Principal® Announces Changes to Active Income ETF

Rhea-AI Summary

Principal announced the renaming of its Principal Active Income ETF (YLD) to the Principal Active High Yield ETF, effective September 1, 2021, as part of a routine review. A 2-for-1 stock split will occur, with shares trading on a split-adjusted basis starting September 2, 2021. This split does not change the total dollar value of shareholder investments. Shareholders are not required to take any action. The ETF's ticker and CUSIP remain unchanged.

Positive

• Renaming to Principal Active High Yield ETF could enhance market perception.
• Stock split may improve liquidity for trading.

Negative

• None.

Principal^® announced today plans to change the name of the Principal Active Income ETF (ticker: YLD) as a result of a standard review of its exchange-traded product offering. Effective September 1, 2021, the ETF will be renamed the Principal Active High Yield ETF, and its objective will seek to provide a high level of current income.

In addition to the name change, Principal will also execute a stock split for the Principal Active Income ETF according to the chart below. Shares of the Principal Active High Yield ETF will begin trading on a split-adjusted basis on September 2, 2021.

ETF Name	Ticker	Forward Split Ratio	Record Date	Pay Date
Principal Active Income ETF (t/b/k/a Principal Active High Yield ETF)	YLD	2 for 1	August 31, 2021	September 1, 2021, after close of trading

As a result of the stock split, shareholders will receive a proportional number of the ETF with the same aggregate dollar value for each share of the fund currently held. Thus, the total dollar value of an investment in the ETF will be unchanged, and each shareholder will continue to own the same percentage (by value) of the ETF immediately following the stock split as it did immediately prior to the stock split. The stock split will not be a taxable event, nor does it have an impact on any ETF’s holdings or its performance.

No shareholder action is required either prior to or as a result of the name change or stock split. The fund ticker and CUSIP will remain the same.

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.

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.

¹ As December 31, 2020
² As December 31, 2020
³ Ethisphere Institute, 2021
⁴ Pensions & Investments, 2020

View source version on businesswire.com: https://www.businesswire.com/news/home/20210621005061/en/

FAQ

What changes are being made to the Principal Active Income ETF (PFG)?

The ETF will be renamed to Principal Active High Yield ETF effective September 1, 2021.

What is the ticker for the Principal Active Income ETF after the name change?

The ticker will remain YLD.

When will the stock split for the Principal Active Income ETF take effect?

The stock split will begin trading on a split-adjusted basis on September 2, 2021.

What is the split ratio for the Principal Active Income ETF?

The ETF will undergo a 2-for-1 stock split.

Do shareholders need to take action due to the name change or stock split of the ETF?

No shareholder action is required for either the name change or stock split.