Principal Exchange-Traded Funds - Principal Equity Premium Income ETF

Frequently Asked Questions About PCOV

What does PCOV invest in?

PCOV invests primarily in dividend-paying US and non-US companies, with an emphasis on value stocks that the adviser believes are undervalued. The fund uses a covered call strategy to generate additional income and seek to reduce volatility, with calls typically written about 30 days to expiration and 510% out of the money on up to 100% of an underlying position. The option strategy also limits the funds participation in gains above the strike prices of written calls. The extent of the covered call activity may vary with market conditions and the advisers assessment of the attractiveness of writing options. The fund may hold cash and cash equivalents, including US Treasury bills, for collateral and operational purposes.

What is the expense ratio of PCOV?

Principal Exchange-Traded Funds - Principal Equity Premium Income ETF (PCOV) charges an expense ratio of 0.34%. This is the annual fee deducted from fund assets to cover management and operations.

What is PCOV's distribution yield?

PCOV's trailing-twelve-month yield is —, calculated from the sum of distributions over the past year divided by the current price.

How does PCOV's covered-call strategy work?

PCOV sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is PCOV?

Principal Exchange-Traded Funds - Principal Equity Premium Income ETF (PCOV) manages $9.7M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is PCOV actively managed or an index fund?

PCOV's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.