ETF Research Center

The Principal U.S. Small Cap Index ETF invests in small-capitalization companies within the U.S. that exhibit high shareholder yield, high pricing power, and momentum.

FUND BASICS
Category	US Equities
Fund Sponsor	The Principal Financial Group
Website	www.principaletfs.com
Inception date	Sep 21, 2016
Assets (mns)	$403
Currency	USD
Expense ratio	38 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Technical
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	465
Wgt avg mkt cap (mns)	$2,348
Large cap (>$10bn)	0.0%
Mid cap ($2-10bn)	55.2%
Small cap (<$2bn)	44.8%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	7.7 %
ENPHASE ENERGY INC	0.9 %
RH	0.8 %
ARROWHEAD PHARMACEUTICALS, INC.	0.8 %
CIRRUS LOGIC INC	0.8 %
CHEMICAL FINANCIAL CORP	0.8 %
UNITED THERAPEUTICS CORP	0.7 %
ESSENTIAL PROPERTIES REALTY TRUST,	0.7 %
DICK'S SPORTING GOODS INC	0.7 %
UNIFIRST CORP/MA	0.7 %
VIAVI SOLUTIONS INC.	0.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.5 %
	PUERTO RICO	0.6 %
	BERMUDA	0.6 %
	IRELAND	0.5 %
	BRITAIN	0.2 %
	NETHERLANDS	0.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
18.9%	18.9%	--	--	9.6%

Market Correlations
versus...	Beta	R-squared
S&P500	1.13	74%
MSCI EAFE	0.99	47%
MSCI Emg. Mkts.	0.58	27%

Technical Indicators
Recent close	$33.17
30d moving avg.	$32.60
Annualized volatility	15.9%
Short interest (ETF)	0.0%
Relative strength (RSI)	69

Liquidity measures
Avg. volume (thou.)	2
Turnover	0.0%
Bid/Ask (% of price)	0.17%
ADV underlying (mns)	$6,570

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Principal U.S. Small Cap Index ETF based on the alternatives' overlap in portfolio holdings with PSC. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

PSC

Expense:

38 bp

ALTAR Score™:

6.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH PSC
Ticker	Fund Name	Overlap¹ vs PSC (%)	Expense ratio (bp)	Savings vs PSC (bp)	ALTAR Score™ (%)	ALTAR vs PSC (%)
TPSC	Timothy Plan US Small Cap Core	45.1	52	-14	6.6	+0.3
CSF	Compass EMP US Discovery 500 Enhanced Vol.	37.7	35	3	7.0	+0.7
CSA	Victory CEMP US Small Cap Volatility Wtd	37.6	35	3	7.0	+0.7
VIOO	Vanguard S&P Small-Cap 600	35.9	15	23	5.7	-0.6
SLY	SPDR S&P 600 Small Cap	35.1	15	23	6.0	-0.4
IJR	iShares Core S&P Small-Cap	34.9	7	31	6.0	-0.3
JPSE	JPMorgan Diversified Return U.S. Small Cap Equity	33.8	29	9	4.7	-1.7
FYX	First Trust Small Cap Core Alphadex	33.1	66	-28	5.3	-1.1
ISMD	Inspire Small/Mid Cap Impact	31.9	61	-23	4.7	-1.6
SLYG	SPDR S&P600 Small Cap Growth	31.4	15	23	4.6	-1.7
IJT	iShares S&P 600 SmallCap Growth	31.2	25	13	4.4	-1.9
FLQS	Franklin LibertyQ U.S. Small Cap Equity	30.5	35	3	5.9	-0.4
GSSC	Goldman Sachs Activebeta U.S. Small Cap Equity	30.2	20	18	5.5	-0.8
DES	WisdomTree Smallcap Dividend	30.2	38	0	6.9	+0.6
SMLF	iShares FactorSelect MSCI USA Small-Cap	30.1	30	8	6.5	+0.2
AFSM	First Trust Active Factor Small Cap	29.8	75	-37	6.3	-0.0
RNSC	Small Cap US Equity Select	29.4	60	-22	5.8	-0.5
ROGS	Lattice Global Small Cap Strategy	28.7	39	-1	7.0	+0.7
EES	WisdomTree SmallCap Earnings	28.5	38	0	8.2	+1.8
VIOG	Vanguard S&P Small-Cap 600 Growth	27.9	20	18	4.3	-2.1

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Principal U.S. Small Cap Index
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	11.6	%
Divided by: Fwd. P/BV	1.7	x
Less: Expense ratio	38	bp
Equals: ALTAR Score	6.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.60	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.