Principal Funds has expanded its line of actively managed exchange traded funds with a new option to help income-minded investors gain exposure to global dividend-generating companies.
On Wednesday, Principal Funds launched the Principal Active Global Dividend Income ETF (BATS: GDVD). GDVD has a 0.58% expense ratio.
The active global dividend income ETF will be managed by the Principal Global Investors team, including Daniel R. Coleman, Paul S. Kim, Cliff Remily and Daniela Spassova.
GDVD will try to generate current income and long-term growth of income and capital by investing in dividend-paying equity securities. The advisors will utilize quantitative screens and research on an industry and company level to identify and monitor companies it believes have the commitment and capacity to pay dividends, according to the prospectus sheet.
The quantitative screening process has been available at Principal in a separately managed account option and as a component within its broader strategies.
The active ETF will hold small-, medium- and large-cap companies in both growth and value styles, along with real estate investment trusts or REITs. The fund will also hold international companies, with at least 40% of net assets in foreign and emerging market securities. GDVD will typically hold investments tied economically to at least three countries outside the U.S.
Top holdings include Microsoft Corp 2.9%, Taiwan Semiconductor 2.7%, Microchip Technology 2.7%, Deutsche Boerse AG 2.5% and Diageo PLC 2.4%.
The active global dividend ETF is among the few active equity ETF plays in the market as many active managers are loath to reveal their secret sauce under the daily disclosure requirements associated with the ETF investment vehicle.
For more information on new fund products, visit our new ETFs category.