Principal Spectrum Preferred Securities Active ETF

The fund seeks to provide current income by investing in companies in the United States.

The investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.

Next, the research team invests significantly in preferred securities.

Examples of preferred securities include preferred stock, certain depositary receipts, and various types of junior subordinated debt.

Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.

The fund may invest its assets in below investment grade preferred securities and BB+ or lower.

Also, the fund concentrates its investments in securities in one or more industries (i.e., banking, insurance and commercial finance) within the financial services sector.