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Principal Financial (PFG) Introduces Three Multi-Factor ETFs

·4 min read

Principal Financial Group, Inc. PFG has unveiled three multi-factor ETFs to address the increasing client demand for adaptive risk ETFs.

The newly launched ETFs are Principal U.S. Large-Cap Adaptive Multi-Factor ETF, Principal U.S. Small-Cap Adaptive Multi-Factor ETF and Principal International Adaptive Multi-Factor ETF.

The funds are actively traded portfolio securities and are non-diversified. They adapt portfolio construction to equity market risk, combine factors when they are likely to outperform the market and use market-cap exposure where required. Based on the equity market signals, these funds adjust the risk exposure.

The actively managed ETFs access leading global asset management platforms and specialized investment groups to provide diversified and outcome-oriented solutions.

In May 2021, Principal Financial introduced an offering of model portfolios in partnership with Wilshire. The new Principal Adaptive Multi-Factor ETFs are an addition to its model portfolio offering.

In 2020, Principal Financial’s unit Principal Global Investors unveiled the Principal Spectrum Tax-Advantaged Dividend Active ETF (PQDI) to enable investors to get access to qualified dividend income.

Also, in 2017, Principal Financial launched the Principal Spectrum Preferred Securities Active ETF (PREF) on Bats Exchange, which is managed by Spectrum Asset Management, an investment team within Principal Financial. The investment seeks to provide current income.

The Principal Global Investors segment manages assets for sophisticated investors globally with diverse investment capabilities, which include equity, fixed income, real estate and other alternative investments. It offers mutual funds and ETFs to individuals, businesses and institutional investors for use within variable life contracts, variable annuity contracts and employer-sponsored pension plans, and other general investment purposes.

The products and services are provided for a fee. Therefore, the new multi-factor ETFs will drive the management fee revenues, which, in turn, fuel top-line growth of the company.

As of Dec 31, 2020, as reported by Morningstar, Principal Financial ranked 19th in terms of U.S. mutual fund asset under management (AUM) and 30th in terms of exchange traded fund AUM. In the first quarter of 2021, investment performance remained strong, as 57% of Principal Mutual Funds, ETFs, separate accounts, and collective investment trust were above the median for the one-year period.

Shares of this Zacks Rank #3 (Hold) financial services provider have gained 53.9% in a year compared with its industry’s growth of 49.3%. Moreover, we believe that the company’s strong fundamentals will likely drive its shares, going forward.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks in the finance space are KKR & Co. Inc. KKR, OchZiff Capital Management Group LLC SCU and Ameriprise Financial, Inc. AMP. While KKR and OchZiff Capital currently sport a Zacks Rank # 1 (Strong Buy), Ameriprise carries a Zacks Rank # 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

KKR surpassed estimates in each of the last four quarters, the average earnings surprise being 17.2%.

OchZiff Capital surpassed estimates in each of the last four quarters, the average earnings surprise being 199.37%.

Ameriprise surpassed estimates in three of the last four quarters and missed in the other one, the average earnings surprise being 3.88%.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

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OchZiff Capital Management Group LLC (SCU) : Free Stock Analysis Report

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