PQDI Profile
The Principal Spectrum Tax-Advantaged Dividend Active ETF is designed to provide investors with a portfolio of dividend-paying securities that offer favorable tax treatment. The fund primarily invests at least 80% of its net assets, plus any borrowed funds used for investment purposes, in securities that pay dividends. These securities can include preferred stocks, capital securities, and a variety of equity instruments from both U.S. and international issuers.
The fund emphasizes investments in securities that are eligible for favorable U.S. federal income tax treatment. This includes dividends classified as qualified dividend income (QDI), which are taxed at lower rates compared to ordinary income, and qualified dividends from real estate investment trusts (REITs). By focusing on such tax-advantaged dividends, the fund aims to enhance after-tax returns for investors while maintaining a portfolio that is robust and diversified across different sectors and geographic regions.
In addition to its focus on tax-advantaged dividends, the fund employs an active management strategy to select investments that align with its objective of maximizing dividend income while optimizing tax efficiency. This strategy involves rigorous analysis and selection of securities that not only meet the dividend criteria but also fit within the funds broader investment framework. This approach helps ensure that the fund can adapt to changing market conditions and capitalize on opportunities that enhance dividend income and tax benefits.
Overall, the Principal Spectrum Tax-Advantaged Dividend Active ETF is designed for investors seeking to maximize their dividend income with an emphasis on tax efficiency. By investing in a diversified portfolio of dividend-paying securities and focusing on those eligible for favorable tax treatment, the fund aims to deliver a steady stream of income while managing tax implications effectively. This makes it an appealing option for investors looking for both income and tax advantages in their investment strategy.
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