Principal Spectrum Preferred Securities Active ETF (PREF)

ETF Principal Spectrum Preferred Securities Active ETF Summary:

Profile:

• Focus: Invests in a diversified portfolio of preferred securities across various industries.
• Asset Allocation: Primarily invests in preferred securities.
• Investment Strategy: Actively managed to outperform a benchmark index (ICE BofA US Preferred Securities Index).

Objective:

• Main Goal: To achieve high current income and capital appreciation through investments in preferred securities.

Issuer:

• Company: Principal Financial Group (PFG)
• Reputation: PFG is a well-established financial services company with a long history and strong financial position.
• Management: Experienced and knowledgeable management team with expertise in fixed income investments.

Market Share:

• Market Share: 0.54% of the preferred securities ETF market (as of November 2023).

Total Net Assets:

• Total Assets: $234 million (as of November 2023).

Moat:

• Competitive Advantages: Actively managed strategy, experienced management team, and access to a wide range of preferred securities.

Financial Performance:

• Historical Performance: Outperformed the benchmark index in most periods since inception in 2013.
• Benchmark Comparison: Performance has been relatively consistent compared to the benchmark index.

Growth Trajectory:

• Growth: Steady growth in assets under management.
• Trends: Increasing demand for income-generating investments, including preferred securities.

Liquidity:

• Average Trading Volume: 48,800 shares (as of November 2023).
• Bid-Ask Spread: 0.08% (as of November 2023).

Market Dynamics:

• Economic Indicators: Interest rate movements, economic growth, and inflation all affect preferred securities prices.
• Sector Growth Prospects: Continued demand for income-generating investments supports the preferred securities market.
• Current Market Conditions: Market volatility can impact preferred securities prices.

Competitors:

• Key Competitors: PFF, PGX, PGF (market shares as of November 2023).

Expense Ratio:

• Expense Ratio: 0.67% (as of November 2023).

Investment Approach and Strategy:

• Strategy: Actively managed to outperform the ICE BofA US Preferred Securities Index.
• Composition: Investments in preferred securities from various industries.

Key Points:

• Invests in a diversified portfolio of preferred securities.
• Actively managed to outperform the benchmark index.
• Steady growth in assets under management.
• Experienced management team with expertise in fixed income investments.

Risks:

• Volatility: Preferred securities can be more volatile than other fixed income investments.
• Market Risk: Preferred security prices are influenced by interest rates, economic conditions, and company-specific factors.
• Call Risk: Issuers may call preferred securities, forcing investors to reinvest proceeds at potentially lower rates.

Who should consider investing:

• Investors seeking income generation.
• Investors looking for diversification within their fixed income portfolio.
• Investors with a moderate risk tolerance.

Fundamental Rating Based on AI:

• Rating: 7.5/10
• Analysis: Based on the analysis of financial health, market position, and future prospects, the ETF receives a positive rating. The active management approach, experienced management team, and consistent performance contribute to this rating.

Resources and Disclaimers:

This summary is based on information retrieved from the following sources as of November 2023:

• Principal Financial Group website
• ETF.com
• Yahoo Finance

This information is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.