ETF Trends
ETF Trends

Principal Funds launched two strategic beta exchange traded funds on Nasdaq today for investors looking for portfolio growth potential.

The Principal Healthcare Innovators Index ETF (Nasdaq: BTEC) and the Principal Millennials Index ETF (Nasdaq: GENY) are examples of thematic investing.

The funds are aimed at investors who want to take advantage of long-term trends or invest in companies that align with their personal beliefs.

Paul Kim, Managing Director of ETF Strategy for Principal Global Investors, said more and more people want to invest in strategies they understand, whether that be a cause they support or their own lifestyle.

“It is our goal to provide investment options that connect with people while offering enhanced performance.”

BTEC tracks the Nasdaq U.S. Healthcare Innovators Index, which is designed to provide exposure to early stage small-capitalization healthcare companies. These are primarily biotechnology and life science, which have the potential to create cures for cancer, develop new medical technologies, or spearhead other medical advances.

SEE MORE: How to Access Healthcare REITs Via ETFs

Meanwhile, GENY tracks the Nasdaq Global Millennial Opportunity Index. This index seeks to capture the global spending and lifestyle activities of the largest generation ever, offering exposure to brand name companies specializing in social media, digital media, technology, healthy lifestyles, travel and leisure. The companies will evolve over time as the spending patterns of millennials change as they age.

Kim said the ETF offerings are designed to serve both retail and institutional customers.

“We are committed to delivering cost-effective structures that offer ongoing portfolio growth potential,” Kim said.

SEE MORE: The Rise of Themed ETFs – Video Games, Drones, Millennials

Principal Millennials Index ETF and Principal Healthcare Innovators Index ETF will be managed by Jeff Schwarte, Mark R. Nebelung, and Paul Kim of Principal Global Investors.
With these new offerings, Principal has launched five ETFs since 2015.

For more information on new fund products, visit our new ETFs category.