Investing Possibilities
Get ready for a new generation of investing possibilities.
We’re continually working to identify and develop investment products, strategies and services that serve our clients well. We’ve built a long and successful history in asset allocation, active management and alternative strategies. Our multi-boutique approach translates our worldwide market reach and core capabilities into small, specialized boutiques that can move quickly to seize opportunities.
Exchange-traded funds (ETFs) present such an opportunity. They have become increasingly popular among investors seeking transparency, value and opportunity. They’re primarily passively managed and can fill key niches in investment portfolios. And their low cost brings the markets and diversification within reach of even the smallest investors.
Insights inspire new ETFs
We asked ourselves, what if they could be engineered with an active management twist? Or themed to emerging business and cultural shifts? These insights led to our introduction of five new strategic beta ETFs in 2016. They’re built on the passive management structure of most ETFs, but overlaid with the active management experience that has made Principal a leader in the global investment community.
Our highly advanced and proprietary data analytics system enables us to crunch data on thousands of companies. In the blink of an eye. It gives our portfolio managers deep, real-time understanding of what’s driving market risk and value. And it speeds the creation of new products, like strategic beta ETFs, to capture emerging market potential.
Change creates new opportunities
Our Principal U.S. Small Cap Index ETF (PSC) was created with significant input from the same portfolio managers who oversee our active small cap portfolios. They know the challenges and opportunities of the sector – inside and out. They bring additional potential value to the equation. But with a competitive expense ratio of 0.38 percent.
The Principal Millennials Index ETF (GENY) leverages our active management expertise to find and build value among companies that may benefit from the increasing wealth and spending power of the Millennial generation. The sheer size and focused consumption patterns of this generation are already creating market disruption. And the fund’s holdings will adjust over time, reflecting shifting preferences and business models as Millennials age.
In a world where change is constant, our experience, vigilance and creativity drive opportunity for all generations of investors.