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PQDIPrincipal Spectrum Preferred and Income ETF

Get income6y track recordRanked #1,091 of 1,622 in this goal

Seeks to provide current income.

By Principal Funds · Launched 2020

Annual Cost

0.60%

#3,108 of 5,562 · average

Fund Size

$69M

#3,275 of 5,562 · mid-size

Dividend YieldGoal

5.31%

Track Record

6 years

#2,132 of 5,562 · seasoned

Performance

Total-return NAV · USD
Growth of $10,000
$10,678+6.8%

Total-return NAV, USD. Net of fund fees, before tax.

Classification

How Beacon categorizes this fund

Asset class

Fixed income

Strategy

Option income

Focus

CoCo Bonds

What it actually holds

By weight

Concentration

Top 10 holdings = 27.9% of fundwell diversified

STATE STREET CORP
3.6%
ING GROEP NV
3.6%
NORDEA BANK ABP
2.9%
CITIGROUP INC
2.9%
DOMINION ENERGY INC
2.8%
BANK OF MONTREAL
2.6%
BANK OF AMERICA CORP
2.5%
CREDIT AGRICOLE SA
2.5%
PNC FINANCIAL SERVICES
2.3%
HSBC HOLDINGS PLC
2.3%

Asset allocation

Preferred
49.8%
Bonds
48.7%
Cash
1.5%

Risk profile

Last 12 months · Sharpe & Sortino need 3+ years
Volatility (1Y)
3.3%Low

Year-on-year price swings

Max drawdown
-17.4%Moderate

Worst peak-to-trough loss

Sharpe (3Y)
1.58Strong risk-adjusted returns
Sortino (3Y)
2.37Good downside protection

Bond profile

Duration

7.2 years

Avg maturity

10.3 years

Credit ratings

BBB
59.8%
BB
40.2%

Where to buy

Listing

Exchange
NYSE Arca

Full fund details

Objective
Seeks to provide current income.
Strategy
Invests primarily in preferred and other income-producing securities, including contingent convertible securities. Focuses on securities eligible for favorable U.S. tax treatment and may include both investment-grade and high-yield options. Concentrates investments in the financial services sector and uses derivatives for hedging and income generation.
Inception date
June 16, 2020
Fund family
Principal Funds

Our take

Structural notes on how this fund behaves. Read our guide on the 6 warning signs.

Covered call
Warning

Covered call ETF — yield ≠ total return

The high distribution yield is not free income — it comes from selling upside via call options. Research finds these strategies systematically underperform their underlying index over full cycles, typically by 100–300 basis points per year depending on the option-overlay design. The monthly distributions make the shortfall hard to see in return summaries.

Source: Israelov & Ndong, 'A Devil's Bargain: When Generating Income Undermines Investment Returns' (NDVR, 2023)

Why we flagged this: strategy=option_income + option_income_strategy

Educational analysis of structural product characteristics. Not investment advice. Always read the fund prospectus and consult a qualified advisor before investing. More

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Data updated on 2026-06-19