Principal Exchange-Traded Funds - Principal Spectrum Tax-Advantaged Dividend Active ETF (PQDI)

Overview

The Principal Spectrum Tax-Advantaged Dividend Active ETF (PQDI) seeks to provide current income and long-term capital appreciation by investing in dividend-paying securities while employing a tax-advantaged strategy.

Reputation and Reliability

Principal Funds is a well-established asset manager with a strong track record in providing investment solutions.

Management Expertise

The management team consists of experienced professionals with expertise in dividend investing and tax-efficient strategies.

Goal

Seeks to provide current income and long-term capital appreciation.

Investment Approach and Strategy

Strategy: Employs an active management approach, selecting dividend-paying securities that offer attractive yields and potential for capital appreciation, while also considering tax implications.

Composition Primarily invests in dividend-paying common stocks, preferred stocks, and other income-generating securities.

Market Share: Data not readily available without live market data feeds.

Total Net Assets (AUM): Data not readily available without live market data feeds.

Key Competitors

• SCHD
• DVY
• VIG

Competitive Landscape

The dividend ETF market is highly competitive with several established players. PQDI differentiates itself through its active management and focus on tax-advantaged investing. However, larger passive ETFs like SCHD and DVY have significant cost advantages due to their lower expense ratios.

Historical Performance: Data not readily available without live market data feeds.

Benchmark Comparison: Data not readily available without live market data feeds.

Expense Ratio: 0.45

Average Trading Volume

The ETF's average trading volume can vary, but is typically moderate, and potential investors should check current averages before making investment decisions.

Bid-Ask Spread

The bid-ask spread is generally competitive but can widen during periods of market volatility.

Market Environment Factors

Economic indicators, interest rate movements, and dividend policies of companies significantly impact PQDI's performance.

Growth Trajectory

PQDI's growth depends on its ability to generate attractive returns relative to its peers and maintain its tax-advantaged approach.

Competitive Edge

PQDI's active management strategy and focus on tax-advantaged dividend investing offer potential advantages over passive dividend ETFs. The fund's ability to select high-quality dividend-paying stocks and manage tax implications efficiently can lead to superior after-tax returns. The fund's active approach allows it to adapt to changing market conditions and identify undervalued dividend opportunities. The specialized focus on tax efficiency distinguishes it from broader dividend ETFs.

Volatility

PQDI's volatility depends on the volatility of its underlying holdings, which are primarily dividend-paying stocks.

Market Risk

PQDI is subject to market risk, which is the risk that the overall market declines and reduces the value of the ETF's holdings.

Ideal Investor Profile

The ideal investor for PQDI is one seeking current income, long-term capital appreciation, and is concerned about the tax implications of dividend income. Investors looking for a tax-efficient dividend strategy may find this ETF suitable.

Market Risk

PQDI is suitable for long-term investors seeking a combination of income and capital appreciation with a focus on tax efficiency.

Principal Spectrum Tax-Advantaged Dividend Active ETF (PQDI) is an actively managed ETF seeking current income and long-term capital appreciation through dividend-paying securities. The ETF aims to provide tax-advantaged returns by strategically managing its portfolio and minimizing tax liabilities. Its active management and focus on tax efficiency distinguish it from passive dividend ETFs. PQDI is suitable for long-term investors looking for a tax-conscious dividend investment strategy but investors should consider the expense ratio when compared to passive dividend funds. The performance is tied to the market conditions and the skill of the portfolio management team in choosing securities.

Data Sources:

• Principal Funds Website
• SEC Filings
• ETF.com

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Market share data and total net assets data is based on available information and may not be completely accurate.