PSET Profile
The Principal Quality ETF is an actively managed fund that primarily focuses on equity securities to achieve its investment objectives. The funds strategy involves selecting stocks from the S&P 500 Index or S&P 400 Index based on a proprietary quantitative model developed by Principal Global Investors, LLC (PGI). This model is designed to identify equity securities with higher quality, growth potential, and pricing power, which are deemed to offer superior investment opportunities.
PGIs proprietary model employs a range of quantitative factors to evaluate potential investments. These factors include financial health, earnings growth, and market position, which help in identifying companies with strong fundamentals and the ability to sustain profitability. The models focus on quality aims to invest in firms with robust balance sheets, reliable cash flows, and competitive advantages, thereby targeting companies that are well-positioned for long-term growth.
In addition to its rigorous selection process, the fund has exhibited a notable concentration in the healthcare sector. This significant investment in healthcare reflects the funds strategy to capitalize on the sectors growth potential and resilience. The healthcare industry is characterized by strong demand drivers and innovation, factors that align with the funds focus on high-quality, growth-oriented investments.
The Principal Quality ETF is managed with a focus on delivering superior risk-adjusted returns through a disciplined, research-driven approach. By leveraging PGIs proprietary quantitative model and concentrating investments in sectors with strong growth prospects, the fund aims to provide investors with exposure to high-quality equities that are expected to perform well over time. This strategy is designed to enhance portfolio performance while managing risk through careful security selection and sector allocation.
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