Principal Exchange-Traded Funds - Principal Investment Grade Corporate Active ETF (IG)

Overview

The Principal Investment Grade Corporate Active ETF (IG) is an actively managed fund that seeks to provide current income and, secondarily, capital appreciation by investing primarily in investment-grade corporate bonds. The fund employs a bottom-up, fundamental research-driven approach to select securities.

Reputation and Reliability

Principal Funds has a solid reputation as a financial services provider, known for its diverse range of investment products and commitment to client needs.

Management Expertise

The fund is managed by a team of experienced fixed-income professionals with expertise in corporate bond analysis and portfolio construction.

Goal

The fund seeks to maximize total return by investing in a diversified portfolio of investment-grade corporate bonds.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but actively selects corporate bonds based on in-house research and analysis.

Composition The ETF's portfolio primarily comprises investment-grade corporate bonds across various sectors and maturities.

Market Share: The fund has a moderate market share within the actively managed investment-grade corporate bond ETF space.

Total Net Assets (AUM): 342475296

Key Competitors

• iShares Broad USD Investment Grade Corporate Bond ETF (USIG)
• Vanguard Total Corporate Bond ETF (VTC)
• SPDR Portfolio Intermediate Term Corporate Bond ETF (ITR)

Competitive Landscape

The actively managed investment-grade corporate bond ETF market is competitive, with various funds offering different investment strategies and risk profiles. IG competes with larger, passively managed ETFs that track broad market indices, as well as other actively managed funds. IG's advantage may lie in its active management, potentially allowing it to outperform passively managed funds in certain market conditions. However, this comes with higher expenses.

Historical Performance: Historical performance data is unavailable in the provided context. It will require live data or a database.

Benchmark Comparison: Benchmark comparison data is unavailable in the provided context. It will require live data or a database.

Expense Ratio: 0.22

Average Trading Volume

The average trading volume of IG suggests moderate liquidity, allowing investors to buy and sell shares efficiently during normal market conditions.

Bid-Ask Spread

The bid-ask spread of IG reflects the cost of trading the ETF, and will vary depending on market conditions and trading volume.

Market Environment Factors

Economic growth, interest rate movements, credit spreads, and corporate earnings all influence IG's performance. Rising interest rates may negatively impact bond prices, while strong economic growth may improve corporate creditworthiness.

Growth Trajectory

IG's growth trajectory is influenced by its ability to attract assets through strong performance and effective marketing. Changes in investment strategy and holdings are monitored to ensure alignment with the fund's investment objective.

Competitive Edge

Principal Investment Grade Corporate Active ETF differentiates itself with its active management approach, focusing on bottom-up security selection driven by fundamental research. The experienced management team aims to identify undervalued corporate bonds and generate alpha. This allows for flexibility in adjusting the portfolio based on changing market conditions. The active approach also enables the fund to potentially mitigate risks and enhance returns compared to passive index-tracking funds.

Volatility

IG's volatility depends on interest rate sensitivity and credit risk of holdings.

Market Risk

The fund is exposed to market risk associated with corporate bonds, including credit risk (risk of default) and interest rate risk (risk of price decline due to rising interest rates).

Ideal Investor Profile

The ideal investor for IG is one seeking current income and capital appreciation from investment-grade corporate bonds, willing to accept moderate risk, and comfortable with active management.

Market Risk

IG may be suitable for long-term investors seeking fixed-income exposure within a diversified portfolio, but investors should be aware of active management risks.

Principal Investment Grade Corporate Active ETF seeks to provide current income and capital appreciation through active management of investment-grade corporate bonds. The fund offers a potentially higher return compared to passively managed ETFs due to its active approach, but also comes with higher costs and the risk of underperformance. The fund is suitable for investors who seek fixed income exposure and are comfortable with moderate risk and active management. Investors should carefully consider the fund's investment strategy, risk factors, and fees before investing.

Data Sources:

• Principal Funds Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investors should consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.