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. This index is composed of U.S. stocks with high dividend yields and a track record of consistent dividend growth, focusing on companies exhibiting high-quality characteristics.

Reputation and Reliability

Principal Funds is a well-established asset manager with a solid reputation in the ETF market, known for providing diverse investment solutions.

Management Expertise

Principal Funds has a dedicated team of investment professionals experienced in managing equity ETFs, including those focused on dividend and quality strategies.

Goal

To provide investment results that closely correspond, before fees and expenses, to the performance of the Nasdaq US Quality Dividend Achievers Index.

Investment Approach and Strategy

Strategy: The ETF tracks the Nasdaq US Quality Dividend Achievers Index, which screens for U.S. companies with a minimum of ten consecutive years of increasing dividends and high quality metrics.

Composition The ETF primarily holds stocks of U.S. companies that have a history of increasing dividends and exhibit quality characteristics.

Market Share: Data on this specific ETF's market share relative to all 'quality dividend' ETFs is not widely available at a granular level.

Total Net Assets (AUM): 259800000

Key Competitors

• SCHD
• VYM
• DGRW
• NOBL

Competitive Landscape

The quality dividend ETF market is competitive, with several well-established players. PVAL distinguishes itself through its specific index tracking methodology, while competitors like SCHD and VYM offer broader market exposure. PVAL's advantage lies in its focus on consistent dividend growth and quality factors, but it might have a narrower scope compared to broader dividend ETFs. PVAL's disavantage is its smaller AUM compared to its main competitors.

Historical Performance: Historical performance data can be obtained from financial data providers, but is omitted here to comply with request.

Benchmark Comparison: Benchmark comparison data can be obtained from financial data providers, but is omitted here to comply with request.

Expense Ratio: 0.29

Average Trading Volume

The ETF's average trading volume is moderate, indicating reasonable liquidity.

Bid-Ask Spread

The bid-ask spread is typically tight, suggesting efficient trading costs.

Market Environment Factors

Economic indicators such as interest rates, inflation, and overall market sentiment can affect the performance of quality dividend stocks, as well as the health of the specific sectors in which they operate.

Growth Trajectory

The growth trajectory of the ETF is tied to the performance of its underlying index, the Nasdaq US Quality Dividend Achievers Index, and its ability to attract and retain investors.

Competitive Edge

PVAL's competitive edge lies in its targeted approach to quality dividend investing, focusing on companies with consistent dividend growth and strong financial metrics. The ETFu2019s index methodology helps ensure a focus on companies with sustainable dividend policies and solid balance sheets. This quality-focused approach provides a differentiated value proposition for investors seeking income and long-term capital appreciation. The emphasis on quality metrics may help mitigate downside risk during market downturns. Investors may like this ETF for its stable and potentially growing income.

Volatility

The ETF's historical volatility is moderate, reflecting the nature of dividend-paying stocks, but is subject to market conditions and sector-specific risks.

Market Risk

Market risk includes the potential for declines in the overall stock market, as well as risks associated with specific sectors represented in the ETF's holdings.

Ideal Investor Profile

The ideal investor profile for PVAL is a long-term investor seeking a combination of income and capital appreciation, who prioritizes quality and dividend consistency.

Market Risk

PVAL is best suited for long-term investors seeking stable income and moderate growth, and who are comfortable with equity market risk.

Principal Quality ETF (PVAL) offers investors targeted exposure to high-quality U.S. dividend-paying stocks with a history of consistent growth. Its focus on quality metrics and a well-defined index methodology provide a differentiated approach in the dividend ETF landscape. The ETF is suitable for long-term investors seeking a balance of income and capital appreciation. However, its performance is subject to market volatility and sector-specific risks, and its expense ratio is relatively low. PVAL's value proposition lies in its combination of consistent dividend yield and potential for capital growth driven by its quality stock selection process.

Data Sources:

• Principal Funds Website
• ETF.com
• Morningstar
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual financial circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results. Market share values may be estimates and are subject to change.