PSC Profile
Under normal circumstances, the Principal U.S. Small-Cap Multi-Factor ETF invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of U.S. companies with small market capitalizations at the time of purchase. For this fund, small-cap companies are defined as those with market capitalizations similar to those included in the Russell 2000 Index.
The ETF adopts a multi-factor investment strategy, aiming to enhance returns and manage risk by targeting various quantitative factors such as value, momentum, quality, and volatility. This strategy is designed to leverage market inefficiencies and capture the potential for higher returns compared to traditional small-cap indices.
Managed with a focus on balancing growth and risk, the fund employs a systematic selection process to identify small-cap stocks that meet its multi-factor criteria. This approach involves comprehensive analysis and screening to ensure the inclusion of companies with strong growth prospects while mitigating volatility.
By investing in the Principal U.S. Small-Cap Multi-Factor ETF, investors gain diversified exposure to a wide range of small-cap companies across different sectors. This investment vehicle is suited for those looking to enhance their portfolios with targeted small-cap equities, utilizing a sophisticated strategy to optimize performance and manage associated risks.
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