Principal Funds Debuts Shareholder Yield, Pricing Power ETFs

Sector weights include financials 27.3%, industrials 18%, consumer services 13.6%, consumer goods 12.2%, technology 11.5%, oil & gas 6.5%, healthcare 5.9% and materials 5%.


PSET tries to reflect the performance of the Nasdaq U.S. Price Setters Index, which takes mid- and large-cap U.S. companies from the Nasdaq U.S. Large Mid Cap Index that exhibit high degrees of purchasing power. Essentially, these companies can raise prices of their products or services without experiencing diminished demand. Additionally, the components show consistent sales growth, high/stable margins, quality earnings, low leverage and high levels of profitability.

The price setters ETF’s top holdings include Affiliated Managers (NYSE: AMG) 1.1%, Skyworks Solutions (NasdaqGS: SWKS)  1.1%, United Parcel Service (NYSE: UPS) 1.0%, Water Corp (NYSE: WAT) 1.0% and Air Products & Chemicals (NYSE: APD) 1.0%.

Sector allocations include hefty tilts toward ares with relatively inelastic pricing, including 24.9% industrials 21.1% consumer goods, 15.3% health care, 14.4% consumer services, 12.9%, 6.5% technology 2.6% materials and 2.1% utilities.