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

ETF Principal Exchange-Traded Funds - Principal Investment Grade Corporate Active ETF: A Summary

Profile:

The Principal Investment Grade Corporate Active ETF (NASDAQ: IGRAW) is an actively managed fund that invests primarily in investment-grade corporate bonds. It has a flexible mandate and aims to outperform the Bloomberg Barclays U.S. Corporate Bond Index through active management.

Objective:

The ETF's primary goal is to provide investors with current income and capital appreciation through exposure to investment-grade corporate bonds. It achieves this by actively selecting and weighting bonds based on the portfolio manager's research and analysis.

Issuer:

The ETF is issued by Principal Global Investors, a subsidiary of Principal Financial Group. Principal Financial Group is a global financial services company with over $882.9 billion in assets under management (as of June 30, 2023).

• Reputation and Reliability: Principal Financial Group has a long history and a strong reputation in the financial services industry. It has been recognized for its financial strength and stability by leading credit rating agencies.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed income investing.

Market Share:

The Principal Investment Grade Corporate Active ETF has a market share of less than 1% in the actively managed corporate bond ETF category.

Total Net Assets:

As of November 8, 2023, the ETF has total net assets of $68.7 million.

Moat:

The ETF's competitive advantages include:

• Active management: The fund's active management approach allows it to potentially outperform the benchmark index by selecting and weighting bonds based on the manager's research and insights.
• Experienced management team: The ETF is managed by a team of experienced portfolio managers with a strong track record in fixed income investing.
• Low expense ratio: The ETF has an expense ratio of 0.30%, which is lower than many actively managed corporate bond ETFs.

Financial Performance:

• Historical performance: The ETF has a 3-year annualized return of 2.67%.
• Benchmark comparison: The ETF has outperformed the Bloomberg Barclays U.S. Corporate Bond Index over the past 3 years.

Growth Trajectory:

The growth trajectory of the ETF will depend on various factors, including market conditions, investor demand, and the performance of the underlying bonds.

Liquidity:

• Average trading volume: The ETF has an average daily trading volume of approximately 1,500 shares.
• Bid-ask spread: The bid-ask spread for the ETF is typically around 0.05%.

Market Dynamics:

• Economic indicators: The ETF's performance can be affected by economic indicators such as interest rates, inflation, and economic growth.
• Sector growth prospects: The ETF's performance can also be affected by the growth prospects of the corporate bond sector.
• Current market conditions: The ETF's performance can be influenced by current market conditions such as volatility and investor sentiment.

Competitors:

The ETF's main competitors include:

• iShares Aaa-A Rated Corporate Bond ETF (QLTA): Market share of 7.7%
• Vanguard Intermediate-Term Corporate Bond ETF (VCIT): Market share of 6.5%
• SPDR Bloomberg Barclays Intermediate Term Corporate Bond ETF (ITR): Market share of 5.3%

Expense Ratio:

The ETF has an expense ratio of 0.30%.

Investment Approach and Strategy:

• Strategy: The ETF actively manages its portfolio to outperform the Bloomberg Barclays U.S. Corporate Bond Index.
• Composition: The ETF primarily invests in investment-grade corporate bonds with maturities ranging from 1 to 10 years.

Key Points:

• Actively managed ETF that aims to outperform the Bloomberg Barclays U.S. Corporate Bond Index.
• Low expense ratio of 0.30%.
• Invests in investment-grade corporate bonds.
• Experienced management team.

Risks:

• Volatility: The ETF's value can fluctuate due to changes in interest rates and economic conditions.
• Market risk: The ETF is subject to the risks associated with the corporate bond market, such as defaults and credit rating downgrades.
• Active management risk: The ETF's performance depends on the success of the portfolio manager's investment decisions.

Who Should Consider Investing:

• Investors seeking current income and potential capital appreciation from investment-grade corporate bonds.
• Investors who believe that active management can outperform the market.
• Investors who are comfortable with the risks associated with corporate bonds.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, the Principal Investment Grade Corporate Active ETF receives a Fundamental Rating of 7.5 out of 10. This rating is based on the ETF's strong financial performance, experienced management team, and low expense ratio. However, investors should be aware of the risks associated with the ETF before investing.

Resources and Disclaimers:

• Principal Global Investors website: https://www.principalglobalinvestors.com/
• ETF Database: https://etfdb.com/
• Morningstar: https://www.morningstar.com/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.