Principal Spectrum Preferred Securities Active ETF

Frequently Asked Questions About PREF

What does PREF invest in?

The Fund seeks to provide current income. The Fund invests at least 80% of its net assets in preferred securities particularly focusing on securities known as $1,000 par preferred securities, issued in large, institutional lot sizes, typically by U.S. and non-U.S. financial services companies and other corporations.

What is the expense ratio of PREF?

Principal Spectrum Preferred Securities Active ETF (PREF) charges an expense ratio of 0.55%. This is the annual fee deducted from fund assets to cover management and operations.

What is PREF's dividend yield?

PREF's trailing-twelve-month yield is 5.52%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of PREF?

Effective duration measures PREF's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. PREF's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of PREF?

PREF's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of PREF?

Yield to maturity (YTM) is the total return you'd earn from PREF if every bond in the portfolio is held to maturity at the current price. PREF's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.