Principal Quality ETF (PSET)

Overview

The Principal Quality ETF seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Nasdaq US Quality Dividend Achievers Index. It invests in dividend-paying US companies with a history of increasing dividends and strong financial metrics.

Reputation and Reliability

Principal Funds is a well-established asset manager with a long history and solid reputation.

Management Expertise

Principal Funds has a team of experienced investment professionals managing its ETF products.

Goal

To track the performance of the Nasdaq US Quality Dividend Achievers Index, providing exposure to high-quality, dividend-paying US companies.

Investment Approach and Strategy

Strategy: The ETF tracks the Nasdaq US Quality Dividend Achievers Index, a rules-based index that selects companies based on dividend history and quality factors.

Composition The ETF primarily holds stocks of large-cap US companies with a history of increasing dividends.

Market Share: The Principal Quality ETF has a smaller market share compared to larger, more established dividend ETFs.

Total Net Assets (AUM): 150000000

Key Competitors

• SCHD
• DVY
• NOBL

Competitive Landscape

The dividend ETF market is highly competitive. PVAL differentiates itself through its quality screen, but faces competition from larger, more liquid, and well-known ETFs. It's a smaller player compared to larger established names, but its focus on quality is a selling point. Competitors may offer higher yields or different sector exposures.

Historical Performance: Past performance is not indicative of future results. The ETF's performance will depend on the performance of its underlying index.

Benchmark Comparison: The ETF's performance should be compared to the Nasdaq US Quality Dividend Achievers Index.

Expense Ratio: 0.29

Average Trading Volume

The ETF's average trading volume indicates adequate liquidity for most investors, although smaller than the largest dividend ETFs.

Bid-Ask Spread

The bid-ask spread reflects the cost of trading and indicates market efficiency.

Market Environment Factors

Economic growth, interest rates, and inflation can all affect the performance of dividend-paying stocks. Additionally, sector-specific trends can influence the ETF's holdings.

Growth Trajectory

Growth depends on market conditions, investor demand for quality dividend strategies, and the ETF's ability to attract assets. There may be changes in holdings to reflect changes in index.

Competitive Edge

PVAL's competitive edge lies in its focus on quality and dividend growth through its use of the Nasdaq US Quality Dividend Achievers Index. This quality screen may filter out companies with unsustainable dividends or weak financials. However, other ETFs may have lower expense ratios or higher dividend yields. The competitive advantage is focused investment in dividend-paying companies.

Volatility

The ETF's volatility is linked to the volatility of its underlying stock holdings, which can vary depending on market conditions.

Market Risk

The ETF is subject to market risk, including the risk of declines in stock prices. Also, it is sensitive to the interest rate environment and the stability of the companies paying dividends.

Ideal Investor Profile

The ETF is suitable for investors seeking dividend income, long-term capital appreciation, and exposure to high-quality US companies.

Market Risk

This ETF is best for long-term investors seeking dividend income, but also some capital appreciation and with some risk appetite. It is not suitable for high-frequency traders.

The Principal Quality ETF (PVAL) tracks the Nasdaq US Quality Dividend Achievers Index, providing exposure to dividend-paying US companies with strong quality metrics. Its focus on quality distinguishes it from competitors, but it has lower assets under management than larger dividend ETFs. The ETF is suitable for long-term investors seeking dividend income and capital appreciation through quality dividend stocks. Consider risks associated with interest rates, and stock specific dynamics for this ETF.

Data Sources:

• ETF provider website
• Financial data providers
• Industry research reports

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investing in ETFs involves risk, including the potential loss of principal.