Multi-Asset Funds Beginning To Pick Up Steam

We have not previously covered Principal Financial Group’s ETF lineup in any considerable depth in this piece in the past, and the largest of the funds is creeping up on its two year anniversary after gathering respectable assets in the marketplace.

YLD (Principal EDGE Active Income, Expense Ratio 0.85%, $281 million in AUM) and PSC (Principal U.S. Small Cap, Expense Ratio 0.38%, $251 million in AUM) come to mind, having debuted back in July of 2015 and September 2016 respectively, and they are the two largest ETFs in the fund family presently.

There are several other products in this lineup, but there is a steep drop-off in terms of asset sizes after YLD and PSC as evidenced as follows: PY (Principal Shareholder Yield, Expense Ratio 0.40%, $7 million in AUM), PSET (Principal Price Setters, Expense Ratio 0.40%, $6.9 million in AUM), GENY (Principal Millennials, Expense Ratio 0.45%, $6.6 million in AUM), and BTEC (Principal Healthcare Innovators, Expense Ratio 0.42%, $6.4 million in AUM).

Fund literature classifies YLD, as one might presume based on its fund title, as an “Actively Managed” fund, while the other offerings that are mentioned here are all classified as “Strategic Beta” plays. The largest fund, YLD, is profiled as follows: “Portfolio assets are allocated across various income-producing asset classes, utilizing our best income ideas. This multi-asset class approach seeks to: 1) Generate current income, 2) Mitigate portfolio volatility through diversified risk, 3) Deliver more consistent portfolio returns over market cycles, and 4) Tilt the portfolio toward the most attractive asset classes based on current market conditions and opportunities.”

The Principal Exchange-Traded Funds Principal EDGE Active Income ETF (NYSE:YLD) was trading at $41.03 per share on Monday morning, up $0.02 (+0.05%). Year-to-date, YLD has gained 1.89%, versus a 5.53% rise in the benchmark S&P 500 index during the same period.

YLD currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #7 of 50 ETFs in the Diversified Portfolio ETFs category.


Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.

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