Principal® Launches New ETFs, Hires Model Portfolio Strategist to Advance Build Out of Model Portfolio Offering

Principal Financial Group^® is continuing to build out its model portfolio offering, making a strategic hire to lead the development of the product offering and bringing to market three new multi-factor ETFs. Both actions will serve as foundational pillars for Principal’s planned growth in the model portfolio space while also meeting the increased client demand for adaptive risk ETFs.

The Principal Adaptive Multi-Factor ETFs are built to adjust to changes in the investment environment for risk assets. The three ETFs – U.S. Large Cap, U.S. Small Cap, and International – will use factor combinations to read and adjust risk exposure based upon equity market signals rather than macroeconomic indicators.

“We remain focused in our pursuit of investment solutions that will help clients optimize returns and mitigate risk. By utilizing a rules-based investing process, the Principal Adaptive Multi-Factor ETFs aim to consistently outperform traditional market cap-weighted indexes during periods of low and high market volatility,” said Matthew Raynor, managing director of the U.S. Strategic Client Group for Principal Global Investors^®. “These ETFs assess market risk measurements like the VIX, as well as proprietary risk screens, and seek to actively allocate to the most appropriate factors based on these measurements.”

In addition to supporting client demand, the Principal Adaptive Multi-Factor ETFs will also become a core component of Principal’s model portfolio offering that has been advanced in 2021. After launching 25 Principal Wilshire Diversified Portfolios in early May, Principal has since hired Michael Casciano as a model portfolio strategist to help lead and develop its long-term model strategy.

“Mike comes to Principal with a tremendous amount of model portfolio expertise and the experience to guide both the construction of models and client engagement,” said Jill Brown, managing director of U.S. Wealth Markets for Principal Global Investors. “His immediate objective will be to create our own open architecture, Principal branded series of models, and the Principal Adaptive Multi-Factor ETFs will be significant building blocks for them.”

Casciano joined Principal on May 17 after spending 14 years with BlackRock, where he held multiple roles within its model portfolio business. He most recently served as the head of 55ip models partnership.

Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group. © 2021 Principal Financial Services, Inc.

About Principal Financial Group^®

Principal Financial Group^® (Nasdaq: PFG) is a global financial company with 17,000 employees¹ passionate about improving the wealth and well-being of people and businesses. In business for more than 140 years, we’re helping more than 34 million customers² plan, insure, invest, and retire, while working to support the communities where we do business, improve our planet, and build a diverse, inclusive workforce. Principal^® is proud to be recognized as one of the World’s Most Ethical Companies³, a member of the Bloomberg Gender Equality Index, and a Top 10 “Best Places to Work in Money Management⁴.” Learn more about Principal and our commitment to sustainability, inclusion, and purpose at principal.com.

About Principal Global Investors^®

Principal Global Investors^® leads global asset management at Principal^®. As a multi-investment team firm, we bring a focused perspective and offer expertise across a host of asset classes.

At our core, we are driven by our purpose to help investors and businesses achieve their financial goals. Our global investment professionals deliver investment solutions for public and private pension funds, foundations and endowments, central banks, insurance companies, sub-advisory arrangements, sovereign wealth funds and individual portfolios.

Principal Global Investors manages approximately $550.6 billion in assets on behalf of over 800 institutional clients located in over 80 markets as well as retirement plans and individual clients, reflecting our worldwide market reach and experience and our commitment to high-quality research and service (as of March 31, 2021). To find out more, visit us at principalglobal.com.

Carefully consider the Funds’ objectives, risks, charges, and expenses. Contact your financial professional, visit principalfunds.com or call Sales Support at 800-787-1621 for a prospectus, or summary prospectus if available, containing this and other information. Please read it carefully before investing.

Risks

Asset allocation and diversification do not ensure a profit or protect against a loss. Investing involves risk, including possible loss of principal.

Equity investments involve greater risk, including heightened volatility, than fixed income investments. Equities considered to be quality or value stocks may not perform as expected. Stocks that previously exhibited high momentum characteristics may not experience positive momentum or may experience more volatility than the market as a whole. Small-cap stocks may have additional risks including greater price volatility. International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards.

ETFs are subject to risk similar to those of stocks, including those regarding short-selling and margin account maintenance. Investor shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Ordinary brokerage commissions apply.

ALPS Distributors, Inc. is the distributor of the Principal ETFs.

ALPS Distributors, Inc. and Principal Funds are not affiliated.

¹ As December 31,2020

² As December 31,2020

³ Ethisphere Institute, 2021

⁴ Pensions & Investments, 2020

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