ETF Research Center

The Principal Shareholder Yield Index ETF tracks an index of dividend-paying large- and midcap US stocks that are selected by several fundamental factors, including dividend yield and buyback yield. Holdings are equally weighted within two tiers.

FUND BASICS
Category	US Equities
Fund Sponsor	The Principal Financial Group
Website	www.principaletfs.com
Inception date	Mar 21, 2016
Assets (mns)	$10
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	135
Wgt avg mkt cap (mns)	$54,037
Large cap (>$10bn)	65.2%
Mid cap ($2-10bn)	34.6%
Small cap (<$2bn)	0.3%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	11.9 %
LAM RESEARCH CORP	1.4 %
APPLIED MATERIALS INC	1.3 %
CDW CORP/DE	1.3 %
FORTUNE BRANDS HOME & SECURI	1.2 %
AMERIPRISE FINANCIAL INC	1.1 %
MASCO CORP	1.1 %
AMGEN INC	1.1 %
ILLINOIS TOOL WORKS	1.1 %
CELANESE CORP-SERIES A	1.1 %
PHILLIPS 66	1.1 %

TOP COUNTRY EXPOSURE
	UNITED STATES	94.5 %
	IRELAND	2.3 %
	SWITZERLAND	1.0 %
	BRITAIN	0.5 %
	CHINA	0.5 %
	PUERTO RICO	0.5 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
24.5%	9.7%	--	--	10.7%

Market Correlations
versus...	Beta	R-squared
S&P500	1.24	85%
MSCI EAFE	1.13	59%
MSCI Emg. Mkts.	0.78	44%

Technical Indicators
Recent close	$33.54
30d moving avg.	$33.50
Annualized volatility	16.3%
Short interest (ETF)	0.9%
Relative strength (RSI)	58

Liquidity measures
Avg. volume (thou.)	7
Turnover	2.3%
Bid/Ask (% of price)	0.16%
ADV underlying (mns)	$35,284

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

PY

Expense:

29 bp

ALTAR Score™:

7.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH PY
Ticker	Fund Name	Overlap¹ vs PY (%)	Expense ratio (bp)	Savings vs PY (bp)	ALTAR Score™ (%)	ALTAR vs PY (%)
ESGS	Columbia Sustainable U.S. Equity Income	35.2	35	-6	8.3	+0.4
SPYB	SPDR S&P 500 Buyback	34.1	35	-6	7.4	-0.6
QSY	WisdomTree U.S. Quality Shareholder Yield	29.3	38	-9	7.0	-1.0
QDYN	FlexShares Quality Dividend Dynamic	28.8	37	-8	6.8	-1.2
ESGW	Columbia Sustainable Global Equity Income	28.6	40	-11	8.7	+0.8
FTA	First Trust Large Cap Value	27.2	62	-33	8.6	+0.6
LSAF	LeaderShares AlphaFactor US Core Equity	26.7	75	-46	6.6	-1.4
JVAL	JPMorgan U.S. Value Factor	26.4	12	17	8.5	+0.6
CLRG	IQ Chaikin U.S. Large Cap	26.0	25	4	8.1	+0.2
SYLD	Cambria Shareholder Yield	25.9	59	-30	8.9	+0.9
ONEY	SPDR Russell 1000 Yield Focus	25.7	20	9	8.3	+0.4
USDY	Pacific Global US Equity Income	25.3	29	0	7.5	-0.5
FXO	First Trust Financial Alphadex	24.7	63	-34	7.9	-0.1
DIVB	iShares U.S. Dividend & Buyback	24.6	25	4	6.7	-1.3
QDF	FlexShares Quality Dividend	24.1	37	-8	7.1	-0.8
PLC	Principal U.S. Large-Cap Multi-Factor Core Index	24.1	15	14	5.6	-2.4
RYF	Invesco S&P Equal Weight Financials	23.8	40	-11	7.4	-0.5
OVLU	Invesco Russell 1000 Value Factor ETF	23.6	19	10	7.9	-0.1
FLAG	Forensic Accounting	23.6	152	-123	8.4	+0.5
PXLV	Invesco Fundamental Pure Large Value	23.5	39	-10	8.4	+0.5

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 Shareholder Yield
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	16.2	%
Divided by: Fwd. P/BV	2.0	x
Less: Expense ratio	29	bp
Equals: ALTAR Score	7.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.63	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.