ETF Research Center

The Principal Price Setters Index ETF tracks an index of large-cap US firms with a high degree of pricing power. Holdings are selected by several fundamental and technical factors, and weighted equally within three tiers.

FUND BASICS
Category	US Equities
Fund Sponsor	The Principal Financial Group
Website	www.principaletfs.com
Inception date	Mar 21, 2016
Assets (mns)	$19
Currency	USD
Expense ratio	29 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-End Investment Company
Custodian
Weighting	Tiered
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	147
Wgt avg mkt cap (mns)	$88,777
Large cap (>$10bn)	96.9%
Mid cap ($2-10bn)	3.1%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	13.3 %
MSCI INC-A	1.5 %
RESMED INC	1.4 %
MICROSOFT CORP	1.4 %
ANSYS INC	1.4 %
MOODY'S CORP	1.3 %
ALLEGION PLC	1.3 %
ZOETIS INC	1.3 %
MASTERCARD INC-CLASS A	1.3 %
HERSHEY CO/THE	1.2 %
LOCKHEED MARTIN CORP	1.2 %

TOP COUNTRY EXPOSURE
	UNITED STATES	94.8 %
	IRELAND	3.5 %
	SWITZERLAND	1.4 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
0.5%	25.3%	--	--	15.0%

Market Correlations
versus...	Beta	R-squared
S&P500	0.91	93%
MSCI EAFE	0.81	60%
MSCI Emg. Mkts.	0.53	45%

Technical Indicators
Recent close	$43.32
30d moving avg.	$42.14
Annualized volatility	11.5%
Short interest (ETF)	5.8%
Relative strength (RSI)	66

Liquidity measures
Avg. volume (thou.)	7
Turnover	1.6%
Bid/Ask (% of price)	0.15%
ADV underlying (mns)	$44,670

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

PSET

Expense:

29 bp

ALTAR Score™:

5.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH PSET
Ticker	Fund Name	Overlap¹ vs PSET (%)	Expense ratio (bp)	Savings vs PSET (bp)	ALTAR Score™ (%)	ALTAR vs PSET (%)
FCTR	First Trust Lunt U.S. Factor Rotation	42.0	65	-36	6.4	+1.1
PLC	Principal U.S. Large-Cap Multi-Factor Core Index	37.3	15	14	5.3	+0.0
FLQL	Franklin LibertyQ U.S. Equity	35.3	15	14	6.5	+1.2
JQUA	JPMorgan U.S. Quality Factor	35.2	12	17	5.6	+0.3
FQAL	Fidelity Quality Factor	34.5	29	0	5.5	+0.2
LEAD	Reality Shares DIVCON Leaders Dividend	34.3	43	-14	4.7	-0.6
DFND	Reality Shares DIVCON Dividend Defender	34.3	121	-92	4.0	-1.3
GARD	Reality Shares DIVCON Dividend Guard	34.3	129	-100	3.9	-1.4
QUS	SPDR MSCI USA Quality Mix	33.1	15	14	5.7	+0.4
KRMA	Global X Conscious Companies	33.0	43	-14	5.6	+0.3
DEF	Invesco Defensive Equity	32.6	55	-26	4.6	-0.7
GSLC	Goldman Sachs ActiveBeta U.S. Large Cap Equity	32.2	9	20	5.7	+0.4
OVOL	Invesco Russell 1000 Low Volatility Factor ETF	31.5	19	10	6.6	+1.3
FTC	First Trust Large Cap Growth	31.3	61	-32	3.1	-2.2
RNLC	Large Cap US Equity Select	30.5	60	-31	6.0	+0.7
OQAL	Invesco Russell 1000 Quality Factor ETF	30.4	19	10	6.0	+0.7
RPG	Invesco S&P 500 Pure Growth ETF	30.1	35	-6	5.0	-0.3
QUAL	iShares Edge MSCI USA Quality Factor	29.9	15	14	5.6	+0.3
FDLO	Fidelity Low Volatility Factor	29.8	29	0	5.0	-0.3
USMV	iShares MSCI USA Minimum Volatility	29.8	15	14	4.9	-0.4

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

	2015	2016	2017	2018	2019	2020E	2021E
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

	2019	2020E	2021E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Principal Price Setters Index ETF
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	25.1	%
Divided by: Fwd. P/BV	4.5	x
Less: Expense ratio	29	bp
Equals: ALTAR Score	5.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.67	CATEGORY AVERAGE	1.56

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.