.00%, 06/15/2033 | 325,000 | 357,067 | ||
Pharmaceuticals — 6.26% | ||||
Bayer US Finance II LLC | ||||
3.38%, 07/15/2024 (a) | 250,000 | 270,279 | ||
4.25%, 12/15/2025 (a) | 2,650,000 | 3,029,163 | ||
4.38%, 12/15/2028 (a) | 885,000 | 1,040,952 | ||
Becton Dickinson and Co | ||||
3.36%, 06/06/2024 | 275,000 | 298,946 | ||
3.70%, 06/06/2027 | 1,235,000 | 1,417,300 | ||
4.67%, 06/06/2047 | 180,000 | 236,350 | ||
4.69%, 12/15/2044 | 1,354,000 | 1,747,761 | ||
Bristol-Myers Squibb Co | ||||
4.13%, 06/15/2039 | 1,295,000 | 1,650,033 | ||
4.25%, 10/26/2049 | 1,065,000 | 1,440,206 | ||
Cigna Corp | ||||
4.38%, 10/15/2028 | 3,330,000 | 4,024,927 | ||
4.90%, 12/15/2048 | 50,000 | 68,757 | ||
CVS Health Corp | ||||
5.05%, 03/25/2048 | 3,000,000 | 4,065,835 | ||
Pfizer Inc | ||||
2.55%, 05/28/2040 | 705,000 | 752,998 | ||
Viatris Inc | ||||
2.30%, 06/22/2027 (a) | 170,000 | 180,986 | ||
Zoetis Inc | ||||
3.90%, 08/20/2028 | 500,000 | 589,055 | ||
$ | 20,813,548 | |||
Pipelines — 3.69% | ||||
Energy Transfer Operating LP | ||||
3.75%, 05/15/2030 | 1,670,000 | 1,801,350 | ||
5.15%, 03/15/2045 | 100,000 | 108,369 | ||
6.25%, 04/15/2049 | 320,000 | 387,059 | ||
Enterprise Products Operating LLC | ||||
3.95%, 01/31/2060 | 440,000 | 487,063 | ||
4.20%, 01/31/2050 | 1,255,000 | 1,474,376 | ||
MPLX LP | ||||
4.00%, 03/15/2028 | 70,000 | 80,539 | ||
4.88%, 12/01/2024 | 735,000 | 843,476 | ||
Sabine Pass Liquefaction LLC | ||||
4.50%, 05/15/2030 (a) | 3,000,000 | 3,555,833 | ||
5.00%, 03/15/2027 | 460,000 | 542,370 | ||
5.75%, 05/15/2024 | 2,620,000 | 2,995,426 | ||
$ | 12,275,861 | |||
Private Equity — 0.39% | ||||
KKR Group Finance Co VIII LLC | ||||
3.50%, 08/25/2050 (a) | 1,160,000 | 1,287,372 | ||
REITs — 2.88% | ||||
Alexandria Real Estate Equities Inc | ||||
4.70%, 07/01/2030 | 330,000 | 409,910 | ||
American Campus Communities Operating Partnership LP | ||||
3.88%, 01/30/2031 | 3,415,000 | 3,866,496 | ||
Crown Castle International Corp | ||||
4.15%, 07/01/2050 | 200,000 | 243,098 |
See accompanying notes.
79
Schedule of Investments | ||||
Principal Investment Grade Corporate Active ETF | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
BONDS (continued) | Amount | Value | ||
REITs (continued) | ||||
Healthcare Trust of America Holdings LP | ||||
3.10%, 02/15/2030 | $ | 845,000 | $ | 923,022 |
Healthpeak Properties Inc | ||||
2.88%, 01/15/2031 | 1,255,000 | 1,352,672 | ||
Prologis LP | ||||
3.00%, 04/15/2050 | 195,000 | 215,536 | ||
Spirit Realty LP | ||||
3.20%, 02/15/2031 | 1,655,000 | 1,758,697 | ||
VEREIT Operating Partnership LP | ||||
3.10%, 12/15/2029 | 760,000 | 819,962 | ||
$ | 9,589,393 | |||
Retail — 0.28% | ||||
Home Depot Inc/The | ||||
3.30%, 04/15/2040 | 510,000 | 601,087 | ||
Walmart Inc | ||||
4.05%, 06/29/2048 | 245,000 | 332,476 | ||
$ | 933,563 | |||
Semiconductors — 3.61% | ||||
Applied Materials Inc | ||||
1.75%, 06/01/2030 | 595,000 | 617,466 | ||
Broadcom Inc | ||||
3.15%, 11/15/2025 | 1,850,000 | 2,020,111 | ||
4.70%, 04/15/2025 | 285,000 | 326,601 | ||
Lam Research Corp | ||||
4.00%, 03/15/2029 | 720,000 | 863,709 | ||
4.88%, 03/15/2049 | 45,000 | 65,046 | ||
Micron Technology Inc | ||||
2.50%, 04/24/2023 | 240,000 | 250,084 | ||
4.19%, 02/15/2027 | 1,830,000 | 2,142,116 | ||
NVIDIA Corp | ||||
3.50%, 04/01/2040 | 2,180,000 | 2,618,001 | ||
NXP BV / NXP Funding LLC / NXP USA Inc | ||||
2.70%, 05/01/2025 (a) | 100,000 | 107,630 | ||
3.15%, 05/01/2027 (a) | 900,000 | 992,297 | ||
Xilinx Inc | ||||
2.38%, 06/01/2030 | 735,000 | 771,580 | ||
2.95%, 06/01/2024 | 1,130,000 | 1,215,377 | ||
$ | 11,990,018 | |||
Software — 3.13% | ||||
Activision Blizzard Inc | ||||
2.50%, 09/15/2050 | 2,685,000 | 2,624,309 | ||
Fiserv Inc | ||||
3.50%, 07/01/2029 | 1,775,000 | 2,026,795 | ||
4.40%, 07/01/2049 | 705,000 | 944,334 | ||
Microsoft Corp | ||||
2.53%, 06/01/2050 | 1,615,000 | 1,703,089 | ||
Oracle Corp | ||||
2.80%, 04/01/2027 | 1,515,000 | 1,670,860 | ||
salesforce.com Inc | ||||
3.70%, 04/11/2028 | 1,220,000 | 1,439,500 | ||
$ | 10,408,887 | |||
Telecommunications — 3.77% | ||||
AT&T Inc | ||||
3.50%, 06/01/2041 | 2,655,000 | 2,862,354 | ||
3.50%, 09/15/2053 (a) | 390,000 | 390,572 | ||
3.50%, 02/01/2061 | 295,000 | 293,814 | ||
3.55%, 09/15/2055 (a) | 2,064,000 | 2,056,993 |
See accompanying notes.
80
Schedule of Investments | |||||||||
Principal Investment Grade Corporate Active ETF | |||||||||
December 31, 2020 (unaudited) | |||||||||
Principal | |||||||||
BONDS (continued) | Amount | Value | |||||||
Telecommunications (continued) | |||||||||
T-Mobile USA Inc | |||||||||
2.05%, 02/15/2028 (a) | $ | 1,465,000 | $ | 1,523,834 | |||||
Verizon Communications Inc | |||||||||
2.65%, 11/20/2040 | 625,000 | 631,104 | |||||||
2.99%, 10/30/2056 (a) | 2,543,000 | 2,559,817 | |||||||
3.00%, 11/20/2060 | 1,090,000 | 1,100,947 | |||||||
Vodafone Group PLC | |||||||||
4.88%, 06/19/2049 | 820,000 | 1,095,849 | |||||||
$ | 12,515,284 | ||||||||
Transportation — 0.23% | |||||||||
FedEx Corp | |||||||||
4.10%, 02/01/2045 | 635,000 | 749,218 | |||||||
TOTAL BONDS | $ | 325,756,905 | |||||||
INVESTMENT COMPANIES — 1.42% | Shares Held | Value | |||||||
Money Market Fund — 1.42% | |||||||||
State Street Institutional U.S. Government Money Market Fund — Institutional | |||||||||
Class 0.03% (e) | 4,704,181 | $ | 4,704,181 | ||||||
TOTAL INVESTMENT COMPANIES | $ | 4,704,181 | |||||||
Total Investments | $ | 330,461,086 | |||||||
Other Assets and Liabilities — 0.57% | 1,905,940 | ||||||||
Total Net Assets — 100.00% | $ | 332,367,026 | |||||||
(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 $52,111,486 or 15.68% of net assets. | |||||||||
(b) | Rate shown is as of period end. The rate may be a variable or floating rate or a fixed rate which may convert to a variable or | ||||||||
floating rate in the future. | |||||||||
(c) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or | ||||||||
agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their | |||||||||
description. Rate shown is the rate in effect as of period end. | |||||||||
(d) | Perpetual security. Perpetual securities pay an indefinite stream of interest, but they may be called by the issuer at an earlier | ||||||||
date. Date shown, if any, reflects the next call date or final legal maturity date. Rate shown is as of period end. | |||||||||
(e) | Current yield shown is as of period end. | ||||||||
Portfolio Summary (unaudited) | |||||||||
Sector | Percent | ||||||||
Financial | 35.29 | % | |||||||
Consumer, Non-cyclical | 16.60 | % | |||||||
Communications | 11.21 | % | |||||||
Utilities | 8.43 | % | |||||||
Technology | 7.93 | % | |||||||
Energy | 7.27 | % | |||||||
Industrial | 4.80 | % | |||||||
Consumer, Cyclical | 3.89 | % | |||||||
Basic Materials | 2.59 | % | |||||||
Money Market Fund | 1.42 | % | |||||||
Other Assets and Liabilities | 0.57 | % | |||||||
TOTAL NET ASSETS | 100.00 | % | |||||||
Futures Contracts | |||||||||
Value and Unrealized | |||||||||
Description and Expiration Date | Type | Contracts Notional Amount Appreciation/(Depreciation) | |||||||
U.S. Treasury Ultra Long Bonds; March | |||||||||
2021 | Short | 20 | $ | 4,271,250 | $ | 34,589 |
See accompanying notes.
81
Schedule of Investments | |||||||||
Principal Investment Grade Corporate Active ETF | |||||||||
December 31, 2020 (unaudited) | |||||||||
June 30, 2020 | Purchases | Sales | December 31, 2020 | ||||||
Affiliated Securities | Value | Cost | Proceeds | Value | |||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | 600,345 | $ | 4,150,678 | $ | 4,751,023 | $ | — |
$ | 600,345 | $ | 4,150,678 | $ | 4,751,023 | $ | — | ||
Realized Gain | |||||||||
Realized | from | Change in | |||||||
Gain/Loss on | Capital Gain | Unrealized | |||||||
Income (a) | Investments | Distributions | Gain/Loss | ||||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | — | $ | — $ | — | $ | — | |
$ | — | $ | — $ | — | $ | — |
(a) | Amount excludes earnings from securities lending collateral. |
See accompanying notes.
82
Schedule of Investments | |||
Principal Millennials Index ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS — 99.91% | Shares Held | Value | |
Apparel — 5.40% | |||
adidas AG (a) | 987 | $ | 359,198 |
boohoo Group PLC (a) | 47,563 | 223,096 | |
Carter's Inc | 1,708 | 160,672 | |
Deckers Outdoor Corp (a) | 835 | 239,461 | |
Fila Holdings Corp | 4,637 | 186,539 | |
Gildan Activewear Inc | 8,908 | 249,066 | |
Hanesbrands Inc | 14,297 | 208,450 | |
Kering SA | 428 | 310,792 | |
Levi Strauss & Co, Class A | 9,050 | 181,724 | |
LVMH Moet Hennessy Louis Vuitton SE | 601 | 375,109 | |
Puma SE (a) | 3,794 | 427,712 | |
Tapestry Inc | 8,688 | 270,023 | |
Urban Outfitters Inc (a) | 34,044 | 871,526 | |
$ | 4,063,368 | ||
Beverages — 1.07% | |||
Brown-Forman Corp, Class B | 4,058 | 322,327 | |
Davide Campari-Milano NV | 30,813 | 351,583 | |
Treasury Wine Estates Ltd | 18,331 | 132,843 | |
$ | 806,753 | ||
Chemicals — 1.17% | |||
Givaudan SA | 209 | 880,572 | |
Commercial Services — 10.62% | |||
Adyen NV (a),(b) | 764 | 1,778,014 | |
Bright Horizons Family Solutions Inc (a) | 2,204 | 381,270 | |
China Yuhua Education Corp Ltd (b) | 978,000 | 851,537 | |
Global Payments Inc | 1,558 | 335,624 | |
GMO Payment Gateway Inc | 1,600 | 214,459 | |
New Oriental Education & Technology Group Inc ADR (a) | 4,480 | 832,429 | |
PayPal Holdings Inc (a) | 6,742 | 1,578,976 | |
Square Inc, Class A (a) | 4,282 | 931,935 | |
StoneCo Ltd, Class A (a) | 5,169 | 433,783 | |
TAL Education Group ADR (a) | 9,095 | 650,383 | |
$ | 7,988,410 | ||
Computers — 2.69% | |||
Apple Inc | 15,239 | 2,022,063 | |
Construction Materials — 1.42% | |||
Fortune Brands Home & Security Inc | 5,142 | 440,772 | |
Masco Corp | 6,417 | 352,486 | |
Patrick Industries Inc | 3,987 | 272,512 | |
$ | 1,065,770 | ||
Diversified Financial Services — 4.03% | |||
Discover Financial Services | 20,349 | 1,842,195 | |
LexinFintech Holdings Ltd ADR (a) | 12,678 | 84,943 | |
Pagseguro Digital Ltd, Class A (a) | 5,821 | 331,098 | |
PROG Holdings, Inc. | 5,827 | 313,900 | |
XP Inc, Class A (a) | 11,547 | 458,070 | |
$ | 3,030,206 | ||
Electronics — 0.48% | |||
Garmin Ltd | 3,003 | 359,339 | |
Food — 1.52% | |||
Kroger Co/The | 32,253 | 1,024,355 | |
Sprouts Farmers Market Inc (a) | 6,052 | 121,645 | |
$ | 1,146,000 |
See accompanying notes.
83
Schedule of Investments | ||||
Principal Millennials Index ETF | ||||
December 31, 2020 (unaudited) | ||||
COMMON STOCKS (continued) | Shares Held | Value | ||
Home Builders — 0.60% | ||||
DR Horton Inc | 6,552 | $ | 451,564 | |
Home Furnishings — 2.45% | ||||
Sleep Number Corp (a) | 5,871 | 480,600 | ||
Sony Corp | 10,900 | 1,085,725 | ||
Tempur Sealy International Inc (a) | 10,320 | 278,640 | ||
$ | 1,844,965 | |||
Internet — 30.23% | ||||
AfreecaTV Co Ltd | 16,790 | 935,096 | ||
Alibaba Group Holding Ltd ADR (a) | 4,993 | 1,162,021 | ||
Alphabet Inc, Class C (a) | 834 | 1,461,068 | ||
Booking Holdings Inc (a) | 167 | 371,954 | ||
eBay Inc | 7,517 | 377,729 | ||
Expedia Group Inc | 3,969 | 525,496 | ||
Facebook Inc, Class A (a) | 5,823 | 1,590,611 | ||
Farfetch Ltd, Class A (a) | 14,178 | 904,698 | ||
iQIYI Inc ADR (a) | 27,200 | 475,456 | ||
JOYY Inc | 13,666 | 1,093,007 | ||
Momo Inc ADR | 5,193 | 72,494 | ||
Naspers Ltd, Class N | 4,504 | 925,427 | ||
Netflix Inc (a) | 2,586 | 1,398,328 | ||
Pinduoduo Inc ADR (a) | 6,220 | 1,105,107 | ||
Rightmove PLC (a) | 37,417 | 333,000 | ||
Roku Inc (a) | 5,550 | 1,842,711 | ||
Snap Inc, Class A (a) | 40,808 | 2,043,256 | ||
Spotify Technology SA (a) | 5,998 | 1,887,331 | ||
Tencent Holdings Ltd | 19,745 | 1,436,472 | ||
Tencent Music Entertainment Group ADR (a) | 22,086 | 424,935 | ||
Trip.com Group Ltd ADR (a) | 20,649 | 696,491 | ||
Wayfair Inc, Class A (a) | 2,109 | 476,233 | ||
Yandex NV, Class A (a) | 14,250 | 991,515 | ||
ZOZO Inc | 8,300 | 204,898 | ||
$ | 22,735,334 | |||
Leisure Time — 0.71% | ||||
Camping World Holdings Inc, Class A (c) | 20,589 | 536,343 | ||
Media — 4.51% | ||||
AMC Networks Inc, Class A (a),(c) | 4,627 | 165,508 | ||
Comcast Corp, Class A | 6,545 | 342,958 | ||
Fox Corp, Class B (a) | 9,830 | 283,891 | ||
MSG Networks Inc, Class A (a) | 11,022 | 162,464 | ||
Sirius XM Holdings Inc (c) | 45,544 | 290,115 | ||
ViacomCBS Inc, Class B | 15,970 | 595,042 | ||
Vivendi SA | 10,502 | 338,449 | ||
Walt Disney Co/The (a) | 6,691 | 1,212,276 | ||
$ | 3,390,703 | |||
REITs — 0.61% | ||||
Equity Residential | 3,646 | 216,135 | ||
Essex Property Trust Inc | 1,015 | 240,981 | ||
$ | 457,116 | |||
Retail — 19.68% | ||||
American Eagle Outfitters Inc | 14,148 | 283,950 | ||
ANTA Sports Products Ltd | 31,000 | 491,445 | ||
Bed Bath & Beyond Inc (c) | 26,474 | 470,178 | ||
Children's Place Inc/The | 5,745 | 287,825 | ||
Chipotle Mexican Grill Inc (a) | 1,113 | 1,543,408 | ||
Dick's Sporting Goods Inc | 5,297 | 297,744 | ||
Domino's Pizza Inc | 2,246 | 861,251 | ||
Foot Locker Inc | 5,097 | 206,123 |
See accompanying notes.
84
Schedule of Investments | |||||
Principal Millennials Index ETF | |||||
December 31, 2020 (unaudited) | |||||
COMMON STOCKS (continued) | Shares Held | Value | |||
Retail (continued) | |||||
Hennes & Mauritz AB, Class B (a) | 56,326 | $ | 1,177,509 | ||
Home Depot Inc/The | 5,202 | 1,381,755 | |||
Industria de Diseno Textil SA | 37,376 | 1,188,997 | |||
Li Ning Co Ltd | 248,500 | 1,708,499 | |||
Lowe's Cos Inc | 2,582 | 414,437 | |||
Lululemon Athletica Inc (a) | 3,413 | 1,187,826 | |||
Pandora A/S | 3,464 | 387,201 | |||
Qurate Retail Inc, Series A | 36,325 | 398,485 | |||
Signet Jewelers Ltd | 17,435 | 475,452 | |||
Starbucks Corp | 3,419 | 365,765 | |||
Williams-Sonoma Inc | 2,641 | 268,959 | |||
Zalando SE (a),(b) | 12,642 | 1,406,340 | |||
$ | 14,803,149 | ||||
Semiconductors — 1.70% | |||||
NVIDIA Corp | 2,455 | 1,282,001 | |||
Software — 8.68% | |||||
Activision Blizzard Inc | 10,868 | 1,009,094 | |||
Bilibili Inc ADR (a),(c) | 20,702 | 1,774,575 | |||
Electronic Arts Inc | 2,210 | 317,356 | |||
Fiserv Inc (a) | 2,374 | 270,304 | |||
Microsoft Corp | 6,156 | 1,369,217 | |||
NetEase Inc ADR | 3,500 | 335,195 | |||
Pearl Abyss Corp (a) | 750 | 179,716 | |||
Take-Two Interactive Software Inc (a) | 6,110 | 1,269,597 | |||
$ | 6,525,054 | ||||
Telecommunications — 1.79% | |||||
AT&T Inc | 22,044 | 633,985 | |||
Xiaomi Corp, Class B (a),(b) | 166,800 | 714,324 | |||
$ | 1,348,309 | ||||
Textiles — 0.55% | |||||
Mohawk Industries Inc (a) | 2,949 | 415,662 | |||
TOTAL COMMON STOCKS | $ | 75,152,681 | |||
INVESTMENT COMPANIES — 1.64% | Shares Held | Value | |||
Money Market Funds — 1.64% | |||||
Principal Government Money Market Fund - Institutional Class 0.00% (a),(d),(e),(f) | 1,064,005 | $ | 1,064,005 | ||
State Street Institutional U.S. Government Money Market Fund - Institutional | |||||
Class 0.03% (f) | 170,967 | 170,967 | |||
TOTAL INVESTMENT COMPANIES | $ | 1,234,972 | |||
Total Investments | $ | 76,387,653 | |||
Other Assets and Liabilities — (1.55)% | (1,166,892 | ) | |||
Total Net Assets — 100.00% | $ | 75,220,761 | |||
(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 $4,750,215 or 6.32% of net assets. | |||||
(c) | Security or a portion of the security was on loan at the end of the period. | ||||
(d) | Security or a portion of the security was pledged as collateral for securities lending. At the end of the period, the value of | ||||
these securities totaled $1,064,005 or 1.41% of net assets. | |||||
(e) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate | ||||
as defined by the Investment Company Act of 1940 (controls 5.00% or more of the outstanding voting shares of the security). | |||||
Please see Affiliated Securities sub-schedule for transactional information. | |||||
(f) | Current yield shown is as of period end. |
See accompanying notes.
85
Schedule of Investments | |||||||||
Principal Millennials Index ETF | |||||||||
December 31, 2020 (unaudited) | |||||||||
Portfolio Summary (unaudited) | |||||||||
Sector | Percent | ||||||||
Communications | 36.52 | % | |||||||
Consumer, Cyclical | 29.40 | % | |||||||
Consumer, Non-cyclical | 13.22 | % | |||||||
Technology | 13.07 | % | |||||||
Financial | 4.64 | % | |||||||
Industrial | 1.89 | % | |||||||
Money Market Funds | 1.64 | % | |||||||
Basic Materials | 1.17 | % | |||||||
Other Assets and Liabilities | (1.55 | )% | |||||||
TOTAL NET ASSETS | 100.00 | % | |||||||
June 30, 2020 | Purchases | Sales | December 31, 2020 | ||||||
Affiliated Securities | Value | Cost | Proceeds | Value | |||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | 736,189 | $ | 10,223,155 | $ | 9,895,339 | $ | 1,064,005 |
$ | 736,189 | $ | 10,223,155 | $ | 9,895,339 | $ | 1,064,005 | ||
Realized Gain | |||||||||
Realized | from | Change in | |||||||
Gain/Loss on | Capital Gain | Unrealized | |||||||
Income (a) | Investments | Distributions | Gain/Loss | ||||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | — | $ | — $ | — | $ | — | |
$ | — | $ | — $ | — | $ | — |
(a) | Amount excludes earnings from securities lending collateral. |
See accompanying notes.
86
Schedule of Investments | ||||
Principal Quality ETF | ||||
December 31, 2020 (unaudited) | ||||
COMMON STOCKS — 99.79% | Shares Held | Value | ||
Advertising — 0.21% | ||||
Omnicom Group Inc | 1,045 | $ | 65,177 | |
Aerospace & Defense — 1.71% | ||||
Lockheed Martin Corp | 667 | 236,772 | ||
Teledyne Technologies Inc (a) | 732 | 286,929 | ||
$ | 523,701 | |||
Apparel — 0.37% | ||||
NIKE Inc, Class B | 811 | 114,732 | ||
Banks — 0.73% | ||||
M&T Bank Corp | 1,764 | 224,557 | ||
Beverages — 2.72% | ||||
Brown-Forman Corp, Class B | 4,030 | 320,103 | ||
Coca-Cola Co/The | 3,239 | 177,627 | ||
Monster Beverage Corp (a) | 2,775 | 256,632 | ||
PepsiCo Inc | 549 | 81,416 | ||
$ | 835,778 | |||
Biotechnology — 0.59% | ||||
Alexion Pharmaceuticals Inc (a) | 791 | 123,586 | ||
Biogen Inc (a) | 235 | 57,542 | ||
$ | 181,128 | |||
Chemicals — 2.52% | ||||
Air Products & Chemicals Inc | 331 | 90,436 | ||
Ecolab Inc | 403 | 87,193 | ||
RPM International Inc | 2,703 | 245,378 | ||
Sherwin-Williams Co/The | 477 | 350,552 | ||
$ | 773,559 | |||
Commercial Services — 8.59% | ||||
Automatic Data Processing Inc | 1,600 | 281,920 | ||
Booz Allen Hamilton Holding Corp | 2,430 | 211,847 | ||
Cintas Corp | 920 | 325,183 | ||
FleetCor Technologies Inc (a) | 920 | 251,004 | ||
MarketAxess Holdings Inc | 761 | 434,196 | ||
Moody's Corp | 1,023 | 296,916 | ||
Rollins Inc | 2,974 | 116,194 | ||
S&P Global Inc | 651 | 214,003 | ||
TransUnion | 2,784 | 276,228 | ||
Verisk Analytics Inc | 1,118 | 232,086 | ||
$ | 2,639,577 | |||
Computers — 2.24% | ||||
Accenture PLC, Class A | 1,361 | 355,507 | ||
Apple Inc | 2,515 | 333,715 | ||
$ | 689,222 | |||
Distribution/Wholesale — 2.36% | ||||
Copart Inc (a) | 2,906 | 369,789 | ||
Fastenal Co | 7,282 | 355,580 | ||
$ | 725,369 | |||
Diversified Financial Services — 6.31% | ||||
Blackstone Group Inc/The | 1,379 | 89,373 | ||
Cboe Global Markets Inc | 2,172 | 202,257 | ||
KKR & Co Inc, Class A | 6,058 | 245,288 | ||
Mastercard Inc, Class A | 848 | 302,685 | ||
Nasdaq Inc | 2,413 | 320,302 | ||
SEI Investments Co | 4,524 | 259,994 | ||
T Rowe Price Group Inc | 1,469 | 222,392 |
See accompanying notes.
87
Schedule of Investments | |||
Principal Quality ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Diversified Financial Services (continued) | |||
Visa Inc, Class A | 1,348 | $ | 294,848 |
$ | 1,937,139 | ||
Electric — 3.65% | |||
Alliant Energy Corp | 3,324 | 171,286 | |
American Electric Power Co Inc | 812 | 67,615 | |
CMS Energy Corp | 2,866 | 174,855 | |
Duke Energy Corp | 1,888 | 172,865 | |
Evergy Inc | 3,787 | 210,216 | |
Southern Co/The | 1,201 | 73,778 | |
WEC Energy Group Inc | 1,876 | 172,648 | |
Xcel Energy Inc | 1,163 | 77,537 | |
$ | 1,120,800 | ||
Electrical Components & Equipment — 2.94% | |||
AMETEK Inc | 2,877 | 347,944 | |
Emerson Electric Co | 3,824 | 307,335 | |
Universal Display Corp | 1,079 | 247,954 | |
$ | 903,233 | ||
Electronics — 4.58% | |||
Allegion PLC | 632 | 73,552 | |
Amphenol Corp, Class A | 809 | 105,793 | |
Garmin Ltd | 1,960 | 234,534 | |
Honeywell International Inc | 447 | 95,077 | |
Keysight Technologies Inc (a) | 765 | 101,049 | |
Mettler-Toledo International Inc (a) | 352 | 401,167 | |
Roper Technologies Inc | 703 | 303,056 | |
Waters Corp (a) | 372 | 92,040 | |
$ | 1,406,268 | ||
Environmental Control — 0.86% | |||
Republic Services Inc | 2,742 | 264,055 | |
Food — 2.30% | |||
General Mills Inc | 3,536 | 207,916 | |
Hershey Co/The | 1,718 | 261,703 | |
Lamb Weston Holdings Inc | 1,993 | 156,929 | |
Mondelez International Inc, Class A | 1,372 | 80,221 | |
$ | 706,769 | ||
Healthcare — Products — 9.10% | |||
Abbott Laboratories | 2,250 | 246,352 | |
Align Technology Inc (a) | 340 | 181,689 | |
Cooper Cos Inc/The | 755 | 274,306 | |
Edwards Lifesciences Corp (a) | 3,592 | 327,698 | |
IDEXX Laboratories Inc (a) | 679 | 339,412 | |
Intuitive Surgical Inc (a) | 136 | 111,262 | |
Medtronic PLC | 719 | 84,224 | |
ResMed Inc | 1,548 | 329,043 | |
Teleflex Inc | 735 | 302,504 | |
Thermo Fisher Scientific Inc | 592 | 275,742 | |
West Pharmaceutical Services Inc | 1,141 | 323,257 | |
$ | 2,795,489 | ||
Healthcare — Services — 2.19% | |||
Anthem Inc | 675 | 216,736 | |
Humana Inc | 535 | 219,494 | |
UnitedHealth Group Inc | 679 | 238,112 | |
$ | 674,342 |
See accompanying notes.
88
Schedule of Investments | ||||
Principal Quality ETF | ||||
December 31, 2020 (unaudited) | ||||
COMMON STOCKS (continued) | Shares Held | Value | ||
Home Builders — 0.71% | ||||
Lennar Corp, Class A | 2,872 | $ | 218,933 | |
Household Products — 1.01% | ||||
Colgate-Palmolive Co | 3,629 | 310,316 | ||
Household Products/Wares — 3.02% | ||||
Avery Dennison Corp | 1,512 | 234,526 | ||
Church & Dwight Co Inc | 3,538 | 308,620 | ||
Clorox Co/The | 1,543 | 311,563 | ||
Kimberly-Clark Corp | 553 | 74,561 | ||
$ | 929,270 | |||
Insurance — 5.39% | ||||
Aflac Inc | 1,687 | 75,021 | ||
Allstate Corp/The | 2,352 | 258,555 | ||
American Financial Group Inc | 1,917 | 167,968 | ||
Arch Capital Group Ltd (a) | 6,122 | 220,820 | ||
Arthur J Gallagher & Co | 742 | 91,793 | ||
Brown & Brown Inc | 5,753 | 272,750 | ||
Everest Re Group Ltd | 291 | 68,120 | ||
Fidelity National Financial Inc | 1,865 | 72,903 | ||
Marsh & McLennan Cos Inc | 1,656 | 193,752 | ||
Progressive Corp/The | 2,368 | 234,148 | ||
$ | 1,655,830 | |||
Internet — 2.29% | ||||
Alphabet Inc, Class A (a) | 55 | 96,395 | ||
Booking Holdings Inc (a) | 145 | 322,954 | ||
CDW Corp | 1,518 | 200,057 | ||
VeriSign Inc (a) | 391 | 84,613 | ||
$ | 704,019 | |||
Lodging — 0.65% | ||||
Hilton Worldwide Holdings Inc | 1,782 | 198,265 | ||
Machinery — Diversified — 1.79% | ||||
Dover Corp | 1,687 | 212,984 | ||
IDEX Corp | 491 | 97,807 | ||
Nordson Corp | 1,193 | 239,733 | ||
$ | 550,524 | |||
Media — 1.00% | ||||
FactSet Research Systems Inc | 921 | 306,233 | ||
Miscellaneous Manufacture — 1.34% | ||||
3M Co | 1,160 | 202,757 | ||
Illinois Tool Works Inc | 1,031 | 210,200 | ||
$ | 412,957 | |||
Packaging & Containers — 0.31% | ||||
Ball Corp | 1,028 | 95,789 | ||
Pharmaceuticals — 2.90% | ||||
Eli Lilly & Co | 1,952 | 329,576 | ||
Johnson & Johnson | 1,828 | 287,691 | ||
Merck & Co Inc | 2,263 | 185,113 | ||
Zoetis Inc | 543 | 89,866 | ||
$ | 892,246 | |||
Real Estate — 0.26% | ||||
CBRE Group Inc, Class A (a) | 1,289 | 80,846 | ||
REITs — 3.11% | ||||
American Tower Corp | 1,085 | 243,539 | ||
Extra Space Storage Inc | 1,727 | 200,090 |
See accompanying notes.
89
Schedule of Investments | ||||
Principal Quality ETF | ||||
December 31, 2020 (unaudited) | ||||
COMMON STOCKS (continued) | Shares Held | Value | ||
REITs (continued) | ||||
Federal Realty Investment Trust | 623 | $ | 53,030 | |
National Retail Properties Inc | 1,424 | 58,270 | ||
Public Storage | 346 | 79,902 | ||
Realty Income Corp | 2,394 | 148,835 | ||
Vornado Realty Trust | 4,618 | 172,436 | ||
$ | 956,102 | |||
Retail — 5.75% | ||||
AutoZone Inc (a) | 168 | 199,154 | ||
Costco Wholesale Corp | 632 | 238,125 | ||
Dollar General Corp | 494 | 103,888 | ||
Domino's Pizza Inc | 215 | 82,444 | ||
Home Depot Inc/The | 795 | 211,168 | ||
Lowe's Cos Inc | 698 | 112,036 | ||
O'Reilly Automotive Inc (a) | 469 | 212,255 | ||
Ross Stores Inc | 1,591 | 195,391 | ||
TJX Cos Inc/The | 2,897 | 197,836 | ||
Tractor Supply Co | 839 | 117,947 | ||
Walmart Inc | 673 | 97,013 | ||
$ | 1,767,257 | |||
Semiconductors — 0.71% | ||||
Intel Corp | 1,338 | 66,659 | ||
Teradyne Inc | 1,263 | 151,421 | ||
$ | 218,080 | |||
Software — 12.51% | ||||
Adobe Inc (a) | 713 | 356,586 | ||
ANSYS Inc (a) | 715 | 260,117 | ||
Cadence Design Systems Inc (a) | 3,725 | 508,202 | ||
Citrix Systems Inc | 717 | 93,282 | ||
Fair Isaac Corp (a) | 656 | 335,242 | ||
Intuit Inc | 926 | 351,741 | ||
Jack Henry & Associates Inc | 1,143 | 185,155 | ||
Microsoft Corp | 1,517 | 337,411 | ||
MSCI Inc | 586 | 261,667 | ||
Oracle Corp | 4,973 | 321,703 | ||
Paychex Inc | 3,195 | 297,710 | ||
Paycom Software Inc (a) | 262 | 118,489 | ||
Veeva Systems Inc, Class A (a) | 1,214 | 330,511 | ||
VMware Inc, Class A (a) | 615 | 86,260 | ||
$ | 3,844,076 | |||
Telecommunications — 1.79% | ||||
Arista Networks Inc (a) | 386 | 112,160 | ||
Cisco Systems Inc | 1,860 | 83,235 | ||
Ubiquiti Inc | 1,276 | 355,379 | ||
$ | 550,774 | |||
Transportation — 0.32% | ||||
Expeditors International of Washington Inc | 1,029 | 97,868 | ||
Water — 0.96% | ||||
American Water Works Co Inc | 1,401 | 215,011 | ||
Essential Utilities Inc | 1,685 | 79,684 | ||
$ | 294,695 | |||
TOTAL COMMON STOCKS | $ | 30,664,975 |
See accompanying notes.
90
Schedule of Investments | ||||||||||||
Principal Quality ETF | ||||||||||||
December 31, 2020 (unaudited) | ||||||||||||
INVESTMENT COMPANIES — 0.33% | Shares Held | Value | ||||||||||
Money Market Fund — 0.33% | ||||||||||||
State Street Institutional U.S. Government Money Market Fund — Institutional | ||||||||||||
Class 0.03% (b) | 99,959 | $ | 99,959 | |||||||||
TOTAL INVESTMENT COMPANIES | $ | 99,959 | ||||||||||
Total Investments | $ | 30,764,934 | ||||||||||
Other Assets and Liabilities — (0.12)% | (37,771 | ) | ||||||||||
Total Net Assets — 100.00% | $ | 30,727,163 | ||||||||||
(a) | Non-income producing security. | |||||||||||
(b) | Current yield shown is as of period end. | |||||||||||
Portfolio Summary (unaudited) | ||||||||||||
Sector | Percent | |||||||||||
Consumer, Non-cyclical | 32.72 | % | ||||||||||
Technology | 15.46 | % | ||||||||||
Financial | 14.71 | % | ||||||||||
Industrial | 14.64 | % | ||||||||||
Consumer, Cyclical | 9.84 | % | ||||||||||
Communications | 5.29 | % | ||||||||||
Utilities | 4.61 | % | ||||||||||
Basic Materials | 2.52 | % | ||||||||||
Money Market Fund | 0.33 | % | ||||||||||
Other Assets and Liabilities | (0.12 | )% | ||||||||||
TOTAL NET ASSETS | 100.00 | % | ||||||||||
June 30, 2020 | Purchases | Sales | December 31, 2020 | |||||||||
Affiliated Securities | Value | Cost | Proceeds | Value | ||||||||
Principal Government Money | ||||||||||||
Market Fund — Institutional Class | ||||||||||||
0.00 | % | $ | — | $ | 52,718 | $ | 52,718 | $ | — | |||
$ | — | $ | 52,718 | $ | 52,718 | $ | — | |||||
Realized Gain | ||||||||||||
Realized | from | Change in | ||||||||||
Gain/Loss on | Capital Gain | Unrealized | ||||||||||
Income (a) | Investments | Distributions | Gain/Loss | |||||||||
Principal Government Money | ||||||||||||
Market Fund — Institutional Class | ||||||||||||
0.00 | % | $ | — | $ | — $ | — $ | — | |||||
$ | — | $ | — $ | — $ | — | |||||||
(a) | Amount excludes earnings from securities lending collateral. |
See accompanying notes.
91
Schedule of Investments | ||||
Principal Spectrum Preferred Securities Active ETF | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
BONDS — 92.37% | Amount | Value | ||
Banks — 36.15% | ||||
Bank of America Corp | ||||
(3-month USD LIBOR + 3.90%), | ||||
6.10%, 03/17/2025 (a),(b) | $ | 6,672,000 | $ | 7,559,710 |
(3-month USD LIBOR + 4.55%), | ||||
6.30%, 03/10/2026 (a),(b) | 667,000 | 778,723 | ||
Bank of Montreal | ||||
(5-year Treasury Constant Maturity Rate + 2.98%), | ||||
4.80%, 08/25/2024 (a),(b) | 1,190,000 | 1,243,550 | ||
Bank of New York Mellon Corp/The | ||||
(5-year Treasury Constant Maturity Rate + 3.35%), | ||||
3.70%, 03/20/2026 (a),(b) | 10,393,000 | 10,753,117 | ||
(5-year Treasury Constant Maturity Rate + 4.36%), | ||||
4.70%, 09/20/2025 (a),(b) | 648,000 | 714,614 | ||
Bank of Nova Scotia/The | ||||
(5-year Treasury Constant Maturity Rate + 4.55%), | ||||
4.90%, 06/04/2025 (a),(b) | 2,779,000 | 3,008,740 | ||
BNP Paribas SA | ||||
(3-month USD LIBOR + 1.29%), | ||||
7.20%, 06/25/2037 (a),(b),(c) | 2,300,000 | 2,553,000 | ||
Citigroup Inc | ||||
(5-year Treasury Constant Maturity Rate + 3.60%), | ||||
4.00%, 12/10/2025 (a),(b) | 8,048,000 | 8,259,260 | ||
(3-month USD LIBOR + 3.91%), | ||||
5.95%, 05/15/2025 (a),(b) | 3,335,000 | 3,643,487 | ||
Citizens Financial Group Inc | ||||
(3-month USD LIBOR + 3.16%), | ||||
6.38%, 04/06/2024 (a),(b),(d) | 3,335,000 | 3,435,050 | ||
Comerica Inc | ||||
(5-year Treasury Constant Maturity Rate + 5.29%), | ||||
5.63%, 07/01/2025 (a),(b) | 525,000 | 581,438 | ||
Fifth Third Bancorp | ||||
(5-year Treasury Constant Maturity Rate + 4.22%), | ||||
4.50%, 09/30/2025 (a),(b) | 871,000 | 926,309 | ||
Goldman Sachs Group Inc/The | ||||
(5-year Treasury Constant Maturity Rate + 3.62%), | ||||
5.50%, 08/10/2024 (a),(b),(d) | 5,003,000 | 5,453,270 | ||
HSBC Capital Funding Dollar 1 LP | ||||
(3-month USD LIBOR + 4.98%), | ||||
10.18%, 06/30/2030 (a),(b) | 2,927,000 | 4,997,852 | ||
Huntington Bancshares Inc | ||||
(10-year Treasury Constant Maturity Rate + 4.95%), | ||||
5.63%, 07/15/2030 (a),(b) | 6,017,000 | 7,024,847 | ||
JPMorgan Chase & Co | ||||
(3-month USD LIBOR + 3.30%), | ||||
6.00%, 08/01/2023 (a),(b) | 3,675,000 | 3,895,500 | ||
(3-month USD LIBOR + 3.78%), | ||||
6.75%, 02/01/2024 (a),(b) | 4,343,000 | 4,875,893 | ||
KeyCorp | ||||
(3-month USD LIBOR + 3.61%), | ||||
5.00%, 09/15/2026 (a),(b) | 1,002,000 | 1,086,168 | ||
Lloyds Bank PLC | ||||
(3-month USD LIBOR + 11.76%), | ||||
12.00%, 12/16/2024 (a),(b),(c),(d) | 3,718,000 | 4,289,568 | ||
Truist Financial Corp | ||||
(5-year Treasury Constant Maturity Rate + 3.00%), | ||||
4.80%, 09/01/2024 (a),(b) | 6,672,000 | 7,047,150 | ||
(5-year Treasury Constant Maturity Rate + 4.61%), | ||||
4.95%, 09/01/2025 (a),(b) | 1,392,000 | 1,531,214 | ||
Wells Fargo & Co | ||||
(3-month USD LIBOR + 3.99%), | ||||
5.88%, 06/15/2025 (a),(b) | 4,673,000 | 5,298,014 | ||
$ | 88,956,474 |
See accompanying notes.
92
Schedule of Investments | ||||
Principal Spectrum Preferred Securities Active ETF | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
BONDS (continued) | Amount | Value | ||
Diversified Financial Services — 5.87% | ||||
Charles Schwab Corp/The | ||||
(10-year Treasury Constant Maturity Rate + 3.08%), | ||||
4.00%, 12/01/2030 (a),(b) | $ | 7,020,000 | $ | 7,388,550 |
(5-year Treasury Constant Maturity Rate + 4.97%), | ||||
5.38%, 06/01/2025 (a),(b) | 4,006,000 | 4,461,683 | ||
Discover Financial Services | ||||
(5-year Treasury Constant Maturity Rate + 5.78%), | ||||
6.13%, 06/23/2025 (a),(b) | 2,310,000 | 2,604,525 | ||
$ | 14,454,758 | |||
Electric — 11.65% | ||||
CMS Energy Corp | ||||
(5-year Treasury Constant Maturity Rate + 2.90%), | ||||
3.75%, 12/01/2050 (b) | 2,810,000 | 2,870,977 | ||
(5-year Treasury Constant Maturity Rate + 4.12%), | ||||
4.75%, 06/01/2050 (b) | 2,570,000 | 2,895,213 | ||
Dominion Energy Inc | ||||
(5-year Treasury Constant Maturity Rate + 2.99%), | ||||
4.65%, 12/15/2024 (a),(b) | 5,519,000 | 5,819,991 | ||
Duke Energy Corp | ||||
(5-year Treasury Constant Maturity Rate + 3.39%), | ||||
4.88%, 09/16/2024 (a),(b) | 8,090,000 | 8,760,095 | ||
Emera Inc | ||||
(3-month USD LIBOR + 5.44%), | ||||
6.75%, 06/15/2076 (b) | 5,003,000 | 5,847,256 | ||
Southern Co/The | ||||
(5-year Treasury Constant Maturity Rate + 3.73%), | ||||
4.00%, 01/15/2051 (b) | 2,330,000 | 2,468,690 | ||
$ | 28,662,222 | |||
Gas — 1.09% | ||||
NiSource Inc | ||||
(5-year Treasury Constant Maturity Rate + 2.84%), | ||||
5.65%, 06/15/2023 (a),(b) | 2,604,000 | 2,675,610 | ||
Hand/Machine Tools — 1.44% | ||||
Stanley Black & Decker Inc | ||||
(5-year Treasury Constant Maturity Rate + 2.66%), | ||||
4.00%, 03/15/2060 (b) | 3,335,000 | 3,550,882 | ||
Insurance — 25.74% | ||||
Allstate Corp/The | ||||
(3-month USD LIBOR + 2.94%), | ||||
5.75%, 08/15/2053 (b) | 3,335,000 | 3,568,650 | ||
American International Group Inc | ||||
(3-month USD LIBOR + 2.87%), | ||||
5.75%, 04/01/2048 (b) | 1,392,000 | 1,591,223 | ||
Argentum Netherlands BV for Swiss Re Ltd | ||||
(3-month USD LIBOR + 3.78%), | ||||
5.63%, 08/15/2052 (b) | 5,600,000 | 6,445,600 | ||
AXA SA | ||||
(3-month USD LIBOR + 2.26%), | ||||
6.38%, 12/14/2036 (a),(b),(c) | 4,430,000 | 6,163,238 | ||
Cloverie PLC for Zurich Insurance Co Ltd | ||||
(3-month USD LIBOR + 4.92%), | ||||
5.63%, 06/24/2046 (b) | 5,600,000 | 6,543,600 | ||
M&G PLC | ||||
6.50%, 10/20/2048 | 2,200,000 | 2,651,000 | ||
Meiji Yasuda Life Insurance Co | ||||
(5-year Swap rate + 4.23%), | ||||
5.20%, 10/20/2045 (b),(c) | 3,335,000 | 3,826,284 | ||
MetLife Inc | ||||
9.25%, 04/08/2068 (c) | 4,874,000 | 7,431,088 |
See accompanying notes.
93
Schedule of Investments | |||||
Principal Spectrum Preferred Securities Active ETF | |||||
December 31, 2020 (unaudited) | |||||
Principal | |||||
BONDS (continued) | Amount | Value | |||
Insurance (continued) | |||||
Prudential Financial Inc | |||||
(5-year Treasury Constant Maturity Rate + 3.04%), | |||||
3.70%, 10/01/2050 (b) | $ | 5,925,000 | $ | 6,267,346 | |
(3-month USD LIBOR + 3.92%), | |||||
5.63%, 06/15/2043 (b) | 5,003,000 | 5,365,340 | |||
QBE Insurance Group Ltd | |||||
(10-year Swap rate + 4.40%), | |||||
5.88%, 06/17/2046 (b) | 2,200,000 | 2,420,078 | |||
Sumitomo Life Insurance Co | |||||
(3-month USD LIBOR + 4.44%), | |||||
6.50%, 09/20/2073 (b),(c) | 6,709,000 | 7,547,625 | |||
Voya Financial Inc | |||||
(5-year Treasury Constant Maturity Rate + 3.36%), | |||||
6.13%, 09/15/2023 (a),(b),(d) | 3,335,000 | 3,526,763 | |||
$ | 63,347,835 | ||||
Oil & Gas — 0.72% | |||||
BP Capital Markets PLC | |||||
(5-year Treasury Constant Maturity Rate + 4.04%), | |||||
4.38%, 06/22/2025 (a),(b) | 1,662,000 | 1,778,423 | |||
Pipelines — 6.83% | |||||
Enbridge Inc | |||||
(3-month USD LIBOR + 3.89%), | |||||
6.00%, 01/15/2077 (b) | 5,003,000 | 5,340,702 | |||
Enterprise Products Operating LLC | |||||
(3-month USD LIBOR + 3.03%), | |||||
5.25%, 08/16/2077 (b) | 3,335,000 | 3,381,252 | |||
Transcanada Trust | |||||
(3-month USD LIBOR + 4.15%), | |||||
5.50%, 09/15/2079 (b) | 7,344,000 | 8,078,400 | |||
$ | 16,800,354 | ||||
REITs — 1.19% | |||||
Scentre Group Trust 2 | |||||
(5-year Treasury Constant Maturity Rate + 4.38%), | |||||
4.75%, 09/24/2080 (b),(c) | 685,000 | 714,036 | |||
(5-year Treasury Constant Maturity Rate + 4.69%), | |||||
5.13%, 09/24/2080 (b),(c) | 2,106,000 | 2,221,075 | |||
$ | 2,935,111 | ||||
Telecommunications — 1.69% | |||||
Vodafone Group PLC | |||||
(5-year Swap rate + 4.87%), | |||||
7.00%, 04/04/2079 (b) | 3,335,000 | 4,148,856 | |||
TOTAL BONDS | $ | 227,310,525 | |||
U.S. GOVERNMENT & GOVERNMENT AGENCY OBLIGATIONS — | Principal | ||||
2.03 | % | Amount | Value | ||
Sovereign — 2.03% | |||||
U.S. Treasury Note | |||||
0.13%, 12/15/2023 | $ | 5,000,000 | $ | 4,994,141 | |
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY OBLIGATIONS | $ | 4,994,141 | |||
INVESTMENT COMPANIES — 4.89% | Shares Held | Value | |||
Money Market Funds — 4.89% | |||||
Principal Government Money Market Fund — Institutional Class 0.00% (e),(f),(g) ,(h) | 916,680 | $ | 916,680 | ||
State Street Institutional U.S. Government Money Market Fund — Institutional | |||||
Class 0.03% (h) | 11,113,322 | 11,113,322 | |||
TOTAL INVESTMENT COMPANIES | $ | 12,030,002 |
See accompanying notes.
94
Schedule of Investments | |||||||||||
Principal Spectrum Preferred Securities Active ETF | |||||||||||
December 31, 2020 (unaudited) | |||||||||||
Value | |||||||||||
Total Investments | $ | 244,334,668 | |||||||||
Other Assets and Liabilities — 0.71% | 1,740,988 | ||||||||||
Total Net Assets — 100.00% | $ | 246,075,656 | |||||||||
(a) | Perpetual security. Perpetual securities pay an indefinite stream of interest, but they may be called by the issuer at an earlier | ||||||||||
date. Date shown, if any, reflects the next call date or final legal maturity date. Rate shown is as of period end. | |||||||||||
(b) | Rate shown is as of period end. The rate may be a variable or floating rate or a fixed rate which may convert to a variable or | ||||||||||
floating rate in the future. | |||||||||||
(c) | 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 $34,745,914 or 14.12% of net assets. | |||||||||||
(d) | Security or a portion of the security was on loan at the end of the period. | ||||||||||
(e) | Non-income producing security. | ||||||||||
(f) | Security or a portion of the security was pledged as collateral for securities lending. At the end of the period, the value of | ||||||||||
these securities totaled $916,680 or 0.37% of net assets. | |||||||||||
(g) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate | ||||||||||
as defined by the Investment Company Act of 1940 (controls 5.00% or more of the outstanding voting shares of the security). | |||||||||||
Please see Affiliated Securities sub-schedule for transactional information. | |||||||||||
(h) | Current yield shown is as of period end. | ||||||||||
Portfolio Summary (unaudited) | |||||||||||
Sector | Percent | ||||||||||
Financial | 68.96 | % | |||||||||
Utilities | 12.73 | % | |||||||||
Energy | 7.55 | % | |||||||||
Money Market Funds | 4.89 | % | |||||||||
Government | 2.03 | % | |||||||||
Communications | 1.69 | % | |||||||||
Industrial | 1.44 | % | |||||||||
Other Assets and Liabilities | 0.71 | % | |||||||||
TOTAL NET ASSETS | 100.00 | % | |||||||||
June 30, 2020 | Purchases | Sales | December 31, 2020 | ||||||||
Affiliated Securities | Value | Cost | Proceeds | Value | |||||||
Principal Government Money | |||||||||||
Market Fund — Institutional Class | |||||||||||
0.00 | % | $ | 2,865,310 | $ | 12,190,670 | $ | 14,139,300 | $ | 916,680 | ||
$ | 2,865,310 | $ | 12,190,670 | $ | 14,139,300 | $ | 916,680 | ||||
Realized Gain | |||||||||||
Realized | from | Change in | |||||||||
Gain/Loss on | Capital Gain | Unrealized | |||||||||
Income (a) | Investments | Distributions | Gain/Loss | ||||||||
Principal Government Money | |||||||||||
Market Fund — Institutional Class | |||||||||||
0.00 | % | $ | — | $ | — $ | — $ | — | ||||
$ | — | $ | — $ | — $ | — | ||||||
(a) | Amount excludes earnings from securities lending collateral. |
See accompanying notes.
95
Schedule of Investments | ||||
Principal Spectrum Tax-Advantaged Dividend Active ETF | ||||
December 31, 2020 (unaudited) | ||||
PREFERRED STOCKS — 17.00% | Shares Held | Value | ||
Banks — 8.52% | ||||
Associated Banc-Corp; Series F | ||||
5.63%, 09/15/2025 (a) | 1,890 | $ | 54,035 | |
Bank of America Corp; Series NN | ||||
4.38%, 11/03/2025 (a) | 4,000 | 106,200 | ||
Fulton Financial Corp; Series A | ||||
5.13%, 01/15/2026 (a) | 8,400 | 218,904 | ||
JPMorgan Chase & Co; Series DD | ||||
5.75%, 12/01/2023 (a) | 4,750 | 133,475 | ||
JPMorgan Chase & Co; Series EE | ||||
6.00%, 03/01/2024 (a) | 4,836 | 137,730 | ||
Morgan Stanley; Series I | ||||
(3-month USD LIBOR + 3.71%), | ||||
6.38%, 10/15/2024 (a),(b) | 15,550 | 446,285 | ||
Synovus Financial Corp; Series E | ||||
(5-year Treasury Constant Maturity Rate + 4.13%), | ||||
5.88%, 07/01/2024 (a),(b) | 10,500 | 281,610 | ||
US Bancorp; Series B | ||||
(3-month USD LIBOR + 0.60%), | ||||
3.50%, 02/01/2021 (a),(b) | 4,818 | 119,342 | ||
Wells Fargo & Co; Series L | ||||
7.50%, 07/15/2023 (a) | 79 | 119,914 | ||
Wells Fargo & Co; Series Z | ||||
4.75%, 03/15/2025 (a) | 11,305 | 298,678 | ||
$ | 1,916,173 | |||
Electric — 0.00% | ||||
Duke Energy Corp; Series A | ||||
5.75%, 06/15/2024 (a) | 10 | 285 | ||
Insurance — 4.19% | ||||
Allstate Corp/The; Series H | ||||
5.10%, 10/15/2024 (a) | 10,500 | 293,475 | ||
American International Group Inc; Series A | ||||
5.85%, 03/15/2024 (a) | 7,811 | 220,114 | ||
MetLife Inc; Series F | ||||
4.75%, 03/15/2025 (a) | 15,750 | 428,400 | ||
$ | 941,989 | |||
Telecommunications — 4.29% | ||||
AT&T Inc; Series A | ||||
5.00%, 12/12/2024 (a) | 10,500 | 284,970 | ||
AT&T Inc; Series C | ||||
4.75%, 02/18/2025 (a) | 25,383 | 679,249 | ||
$ | 964,219 | |||
TOTAL PREFERRED STOCKS | $ | 3,822,666 | ||
Principal | ||||
BONDS — 82.13% | Amount | Value | ||
Banks — 69.49% | ||||
Bank of America Corp | ||||
(3-month USD LIBOR + 3.90%), | ||||
6.10%, 03/17/2025 (a),(b) | $ | 210,000 | $ | 237,941 |
(3-month USD LIBOR + 4.55%), | ||||
6.30%, 03/10/2026 (a),(b) | 525,000 | 612,937 | ||
Bank of New York Mellon Corp/The | ||||
(5-year Treasury Constant Maturity Rate + 3.35%), | ||||
3.70%, 03/20/2026 (a),(b) | 210,000 | 217,277 | ||
(5-year Treasury Constant Maturity Rate + 4.36%), | ||||
4.70%, 09/20/2025 (a),(b) | 525,000 | 578,970 | ||
Bank of Nova Scotia/The | ||||
(5-year Treasury Constant Maturity Rate + 4.55%), | ||||
4.90%, 06/04/2025 (a),(b) | 525,000 | 568,402 |
See accompanying notes.
96
Schedule of Investments | ||||
Principal Spectrum Tax-Advantaged Dividend Active ETF | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
BONDS (continued) | Amount | Value | ||
Banks (continued) | ||||
BNP Paribas SA | ||||
(5-year Swap rate + 6.31%), | ||||
7.63%, 03/30/2021 (a),(b),(c) | $ | 525,000 | $ | 531,563 |
Citizens Financial Group Inc | ||||
(5-year Treasury Constant Maturity Rate + 5.31%), | ||||
5.65%, 10/06/2025 (a),(b) | 525,000 | 589,418 | ||
Comerica Inc | ||||
(5-year Treasury Constant Maturity Rate + 5.29%), | ||||
5.63%, 07/01/2025 (a),(b) | 525,000 | 581,438 | ||
Credit Agricole SA | ||||
(5-year Swap rate + 4.90%), | ||||
7.88%, 01/23/2024 (a),(b),(c) | 787,000 | 893,245 | ||
Credit Suisse Group AG | ||||
(5-year Treasury Constant Maturity Rate + 4.82%), | ||||
6.38%, 08/21/2026 (a),(b),(c),(d) | 367,000 | 408,746 | ||
(5-year Swap rate + 5.11%), | ||||
7.13%, 07/29/2022 (a),(b),(c) | 500,000 | 528,125 | ||
Fifth Third Bancorp | ||||
(5-year Treasury Constant Maturity Rate + 4.22%), | ||||
4.50%, 09/30/2025 (a),(b) | 500,000 | 531,750 | ||
HSBC Holdings PLC | ||||
(5-year Swap rate + 4.37%), | ||||
6.38%, 03/30/2025 (a),(b),(c) | 787,000 | 860,112 | ||
Huntington Bancshares Inc | ||||
(10-year Treasury Constant Maturity Rate + 4.95%), | ||||
5.63%, 07/15/2030 (a),(b) | 525,000 | 612,937 | ||
ING Groep NV | ||||
(5-year Treasury Constant Maturity Rate + 4.34%), | ||||
5.75%, 11/16/2026 (a),(b),(c) | 787,000 | 855,375 | ||
Lloyds Banking Group PLC | ||||
(5-year Swap rate + 4.50%), | ||||
7.50%, 09/27/2025 (a),(b),(c) | 787,000 | 905,050 | ||
M&T Bank Corp | ||||
(3-month USD LIBOR + 3.52%), | ||||
5.13%, 11/01/2026 (a),(b) | 525,000 | 570,281 | ||
Natwest Group PLC | ||||
(5-year Swap rate + 5.72%), | ||||
8.00%, 08/10/2025 (a),(b),(c) | 787,000 | 916,855 | ||
Nordea Bank Abp | ||||
(5-year Treasury Constant Maturity Rate + 4.11%), | ||||
6.63%, 03/26/2026 (a),(b),(c),(d) | 787,000 | 903,082 | ||
Societe Generale SA | ||||
(5-year Swap rate + 4.98%), | ||||
7.88%, 12/18/2023 (a),(b),(c) | 787,000 | 868,651 | ||
Standard Chartered PLC | ||||
(5-year Swap rate + 6.30%), | ||||
7.50%, 04/02/2022 (a),(b),(c) | 787,000 | 820,447 | ||
Truist Financial Corp | ||||
(5-year Treasury Constant Maturity Rate + 4.61%), | ||||
4.95%, 09/01/2025 (a),(b) | 525,000 | 577,505 | ||
UBS Group AG | ||||
(5-year Swap rate + 4.34%), | ||||
7.00%, 01/31/2024 (a),(b),(c) | 787,000 | 862,749 | ||
Wells Fargo & Co | ||||
(3-month USD LIBOR + 3.99%), | ||||
5.88%, 06/15/2025 (a),(b) | 525,000 | 595,219 | ||
$ | 15,628,075 | |||
Diversified Financial Services — 5.23% | ||||
Charles Schwab Corp/The | ||||
(5-year Treasury Constant Maturity Rate + 4.97%), | ||||
5.38%, 06/01/2025 (a),(b) | 525,000 | 584,719 |
See accompanying notes.
97
Schedule of Investments | ||||||
Principal Spectrum Tax-Advantaged Dividend Active ETF | ||||||
December 31, 2020 (unaudited) | ||||||
Principal | ||||||
BONDS (continued) | Amount | Value | ||||
Diversified Financial Services (continued) | ||||||
Discover Financial Services | ||||||
(5-year Treasury Constant Maturity Rate + 5.78%), | ||||||
6.13%, 06/23/2025 (a),(b) | $ | 525,000 | $ | 591,937 | ||
$ | 1,176,656 | |||||
Electric — 4.50% | ||||||
Dominion Energy Inc | ||||||
(5-year Treasury Constant Maturity Rate + 2.99%), | ||||||
4.65%, 12/15/2024 (a),(b) | 420,000 | 442,905 | ||||
Duke Energy Corp | ||||||
(5-year Treasury Constant Maturity Rate + 3.39%), | ||||||
4.88%, 09/16/2024 (a),(b) | 525,000 | 568,486 | ||||
$ | 1,011,391 | |||||
Insurance — 2.91% | ||||||
MetLife Inc | ||||||
(5-year Treasury Constant Maturity Rate + 3.58%), | ||||||
3.85%, 09/15/2025 (a),(b) | 200,000 | 211,000 | ||||
Voya Financial Inc | ||||||
(5-year Treasury Constant Maturity Rate + 3.36%), | ||||||
6.13%, 09/15/2023 (a),(b) | 420,000 | 444,150 | ||||
$ | 655,150 | |||||
TOTAL BONDS | $ | 18,471,272 | ||||
INVESTMENT COMPANIES — 0.40% | Shares Held | Value | ||||
Money Market Fund — 0.40% | ||||||
State Street Institutional U.S. Government Money Market Fund — Institutional | ||||||
Class 0.03% (e) | 90,373 | $ | 90,373 | |||
TOTAL INVESTMENT COMPANIES | $ | 90,373 | ||||
Total Investments | $ | 22,384,311 | ||||
Other Assets and Liabilities — 0.47% | 106,396 | |||||
Total Net Assets — 100.00% | $ | 22,490,707 | ||||
(a) | Perpetual security. Perpetual securities pay an indefinite stream of interest, but they may be called by the issuer at an earlier | |||||
date. Date shown, if any, reflects the next call date or final legal maturity date. Rate shown is as of period end. | ||||||
(b) | Rate shown is as of period end. The rate may be a variable or floating rate or a fixed rate which may convert to a variable or | |||||
floating rate in the future. | ||||||
(c) | Security is a contingent convertible security, ("CoCo"). CoCo's are hybrid debt securities that may convert to equity or have | |||||
their principal written down upon occurrence of certain "triggers". See notes for additional information. At the end of the | ||||||
period, the value of these securities totaled $9,354,000 or 41.59% of net assets. | ||||||
(d) | 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 $1,311,828 or 5.83% of net assets. | ||||||
(e) | Current yield shown is as of period end. | |||||
Portfolio Summary (unaudited) | ||||||
Sector | Percent | |||||
Financial | 90.34 | % | ||||
Utilities | 4.50 | % | ||||
Communications | 4.29 | % | ||||
Money Market Fund | 0.40 | % | ||||
Other Assets and Liabilities | 0.47 | % | ||||
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
98
Schedule of Investments | ||||
Principal Ultra-Short Active Income ETF | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
BONDS — 97.54% | Amount | Value | ||
Asset-Backed Securities — 14.84% | ||||
AmeriCredit Automobile Receivables Trust 2019-3 | ||||
2.17%, 01/18/2023 | $ | 98,544 | $ | 98,961 |
CCG Receivables Trust 2018-1 A2 | ||||
2.50%, 06/16/2025 (a) | 17,976 | 18,005 | ||
CPS Auto Receivables Trust 2020-A | ||||
2.09%, 05/15/2023 (a) | 42,265 | 42,464 | ||
Navient Private Education Loan Trust 2018-BA | ||||
1.69%, 05/15/2069 (a) | 199,010 | 202,780 | ||
Santander Drive Auto Receivables Trust 2020-2 | ||||
0.62%, 05/15/2023 | 93,245 | 93,322 | ||
Santander Drive Auto Receivables Trust 2020-3 | ||||
0.46%, 09/15/2023 | 250,000 | 250,150 | ||
SMB Private Education Loan Trust 2015-B | ||||
1.36%, 07/15/2027 (a),(c) | 123,678 | 123,944 | ||
Verizon Owner Trust 2018-A A1A | ||||
3.23%, 04/20/2023 | 199,888 | 202,542 | ||
Verizon Owner Trust 2020-B | ||||
0.47%, 02/20/2025 | 250,000 | 250,885 | ||
Volvo Financial Equipment Master Owner Trust 2018-A | ||||
0.68%, 07/17/2023 (a),(c) | 325,000 | 325,664 | ||
Westlake Automobile Receivables Trust 2020-2A | ||||
0.93%, 02/15/2024 (a) | 234,123 | 234,924 | ||
$ | 1,843,641 | |||
Banks — 26.28% | ||||
Citibank NA | ||||
(3-month USD LIBOR + 0.57%), | ||||
0.78%, 07/23/2021 (b) | 250,000 | 250,725 | ||
Citigroup Inc | ||||
2.70%, 03/30/2021 | 200,000 | 201,155 | ||
Fifth Third Bancorp | ||||
2.60%, 06/15/2022 | 279,000 | 287,543 | ||
Goldman Sachs Group Inc/The | ||||
0.62%, 11/17/2023 (c) | 250,000 | 250,181 | ||
5.75%, 01/24/2022 | 250,000 | 264,249 | ||
HSBC Holdings PLC | ||||
(3-month USD LIBOR + 1.66%), | ||||
1.87%, 05/25/2021 (b) | 250,000 | 251,558 | ||
ING Bank NV | ||||
(3-month USD LIBOR + 0.88%), | ||||
1.10%, 08/15/2021 (a),(b) | 200,000 | 200,987 | ||
KeyCorp | ||||
5.10%, 03/24/2021 | 245,000 | 247,568 | ||
Morgan Stanley | ||||
0.79%, 01/20/2023 (c) | 200,000 | 200,642 | ||
MUFG Union Bank NA | ||||
0.80%, 12/09/2022 (c) | 300,000 | 301,869 | ||
Truist Bank | ||||
2.45%, 08/01/2022 | 350,000 | 361,617 | ||
Wells Fargo & Co | ||||
(3-month USD LIBOR + 1.03%), | ||||
1.24%, 07/26/2021 (b) | 444,000 | 446,391 | ||
$ | 3,264,485 | |||
Beverages — 2.04% | ||||
Keurig Dr Pepper Inc | ||||
3.55%, 05/25/2021 | 250,000 | 253,118 |
See accompanying notes.
99
Schedule of Investments | ||||
Principal Ultra-Short Active Income ETF | ||||
December 31, 2020 (unaudited) | ||||
Principal | ||||
BONDS (continued) | Amount | Value | ||
Biotechnology — 2.02% | ||||
Gilead Sciences Inc | ||||
0.75%, 09/29/2023 | $ | 250,000 | $ | 250,760 |
Chemicals — 1.67% | ||||
Westlake Chemical Corp | ||||
3.60%, 07/15/2022 | 200,000 | 207,213 | ||
Diversified Financial Services — 2.14% | ||||
American Express Co | ||||
(3-month USD LIBOR + 0.53%), | ||||
0.75%, 05/17/2021 (b) | 266,000 | 266,399 | ||
Electric — 9.58% | ||||
Dominion Energy Inc | ||||
(3-month USD LIBOR + 0.53%), | ||||
0.75%, 09/15/2023 (b) | 150,000 | 150,276 | ||
2.72%, 08/15/2021 | 250,000 | 253,085 | ||
DTE Energy Co | ||||
2.60%, 06/15/2022 | 400,000 | 412,522 | ||
NextEra Energy Capital Holdings Inc | ||||
(3-month USD LIBOR + 0.48%), | ||||
0.70%, 05/04/2021 (b) | 374,000 | 374,501 | ||
$ | 1,190,384 | |||
Electronics — 2.02% | ||||
Honeywell International Inc | ||||
0.48%, 08/19/2022 | 250,000 | 250,400 | ||
Food — 2.03% | ||||
Tyson Foods Inc | ||||
2.25%, 08/23/2021 | 250,000 | 252,393 | ||
Insurance — 6.01% | ||||
MassMutual Global Funding II | ||||
2.00%, 04/15/2021 (a) | 200,000 | 200,977 | ||
Metropolitan Life Global Funding I | ||||
0.90%, 06/08/2023 (a) | 250,000 | 253,169 | ||
New York Life Global Funding | ||||
1.70%, 09/14/2021 (a) | 290,000 | 292,855 | ||
$ | 747,001 | |||
Machinery — Construction & Mining — 2.42% | ||||
Caterpillar Financial Services Corp | ||||
(3-month USD LIBOR + 0.30%), | ||||
0.53%, 03/08/2021 (b) | 300,000 | 300,136 | ||
Oil & Gas — 5.65% | ||||
BP Capital Markets America Inc | ||||
4.74%, 03/11/2021 | 200,000 | 201,625 | ||
Phillips 66 | ||||
(3-month USD LIBOR + 0.60%), | ||||
0.83%, 02/26/2021 (b) | 500,000 | 500,058 | ||
$ | 701,683 | |||
Pharmaceuticals — 8.43% | ||||
AbbVie Inc | ||||
2.15%, 11/19/2021 | 400,000 | 406,442 | ||
AstraZeneca PLC | ||||
2.38%, 06/12/2022 | 379,000 | 389,567 | ||
CVS Health Corp | ||||
3.35%, 03/09/2021 | 250,000 | 251,371 | ||
$ | 1,047,380 |
See accompanying notes.
100
Schedule of Investments | ||||||
Principal Ultra-Short Active Income ETF | ||||||
December 31, 2020 (unaudited) | ||||||
Principal | ||||||
BONDS (continued) | Amount | Value | ||||
Retail — 3.23% | ||||||
McDonald's Corp | ||||||
(3-month USD LIBOR + 0.43%), | ||||||
0.65%, 10/28/2021 (b) | $ | 400,000 | $ | 401,071 | ||
Software — 2.03% | ||||||
Oracle Corp | ||||||
1.90%, 09/15/2021 | 250,000 | 252,518 | ||||
Telecommunications — 5.19% | ||||||
AT&T Inc | ||||||
2.63%, 12/01/2022 | 421,000 | 436,712 | ||||
Sprint Spectrum Co LLC / Sprint Spectrum Co II LLC / Sprint Spectrum Co III | ||||||
LLC | ||||||
3.36%, 03/20/2023 (a) | 206,250 | 208,189 | ||||
$ | 644,901 | |||||
Transportation — 1.96% | ||||||
Penske Truck Leasing Co LP / PTL Finance Corp | ||||||
3.65%, 07/29/2021 (a) | 240,000 | 243,704 | ||||
TOTAL BONDS | $ | 12,117,187 | ||||
INVESTMENT COMPANIES — 2.24% | Shares Held | Value | ||||
Money Market Fund — 2.24% | ||||||
State Street Institutional U.S. Government Money Market Fund — Institutional | ||||||
Class 0.03% (d) | 278,243 | $ | 278,243 | |||
TOTAL INVESTMENT COMPANIES | $ | 278,243 | ||||
Total Investments | $ | 12,395,430 | ||||
Other Assets and Liabilities — 0.22% | 27,331 | |||||
Total Net Assets — 100.00% | $ | 12,422,761 | ||||
(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 $2,347,662 or 18.90% of net assets. | ||||||
(b) | Rate shown is as of period end. The rate may be a variable or floating rate or a fixed rate which may convert to a variable or | |||||
floating rate in the future. | ||||||
(c) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or | |||||
agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their | ||||||
description. Rate shown is the rate in effect as of period end. | ||||||
(d) | Current yield shown is as of period end. | |||||
Portfolio Summary (unaudited) | ||||||
Sector | Percent | |||||
Financial | 34.44 | % | ||||
Asset-Backed Securities | 14.84 | % | ||||
Consumer, Non-cyclical | 14.52 | % | ||||
Utilities | 9.58 | % | ||||
Industrial | 6.39 | % | ||||
Energy | 5.65 | % | ||||
Communications | 5.19 | % | ||||
Consumer, Cyclical | 3.23 | % | ||||
Money Market Fund | 2.24 | % | ||||
Technology | 2.03 | % | ||||
Basic Materials | 1.67 | % | ||||
Other Assets and Liabilities | 0.22 | % | ||||
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
101
Schedule of Investments | |||||||||
Principal Ultra-Short Active Income ETF | |||||||||
December 31, 2020 (unaudited) | |||||||||
June 30, 2020 | Purchases | Sales | December 31, 2020 | ||||||
Affiliated Securities | Value | Cost | Proceeds | Value | |||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | 11,413 | $ | 103,635 | $ | 115,048 | $ | — |
$ | 11,413 | $ | 103,635 | $ | 115,048 | $ | — | ||
Realized Gain | |||||||||
Realized | from | Change in | |||||||
Gain/Loss on | Capital Gain | Unrealized | |||||||
Income (a) | Investments | Distributions | Gain/Loss | ||||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | — | $ | — $ | — | $ | — | |
$ | — | $ | — $ | — | $ | — |
(a) | Amount excludes earnings from securities lending collateral. |
See accompanying notes.
102
Schedule of Investments | ||||
Principal U.S. Mega-Cap ETF | ||||
December 31, 2020 (unaudited) | ||||
COMMON STOCKS — 99.85% | Shares Held | Value | ||
Apparel — 2.56% | ||||
NIKE Inc, Class B | 324,816 | $ | 45,951,720 | |
Auto Manufacturers — 2.24% | ||||
Tesla Inc (a) | 56,861 | 40,125,102 | ||
Banks — 5.85% | ||||
Bank of America Corp | 1,692,909 | 51,312,072 | ||
JPMorgan Chase & Co | 422,646 | 53,705,627 | ||
$ | 105,017,699 | |||
Beverages — 5.92% | ||||
Coca-Cola Co/The | 825,968 | 45,296,085 | ||
PepsiCo Inc | 411,798 | 61,069,643 | ||
$ | 106,365,728 | |||
Commercial Services — 2.70% | ||||
PayPal Holdings Inc (a) | 206,967 | 48,471,671 | ||
Computers — 6.75% | ||||
Apple Inc | 913,757 | 121,246,416 | ||
Diversified Financial Services — 4.88% | ||||
Mastercard Inc, Class A | 120,569 | 43,035,899 | ||
Visa Inc, Class A | 203,927 | 44,604,953 | ||
$ | 87,640,852 | |||
Healthcare — Products — 7.01% | ||||
Abbott Laboratories | 374,684 | 41,024,151 | ||
Danaher Corp | 188,828 | 41,946,252 | ||
Thermo Fisher Scientific Inc | 92,155 | 42,923,956 | ||
$ | 125,894,359 | |||
Healthcare — Services — 2.55% | ||||
UnitedHealth Group Inc | 130,509 | 45,766,896 | ||
Household Products — 3.18% | ||||
Procter & Gamble Co/The | 410,759 | 57,153,007 | ||
Insurance — 3.46% | ||||
Berkshire Hathaway Inc, Class B (a) | 268,142 | 62,174,086 | ||
Internet — 7.00% | ||||
Alphabet Inc, Class A (a) | 27,779 | 48,686,586 | ||
Amazon.com Inc (a) | 7,715 | 25,127,215 | ||
Facebook Inc, Class A (a) | 93,124 | 25,437,752 | ||
Netflix Inc (a) | 48,793 | 26,383,839 | ||
$ | 125,635,392 | |||
Media — 5.89% | ||||
Comcast Corp, Class A | 881,505 | 46,190,862 | ||
Walt Disney Co/The (a) | 328,716 | 59,556,765 | ||
$ | 105,747,627 | |||
Pharmaceuticals — 10.78% | ||||
AbbVie Inc | 465,560 | 49,884,754 | ||
Johnson & Johnson | 383,459 | 60,348,778 | ||
Merck & Co Inc | 491,606 | 40,213,371 | ||
Pfizer Inc | 1,171,956 | 43,139,700 | ||
$ | 193,586,603 | |||
Retail — 10.08% | ||||
Costco Wholesale Corp | 117,663 | 44,333,065 | ||
Home Depot Inc/The | 146,841 | 39,003,907 | ||
McDonald's Corp | 260,045 | 55,800,456 |
See accompanying notes.
103
Schedule of Investments | |||||||
Principal U.S. Mega-Cap ETF | |||||||
December 31, 2020 (unaudited) | |||||||
COMMON STOCKS (continued) | Shares Held | Value | |||||
Retail (continued) | |||||||
Walmart Inc | 290,635 | $ | 41,895,035 | ||||
$ | 181,032,463 | ||||||
Semiconductors — 2.62% | |||||||
Intel Corp | 470,969 | 23,463,675 | |||||
NVIDIA Corp | 45,063 | 23,531,899 | |||||
$ | 46,995,574 | ||||||
Software — 7.45% | |||||||
Adobe Inc (a) | 49,750 | 24,880,970 | |||||
Microsoft Corp | 193,885 | 43,123,902 | |||||
Oracle Corp | 683,055 | 44,186,828 | |||||
salesforce.com Inc (a) | 97,049 | 21,596,314 | |||||
$ | 133,788,014 | ||||||
Telecommunications — 8.93% | |||||||
AT&T Inc | 2,001,538 | 57,564,233 | |||||
Cisco Systems Inc | 1,035,247 | 46,327,303 | |||||
Verizon Communications Inc | 959,452 | 56,367,805 | |||||
$ | 160,259,341 | ||||||
TOTAL COMMON STOCKS | $ | 1,792,852,550 | |||||
INVESTMENT COMPANIES — 0.32% | Shares Held | Value | |||||
Money Market Fund — 0.32% | |||||||
State Street Institutional U.S. Government Money Market Fund — Institutional | |||||||
Class 0.03% (b) | 5,674,525 | $ | 5,674,525 | ||||
TOTAL INVESTMENT COMPANIES | $ | 5,674,525 | |||||
Total Investments | $ | 1,798,527,075 | |||||
Other Assets and Liabilities — (0.17)% | (3,121,975 | ) | |||||
Total Net Assets — 100.00% | $ | 1,795,405,100 | |||||
(a) | Non-income producing security. | ||||||
(b) | Current yield shown is as of period end. | ||||||
Portfolio Summary (unaudited) | |||||||
Sector | Percent | ||||||
Consumer, Non-cyclical | 32.15 | % | |||||
Communications | 21.81 | % | |||||
Technology | 16.82 | % | |||||
Consumer, Cyclical | 14.88 | % | |||||
Financial | 14.19 | % | |||||
Money Market Fund | 0.32 | % | |||||
Other Assets and Liabilities | (0.17 | )% | |||||
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
104
Schedule of Investments | |||
Principal U.S. Small-Cap Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS — 99.74% | Shares Held | Value | |
Advertising — 0.01% | |||
National CineMedia Inc | 25,740 | $ | 95,753 |
Aerospace & Defense — 1.87% | |||
Barnes Group Inc | 27,544 | 1,396,205 | |
Hexcel Corp | 80,521 | 3,904,463 | |
Kaman Corp | 24,250 | 1,385,403 | |
Spirit AeroSystems Holdings Inc, Class A | 240,978 | 9,419,830 | |
$ | 16,105,901 | ||
Agriculture — 0.12% | |||
Andersons Inc/The | 10,007 | 245,271 | |
Vector Group Ltd | 65,144 | 758,928 | |
$ | 1,004,199 | ||
Airlines — 1.18% | |||
Allegiant Travel Co | 12,224 | 2,313,270 | |
Hawaiian Holdings Inc | 50,247 | 889,372 | |
Spirit Airlines Inc (a) | 282,610 | 6,909,814 | |
$ | 10,112,456 | ||
Apparel — 1.49% | |||
Carter's Inc | 52,511 | 4,939,710 | |
Kontoor Brands Inc (a) | 32,706 | 1,326,555 | |
Levi Strauss & Co, Class A | 116,003 | 2,329,340 | |
Oxford Industries Inc | 10,005 | 655,428 | |
Steven Madden Ltd | 71,630 | 2,529,972 | |
Wolverine World Wide Inc | 34,434 | 1,076,062 | |
$ | 12,857,067 | ||
Auto Manufacturers — 0.11% | |||
Wabash National Corp | 54,553 | 939,948 | |
Auto Parts & Equipment — 0.89% | |||
Dana Inc | 81,036 | 1,581,823 | |
Douglas Dynamics Inc | 15,363 | 657,075 | |
Gentherm Inc (a) | 13,675 | 891,883 | |
Goodyear Tire & Rubber Co/The | 284,315 | 3,101,877 | |
Methode Electronics Inc | 25,513 | 976,638 | |
Standard Motor Products Inc | 10,066 | 407,270 | |
$ | 7,616,566 | ||
Banks — 13.06% | |||
1st Source Corp | 11,500 | 463,450 | |
Ameris Bancorp | 57,223 | 2,178,480 | |
Associated Banc-Corp | 212,884 | 3,629,672 | |
Atlantic Union Bankshares Corp | 46,540 | 1,533,028 | |
BancorpSouth Bank | 83,585 | 2,293,572 | |
Bank of Hawaii Corp | 62,620 | 4,797,944 | |
Bank OZK | 172,588 | 5,396,827 | |
BankUnited Inc | 147,533 | 5,131,198 | |
Banner Corp | 29,711 | 1,384,235 | |
Bridge Bancorp Inc | 20,869 | 504,612 | |
Bryn Mawr Bank Corp | 15,853 | 485,023 | |
Cathay General Bancorp | 66,727 | 2,147,942 | |
Central Pacific Financial Corp | 32,839 | 624,269 | |
City Holding Co | 14,894 | 1,035,878 | |
Columbia Banking System Inc | 72,359 | 2,597,688 | |
Community Trust Bancorp Inc | 11,184 | 414,367 | |
ConnectOne Bancorp Inc | 21,555 | 426,573 | |
Customers Bancorp Inc (a) | 23,663 | 430,193 | |
CVB Financial Corp | 116,214 | 2,266,173 | |
Eagle Bancorp Inc | 23,501 | 970,591 | |
Enterprise Financial Services Corp | 17,463 | 610,332 |
See accompanying notes.
105
Schedule of Investments | ||||
Principal U.S. Small-Cap Multi-Factor ETF | ||||
December 31, 2020 (unaudited) | ||||
COMMON STOCKS (continued) | Shares Held | Value | ||
Banks (continued) | ||||
FB Financial Corp | 41,175 | $ | 1,430,008 | |
First Busey Corp | 30,371 | 654,495 | ||
First Financial Bancorp | 72,571 | 1,272,170 | ||
First Financial Corp | 10,923 | 424,359 | ||
First Foundation Inc | 42,908 | 858,160 | ||
First Hawaiian Inc | 281,976 | 6,648,994 | ||
First Merchants Corp | 40,922 | 1,530,892 | ||
First Midwest Bancorp Inc | 115,486 | 1,838,537 | ||
Great Western Bancorp Inc | 59,810 | 1,250,029 | ||
Hanmi Financial Corp | 40,479 | 459,032 | ||
Home BancShares Inc | 152,181 | 2,964,486 | ||
Hope Bancorp Inc | 164,058 | 1,789,873 | ||
Independent Bank Group Inc | 48,954 | 3,060,604 | ||
Kearny Financial Corp | 65,194 | 688,449 | ||
Lakeland Bancorp Inc | 28,315 | 359,601 | ||
Lakeland Financial Corp | 25,863 | 1,385,740 | ||
Midland States Bancorp Inc | 25,496 | 455,614 | ||
NBT Bancorp Inc | 31,005 | 995,260 | ||
Pinnacle Financial Partners Inc | 76,699 | 4,939,416 | ||
Preferred Bank | 12,550 | 633,398 | ||
Renasant Corp | 45,636 | 1,537,020 | ||
S&T Bancorp Inc | 29,449 | 731,513 | ||
Sandy Spring Bancorp Inc | 35,644 | 1,147,380 | ||
ServisFirst Bancshares Inc | 33,579 | 1,352,898 | ||
Simmons First National Corp, Class A | 84,852 | 1,831,955 | ||
South State Corp | 57,687 | 4,170,770 | ||
Stock Yards Bancorp Inc | 16,863 | 682,614 | ||
Texas Capital Bancshares Inc (a) | 60,285 | 3,586,957 | ||
Tompkins Financial Corp | 9,120 | 643,872 | ||
TriCo Bancshares | 16,636 | 586,918 | ||
United Bankshares Inc | 95,587 | 3,097,019 | ||
United Community Banks Inc | 108,326 | 3,080,791 | ||
Univest Financial Corp | 19,896 | 409,460 | ||
Veritex Holdings Inc | 40,081 | 1,028,478 | ||
Washington Trust Bancorp Inc | 13,932 | 624,154 | ||
Webster Financial Corp | 89,432 | 3,769,559 | ||
WesBanco Inc | 47,572 | 1,425,257 | ||
Western Alliance Bancorp | 107,109 | 6,421,185 | ||
Wintrust Financial Corp | 53,444 | 3,264,894 | ||
$ | 112,353,858 | |||
Beverages — 0.23% | ||||
National Beverage Corp | 22,829 | 1,938,182 | ||
Biotechnology — 3.15% | ||||
ADMA Biologics Inc (a),(b) | 305,065 | 594,877 | ||
Agenus Inc (a) | 145,505 | 462,706 | ||
Altimmune Inc (a) | 154,838 | 1,746,572 | ||
ANI Pharmaceuticals Inc (a) | 7,896 | 229,300 | ||
Ardelyx Inc (a) | 60,821 | 393,512 | ||
Avidity Biosciences Inc (a) | 14,021 | 357,816 | ||
iBio Inc (a) | 958,094 | 1,005,999 | ||
ImmunoGen Inc (a) | 178,215 | 1,149,487 | ||
Innoviva Inc (a) | 116,225 | 1,440,028 | ||
Intercept Pharmaceuticals Inc (a) | 82,303 | 2,032,884 | ||
Lexicon Pharmaceuticals Inc (a),(b) | 158,171 | 540,945 | ||
Ligand Pharmaceuticals Inc (a),(b) | 34,888 | 3,469,611 | ||
Mersana Therapeutics Inc (a) | 50,172 | 1,335,077 | ||
Myriad Genetics Inc (a) | 64,012 | 1,265,837 | ||
Onconova Therapeutics Inc (a),(b) | 1,125,308 | 524,168 | ||
Pliant Therapeutics Inc (a),(b) | 7,972 | 181,124 | ||
Prothena Corp PLC (a) | 24,978 | 299,986 | ||
Puma Biotechnology Inc (a) | 74,692 | 766,340 |
See accompanying notes.
106
Schedule of Investments | ||||
Principal U.S. Small-Cap Multi-Factor ETF | ||||
December 31, 2020 (unaudited) | ||||
COMMON STOCKS (continued) | Shares Held | Value | ||
Biotechnology (continued) | ||||
Radius Health Inc (a) | 59,771 | $ | 1,067,510 | |
Selecta Biosciences Inc (a),(b) | 88,226 | 267,325 | ||
Strongbridge Biopharma PLC (a) | 44,993 | 109,333 | ||
Twist Bioscience Corp (a) | 27,793 | 3,926,873 | ||
Vaxart Inc (a),(b) | 686,960 | 3,922,541 | ||
$ | 27,089,851 | |||
Chemicals — 2.47% | ||||
Amyris Inc (a),(b) | 146,426 | 904,180 | ||
Avient Corp | 50,152 | 2,020,123 | ||
Cabot Corp | 33,251 | 1,492,305 | ||
HB Fuller Co | 70,818 | 3,674,038 | ||
Ingevity Corp (a) | 32,152 | 2,434,871 | ||
Innospec Inc | 16,177 | 1,467,739 | ||
Koppers Holdings Inc (a) | 12,010 | 374,232 | ||
Minerals Technologies Inc | 14,402 | 894,652 | ||
Orion Engineered Carbons S.A. | 33,711 | 577,806 | ||
PQ Group Holdings Inc | 29,195 | 416,321 | ||
Sensient Technologies Corp | 48,672 | 3,590,533 | ||
W R Grace & Co | 62,119 | 3,405,364 | ||
$ | 21,252,164 | |||
Commercial Services — 4.69% | ||||
ABM Industries Inc | 55,252 | 2,090,736 | ||
Adtalem Global Education Inc (a) | 40,142 | 1,362,821 | ||
ASGN Inc (a) | 46,617 | 3,893,918 | ||
Barrett Business Services Inc | 8,013 | 546,567 | ||
Carriage Services Inc | 6,323 | 198,036 | ||
Cass Information Systems Inc | 6,520 | 253,693 | ||
CorVel Corp (a) | 8,167 | 865,702 | ||
Deluxe Corp | 40,064 | 1,169,869 | ||
EVERTEC Inc | 77,375 | 3,042,385 | ||
GreenSky Inc (a) | 77,569 | 359,144 | ||
H&R Block Inc | 242,778 | 3,850,459 | ||
Hackett Group Inc/The | 22,833 | 328,567 | ||
Heidrick & Struggles International Inc | 17,095 | 502,251 | ||
HMS Holdings Corp (a) | 109,409 | 4,020,781 | ||
Huron Consulting Group Inc (a) | 21,474 | 1,265,892 | ||
Kelly Services Inc, Class A | 15,511 | 319,061 | ||
Kforce Inc | 12,880 | 542,119 | ||
Korn Ferry | 60,281 | 2,622,223 | ||
Medifast Inc | 20,076 | 3,941,722 | ||
Monro Inc | 36,245 | 1,931,859 | ||
Rent-A-Center Inc | 39,439 | 1,510,119 | ||
Resources Connection Inc | 20,598 | 258,917 | ||
Sabre Corp | 360,650 | 4,335,013 | ||
SP Plus Corp (a) | 9,016 | 259,931 | ||
TrueBlue Inc (a) | 23,214 | 433,870 | ||
Viad Corp | 10,857 | 392,698 | ||
$ | 40,298,353 | |||
Computers — 1.53% | ||||
Diebold Nixdorf Inc (a) | 53,417 | 569,425 | ||
ExlService Holdings Inc (a) | 22,504 | 1,915,766 | ||
MTS Systems Corp | 16,090 | 935,795 | ||
NCR Corp (a) | 72,206 | 2,712,780 | ||
NetScout Systems Inc (a) | 69,710 | 1,911,448 | ||
Parsons Corp (a) | 79,476 | 2,893,721 | ||
Super Micro Computer Inc (a) | 38,520 | 1,219,543 | ||
TTEC Holdings Inc | 13,867 | 1,011,320 | ||
$ | 13,169,798 |
See accompanying notes.
107
Schedule of Investments | |||
Principal U.S. Small-Cap Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Construction Materials — 0.88% | |||
Apogee Enterprises Inc | 22,865 | $ | 724,363 |
Boise Cascade Co | 37,775 | 1,805,645 | |
Griffon Corp | 42,640 | 869,003 | |
Patrick Industries Inc | 18,903 | 1,292,020 | |
PGT Innovations Inc (a) | 39,370 | 800,786 | |
UFP Industries Inc | 37,831 | 2,101,512 | |
$ | 7,593,329 | ||
Distribution/Wholesale — 1.35% | |||
Core-Mark Holding Co Inc | 19,403 | 569,866 | |
G-III Apparel Group Ltd (a) | 43,074 | 1,022,577 | |
H&E Equipment Services Inc | 26,797 | 798,819 | |
ScanSource Inc (a) | 9,343 | 246,468 | |
Triton International Ltd | 45,860 | 2,224,669 | |
WESCO International Inc (a) | 86,417 | 6,783,734 | |
$ | 11,646,133 | ||
Diversified Financial Services — 4.72% | |||
Affiliated Managers Group Inc | 66,518 | 6,764,881 | |
Air Lease Corp | 88,541 | 3,932,991 | |
Alliance Data Systems Corp | 108,451 | 8,036,219 | |
B. Riley Financial Inc | 25,104 | 1,110,099 | |
Blucora Inc (a) | 36,344 | 578,233 | |
Brightsphere Investment Group Inc | 114,237 | 2,202,489 | |
Cohen & Steers Inc | 30,098 | 2,236,282 | |
Curo Group Holdings Corp | 41,792 | 598,879 | |
Federated Hermes Inc | 126,610 | 3,657,763 | |
Navient Corp | 393,624 | 3,865,388 | |
OneMain Holdings Inc | 107,157 | 5,160,681 | |
Premier Financial Corp | 24,415 | 561,545 | |
Virtus Investment Partners Inc | 8,583 | 1,862,511 | |
$ | 40,567,961 | ||
Electric — 1.20% | |||
ALLETE Inc | 51,357 | 3,181,053 | |
Avista Corp | 82,146 | 3,297,340 | |
NorthWestern Corp | 59,285 | 3,456,908 | |
Unitil Corp | 8,976 | 397,368 | |
$ | 10,332,669 | ||
Electrical Components & Equipment — 0.55% | |||
Belden Inc | 44,889 | 1,880,849 | |
Energizer Holdings Inc | 61,172 | 2,580,235 | |
Powell Industries Inc | 8,113 | 239,252 | |
$ | 4,700,336 | ||
Electronics — 1.82% | |||
Avnet Inc | 118,612 | 4,164,467 | |
Badger Meter Inc | 27,207 | 2,559,091 | |
Comtech Telecommunications Corp | 26,999 | 558,609 | |
Fluidigm Corp (a) | 202,418 | 1,214,508 | |
OSI Systems Inc (a) | 27,681 | 2,580,423 | |
Watts Water Technologies Inc, Class A | 37,600 | 4,575,920 | |
$ | 15,653,018 | ||
Engineering & Construction — 0.35% | |||
Arcosa Inc | 24,030 | 1,319,968 | |
Comfort Systems USA Inc | 31,606 | 1,664,372 | |
$ | 2,984,340 | ||
Entertainment — 1.04% | |||
AMC Entertainment Holdings Inc, Class A (b) | 215,700 | 457,284 |
See accompanying notes.
108
Schedule of Investments | |||
Principal U.S. Small-Cap Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Entertainment (continued) | |||
Bally's Corp | 7,494 | $ | 376,424 |
Cinemark Holdings Inc (b) | 273,145 | 4,755,454 | |
Six Flags Entertainment Corp | 99,410 | 3,389,881 | |
$ | 8,979,043 | ||
Environmental Control — 0.16% | |||
Evoqua Water Technologies Corp (a) | 50,467 | 1,361,600 | |
Food — 2.11% | |||
B&G Foods Inc (b) | 94,083 | 2,608,922 | |
Hain Celestial Group Inc/The (a) | 68,822 | 2,763,203 | |
Hostess Brands Inc (a) | 150,405 | 2,201,929 | |
John B Sanfilippo & Son Inc | 6,669 | 525,918 | |
Natural Grocers by Vitamin Cottage Inc | 10,122 | 139,076 | |
Pilgrim's Pride Corp (a) | 94,720 | 1,857,459 | |
Seaboard Corp | 102 | 309,162 | |
SpartanNash Co | 33,038 | 575,192 | |
Sprouts Farmers Market Inc (a) | 220,961 | 4,441,316 | |
TreeHouse Foods Inc (a) | 64,961 | 2,760,193 | |
$ | 18,182,370 | ||
Food Service — 0.21% | |||
Healthcare Services Group Inc | 64,094 | 1,801,041 | |
Forest Products & Paper — 0.22% | |||
Neenah Inc | 14,454 | 799,595 | |
Schweitzer-Mauduit International Inc | 26,683 | 1,072,924 | |
$ | 1,872,519 | ||
Gas — 0.93% | |||
Chesapeake Utilities Corp | 13,925 | 1,506,824 | |
South Jersey Industries Inc | 177,331 | 3,821,483 | |
Southwest Gas Holdings Inc | 43,884 | 2,665,953 | |
$ | 7,994,260 | ||
Hand/Machine Tools — 0.78% | |||
Franklin Electric Co Inc | 27,574 | 1,908,396 | |
Regal Beloit Corp | 39,244 | 4,819,556 | |
$ | 6,727,952 | ||
Healthcare — Products — 4.64% | |||
Accelerate Diagnostics Inc (a),(b) | 29,193 | 221,283 | |
AngioDynamics Inc (a) | 16,783 | 257,283 | |
Atrion Corp | 905 | 581,227 | |
Cantel Medical Corp | 42,585 | 3,358,253 | |
Castle Biosciences Inc (a) | 17,639 | 1,184,459 | |
Co-Diagnostics Inc (a),(b) | 144,151 | 1,340,604 | |
CONMED Corp | 30,457 | 3,411,184 | |
GenMark Diagnostics Inc (a) | 80,763 | 1,179,140 | |
Inogen Inc (a) | 25,705 | 1,148,499 | |
Inspire Medical Systems Inc (a) | 26,943 | 5,067,709 | |
Invacare Corp | 24,752 | 221,530 | |
LeMaitre Vascular Inc | 12,249 | 496,085 | |
Luminex Corp | 61,098 | 1,412,586 | |
Meridian Bioscience Inc (a) | 49,389 | 923,080 | |
Natus Medical Inc (a) | 30,914 | 619,517 | |
NuVasive Inc (a) | 93,551 | 5,269,728 | |
Orthofix Medical Inc (a) | 13,496 | 580,058 | |
OrthoPediatrics Corp (a) | 12,947 | 534,064 | |
Patterson Cos Inc | 124,689 | 3,694,535 | |
Shockwave Medical Inc (a) | 45,365 | 4,705,258 | |
Sientra Inc (a) | 62,004 | 241,196 | |
Silk Road Medical Inc (a) | 31,395 | 1,977,257 |
See accompanying notes.
109
Schedule of Investments | |||
Principal U.S. Small-Cap Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Healthcare — Products (continued) | |||
Surgalign Holdings Inc (a) | 48,409 | $ | 106,016 |
T2 Biosystems Inc (a),(b) | 522,470 | 647,863 | |
Varex Imaging Corp (a) | 44,108 | 735,721 | |
$ | 39,914,135 | ||
Healthcare — Services — 2.86% | |||
Acadia Healthcare Co Inc (a) | 57,397 | 2,884,773 | |
Brookdale Senior Living Inc (a) | 140,016 | 620,271 | |
Community Health Systems Inc (a) | 101,836 | 756,641 | |
Ensign Group Inc/The | 22,058 | 1,608,469 | |
Magellan Health Inc (a) | 21,553 | 1,785,451 | |
MEDNAX Inc (a) | 85,811 | 2,105,802 | |
National HealthCare Corp | 4,559 | 302,763 | |
OPKO Health Inc (a) | 880,060 | 3,476,237 | |
Pennant Group Inc/The (a) | 5,689 | 330,303 | |
Personalis Inc (a) | 30,855 | 1,129,602 | |
Select Medical Holdings Corp (a) | 53,851 | 1,489,519 | |
Surgery Partners Inc (a) | 23,442 | 680,052 | |
Tenet Healthcare Corp (a) | 104,682 | 4,179,952 | |
Tivity Health Inc (a) | 44,783 | 877,299 | |
Triple-S Management Corp, Class B (a) | 14,133 | 301,740 | |
US Physical Therapy Inc | 8,452 | 1,016,353 | |
Vapotherm Inc (a) | 40,368 | 1,084,285 | |
$ | 24,629,512 | ||
Home Builders — 0.58% | |||
LCI Industries | 13,299 | 1,724,614 | |
Taylor Morrison Home Corp, Class A (a) | 66,629 | 1,709,034 | |
TRI Pointe Group Inc (a) | 87,947 | 1,517,086 | |
$ | 4,950,734 | ||
Home Furnishings — 0.56% | |||
Ethan Allen Interiors Inc | 21,470 | 433,909 | |
iRobot Corp (a),(b) | 50,992 | 4,094,147 | |
Universal Electronics Inc (a) | 5,265 | 276,202 | |
$ | 4,804,258 | ||
Household Products — 0.19% | |||
Edgewell Personal Care Co | 47,073 | 1,627,784 | |
Household Products/Wares — 0.47% | |||
ACCO Brands Corp | 44,182 | 373,338 | |
Quanex Building Products Corp | 18,303 | 405,778 | |
Spectrum Brands Holdings Inc | 40,981 | 3,236,679 | |
$ | 4,015,795 | ||
Insurance — 3.57% | |||
American National Group Inc | 10,488 | 1,008,107 | |
CNO Financial Group Inc | 180,907 | 4,021,563 | |
Employers Holdings Inc | 50,898 | 1,638,407 | |
Enstar Group Ltd (a) | 12,104 | 2,479,989 | |
Mercury General Corp | 75,921 | 3,963,835 | |
National Western Life Group Inc | 1,633 | 337,116 | |
Palomar Holdings Inc (a) | 44,382 | 3,942,897 | |
Radian Group Inc | 315,908 | 6,397,137 | |
Third Point Reinsurance Ltd (a) | 78,087 | 743,388 | |
Unum Group | 270,065 | 6,195,291 | |
$ | 30,727,730 | ||
Internet — 1.54% | |||
ChannelAdvisor Corp (a) | 36,298 | 580,042 | |
Endurance International Group Holdings Inc (a) | 40,434 | 382,101 | |
HealthStream Inc (a) | 28,928 | 631,788 |
See accompanying notes.
110
Schedule of Investments | |||
Principal U.S. Small-Cap Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Internet (continued) | |||
NIC Inc | 55,055 | $ | 1,422,071 |
Perficient Inc (a) | 43,559 | 2,075,586 | |
Revolve Group Inc (a) | 60,187 | 1,876,029 | |
Shutterstock Inc | 22,970 | 1,646,949 | |
TripAdvisor Inc (a) | 161,289 | 4,641,897 | |
$ | 13,256,463 | ||
Iron & Steel — 0.56% | |||
Carpenter Technology Corp | 72,744 | 2,118,305 | |
Commercial Metals Co | 129,411 | 2,658,102 | |
$ | 4,776,407 | ||
Leisure Time — 0.18% | |||
Acushnet Holdings Corp | 30,965 | 1,255,321 | |
Lindblad Expeditions Holdings Inc (a) | 16,159 | 276,642 | |
$ | 1,531,963 | ||
Lodging — 0.04% | |||
Marcus Corp/The | 27,586 | 371,859 | |
Machinery — Construction & Mining — 0.29% | |||
Terex Corp | 70,538 | 2,461,071 | |
Machinery — Diversified — 3.01% | |||
Albany International Corp, Class A | 37,515 | 2,754,351 | |
Altra Industrial Motion Corp | 32,143 | 1,781,686 | |
Applied Industrial Technologies Inc | 32,796 | 2,557,760 | |
Cactus Inc, Class A | 22,465 | 585,663 | |
Columbus McKinnon Corp | 14,180 | 545,079 | |
Crane Co | 44,059 | 3,421,622 | |
Curtiss-Wright Corp | 44,067 | 5,127,195 | |
Flowserve Corp | 129,332 | 4,765,884 | |
Ichor Holdings Ltd (a) | 27,005 | 814,066 | |
Kadant Inc | 7,804 | 1,100,208 | |
Tennant Co | 12,294 | 862,670 | |
Welbilt Inc (a) | 119,923 | 1,582,984 | |
$ | 25,899,168 | ||
Media — 0.88% | |||
AMC Networks Inc, Class A (a),(b) | 46,448 | 1,661,445 | |
Entercom Communications Corp, Class A | 47,941 | 118,414 | |
John Wiley & Sons Inc, Class A | 31,119 | 1,420,894 | |
Meredith Corp | 32,685 | 627,552 | |
MSG Networks Inc, Class A (a) | 29,258 | 431,263 | |
Sinclair Broadcast Group Inc, Class A (b) | 57,037 | 1,816,628 | |
TEGNA Inc | 105,846 | 1,476,552 | |
$ | 7,552,748 | ||
Metal Fabrication & Hardware — 1.84% | |||
AZZ Inc | 18,617 | 883,190 | |
Helios Technologies Inc | 12,846 | 684,563 | |
Mueller Industries Inc | 32,308 | 1,134,334 | |
Rexnord Corp | 110,130 | 4,349,034 | |
Timken Co/The | 67,921 | 5,254,369 | |
Valmont Industries Inc | 20,227 | 3,538,309 | |
$ | 15,843,799 | ||
Mining — 0.17% | |||
Kaiser Aluminum Corp | 14,726 | 1,456,401 | |
Miscellaneous Manufacture — 0.64% | |||
EnPro Industries Inc | 11,826 | 893,100 | |
Federal Signal Corp | 53,152 | 1,763,052 |
See accompanying notes.
111
Schedule of Investments | |||
Principal U.S. Small-Cap Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Miscellaneous Manufacture (continued) | |||
Myers Industries Inc | 24,430 | $ | 507,655 |
Standex International Corp | 10,013 | 776,208 | |
Trinseo SA | 30,657 | 1,569,945 | |
$ | 5,509,960 | ||
Office & Business Equipment — 0.72% | |||
Pitney Bowes Inc | 100,866 | 621,335 | |
Xerox Holding Corp | 242,006 | 5,612,119 | |
$ | 6,233,454 | ||
Office Furnishings — 0.25% | |||
HNI Corp | 17,625 | 607,358 | |
Interface Inc | 37,387 | 392,564 | |
Kimball International Inc, Class B | 13,832 | 165,292 | |
Knoll Inc | 15,974 | 234,498 | |
Steelcase Inc, Class A | 58,689 | 795,236 | |
$ | 2,194,948 | ||
Oil & Gas — 2.27% | |||
Callon Petroleum Co (a),(b) | 162,651 | 2,140,487 | |
Cimarex Energy Co | 83,981 | 3,150,127 | |
CVR Energy Inc | 52,674 | 784,843 | |
Delek US Holdings Inc | 82,752 | 1,329,825 | |
Kosmos Energy Ltd | 348,340 | 818,599 | |
Murphy Oil Corp | 239,890 | 2,902,669 | |
Par Pacific Holdings Inc (a) | 29,569 | 413,375 | |
Patterson-UTI Energy Inc | 228,953 | 1,204,293 | |
PBF Energy Inc, Class A | 279,033 | 1,981,134 | |
PDC Energy Inc (a) | 63,907 | 1,312,011 | |
ProPetro Holding Corp (a) | 61,460 | 454,189 | |
QEP Resources Inc | 222,495 | 531,763 | |
Southwestern Energy Co (a) | 838,735 | 2,499,430 | |
$ | 19,522,745 | ||
Oil & Gas Services — 0.42% | |||
Archrock Inc | 71,220 | 616,765 | |
Core Laboratories N.V. | 38,616 | 1,023,710 | |
Dril-Quip Inc (a) | 20,134 | 596,369 | |
Helix Energy Solutions Group Inc (a) | 141,925 | 596,085 | |
MRC Global Inc (a) | 38,986 | 258,477 | |
Solaris Oilfield Infrastructure Inc, Class A | 23,780 | 193,569 | |
Thermon Group Holdings Inc (a) | 20,999 | 328,215 | |
$ | 3,613,190 | ||
Packaging & Containers — 0.35% | |||
Greif Inc, Class A | 22,818 | 1,069,708 | |
Matthews International Corp, Class A | 19,486 | 572,888 | |
O-I Glass Inc | 117,282 | 1,395,656 | |
$ | 3,038,252 | ||
Pharmaceuticals — 4.78% | |||
AdaptHealth Corp (a) | 28,922 | 1,086,310 | |
Agios Pharmaceuticals Inc (a) | 77,727 | 3,367,911 | |
Akebia Therapeutics Inc (a) | 470,234 | 1,316,655 | |
Alkermes PLC (a) | 192,711 | 3,844,584 | |
Amneal Pharmaceuticals Inc (a) | 77,033 | 352,041 | |
Anika Therapeutics Inc (a) | 12,000 | 543,120 | |
Arvinas Inc (a) | 41,885 | 3,557,293 | |
Aytu BioScience Inc (a),(b) | 36,835 | 220,273 | |
BioDelivery Sciences International Inc (a) | 102,869 | 432,050 | |
Clovis Oncology Inc (a),(b) | 256,772 | 1,232,506 | |
Coherus Biosciences Inc (a) | 95,918 | 1,667,055 |
See accompanying notes.
112
Schedule of Investments | ||||
Principal U.S. Small-Cap Multi-Factor ETF | ||||
December 31, 2020 (unaudited) | ||||
COMMON STOCKS (continued) | Shares Held | Value | ||
Pharmaceuticals (continued) | ||||
Durect Corp (a) | 90,177 | $ | 186,666 | |
Eagle Pharmaceuticals Inc (a) | 25,770 | 1,200,109 | ||
Endo International PLC (a) | 390,096 | 2,800,889 | ||
Heat Biologics Inc (a) | 136,036 | 729,153 | ||
Ironwood Pharmaceuticals Inc (a) | 227,781 | 2,594,426 | ||
Jounce Therapeutics Inc (a) | 27,237 | 190,659 | ||
Lannett Co Inc (a) | 40,094 | 261,413 | ||
Owens & Minor Inc | 38,484 | 1,040,992 | ||
Pacira BioSciences Inc (a) | 76,958 | 4,605,167 | ||
PetIQ Inc (a),(b) | 37,070 | 1,425,342 | ||
Phibro Animal Health Corp, Class A | 16,730 | 324,897 | ||
Premier Inc, Class A | 67,781 | 2,379,113 | ||
Prestige Consumer Healthcare Inc (a) | 60,736 | 2,117,864 | ||
Supernus Pharmaceuticals Inc (a) | 61,553 | 1,548,673 | ||
USANA Health Sciences Inc (a) | 12,780 | 985,338 | ||
Vanda Pharmaceuticals Inc (a) | 68,386 | 898,592 | ||
Voyager Therapeutics Inc (a) | 24,077 | 172,151 | ||
$ | 41,081,242 | |||
Pipelines — 0.29% | ||||
Antero Midstream Corp | 319,410 | 2,462,651 | ||
Private Equity — 0.07% | ||||
Victory Capital Holdings Inc, Class A | 25,470 | 631,911 | ||
Real Estate — 0.57% | ||||
Alexander & Baldwin Inc | 63,064 | 1,083,439 | ||
Realogy Holdings Corp (a) | 245,306 | 3,218,415 | ||
RMR Group Inc/The, Class A | 15,242 | 588,646 | ||
$ | 4,890,500 | |||
REITs — 3.13% | ||||
Alexander's Inc | 2,996 | 830,941 | ||
Corporate Office Properties Trust | 144,402 | 3,766,004 | ||
Essential Properties Realty Trust Inc | 142,702 | 3,025,282 | ||
KKR Real Estate Finance Trust Inc | 59,628 | 1,068,534 | ||
LTC Properties Inc | 75,485 | 2,937,121 | ||
Macerich Co/The | 669,588 | 7,144,504 | ||
Tanger Factory Outlet Centers Inc | 369,009 | 3,675,330 | ||
Weingarten Realty Investors | 205,960 | 4,463,153 | ||
$ | 26,910,869 | |||
Retail — 6.10% | ||||
Big Lots Inc | 77,408 | 3,323,126 | ||
BJ's Restaurants Inc | 19,093 | 734,890 | ||
Bloomin' Brands Inc | 121,289 | 2,355,432 | ||
Caleres Inc | 23,944 | 374,724 | ||
Cheesecake Factory Inc/The | 82,209 | 3,046,666 | ||
Chico's FAS Inc | 83,065 | 132,073 | ||
Children's Place Inc/The | 40,652 | 2,036,665 | ||
Denny's Corp (a) | 73,871 | 1,084,426 | ||
Dick's Sporting Goods Inc | 79,859 | 4,488,874 | ||
Duluth Holdings Inc, Class B (a) | 12,520 | 132,211 | ||
El Pollo Loco Holdings Inc (a) | 18,652 | 337,601 | ||
Foot Locker Inc | 139,810 | 5,653,916 | ||
Foundation Building Materials Inc (a) | 22,894 | 439,794 | ||
GMS Inc (a) | 35,131 | 1,070,793 | ||
Group 1 Automotive Inc | 11,179 | 1,466,014 | ||
Haverty Furniture Cos Inc | 11,405 | 315,576 | ||
Jack in the Box Inc | 41,986 | 3,896,301 | ||
La-Z-Boy Inc | 31,951 | 1,272,928 | ||
Lumber Liquidators Holdings Inc (a) | 32,907 | 1,011,561 | ||
MSC Industrial Direct Co Inc, Class A | 75,493 | 6,370,854 |
See accompanying notes.
113
Schedule of Investments | |||
Principal U.S. Small-Cap Multi-Factor ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Retail (continued) | |||
National Vision Holdings Inc (a) | 44,536 | $ | 2,017,036 |
ODP Corp/The | 44,470 | 1,302,971 | |
PC Connection Inc | 7,831 | 370,328 | |
Penske Automotive Group Inc | 26,480 | 1,572,647 | |
PriceSmart Inc | 12,887 | 1,173,877 | |
Ruth's Hospitality Group Inc | 39,523 | 700,743 | |
Sally Beauty Holdings Inc (a) | 115,137 | 1,501,387 | |
Signet Jewelers Ltd | 58,958 | 1,607,785 | |
Sonic Automotive Inc, Class A | 20,944 | 807,810 | |
Sportsman's Warehouse Holdings Inc (a) | 49,438 | 867,637 | |
World Fuel Services Corp | 32,165 | 1,002,261 | |
$ | 52,468,907 | ||
Savings & Loans — 2.67% | |||
Axos Financial Inc (a) | 53,254 | 1,998,623 | |
Berkshire Hills Bancorp Inc | 64,053 | 1,096,587 | |
Flushing Financial Corp | 23,185 | 385,798 | |
Investors Bancorp Inc | 324,473 | 3,426,435 | |
Meridian Bancorp Inc | 29,658 | 442,201 | |
Northfield Bancorp Inc | 51,171 | 630,938 | |
OceanFirst Financial Corp | 43,031 | 801,668 | |
Pacific Premier Bancorp Inc | 70,262 | 2,201,309 | |
Provident Financial Services Inc | 71,261 | 1,279,848 | |
Sterling Bancorp | 364,485 | 6,553,440 | |
Washington Federal Inc | 89,991 | 2,316,368 | |
WSFS Financial Corp | 41,734 | 1,873,022 | |
$ | 23,006,237 | ||
Semiconductors — 0.66% | |||
ACM Research Inc, Class A (a) | 20,678 | 1,680,087 | |
Power Integrations Inc | 48,681 | 3,985,027 | |
$ | 5,665,114 | ||
Software — 4.65% | |||
Allscripts Healthcare Solutions Inc (a) | 95,321 | 1,376,435 | |
American Software Inc, Class A | 21,175 | 363,575 | |
Bandwidth Inc, Class A (a) | 26,496 | 4,071,640 | |
Blackbaud Inc | 39,743 | 2,287,607 | |
BM Technologies Inc | 3,549 | 49,828 | |
Computer Programs & Systems Inc | 6,372 | 171,025 | |
Cornerstone OnDemand Inc (a) | 79,975 | 3,522,099 | |
CSG Systems International Inc | 30,710 | 1,384,100 | |
Donnelley Financial Solutions Inc (a) | 19,996 | 339,332 | |
Ebix Inc | 22,586 | 857,590 | |
Inovalon Holdings Inc, Class A (a) | 40,067 | 728,017 | |
j2 Global Inc (a) | 65,691 | 6,417,354 | |
MicroStrategy Inc, Class A (a) | 7,912 | 3,074,208 | |
Progress Software Corp | 46,838 | 2,116,609 | |
SailPoint Technologies Holding Inc (a) | 114,880 | 6,116,211 | |
Sciplay Corp, Class A (a) | 50,905 | 705,034 | |
Simulations Plus Inc | 18,418 | 1,324,623 | |
SPS Commerce Inc (a) | 28,493 | 3,094,055 | |
Xperi Holding Corp | 93,726 | 1,958,873 | |
$ | 39,958,215 | ||
Telecommunications — 2.06% | |||
CommScope Holding Co Inc (a) | 287,876 | 3,857,538 | |
Consolidated Communications Holdings Inc (a) | 68,908 | 336,960 | |
EchoStar Corp (a) | 39,110 | 828,741 | |
GTT Communications Inc (a),(b) | 48,294 | 172,410 | |
InterDigital Inc | 26,765 | 1,624,100 | |
Loral Space & Communications Inc | 12,173 | 255,511 |
See accompanying notes.
114
Schedule of Investments | |||||||
Principal U.S. Small-Cap Multi-Factor ETF | |||||||
December 31, 2020 (unaudited) | |||||||
COMMON STOCKS (continued) | Shares Held | Value | |||||
Telecommunications (continued) | |||||||
ORBCOMM Inc (a) | 78,110 | $ | 579,576 | ||||
Shenandoah Telecommunications Co | 43,680 | 1,889,160 | |||||
Switch Inc, Class A | 224,112 | 3,668,714 | |||||
Telephone & Data Systems Inc | 119,288 | 2,215,178 | |||||
ViaSat Inc (a) | 69,933 | 2,283,313 | |||||
$ | 17,711,201 | ||||||
Transportation — 1.51% | |||||||
Dorian LPG Ltd (a) | 53,024 | 646,363 | |||||
Forward Air Corp | 26,876 | 2,065,152 | |||||
International Seaways Inc | 25,426 | 415,207 | |||||
Kirby Corp (a) | 106,885 | 5,539,849 | |||||
Ryder System Inc | 70,491 | 4,353,524 | |||||
$ | 13,020,095 | ||||||
Water — 0.10% | |||||||
Arch Resources Inc | 20,365 | 891,375 | |||||
TOTAL COMMON STOCKS | $ | 857,861,360 | |||||
INVESTMENT COMPANIES — 2.48% | Shares Held | Value | |||||
Money Market Funds — 2.48% | |||||||
Principal Government Money Market Fund — Institutional Class 0.00% (a),(c),(d),(e) | 17,992,026 | $ | 17,992,026 | ||||
State Street Institutional U.S. Government Money Market Fund — Institutional | |||||||
Class 0.03% (e) | 3,322,494 | 3,322,494 | |||||
TOTAL INVESTMENT COMPANIES | $ | 21,314,520 | |||||
Total Investments | $ | 879,175,880 | |||||
Other Assets and Liabilities — (2.22)% | (19,127,021 | ) | |||||
Total Net Assets — 100.00% | $ | 860,048,859 | |||||
(a) | Non-income producing security. | ||||||
(b) | Security or a portion of the security was on loan at the end of the period. | ||||||
(c) | Security or a portion of the security was pledged as collateral for securities lending. At the end of the period, the value of | ||||||
these securities totaled $17,992,026 or 2.09% of net assets. | |||||||
(d) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate | ||||||
as defined by the Investment Company Act of 1940 (controls 5.00% or more of the outstanding voting shares of the security). | |||||||
Please see Affiliated Securities sub-schedule for transactional information. | |||||||
(e) | Current yield shown is as of period end. | ||||||
Portfolio Summary (unaudited) | |||||||
Sector | Percent | ||||||
Financial | 27.80 | % | |||||
Consumer, Non-cyclical | 23.65 | % | |||||
Consumer, Cyclical | 14.28 | % | |||||
Industrial | 13.58 | % | |||||
Technology | 7.56 | % | |||||
Communications | 4.32 | % | |||||
Basic Materials | 3.18 | % | |||||
Energy | 3.08 | % | |||||
Money Market Funds | 2.48 | % | |||||
Utilities | 2.29 | % | |||||
Other Assets and Liabilities | (2.22 | )% | |||||
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
115
Schedule of Investments | |||||||||
Principal U.S. Small-Cap Multi-Factor ETF | |||||||||
December 31, 2020 (unaudited) | |||||||||
June 30, 2020 | Purchases | Sales | December 31, 2020 | ||||||
Affiliated Securities | Value | Cost | Proceeds | Value | |||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | 13,835,298 | $ | 106,407,192 | $ | 102,250,464 | $ | 17,992,026 |
$ | 13,835,298 | $ | 106,407,192 | $ | 102,250,464 | $ | 17,992,026 | ||
Realized Gain | |||||||||
Realized | from | Change in | |||||||
Gain/Loss on | Capital Gain | Unrealized | |||||||
Income (a) | Investments | Distributions | Gain/Loss | ||||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | — | $ | — $ | — | $ | — | |
$ | — | $ | — $ | — | $ | — |
(a) | Amount excludes earnings from securities lending collateral. |
See accompanying notes.
116
Schedule of Investments | ||||
Principal Value ETF | ||||
December 31, 2020 (unaudited) | ||||
COMMON STOCKS — 99.54% | Shares Held | Value | ||
Advertising — 1.84% | ||||
Interpublic Group of Cos Inc/The | 8,012 | $ | 188,442 | |
Omnicom Group Inc | 1,974 | 123,119 | ||
$ | 311,561 | |||
Aerospace & Defense — 0.12% | ||||
Spirit AeroSystems Holdings Inc, Class A | 529 | 20,679 | ||
Agriculture — 3.02% | ||||
Altria Group Inc | 6,856 | 281,096 | ||
Philip Morris International Inc | 2,792 | 231,150 | ||
$ | 512,246 | |||
Airlines — 1.41% | ||||
Alaska Air Group Inc | 1,713 | 89,076 | ||
Delta Air Lines Inc | 2,360 | 94,895 | ||
Southwest Airlines Co | 1,190 | 55,466 | ||
$ | 239,437 | |||
Apparel — 1.58% | ||||
Carter's Inc | 847 | 79,677 | ||
Hanesbrands Inc | 12,980 | 189,249 | ||
$ | 268,926 | |||
Auto Manufacturers — 2.48% | ||||
Cummins Inc | 763 | 173,277 | ||
PACCAR Inc | 2,871 | 247,710 | ||
$ | 420,987 | |||
Auto Parts & Equipment — 0.77% | ||||
Lear Corp | 826 | 131,359 | ||
Banks — 12.91% | ||||
Bank of America Corp | 2,752 | 83,413 | ||
Citizens Financial Group Inc | 4,440 | 158,774 | ||
Comerica Inc | 2,982 | 166,575 | ||
Fifth Third Bancorp | 5,271 | 145,322 | ||
Huntington Bancshares Inc | 13,175 | 166,400 | ||
KeyCorp | 9,020 | 148,018 | ||
M&T Bank Corp | 728 | 92,674 | ||
Morgan Stanley | 2,375 | 162,759 | ||
Northern Trust Corp | 1,171 | 109,067 | ||
PNC Financial Services Group Inc/The | 875 | 130,375 | ||
Popular Inc | 1,782 | 100,362 | ||
Regions Financial Corp | 10,690 | 172,323 | ||
State Street Corp | 1,938 | 141,048 | ||
Synovus Financial Corp | 4,430 | 143,399 | ||
Wells Fargo & Co | 3,667 | 110,670 | ||
Western Alliance Bancorp | 793 | 47,540 | ||
Zions Bancorp NA | 2,588 | 112,423 | ||
$ | 2,191,142 | |||
Biotechnology — 0.69% | ||||
Amgen Inc | 507 | 116,569 | ||
Chemicals — 3.26% | ||||
Celanese Corp | 873 | 113,438 | ||
Dow Inc | 3,996 | 221,778 | ||
Eastman Chemical Co | 2,176 | 218,209 | ||
$ | 553,425 | |||
Commercial Services — 5.60% | ||||
ADT Inc | 69,919 | 548,864 | ||
H&R Block Inc | 9,037 | 143,327 |
See accompanying notes.
117
Schedule of Investments | |||
Principal Value ETF | |||
December 31, 2020 (unaudited) | |||
COMMON STOCKS (continued) | Shares Held | Value | |
Commercial Services (continued) | |||
ManpowerGroup Inc | 1,263 | $ | 113,897 |
Quanta Services Inc | 572 | 41,196 | |
Robert Half International Inc | 1,635 | 102,155 | |
$ | 949,439 | ||
Computers — 3.14% | |||
Apple Inc | 647 | 85,851 | |
DXC Technology Co | 3,820 | 98,365 | |
Hewlett Packard Enterprise Co | 9,468 | 112,196 | |
MAXIMUS Inc | 933 | 68,286 | |
NetApp Inc | 2,543 | 168,448 | |
$ | 533,146 | ||
Distribution/Wholesale — 1.28% | |||
Watsco Inc | 955 | 216,355 | |
Diversified Financial Services — 8.37% | |||
Air Lease Corp | 1,254 | 55,703 | |
Alliance Data Systems Corp | 1,107 | 82,029 | |
American Express Co | 494 | 59,729 | |
Capital One Financial Corp | 736 | 72,754 | |
Charles Schwab Corp/The | 1,466 | 77,757 | |
Discover Financial Services | 1,266 | 114,611 | |
Jefferies Financial Group Inc | 4,984 | 122,606 | |
Mastercard Inc, Class A | 62 | 22,130 | |
OneMain Holdings Inc | 8,708 | 419,377 | |
Santander Consumer USA Holdings Inc | 6,196 | 136,436 | |
Synchrony Financial | 3,447 | 119,645 | |
T Rowe Price Group Inc | 902 | 136,554 | |
$ | 1,419,331 | ||
Electrical Components & Equipment — 0.11% | |||
Acuity Brands Inc | 156 | 18,890 | |
Electronics — 1.86% | |||
Avnet Inc | 2,638 | 92,620 | |
Honeywell International Inc | 497 | 105,712 | |
TE Connectivity Ltd | 972 | 117,680 | |
$ | 316,012 | ||
Entertainment — 1.62% | |||
Cinemark Holdings Inc (a) | 6,491 | 113,008 | |
Vail Resorts Inc | 580 | 161,797 | |
$ | 274,805 | ||
Food — 0.59% | |||
Kroger Co/The | 3,142 | 99,790 | |
Hand/Machine Tools — 1.37% | |||
Lincoln Electric Holdings Inc | 1,007 | 117,064 | |
Snap-on Inc | 673 | 115,177 | |
$ | 232,241 | ||
Healthcare — Services — 1.12% | |||
Anthem Inc | 175 | 56,191 | |
Humana Inc | 79 | 32,411 | |
UnitedHealth Group Inc | 234 | 82,059 | |
Universal Health Services Inc, Class B | 145 | 19,938 | |
$ | 190,599 | ||
Home Builders — 0.69% | |||
DR Horton Inc | 941 | 64,853 |
See accompanying notes.
118
Schedule of Investments | ||||
Principal Value ETF | ||||
December 31, 2020 (unaudited) | ||||
COMMON STOCKS (continued) | Shares Held | Value | ||
Home Builders (continued) | ||||
PulteGroup Inc | 1,206 | $ | 52,003 | |
$ | 116,856 | |||
Home Furnishings — 1.13% | ||||
Whirlpool Corp | 1,062 | 191,680 | ||
Insurance — 10.39% | ||||
Allstate Corp/The | 716 | 78,710 | ||
American Financial Group Inc | 2,102 | 184,177 | ||
First American Financial Corp | 2,121 | 109,507 | ||
Hanover Insurance Group Inc/The | 2,522 | 294,872 | ||
Hartford Financial Services Group Inc/The | 1,654 | 81,013 | ||
MetLife Inc | 3,358 | 157,658 | ||
MGIC Investment Corp | 2,970 | 37,274 | ||
Primerica Inc | 397 | 53,170 | ||
Progressive Corp/The | 2,236 | 221,096 | ||
Prudential Financial Inc | 2,378 | 185,650 | ||
Reinsurance Group of America Inc | 552 | 63,977 | ||
Travelers Cos Inc/The | 826 | 115,946 | ||
Unum Group | 6,736 | 154,524 | ||
Voya Financial Inc | 422 | 24,818 | ||
$ | 1,762,392 | |||
Internet — 1.23% | ||||
CDW Corp | 329 | 43,359 | ||
eBay Inc | 1,912 | 96,078 | ||
Expedia Group Inc | 526 | 69,642 | ||
$ | 209,079 | |||
Iron & Steel — 1.50% | ||||
Reliance Steel & Aluminum Co | 753 | 90,172 | ||
Steel Dynamics Inc | 4,451 | 164,108 | ||
$ | 254,280 | |||
Leisure Time — 0.52% | ||||
Brunswick Corp | 1,153 | 87,905 | ||
Media — 0.47% | ||||
Fox Corp, Class A | 1,708 | 49,737 | ||
Sirius XM Holdings Inc | 4,611 | 29,372 | ||
$ | 79,109 | |||
Mining — 1.12% | ||||
Newmont Corp | 3,160 | 189,252 | ||
Miscellaneous Manufacture — 2.59% | ||||
Carlisle Cos Inc | 323 | 50,446 | ||
Eaton Corp PLC | 1,391 | 167,115 | ||
Illinois Tool Works Inc | 584 | 119,066 | ||
Parker-Hannifin Corp | 379 | 103,243 | ||
$ | 439,870 | |||
Oil & Gas — 4.66% | ||||
Cabot Oil & Gas Corp | 6,163 | 100,334 | ||
Continental Resources Inc | 325 | 5,298 | ||
CVR Energy Inc | 11,157 | 166,239 | ||
Helmerich & Payne Inc | 7,123 | 164,969 | ||
HollyFrontier Corp | 3,284 | 84,891 | ||
Marathon Petroleum Corp | 3,115 | 128,836 | ||
Valero Energy Corp | 2,475 | 140,011 | ||
$ | 790,578 |
See accompanying notes.
119
Schedule of Investments | |||||
Principal Value ETF | |||||
December 31, 2020 (unaudited) | |||||
COMMON STOCKS (continued) | Shares Held | Value | |||
Packaging & Containers — 1.06% | |||||
Packaging Corp of America | 1,309 | $ | 180,524 | ||
Pharmaceuticals — 3.25% | |||||
AbbVie Inc | 2,374 | 254,374 | |||
AmerisourceBergen Corp | 937 | 91,601 | |||
Cardinal Health Inc | 3,823 | 204,760 | |||
$ | 550,735 | ||||
REITs — 3.76% | |||||
CubeSmart | 7,112 | 239,034 | |||
VICI Properties Inc | 7,702 | 196,401 | |||
Vornado Realty Trust | 5,419 | 202,346 | |||
$ | 637,781 | ||||
Retail — 4.78% | |||||
Foot Locker Inc | 4,417 | 178,623 | |||
Home Depot Inc/The | 482 | 128,029 | |||
Kohl's Corp | 5,655 | 230,102 | |||
Tractor Supply Co | 701 | 98,547 | |||
Williams-Sonoma Inc | 1,720 | 175,165 | |||
$ | 810,466 | ||||
Semiconductors — 3.91% | |||||
Applied Materials Inc | 992 | 85,610 | |||
Broadcom Inc | 548 | 239,942 | |||
Intel Corp | 1,620 | 80,708 | |||
Lam Research Corp | 224 | 105,788 | |||
Texas Instruments Inc | 923 | 151,492 | |||
$ | 663,540 | ||||
Software — 3.76% | |||||
Oracle Corp | 1,471 | 95,159 | |||
VMware Inc, Class A (b) | 3,871 | 542,946 | |||
$ | 638,105 | ||||
Telecommunications — 0.29% | |||||
Ubiquiti Inc | 179 | 49,853 | |||
Transportation — 1.29% | |||||
CH Robinson Worldwide Inc | 1,572 | 147,564 | |||
CSX Corp | 795 | 72,146 | |||
$ | 219,710 | ||||
TOTAL COMMON STOCKS | $ | 16,888,654 | |||
INVESTMENT COMPANIES — 0.87% | Shares Held | Value | |||
Money Market Funds — 0.87% | |||||
Principal Government Money Market Fund — Institutional Class 0.00% (b),(c),(d),(e) | 88,841 | $ | 88,841 | ||
State Street Institutional U.S. Government Money Market Fund — Institutional | |||||
Class 0.03% (e) | 58,810 | 58,810 | |||
TOTAL INVESTMENT COMPANIES | $ | 147,651 | |||
Total Investments | $ | 17,036,305 | |||
Other Assets and Liabilities — (0.41)% | (68,788 | ) | |||
Total Net Assets — 100.00% | $ | 16,967,517 | |||
(a) | Security or a portion of the security was on loan at the end of the period. | ||||
(b) | Non-income producing security. | ||||
(c) | Security or a portion of the security was pledged as collateral for securities lending. At the end of the period, the value of | ||||
these securities totaled $88,841 or 0.52% of net assets. | |||||
(d) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate | ||||
as defined by the Investment Company Act of 1940 (controls 5.00% or more of the outstanding voting shares of the security). | |||||
Please see Affiliated Securities sub-schedule for transactional information. |
See accompanying notes.
120
Schedule of Investments | |||||||||
Principal Value ETF | |||||||||
December 31, 2020 (unaudited) | |||||||||
(e) Current yield shown is as of period end. | |||||||||
Portfolio Summary (unaudited) | |||||||||
Sector | Percent | ||||||||
Financial | 35.42 | % | |||||||
Consumer, Cyclical | 16.26 | % | |||||||
Consumer, Non-cyclical | 14.26 | % | |||||||
Technology | 10.81 | % | |||||||
Industrial | 8.42 | % | |||||||
Basic Materials | 5.88 | % | |||||||
Energy | 4.66 | % | |||||||
Communications | 3.83 | % | |||||||
Money Market Funds | 0.87 | % | |||||||
Other Assets and Liabilities | (0.41 | )% | |||||||
TOTAL NET ASSETS | 100.00 | % | |||||||
June 30, 2020 | Purchases | Sales | December 31, 2020 | ||||||
Affiliated Securities | Value | Cost | Proceeds | Value | |||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | 982,112 | $ | 5,674,933 | $ | 6,568,204 | $ | 88,841 |
$ | 982,112 | $ | 5,674,933 | $ | 6,568,204 | $ | 88,841 | ||
Realized Gain | |||||||||
Realized | from | Change in | |||||||
Gain/Loss on | Capital Gain | Unrealized | |||||||
Income (a) | Investments | Distributions | Gain/Loss | ||||||
Principal Government Money | |||||||||
Market Fund — Institutional Class | |||||||||
0.00 | % | $ | — | $ | — $ | — | $ | — | |
$ | — | $ | — $ | — | $ | — |
(a) | Amount excludes earnings from securities lending collateral. |
See accompanying notes.
121
Financial Highlights | ||||||||||||||
Principal Exchange-Traded Funds | ||||||||||||||
(unaudited) | ||||||||||||||
Principal Active Global Dividend Income ETF | ||||||||||||||
For a share outstanding: | ||||||||||||||
Period ended | ||||||||||||||
December 31, | Year ended | Year ended | Year ended | Period ended | ||||||||||
2020 | (a) | June 30, 2020 | June 30, 2019 | June 30, 2018 | June 30, 2017 (b) | |||||||||
Net asset value, beginning of period | $ | 26.18 | $ | 27.64 | $ | 27.56 | $ | 25.36 | $ | 25.00 | ||||
Investment Operations: | ||||||||||||||
Net investment income (loss) (c) | 0.19 | 0.57 | 0.67 | 0.69 | 0.17 | |||||||||
Net realized and change in unrealized gain (loss) | 6.32 | (1.22 | ) | 0.39 | 2.15 | 0.19 | ||||||||
Total from investment operations | 6.51 | (0.65 | ) | 1.06 | 2.84 | 0.36 | ||||||||
Dividends to Shareholders from: | ||||||||||||||
Net investment income | (1.11 | ) | (0.81 | ) | (0.68 | ) | (0.51 | ) | — | |||||
Net realized gains | — | — | (0.30 | ) | (0.13 | ) | — | |||||||
Total dividends to stockholders | (1.11 | ) | (0.81 | ) | (0.98 | ) | (0.64 | ) | — | |||||
Net asset value, end of period | $ | 31.58 | $ | 26.18 | $ | 27.64 | $ | 27.56 | $ | 25.36 | ||||
Total return | 25.16 | % (d) | (2.43 | )% | 4.12 | % | 11.24 | % | 1.43% (d) | |||||
Ratios/Supplemental Data: | ||||||||||||||
Net assets, end of period (000s) | $ | 157,903 | $ | 708,092 | $ | 717,189 | $ | 705,435 | $ | 428,567 | ||||
Ratio of expenses to average net assets | 0.58 | % (e) | 0.58 | % | 0.58 | % | 0.58 | % | 0.58% (e) | |||||
Ratio of expenses to average net assets excluding interest | ||||||||||||||
expense | —% (f) | —% (f) | 0.58 | % | —% (f) | —% (f) | ||||||||
Ratio of net investment income (loss) to average net assets | 1.31 | % (e) | 2.12 | % | 2.49 | % | 2.51 | % | 4.56% (e) | |||||
Portfolio turnover rate (g) | 12.3 | % | 41.6 | % | 31.5 | % | 22.0 | % | 0.0% (e) |
(a) | Six months ended December 31, 2020. |
(b) | Period from May 9, 2017, date operations commenced, through June 30, 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) | Ratio is not applicable as there was no interest expense in the period. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
1 |
1 | See accompanying notes. |
122
Financial Highlights | ||||||||||||||||||
Principal Exchange-Traded Funds | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
Principal Active Income ETF | ||||||||||||||||||
For a share outstanding: | ||||||||||||||||||
Period ended | ||||||||||||||||||
December 31, | Year ended | Year ended | Year ended | Year ended | Period ended | |||||||||||||
2020 | (a) | June 30, 2020 | June 30, 2019 | June 30, 2018 | June 30, 2017 | June 30, 2016 (b | ||||||||||||
1 | ||||||||||||||||||
Net asset value, beginning of period | $ | 36.13 | $ | 39.91 | $ | 40.27 | $ | 41.31 | $ | 39.12 | $ | 40.00 | ||||||
Investment Operations: | ||||||||||||||||||
Net investment income (loss) (c) | 0.78 | 1.87 | 1.91 | 1.78 | 1.95 | 2.13 | ||||||||||||
Net realized and change in unrealized gain | ||||||||||||||||||
(loss) | 3.86 | (3.71 | ) | (0.01 | ) | (0.50 | ) | 2.22 | (1.39 | ) | ||||||||
Total from investment operations | 4.64 | (1.84 | ) | 1.90 | 1.28 | 4.17 | 0.74 | |||||||||||
Dividends to Shareholders from: | ||||||||||||||||||
Net investment income | (0.97 | ) | (1.94 | ) | (1.92 | ) | (1.87 | ) | (1.98 | ) | (1.62 | ) | ||||||
Net realized gains | — | — | (0.34 | ) | (0.45 | ) | — | — | ||||||||||
Total dividends to stockholders | (0.97 | ) | (1.94 | ) | (2.26 | ) | (2.32 | ) | (1.98 | ) | (1.62 | ) | ||||||
Net asset value, end of period | $ | 39.80 | $ | 36.13 | $ | 39.91 | $ | 40.27 | $ | 41.31 | $ | 39.12 | ||||||
Total return | 13.00% (d) | (4.78 | )% | 4.95 | % | 3.10 | % | 10.92 | % | 2.13 | % (d) | |||||||
Ratios/Supplemental Data: | ||||||||||||||||||
Net assets, end of period (000s) | $ | 231,854 | $ | 270,096 | $ | 216,519 | $ | 292,967 | $ | 286,084 | $ | 265,013 | ||||||
Ratio of expenses to average net assets | 0.49% (e) | 0.49 | % | 0.61 | % | 0.65 | % (f) | 0.77% (f) | 0.85% (e),(f) | |||||||||
Ratio of gross expenses to average net assets | —% (g) | —% (g) | —% (g) | 0.68 | % | 0.80 | % | 1.34 | % (e) | |||||||||
Ratio of net investment income (loss) to average | ||||||||||||||||||
net assets | 4.09% (e) | 4.89 | % | 4.84 | % | 4.34 | % | 4.82 | % | 5.99 | % (e) | |||||||
Portfolio turnover rate (h) | 12.1 | % | 10.6 | % | 17.9 | % | 11.0 | % | 30.7 | % | 34.3 | % (e) |
(a) | Six months ended December 31, 2020. |
(b) | Period from July 8, 2015, date operations commenced, through June 30, 2016. |
(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 reimbursement from Advisor. |
(g) | Ratio is not applicable as there was no reimbursement from Advisor in the period. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
1 |
See accompanying notes.
123
Financial Highlights | |||||||||||||||
Principal Exchange-Traded Funds | |||||||||||||||
(unaudited) | |||||||||||||||
Principal Healthcare Innovators Index ETF | |||||||||||||||
For a share outstanding: | |||||||||||||||
Period ended | Year ended | Year ended | Year ended | Period ended | |||||||||||
December 31, 2020 (a) | June 30, 2020 | June 30, 2019 | June 30, 2018 | June 30, 2017 (b) | |||||||||||
Net asset value, beginning of period | $ | 44.34 | $ | 34.37 | $ | 34.74 | $ | 28.56 | $ | 25.00 | |||||
Investment Operations: | |||||||||||||||
Net investment income (loss) (c) | (0.05 | ) | (0.10 | ) | (0.13 | ) | (0.12 | ) | (0.08 | ) | |||||
Net realized and change in unrealized gain (loss) | 14.55 | 10.07 | (0.24 | ) | 6.35 | 3.64 | |||||||||
Total from investment operations | 14.50 | 9.97 | (0.37 | ) | 6.23 | 3.56 | |||||||||
Dividends to Shareholders from: | |||||||||||||||
Net realized gains | (0.22 | ) | — | — | (0.05 | ) | — | ||||||||
Total dividends to stockholders | (0.22 | ) | — | — | (0.05 | ) | — | ||||||||
Net asset value, end of period | $ | 58.62 | $ | 44.34 | $ | 34.37 | $ | 34.74 | $ | 28.56 | |||||
Total return | 32.68 | % (d) | 29.01 | % | (1.05 | )% | 21.83 | % | 14.24 | % (d) | |||||
Ratios/Supplemental Data: | |||||||||||||||
Net assets, end of period (000s) | $ | 155,347 | $ | 95,338 | $ | 56,713 | $ | 52,104 | $ | 7,140 | |||||
Ratio of expenses to average net assets | 0.42 | % (e) | 0.42 | % | 0.42 | % | 0.42 | % | 0.42 | % (e) | |||||
Ratio of net investment income (loss) to average net assets | (0.21 | )% (e) | (0.29 | )% | (0.39 | )% | (0.38 | )% | (0.32 | )% (e) | |||||
Portfolio turnover rate (f) | 29.7 | % | 36.1 | % | 34.5 | % | 33.6 | % | 18.2 | % (e) |
(a) | Six months ended December 31, 2020. |
(b) | Period from August 19, 2016, date operations commenced, through June 30, 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. |
1 |
1 | See accompanying notes. |
124
Financial Highlights | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal International Multi-Factor ETF (a) | ||||||
For a share outstanding: | ||||||
Period ended | Period ended | |||||
December 31, 2020 (b) | June 30, 2020 (c) | |||||
Net asset value, beginning of period | $ | 23.80 | $ | 25.00 | ||
Investment Operations: | ||||||
Net investment income (loss) (d) | 0.24 | 0.54 | ||||
Net realized and change in unrealized gain (loss) | 4.84 | (1.34 | ) | |||
Total from investment operations | 5.08 | (0.80 | ) | |||
Dividends to Shareholders from: | ||||||
Net investment income | (0.34 | ) | (0.39 | ) | ||
Net realized gains | — | (0.01 | ) | |||
Total dividends to stockholders | (0.34 | ) | (0.40 | ) | ||
Net asset value, end of period | $ | 28.54 | $ | 23.80 | ||
Total return | 21.50 | % (e) | (3.13 | )% (e) | ||
Ratios/Supplemental Data: | ||||||
Net assets, end of period (000s) | $ | 62,787 | $ | 16,661 | ||
Ratio of expenses to average net assets (f) | 0.25 | % | 0.25 | % | ||
Ratio of net investment income (loss) to average net assets (f) | 1.81 | % | 2.39 | % | ||
Portfolio turnover rate (g) | 44.7 | % | 56.1 | % |
(a) | Effective September 30, 2020, Principal International Multi-Factor Core Index ETF changed its name to Principal International Multi-Factor ETF. |
(b) | Six months ended December 31, 2020. |
(c) | Period from July 23, 2019, date operations commenced, through June 30, 2020. |
(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. |
1 |
See accompanying notes.
125
Financial Highlights | ||||||||||||
Principal Exchange-Traded Funds | ||||||||||||
(unaudited) | ||||||||||||
Principal Investment Grade Corporate Active ETF | ||||||||||||
For a share outstanding: | ||||||||||||
Period ended | Year ended | Year ended | Period ended | |||||||||
December 31, 2020 (a) | June 30, 2020 | June 30, 2019 | June 30, 2018 (b) | |||||||||
Net asset value, beginning of period | $ | 26.67 | $ | 26.20 | $ | 24.59 | $ | 25.00 | ||||
Investment Operations: | ||||||||||||
Net investment income (loss) (c) | 0.32 | 0.88 | 0.95 | 0.19 | ||||||||
Net realized and change in unrealized gain (loss) | 1.30 | 1.39 | 1.66 | (0.52 | ) | |||||||
Total from investment operations | 1.62 | 2.27 | 2.61 | (0.33 | ) | |||||||
Dividends to Shareholders from: | ||||||||||||
Net investment income | (0.47 | ) | (0.95 | ) | (0.98 | ) | (0.08 | ) | ||||
Net realized gains | (0.46 | ) | (0.85 | ) | (0.02 | ) | — | |||||
Total dividends to stockholders | (0.93 | ) | (1.80 | ) | (1.00 | ) | (0.08 | ) | ||||
Net asset value, end of period | $ | 27.36 | $ | 26.67 | $ | 26.20 | $ | 24.59 | ||||
Total return | 6.11 | % (d) | 8.98 | % | 10.95 | % | (1.32 | )% (d) | ||||
Ratios/Supplemental Data: | ||||||||||||
Net assets, end of period (000s) | $ | 332,367 | $ | 110,693 | $ | 120,540 | $ | 228,710 | ||||
Ratio of expenses to average net assets | 0.26 | % (e) | 0.26 | % | 0.26 | % | 0.26 | % (e) | ||||
Ratio of net investment income (loss) to average net assets | 2.33 | % (e) | 3.37 | % | 3.86 | % | 3.83 | % (e) | ||||
Portfolio turnover rate (f) | 32.3 | % | 73.3 | % | 92.8 | % | 47.8 | % (e) |
(a) | Six months ended December 31, 2020. |
(b) | Period from April 18, 2018, date operations commenced, through June 30, 2018. |
(c) | Calculated on average shares outstanding during the period. |
(d) | Total return amounts have not been annualized. |
(e) | Computed on an annualized basis. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
1 |
See accompanying notes.
126
Financial Highlights | |||||||||||||||
Principal Exchange-Traded Funds | |||||||||||||||
(unaudited) | |||||||||||||||
Principal Millennials Index ETF | |||||||||||||||
For a share outstanding: | |||||||||||||||
Period ended | |||||||||||||||
December 31, | Year ended | Year ended | Year ended | Period ended | |||||||||||
2020(a) | June 30, 2020 | June 30, 2019 | June 30, 2018 | June 30, 2017 (b) | |||||||||||
Net asset value, beginning of period | $ | 42.85 | $ | 38.24 | $ | 36.76 | $ | 28.92 | $ | 25.00 | |||||
Investment Operations: | |||||||||||||||
Net investment income (loss) (c) | 0.13 | 0.34 | 0.17 | 0.23 | 0.17 | ||||||||||
Net realized and change in unrealized gain (loss) | 15.27 | 4.59 | 1.54 | 7.91 | 3.87 | ||||||||||
Total from investment operations | 15.40 | 4.93 | 1.71 | 8.14 | 4.04 | ||||||||||
Dividends to Shareholders from: | |||||||||||||||
Net investment income | (0.39 | ) | (0.32 | ) | (0.23 | ) | (0.23 | ) | (0.09 | ) | |||||
Net realized gains | — | — | — | (0.07 | ) | (0.03 | ) | ||||||||
Total dividends to stockholders | (0.39 | ) | (0.32 | ) | (0.23 | ) | (0.30 | ) | (0.12 | ) | |||||
Net asset value, end of period | $ | 57.86 | $ | 42.85 | $ | 38.24 | $ | 36.76 | $ | 28.92 | |||||
Total return | 36.04 | % (d) | 12.96 | % | 4.70 | % | 28.31 | % | 16.23 | % (d) | |||||
Ratios/Supplemental Data: | |||||||||||||||
Net assets, end of period (000s) | $ | 75,221 | $ | 25,708 | $ | 21,031 | $ | 20,217 | $ | 7,230 | |||||
Ratio of expenses to average net assets | 0.45 | % (e) | 0.45 | % | 0.45 | % | 0.45 | % | 0.45 | % (e) | |||||
Ratio of expenses to average net assets excluding interest | |||||||||||||||
expense | —% (f) | —% (f) | —% (f) | 0.45 | % | —% (f) | |||||||||
Ratio of net investment income (loss) to average net assets | 0.52 | % (e) | 0.88 | % | 0.47 | % | 0.66 | % | 0.71 | % (e) | |||||
Portfolio turnover rate (g) | 2.1 | % | 47.4 | % | 32.9 | % (h) | 35.6 | % | 5.1 | % (e) |
(a) | Six months ended December 31, 2020. |
(b) | Period from August 19, 2016, date operations commenced, through June 30, 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) | Ratio is not applicable as there was no interest expense in the period. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
(h) | The previously reported portfolio turnover rate of 82.2% was adjusted to correct an immaterial error related to in-kind activity. |
1 |
See accompanying notes.
127
Financial Highlights | |||||||||||||||||
Principal Exchange-Traded Funds | |||||||||||||||||
(unaudited) | |||||||||||||||||
Principal Quality ETF (a) | |||||||||||||||||
For a share outstanding: | |||||||||||||||||
Period ended | |||||||||||||||||
December 31, | Year ended | Year ended | Year ended | Year ended | Period ended | ||||||||||||
2020 | (b) | June 30, 2019 | June 30, 2017 | June 30, 2017 | June 30, 2017 | June 30, 2016 (c) | |||||||||||
Net asset value, beginning of period | $ | 39.89 | $ | 37.79 | $ | 33.32 | $ | 29.03 | $ | 26.08 | $ | 25.00 | |||||
Investment Operations: | |||||||||||||||||
Net investment income (loss) (d) | 0.27 | 0.51 | 0.46 | 0.39 | 0.34 | 0.09 | |||||||||||
Net realized and change in unrealized gain (loss) | 7.49 | 1.00 | 4.48 | 4.20 | 3.06 | 0.99 | |||||||||||
Net realized gain due from reimbursement from Advisor | — | 1.13 | (e) | — | — | — | — | ||||||||||
Total from investment operations | 7.76 | 2.64 | 4.94 | 4.59 | 3.40 | 1.08 | |||||||||||
Dividends to Shareholders from: | |||||||||||||||||
Net investment income | (0.38 | ) | (0.54 | ) | (0.47 | ) | (0.27 | ) | (0.39 | ) | — | ||||||
Net realized gains | — | — | — | (0.03 | ) | (0.06 | ) | — | |||||||||
Total dividends to stockholders | (0.38 | ) | (0.54 | ) | (0.47 | ) | (0.30 | ) | (0.45 | ) | — | ||||||
Net asset value, end of period | $ | 47.27 | $ | 39.89 | $ | 37.79 | $ | 33.32 | $ | 29.03 | $ | 26.08 | |||||
Total return | 19.57% (f) | 7.05% (e) | 15.03 | % | 15.89 | % | 13.23 | % | 4.31% (f) | ||||||||
Ratios/Supplemental Data: | |||||||||||||||||
Net assets, end of period (000s) | $ | 30,727 | $ | 17,951 | $ | 20,786 | $ | 21,655 | $ | 7,257 | $ | 6,519 | |||||
Ratio of expenses to average net assets | 0.15% (g) | 0.29% (h) | 0.29% (h) | 0.29% (h) | 0.40 | % | 0.40% (g) | ||||||||||
Ratio of gross expenses to average net assets | —% (i) | 0.34 | % | 0.40 | % | 0.40 | % | —% (i) | —% (i) | ||||||||
Ratio of net investment income (loss) to average net assets | 1.24% (g) | 1.32 | % | 1.32 | % | 1.22 | % | 1.26 | % | 1.32% (g) | |||||||
Portfolio turnover rate (j) | 0.1 | % | 103.7 | % | 40.4 | % | 63.5 | % | 2.0 | % | 0.0% (g) |
(a) | Effective September 30, 2020, Principal Price Setters Index ETF changed its name to Principal Quality ETF. |
(b) | Six months ended December 31, 2020. |
(c) | Period from March 21, 2016, date of operations commenced, through June 30, 2016. |
(d) | Calculated on average shares outstanding during the period. |
(e) | During 2020, the Fund experienced a significant one-time gain as the result of a reimbursement by the Advisor due to an operational error by a third party. If such reimbursement had not been recognized, the total return amounts expressed herein would have been lower by 2.50%. |
(f) | Total return amounts have not been annualized. |
(g) | Computed on an annualized basis. |
(h) | Includes reimbursement from Advisor. |
(i) | Ratio is not applicable as there was no reimbursement from Advisor in the period. |
(j) | Portfolio turnover rate excludes in-kind transactions. |
1 |
See accompanying notes.
128
Financial Highlights | |||||||||||||
Principal Exchange-Traded Funds | |||||||||||||
(unaudited) | |||||||||||||
Principal Spectrum Preferred Securities Active ETF | |||||||||||||
For a share outstanding: | |||||||||||||
Period ended | Year ended | Year ended | Period ended | ||||||||||
December 31, 2020 (a) | June 30, 2020 | June 30, 2019 | June 30, 2018 (b) | ||||||||||
Net asset value, beginning of period | $ | 19.31 | (c) | $ | 19.36 | (c) $ | 18.89 | (c) | $ | 20.00 | (c) | ||
Investment Operations: | |||||||||||||
Net investment income (loss) (d) | 0.37 | 0.80 | (c) | 0.68 | (c) | 0.94 | (c) | ||||||
Net realized and change in unrealized gain (loss) | 1.79 | 0.08 | (c) | 0.77 | (c) | (1.18 | ) (c) | ||||||
Total from investment operations | 2.16 | 0.88 | (c) | 1.45 | (c) | (0.24 | ) (c) | ||||||
Dividends to Shareholders from: | |||||||||||||
Net investment income | (0.88 | ) | (0.93 | ) (c) | (0.98 | ) (c) | (0.87 | ) (c) | |||||
Net realized gains | — | — | (c) | — | (c) | (0.00) (c),(e) | |||||||
Total dividends to stockholders | (0.88 | ) | (0.93 | ) (c) | (0.98 | ) (c) | (0.87 | ) (c) | |||||
Net asset value, end of period | $ | 20.59 | $ | 19.31 | (c) $ | 19.36 | (c) | $ | 18.89 | (c) | |||
Total return | 9.44 | % (f) | 4.60 | % | 7.99 | % | (1.28 | )% (f) | |||||
Ratios/Supplemental Data: | |||||||||||||
Net assets, end of period (000s) | $ | 246,076 | $ | 139,995 | $ | 67,750 | $ | 51,949 | |||||
Ratio of expenses to average net assets | 0.55 | % (g) | 0.55 | % | 0.55 | % | 0.55 | % (g) | |||||
Ratio of net investment income (loss) to average net assets | 3.68 | % (g) | 4.10 | % | 3.65 | % | 4.93 | % (g) | |||||
Portfolio turnover rate (h) | 6.8 | % | 41.9 | % | 27.6 | % | 41.0 | % (g) |
(a) | Six months ended December 31, 2020. |
(b) | Period from July 7, 2017, date operations commenced, through June 30, 2018. |
(c) | Effective July 22, 2020, Principal Spectrum Preferred Securities Active ETF issued a 5 to 1 stock split. The stock split, has been retroactively reflected on the Statement of Changes in Net Assets and Financial Highlights. |
(d) | Calculated on average shares outstanding during the period. |
(e) | Reflects an amount rounding to less than one cent. |
(f) | Total return amounts have not been annualized. |
(g) | Computed on an annualized basis. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
1 |
See accompanying notes.
129
Financial Highlights | ||||||
Principal Exchange-Traded Funds | ||||||
(unaudited) | ||||||
Principal Spectrum Tax-Advantaged Dividend Active ETF | ||||||
For a share outstanding: | ||||||
Period ended | Period ended | |||||
December 31, 2020 (a) | June 30, 2020 (b) | |||||
Net asset value, beginning of period | $ | 19.95 | $ | 20.00 | ||
Investment Operations: | ||||||
Net investment income (loss) (c) | 0.44 | 0.03 | ||||
Net realized and change in unrealized gain (loss) | 1.61 | (0.08 | ) | |||
Total from investment operations | 2.05 | (0.05 | ) | |||
Dividends to Shareholders from: | ||||||
Net investment income | (0.54 | ) | — | |||
Net realized gains | (0.04 | ) | — | |||
Total dividends to stockholders | (0.58 | ) | — | |||
Net asset value, end of period | $ | 21.42 | $ | 19.95 | ||
Total return (d) | 10.37 | % | (0.26 | )% | ||
Ratios/Supplemental Data: | ||||||
Net assets, end of period (000s) | $ | 22,491 | $ | 19,948 | ||
Ratio of expenses to average net assets (e) | 0.60 | % | 0.60 | % | ||
Ratio of net investment income (loss) to average net assets (e) | 4.17 | % | 4.35 | % | ||
Portfolio turnover rate | 6.7 | % | 6.3 | % |
(a) | Six months ended December 31, 2020. |
(b) | Period from June 16, 2020, date operations commenced, through June 30, 2020. |
(c) | Calculated on average shares outstanding during the period. |
(d) | Total return amounts have not been annualized. |
(e) | Computed on an annualized basis. |
1 |
See accompanying notes.
130
Financial Highlights | |||||||||
Principal Exchange-Traded Funds | |||||||||
(unaudited) | |||||||||
Principal Ultra-Short Active Income ETF | |||||||||
For a share outstanding: | |||||||||
Period ended | Year ended | Period ended | |||||||
December 31, 2020 (a) | June 30, 2020 | June 30, 2019 (b) | |||||||
Net asset value, beginning of period | $ | 25.02 | $ | 25.09 | $ | 25.00 | |||
Investment Operations: | |||||||||
Net investment income (loss) (c) | 0.11 | 0.55 | 0.12 | ||||||
Net realized and change in unrealized gain (loss) | (0.01 | ) | 0.07 | 0.04 | |||||
Total from investment operations | 0.10 | 0.62 | 0.16 | ||||||
Dividends to Shareholders from: | |||||||||
Net investment income | (0.27 | ) | (0.69 | ) | (0.07 | ) | |||
Total dividends to stockholders | (0.27 | ) | (0.69 | ) | (0.07 | ) | |||
Net asset value, end of period | $ | 24.85 | $ | 25.02 | $ | 25.09 | |||
Total return | 0.40 | % (d) | 2.54 | % | 0.62 | % (d) | |||
Ratios/Supplemental Data: | |||||||||
Net assets, end of period (000s) | $ | 12,423 | $ | 12,509 | $ | 12,543 | |||
Ratio of expenses to average net assets | 0.18 | % (e) | 0.18 | % | 0.18 | % (e) | |||
Ratio of net investment income (loss) to average net assets | 0.90 | % (e) | 2.19 | % | 2.51 | % (e) | |||
Portfolio turnover rate | 32.5 | % | 32.7 | % | 0.0% (e),(f) |
(a) | Six months ended December 31, 2020. |
(b) | Period from April 24, 2019, date operations commenced, through June 30, 2019. |
(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. |
1 |
See accompanying notes.
131
Financial Highlights | ||||||||||||
Principal Exchange-Traded Funds | ||||||||||||
(unaudited) | ||||||||||||
Principal U.S. Mega-Cap ETF (a) | ||||||||||||
For a share outstanding: | ||||||||||||
Period ended | Year ended | Year ended | Period ended | |||||||||
December 31, 2020 (b) | June 30, 2020 | June 30, 2019 | June 30, 2018 (c) | |||||||||
Net asset value, beginning of period | $ | 30.04 | $ | 29.07 | $ | 26.02 | $ | 25.00 | ||||
Investment Operations: | ||||||||||||
Net investment income (loss) (d) | 0.27 | 0.60 | 0.63 | 0.38 | ||||||||
Net realized and change in unrealized gain (loss) | 5.79 | 1.00 | 3.04 | 0.80 | ||||||||
Total from investment operations | 6.06 | 1.60 | 3.67 | 1.18 | ||||||||
Dividends to Shareholders from: | ||||||||||||
Net investment income | (0.41 | ) | (0.63 | ) | (0.62 | ) | (0.16 | ) | ||||
Total dividends to stockholders | (0.41 | ) | (0.63 | ) | (0.62 | ) | (0.16 | ) | ||||
Net asset value, end of period | $ | 35.69 | $ | 30.04 | $ | 29.07 | $ | 26.02 | ||||
Total return | 20.30 | % (e) | 5.62 | % | 14.32 | % | 4.73 | % (e) | ||||
Ratios/Supplemental Data: | ||||||||||||
Net assets, end of period (000s) | $ | 1,795,405 | $ | 1,505,046 | $ | 1,618,941 | $ | 1,666,525 | ||||
Ratio of expenses to average net assets (f) | 0.12 | % (g) | 0.12 | % | 0.12 | % | 0.12 | % (g) | ||||
Ratio of gross expenses to average net assets | 0.15 | % (g) | 0.15 | % | 0.15 | % | 0.15 | % (g) | ||||
Ratio of net investment income (loss) to average net assets | 1.62 | % (g) | 2.05 | % | 2.30 | % | 2.02 | % (g) | ||||
Portfolio turnover rate (h) | 26.7 | % | 42.9 | % | 27.0 | % | 39.8 | % (g) |
(a) | Effective September 30, 2020, Principal U.S. Mega-Cap Multi-Factor Index ETF changed its name to Principal U.S. Mega-Cap ETF. |
(b) | Six months ended December 31, 2020. |
(c) | Period from October 11, 2017, date operations commenced, through June 30, 2018. |
(d) | Calculated on average shares outstanding during the period. |
(e) | Total return amounts have not been annualized. |
(f) | Includes reimbursement from Advisor. |
(g) | Computed on an annualized basis. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
1 |
See accompanying notes.
132
Financial Highlights | ||||||||||||||||
Principal Exchange-Traded Funds | ||||||||||||||||
(unaudited) | ||||||||||||||||
Principal U.S. Small-Cap Multi Factor ETF (a) | ||||||||||||||||
For a share outstanding: | ||||||||||||||||
Period ended | Year ended | Year ended | Year ended | Period ended | ||||||||||||
December 31, 2020(b) | June 30, 2020 | June 30, 2019 | June 30, 2018 | June 30, 2017 (c) | ||||||||||||
Net asset value, beginning of period | $ | 27.36 | $ | 31.43 | $ | 33.45 | $ | 28.84 | $ | 25.00 | ||||||
Investment Operations: | ||||||||||||||||
Net investment income (loss) (d) | 0.30 | 0.45 | 0.40 | 0.29 | 0.26 | |||||||||||
Net realized and change in unrealized gain (loss) | 9.08 | (4.11 | ) | (2.03 | ) | 4.64 | 3.75 | |||||||||
Total from investment operations | 9.38 | (3.66 | ) | (1.63 | ) | 4.93 | 4.01 | |||||||||
Dividends to Shareholders from: | ||||||||||||||||
Net investment income | (0.37 | ) | (0.41 | ) | (0.39 | ) | (0.30 | ) | (0.17 | ) | ||||||
Net realized gains | — | — | — | (0.02 | ) | — | ||||||||||
Total dividends to stockholders | (0.37 | ) | (0.41 | ) | (0.39 | ) | (0.32 | ) | (0.17 | ) | ||||||
Net asset value, end of period | $ | 36.37 | $ | 27.36 | $ | 31.43 | $ | 33.45 | $ | 28.84 | ||||||
Total return | 34.55 | % (e) | (11.71 | )% | (4.84 | )% | 17.14 | % | 16.08 | % (e) | ||||||
Ratios/Supplemental Data: | ||||||||||||||||
Net assets, end of period (000s) | $ | 860,049 | $ | 328,305 | $ | 355,200 | $ | 351,176 | $ | 275,466 | ||||||
Ratio of expenses to average net assets | 0.38 | % (f) | 0.38 | % | 0.38 | % | 0.38 | % | 0.38 | % (f) | ||||||
Ratio of net investment income (loss) to average net assets | 1.95 | % (f) | 1.54 | % | 1.27 | % | 0.94 | % | 1.21 | % (f) | ||||||
Portfolio turnover rate (g) | 42.9 | % | 80.4 | % | 81.9 | % | 76.3 | % | 44.7 | % (f) |
1
(a) | Effective September 30, 2020, Principal U.S. Small-Cap Multi-Factor Index ETF changed its name to Principal U.S. Small-Cap Multi-Factor ETF. |
(b) | Six months ended December 31, 2020. |
(c) | Period from September 21, 2016, date operations commenced, through June 30, 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. |
1 |
See accompanying notes.
133
Financial Highlights | ||||||||||||||||||
Principal Exchange-Traded Funds | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
Principal Value ETF (a) | ||||||||||||||||||
For a share outstanding: | ||||||||||||||||||
Period ended | ||||||||||||||||||
December 31, | Year ended | Year ended | Year ended | Year ended | Period ended | |||||||||||||
2020(b) | June 30, 2020 | June 30, 2019 | June 30, 2018 | June 30, 2017 | June 30, 2016 (c) | |||||||||||||
Net asset value, beginning of period | $ | 27.75 | $ | 31.99 | $ | 32.49 | $ | 29.16 | $ | 24.65 | $ | 25.00 | ||||||
Investment Operations: | ||||||||||||||||||
Net investment income (loss) (d) | 0.47 | 0.87 | 0.71 | 0.61 | 0.54 | 0.18 | ||||||||||||
Net realized and change in unrealized gain (loss) | 6.58 | (4.36 | ) | (0.51 | ) | 3.21 | 4.67 | (0.53 | ) | |||||||||
Total from investment operations | 7.05 | (3.49 | ) | 0.20 | 3.82 | 5.21 | (0.35 | ) | ||||||||||
Dividends to Shareholders from: | ||||||||||||||||||
Net investment income | (0.87 | ) | (0.75 | ) | (0.70 | ) | (0.47 | ) | (0.67 | ) | — | |||||||
Net realized gains | — | — | — | (0.02 | ) | (0.03 | ) | — | ||||||||||
Total dividends to stockholders | (0.87 | ) | (0.75 | ) | (0.70 | ) | (0.49 | ) | (0.70 | ) | — | |||||||
Net asset value, end of period | $ | 33.93 | $ | 27.75 | $ | 31.99 | $ | 32.49 | $ | 29.16 | $ | 24.65 | ||||||
Total return | 25.90 | % (e) | (11.09 | )% | 0.68 | % | 13.17 | % | 21.42 | % | (1.39 | )% (e) | ||||||
Ratios/Supplemental Data: | ||||||||||||||||||
Net assets, end of period (000s) | $ | 16,968 | $ | 31,907 | $ | 14,395 | $ | 14,622 | $ | 7,290 | $ | 6,163 | ||||||
Ratio of expenses to average net assets | 0.15 | % (f) | 0.29 | % (g) | 0.29 | % (g) | 0.29% (g) | 0.40 | % | 0.40 | % (f) | |||||||
Ratio of gross expenses to average net assets | —% (h) | 0.32 | % | 0.40 | % | 0.40 | % | —% (h) | —% (h) | |||||||||
Ratio of net investment income (loss) to average net | ||||||||||||||||||
assets | 3.10 | % (f) | 2.95 | % | 2.26 | % | 1.90 | % | 1.98 | % | 2.73 | % (f) | ||||||
Portfolio turnover rate (i) | 1.5 | % | 47.6 | % | 49.2 | % | 55.5 | % | 3.0 | % | 7.1 | % (f) |
(a) | Effective September 30, 2020, Principal Shareholder Yield Index ETF changed its name to Principal Value ETF. |
(b) | Six months ended December 31, 2020. |
(c) | Period from March 21, 2016, date of operations commenced, through June 30, 2016. |
(d) | Calculated on average shares outstanding during the period. |
(e) | Total return amounts have not been annualized. |
(f) | Computed on an annualized basis. |
(g) | Includes reimbursement from Advisor. |
(h) | Ratio is not applicable as there was no reimbursement from Advisor in the period. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
1 |
See accompanying notes.
134
Shareholder Expense Example
Principal Exchange-Traded Funds
December 31, 2020 (unaudited)
As a shareholder of Principal Exchange-Traded Funds, you incur two types of costs: (1) transaction costs, including brokerage commissions paid on purchases and sales of Fund shares and (2) ongoing costs, including management fees. This Example is intended to help you understand your ongoing costs (in dollars) of investing in Principal Exchange-Traded 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, 2020 through December 31, 2020, except as noted in the following table.
Actual Expenses
The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second section of table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other fund.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as contingent deferred sales charges, redemption fees or exchange fees. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different fund. In addition, if these transaction costs were included, your costs would have been higher.
Annualized | Expenses | ||||||||||
Ending | Expense | Paid During | |||||||||
Beginning | Account | Ratio July 1, | Period July | ||||||||
Account | Value | 2020 to | 1, 2020 to | ||||||||
Value | December 31, | December 31, | December 31, | ||||||||
July 1, 2020 | 2020 | 2020 | 2020(a) | ||||||||
Principal Active Global Dividend Income ETF | |||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,251.60 | 0.58 | % | $ | 3.29 | |||
Hypothetical 5% Annual Return | 1,000.00 | 1,022.28 | 0.58 | 2.96 | |||||||
Principal Active Income ETF | |||||||||||
Actual Fund Return | 1,000.00 | 1,130.00 | 0.49 | 2.63 | |||||||
Hypothetical 5% Annual Return | 1,000.00 | 1,022.74 | 0.49 | 2.50 | |||||||
Principal Healthcare Innovators Index ETF | |||||||||||
Actual Fund Return | 1,000.00 | 1,326.80 | 0.42 | 2.46 | |||||||
Hypothetical 5% Annual Return | 1,000.00 | 1,023.09 | 0.42 | 2.14 | |||||||
Principal1International1Multi,Factor1ETF1 | |||||||||||
Actual Fund Return | 1,000.00 | 1,215.00 | 0.25 | 1.40 | |||||||
Hypothetical 5% Annual Return | 1,000.00 | 1,023.95 | 0.25 | 1.28 |
135
Shareholder Expense Example | ||||||||||
Principal Exchange-Traded Funds | ||||||||||
December 31, 2020 (unaudited) | ||||||||||
Annualized | Expenses | |||||||||
Ending | Expense | Paid During | ||||||||
Beginning | Account | Ratio July 1, | Period July 1, | |||||||
Account | Value | 2020 to | 2020 to | |||||||
Value | December 31 | December 31 | December 31, | |||||||
July 1, 2020 | 2020 | 2020 | 2020(a) | |||||||
Principal Investment Grade Corporate Active ETF | ||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,061.10 | 0.26% | $ | 1.35 | |||
Hypothetical 5% Annual Return | 1,000.00 | 1,023.89 | 0.26 | 1.33 | ||||||
Principal Millennials Index ETF | ||||||||||
Actual Fund Return | 1,000.00 | 1,360.40 | 0.45 | 2.68 | ||||||
Hypothetical 5% Annual Return | 1,000.00 | 1,022.94 | 0.45 | 2.29 | ||||||
Principal Quality ETF | ||||||||||
Actual Fund Return | 1,000.00 | 1,195.70 | 0.15 | 0.83 | ||||||
Hypothetical 5% Annual Return | 1,000.00 | 1,024.45 | 0.15 | 0.77 | ||||||
Principal Spectrum Preferred Securities Active ETF | ||||||||||
Actual Fund Return | 1,000.00 | 1,094.40 | 0.55 | 2.90 | ||||||
Hypothetical 5% Annual Return | 1,000.00 | 1,022.43 | 0.55 | 2.80 | ||||||
Principal Spectrum Tax-Advantaged Dividend | ||||||||||
Active ETF | ||||||||||
Actual Fund Return | 1,000.00 | 1,103.70 | 0.60 | 3.18 | ||||||
Hypothetical 5% Annual Return | 1,000.00 | 1,022.18 | 0.60 | 3.06 | ||||||
Principal Ultra-Short Active Income ETF | ||||||||||
Actual Fund Return | 1,000.00 | 1,004.00 | 0.18 | 0.91 | ||||||
Hypothetical 5% Annual Return | 1,000.00 | 1,024.30 | 0.18 | 0.92 | ||||||
Principal U.S. Mega-Cap ETF | ||||||||||
Actual Fund Return | 1,000.00 | 1,203.00 | 0.12 | 0.67 | ||||||
Hypothetical 5% Annual Return | 1,000.00 | 1,024.60 | 0.12 | 0.61 | ||||||
Principal U.S. Small-Cap Multi-Factor ETF | ||||||||||
Actual Fund Return | 1,000.00 | 1,345.50 | 0.38 | 2.25 | ||||||
Hypothetical 5% Annual Return | 1,000.00 | 1,023.29 | 0.38 | 1.94 | ||||||
Principal Value ETF | ||||||||||
Actual Fund Return | 1,000.00 | 1,259.00 | 0.15 | 0.85 | ||||||
Hypothetical 5% Annual Return | 1,000.00 | 1,024.45 | 0.15 | 0.77 | ||||||
(a) Expenses are equal to a Fund's annualized expense ratio multiplied by the average account value over the period, | ||||||||||
multiplied by 184/365. |
136
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 2020 and December 2020 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 2020 | ||||||
Fund | Net Income | Realized Gain | Capital Sources | |||
Principal Active Global Dividend Income ETF | 0.00 | % | 100.00 | % | 0.00 | % |
Principal Millennials Index ETF | 31.85 | 68.15 | 0.00 | |||
December 2020 | ||||||
Fund | Net Income | Realized Gain | Capital Sources | |||
Principal Active Global Dividend Income ETF | 0.00 | % | 100.00 | % | 0.00 | % |
Principal International Multi-Factor ETF | 90.80 | 9.20 | 0.00 | |||
Principal Millennials Index ETF | 0.00 | 100.00 | 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.
137
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 (unless such mandatory retirement age is waived by the Board). 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
Other | |||
Name, | Number of Portfolios | Directorships | |
Position Held with the Trust, | Principal Occupation(s) | in Fund Complex | Held by Trustee |
Year of Birth | During past 5 years | Overseen by Trustee | During Past 5 Years |
Elizabeth Ballantine | Principal, EBA Associates | 123 | Durango Herald, Inc; |
Trustee since 2014 | McClatchy Newspapers, Inc. | ||
Chair, Nominating and Governance | |||
Committee | |||
1948 | |||
Leroy T. Barnes, Jr. | Retired. | 123 | McClatchy Newspapers, Inc.; |
Trustee since 2014 | Frontier Communications, | ||
Member, Audit Committee | Inc.; formerly, Herbalife Ltd. | ||
Member, Nominating and Governance | |||
Committee | |||
1951 | |||
Craig Damos | President, C.P. Damos | 123 | None |
Trustee since 2014 | Consulting LLC | ||
Member, Nominating and Governance | |||
Committee | |||
Member, Executive Committee | |||
1954 | |||
Fritz S. Hirsch | Formerly, CEO, MAM | 123 | MAM USA |
Trustee since 2014 | USA | ||
Member, Operations Committee | |||
Chair, 15(c) Committee | |||
1951 | |||
Victor Hymes | Founder and Managing | 123 | Formerly, Montgomery |
Trustee since 2020 | Member of Legato Capital | Street Income Securities Inc. | |
Member, Audit Committee | Management, LLC | ||
1957 | |||
John D. Kenney | Formerly, Legg Mason | 123 | Formerly: Legg Mason |
Trustee since 2020 | Global Asset Management | Investment Management | |
Member, Operations Committee | Affiliates: Brandywine | ||
Member, 15(c) Committee | Global; Clarion Partners; | ||
1965 | ClearBridge Investments; | ||
Entrust Global; Legg Mason | |||
Poland; Martin Currie | |||
Investment Management; | |||
Permal Group (merged into | |||
Entrust); QS Investors; | |||
RARE Infrastructure; Royce | |||
and Associates; and Western | |||
Asset Management |
138
Other | |||
Name, | Number of Portfolios | Directorships | |
Position Held with the Trust, | Principal Occupation(s) | in Fund Complex | Held by Trustee |
Year of Birth | During past 5 years | Overseen by Trustee | During Past 5 Years |
Padelford L. Lattimer | TBA Management | 123 | None |
Trustee since 2020 | Consulting LLC | ||
Member, Operations Committee | |||
Member, 15(c) Committee | |||
1961 | |||
Karen (“Karrie”) McMillan | Managing Director, | 123 | None |
Trustee since 2014 | Patomak Global Partners, | ||
Chair, Operations Committee | LLC. | ||
1961 | |||
Elizabeth A. Nickels | Retired. | 123 | SpartanNash; formerly: |
Trustee since 2015 | Charlotte Russe; Follet | ||
Chair, Audit Committee | Corporation; PetSmart; | ||
Member, Nominating and Governance | Spectrum Health Systems | ||
Committee | |||
1962 | |||
Mary M. (“Meg”) VanDeWeghe | CEO and President, Forte | 123 | Helmerich & Payne; |
Trustee since 2018 | Consulting, Inc. | Formerly: B/E Aerospace; | |
Member, Audit Committee | Brown Advisory; Denbury | ||
Member, 15(c) Committee | Resources Inc.; Nalco (and its | ||
1959 | successor Ecolab); and WP | ||
Carey |
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 | Other | ||
Portfolios in | Directorships | ||
Name, | Fund Complex | Held by Trustee | |
Position Held with the Trust, | Principal Occupation(s) | Overseen | During Past 5 |
Year of Birth | During past 5 years | by Trustee | Years |
Timothy M. Dunbar | Director, PGI since 2018 | 123 | None |
Trustee since 2019 | President, Principal Global Asset Management | ||
Chair, Executive Committee | (“PGAM”), PGI, Principal Life Insurance | ||
1957 | Company (“PLIC”), and Principal Financial | ||
Services, Inc. (“PFSI) (2018-2021) | |||
Executive Vice President, RobustWealth, Inc. | |||
since 2018 | |||
Executive Vice President/Chief Investment | |||
Officer, PLIC and PFSI (2014-2018) | |||
Patrick Halter | Chief Executive Officer and President, PGI since | 123 | None |
Trustee since 2017 | 2018 | ||
Member, Executive Committee | Chief Operating Officer, PGI (2017-2018) | ||
1959 | Chair, PGI since 2018 | ||
Director, PGI (2003-2018) | |||
President, PGAM, PFSI, and PLIC since 2020 | |||
Director, Origin Asset Management LLP since | |||
2018 | |||
Chair, Post Advisory Group, LLC (2017-2020) | |||
Director, Post since 2020 | |||
Chief Executive Officer, Principal Real Estate | |||
Investors, LLC (“PREI”) since 2005 | |||
Chair, PREI since 2004 | |||
Chair, Spectrum Asset Management, Inc. since | |||
2017 | |||
Chair, CCIP, LLC 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.
140
The following table presents officers of the Trust.
Name, Position Held with the Trust, Address, and Year of Birth Kamal Bhatia President, Chief Executive Officer Des Moines, IA 50392 1972 | Principal Occupation(s) During past 5 years Director, PGI since 2019 Director, PFA since 2020 Senior Executive Director and Chief Operating Officer, PFSI and PLIC since 2020 President, PFSI and PLIC (2019-2020) Director, PFD since 2019 Director, PREI since 2020 Chair and Executive Vice President, PSS since 2019 Principal Executive Officer, OC Private Capital (2017-2019) Senior Vice President, OppenheimerFunds (2011- 2019) |
Randy D. Bolin Assistant Tax Counsel Des Moines, IA 50392 1961 | Vice President/Associate General Counsel, PFSI since 2013 Vice President/Associate General Counsel, PGI since 2016 Assistant General Counsel, PGI (2007–2016) Vice President/Associate General Counsel, PLIC since 2013 |
Tracy W. Bollin Chief Financial Officer Des Moines, IA 50392 1970 | Managing Director, PGI since 2016 Chief Operating Officer, PMC (2015-2017) Chief Financial Officer, PFA (2010-2015) 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) President, PSS since 2015 Chief Financial Officer, PSS (2010-2015) |
Gina L. Graham Treasurer Des Moines, IA 50392 1965 | Vice President/Treasurer, PFA since 2016 Vice President/Treasurer, PFD since 2016 Vice President/Treasurer, PGI since 2016 Vice President/Treasurer, PLIC since 2016 Vice President/Treasurer, PMC (2016-2017) Vice President/Treasurer, PREI since 2016 Vice President/Treasurer, PSI since 2016 Vice President/Treasurer, PSS since 2016 |
Laura B. Latham Assistant Counsel and Assistant Secretary Des Moines, IA 50392 1986 Diane K. Nelson AML Officer Des Moines, 50392 1965 Sara L. Reece Vice President and Controller Des Moines, IA 50392 1975 | Counsel, PGI since 2018 Prior thereto, Attorney in Private Practice Chief Compliance Officer/AML Officer, PSS (Since 2015) Compliance Advisor, PMC (2013-2015) Director - Accounting, PLIC since 2015 Assistant Financial Controller, PLIC prior to 2015 |
141
Name, Position Held with the Trust, Address, and Year of Birth Teri R. Root Chief Compliance Officer Des Moines, IA 50392 1979 | Principal Occupation(s) During past 5 years Chief Compliance Officer – Funds, PGI since 2018 Interim Chief Compliance Officer (2018) Deputy Chief Compliance Officer (2015-2018) Deputy Chief Compliance Officer, PGI since 2017 Vice President and Chief Compliance Officer, PMC (2015–2017) Vice President, PSS since 2015 |
Britney L. Schnathorst Assistant Counsel and Assistant Secretary Des Moines, IA 50392 1981 Adam U. Shaikh Assistant Counsel Des Moines, IA 50392 1972 John L. Sullivan Assistant Counsel and Assistant Secretary Des Moines, IA 50392 1970 Dan L. Westholm Assistant Treasurer Des Moines, IA 50392 1966 | Counsel, PLIC since 2013 Assistant General Counsel, PGI since 2018 Counsel, PGI (2017-2018) Counsel, PLIC since 2006 Counsel, PMC (2007-2013, 2014-2017) Counsel, PGI since 2019 Prior thereto, Attorney in Private Practice Assistant Vice President/Treasurer, PGI (since 2017) Assistant Vice President/Treasury, PFA (since 2013) Assistant Vice President/Treasury, PFD (since 2013) Assistant Vice President/Treasury, PLIC (since 2014) Assistant Vice President/Treasury, PMC (2013-2017) Assistant Vice President/Treasury, PSI (since 2013) Assistant Vice President/Treasury, PSS (since 2013) |
Beth C. Wilson Vice President and Secretary Des Moines, IA 50392 1956 Clint L. Woods Counsel, Vice President and Assistant Secretary Des Moines, IA 50392 1961 | Director and Secretary – Funds, PLIC Of Counsel (2017-2018) Vice President (2016-2017) Counsel (2015-2017) Vice President, PLIC since 2015 Associate General Counsel, Governance Officer, and Assistant Corporate Secretary, PLIC since 2013 |
Jared A.Yepsen Assistant Tax Counsel Des Moines, IA 50392 1981 | Counsel, PGI since 2017 Counsel, PLIC since 2015 Senior Attorney, Transamerica Life Insurance Company (TLIC) (2013-2015) |
142
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, 2020 and as supplemented, and the Statements of Additional Information dated November 1, 2020 and as supplemented. These documents may be obtained free of charge by writing Principal Exchange-Traded Funds, c/o ALPS Distributors, Inc., 1290 Broadway, Suite 1100, Denver, CO 80203 or telephoning 1-800-787-1621. The prospectuses may be viewed at www.PrincipalETFs.com.
PROXY VOTING POLICIES
A description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities and the results of the proxy votes for the most recent twelve months ended June 30 may be obtained free of charge by telephoning 1-800-787-1621, or on the SEC website at www.sec.gov.
SCHEDULES OF INVESTMENTS
The Trust files complete schedules of investments with the Securities and Exchange Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Trust’s Form N-PORT are available on the Commission’s website at www.sec.gov.
143
BOARD CONSIDERATION OF INVESTMENT ADVISORY CONTRACTS
During the period covered by this report, the Board of Trustees of Principal Exchange-Traded Funds (“PETF”) approved the annual review and renewal of the Management Agreements for all Funds and the annual renew and review of the Sub-advisory Agreement for the Principal Spectrum Preferred Securities Active ETF and the Principal Spectrum Tax-Advantaged Dividend Active ETF.
Annual Review and Renewal of Management Agreement and Sub-Advisory Agreements
At its September 15, 2020 meeting, the Board performed its annual review and renewal process relating to the Management Agreement and the Subadvisory Agreement for all Funds.
Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”) requires the Board, including a majority of the Directors who have no direct or indirect interest in the investment advisory agreements and who are not “interested persons” of PETF, as defined in the 1940 Act (the “Independent Directors”), annually to review and to consider the continuation of: (1) the Management Agreement between the Principal Global Investors, LLC (the “Manager”) and PETF, on behalf of each of the thirteen (13) series of PETF (each series is referred to as a “Fund”); and (2) the Subadvisory Agreement between the Manager and Spectrum Asset Management Inc. (“Spectrum”) (the “Subadvisor”). The Management Agreement and the Subadvisory Agreement are collectively referred to as the “Advisory Agreements.”
The Board 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, including, among other information, information regarding performance, advisory fees, total expenses, profitability from the Advisory Agreements to the Manager and information about economies of scale. The Board reviewed the materials provided and concluded that it was provided all information reasonably necessary to evaluate the Advisory Agreements. For the PETF Principal Spectrum Tax-Advantaged Dividend Active ETF, which began operations after the previous annual evaluation of the Advisory Agreements in September 2019, the Board considered that the Fund had less than a full year of operations and reviewed the information that they had considered in connection with the initial approval of the Advisory Agreements for the Fund, as updated, along with such additional information as the Board requested supplementally.
Management Agreement
With respect to the Management Agreement for each Fund, the Board considered, among other factors, that the Manager and its affiliates have demonstrated a long-term commitment to support the Funds. In addition, the Board considered the following factors, and made certain findings and conclusions with respect thereto, for each of the Funds. The Board concluded that a relationship with a capable and conscientious adviser is in the best interests of each Fund.
144
Nature, Extent and Quality of Services
The Board considered the nature, quality and extent of the services provided under the Management Agreement, including accounting and administrative services, as applicable. The Board considered the experience and skills of senior management leading Fund operations, the experience and skills of the personnel performing the functions under the Management Agreement and the resources made available to such personnel, the ability of the Manager to attract and retain high-quality personnel and the organizational depth and stability of the Manager. The Board concluded that appropriate resources were provided under the Management Agreement. The Board also considered that, during the periods reviewed, the Manager had delegated day-to-day portfolio management responsibility for the Principal Spectrum Preferred Securities Active ETF and the Principal Spectrum Tax-Advantaged Dividend Active ETF to Spectrum. The Board noted that the Manager’s process for the selection of subadvisors emphasizes the selection of Principal-affiliated subadvisors that are determined to be qualified under the Manager’s due diligence process, but that the Manager will select an unaffiliated subadvisor to manage all or a portion of a Fund’s investment portfolio when deemed necessary or appropriate based upon a consideration of the Fund’s investment mandate and available expertise and resources within the Principal organization. Based upon all relevant factors, the Board concluded that the nature, quality and extent of the services provided by the Manager to the Funds under the Management Agreement was satisfactory.
Investment Performance
The Board reviewed each Fund’s investment performance over longer-term periods, reviewing both the investment return during the three-year period ended March 31, 2020 and the blended investment return (50%/50%) of the three- and five-year periods ended March 31, 2019, and compared those returns to various agreed-upon performance measures, including peer-group data based upon a broad-based, industry category determined by Morningstar.
For Funds that did not have a three-year or five-year performance history, the Board reviewed performance for a one-year or three-year period ended March 31, 2020, respectively, if available. The Board also compared each Fund’s investment performance over the one-, three- and five-year periods ended March 31, 2020, as available, to one or more relevant benchmark indices. The Board noted that certain Funds had commenced operations recently and, accordingly, no or limited performance information was considered. The Board also considered whether investment results were consistent with a Fund’s investment objective(s) and policies. For most Funds, the Board concluded that the Fund’s investment returns met acceptable levels of investment performance. There were certain Funds that had not attained during the relevant period(s) a level of investment performance considered satisfactory by the Board. For such Funds, the Board also considered other factors, such as the longer-term performance of each such Fund, remedial efforts being taken to improve performance and/or the Manager’s explanation for the performance of such Fund. The Board considered the Manager’s due diligence process for evaluating the performance of all Funds for which they received regular reporting and concluded that the Manager has in place an effective due diligence process to monitor investment performance, and to encourage remedial action if necessary.
145
Investment Management Fees
The Board considered each Fund’s effective unitary management fee rate. For each Fund, the Board received certain information from Broadridge including comparing unitary management fee rate and total expense ratio for the Fund’s commons shares to investment advisory fee rates and expense ratios of funds in an appropriate Expense Group and Expense Universe provided by Broadridge.
In evaluating the effective management fee rates, the Board considered a variety of factors, including the effective fee rates, comparison to fee rates of peer group funds and other funds and non-fund accounts managed by the Manager, subadvisory fee rates paid, services provided, investment performance, total net expense ratios, profitability, the existence and sharing of economies of scale, fall-out benefits and expense caps and fee waivers.
Considering all factors they deemed relevant, the Board concluded that the management fee payable by each Fund was reasonable in light of the nature, quality and extent of the services provided by the Manager and other relevant factors.
Profitability
The Board reviewed detailed information regarding revenues the Manager, received under the Management Agreement and the estimated direct and indirect costs incurred in providing to each Fund the services described in the Management Agreement for the year ended December 31, 2019. The Board also considered the returns on revenue generated in connection with the payment of subadvisory fees to Spectrum and the aggregated return on revenue to the Manager and its affiliates for the year ended December 31, 2019. 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 noted that the Funds pay a unitary fee and determined that no breakpoints are necessary at this time, due, among other factors, to their current asset levels and taking into account levels of profitability to the Manager.
Sub-advisory Agreement
Nature, Quality and Extent of Services
The Board consideredthe nature, quality and extent of the services provided under the Subadvisory Agreement with Spectrum with respect to the Principal Spectrum Preferred Securities Active ETF and the Principal Spectrum Tax-Advantaged Dividend Active ETF. The Board considered the reputation, qualifications and background of Spectrum, the investment approach of Spectrum, the experience and skills of investment personnel responsible for the day-to-day management of the Principal Spectrum Preferred Securities Active ETF and the Principal Spectrum Tax-Advantaged Dividend Active ETF and the resources made available to such personnel. The Board also considered Spectrum’s compliance with investment policies and general legal compliance. Based upon all relevant factors, the Board concluded that the nature, quality and extent of the services provided by Spectrum to the Principal Spectrum Preferred Securities Active ETF and the Principal
146
Spectrum Tax-Advantaged Dividend Active ETF Funds under the Subadvisory Agreement is satisfactory.
Investment Performance
The Manager had advised the Board that the investment services delivered by Spectrum was reasonable. Based upon all relevant factors, the Board concluded that Spectrum is qualified and that the investment performance of the Subadvisor met acceptable levels of investment performance
Subadvisory Fees, Economies of Scale and Profitability
The Board considered the subadvisory fee rates, noting that the Manager compensates Spectrum from its own management fee, so that shareholders pay only the management fee.
Other Benefits to the Manager and Subadvisers
The Board also considered the character and amount of other incidental benefits received by the Manager and its affiliates from their relationships with the Funds. The Board concluded that the management and subadvisory fees w ere reasonable in light of these fall-out benefits.
The Board also considered the character and amount of other incidental benefits received by Spectrum when evaluating the subadvisory fee. The Board concluded that taking into account these fall-out benefits, the subadvisory fee was reasonable.
Overall Conclusions
Based upon all of the information considered and the conclusions reached, the Board determined that the terms of each Advisory Agreement, including the fee rate payable thereunder, 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.
147
![](https://capedge.com/proxy/N-CSRS/0001572661-21-000011/finalreportfrombroadrix152x1.jpg)
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 period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 12 – DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13 – EXHIBITS
(a)(1) Code of Ethics - Not applicable to semi-annual reports.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.CERT.
(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Principal Exchange-Traded Funds | |
By | /s/ Kamal Bhatia | |
Kamal Bhatia, President and CEO | ||
Date | 2/9/21 |
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/ Kamal Bhatia
Kamal Bhatia, President and CEO
Date | 2/9/21 |
By | /s/ Tracy W. Bollin |
Tracy W. Bollin, Chief Financial Officer | |
Date | 2/9/21 |