Principal Launches Two Strategic Beta Portfolios

Exchange Traded Funds Target Healthcare Innovation, Millennial Spending Habits

Principal Launches Two Strategic Beta Portfolios
 
Release: On receipt, August 22, 2016

Media Contacts:
Cait Suttie, 515-362-2431, suttie.cait@principal.com
Jane Slusark, 515-362-0482, slusark.jane@principal.com

Principal Launches Two Strategic Beta Portfolios

Exchange Traded Funds Target Healthcare Innovation, Millennial Spending Habits

(Des Moines, Iowa) – Principal (NYSE: PFG) announced today the launch of two strategic beta exchange traded funds (ETFs) for investors looking for portfolio growth potential. The Principal Healthcare Innovators Index ETF (Ticker: BTEC) and the Principal Millennials Index ETF (Ticker: GENY) were listed on Nasdaq starting August 22.

The two new ETFs are examples of thematic investing; an approach growing in popularity with investors who want to take advantage of long-term trends or invest in companies that align with their personal beliefs.

"More and more, people want to invest in strategies they understand, whether that is a cause they support or their own lifestyle," said Paul Kim, Managing Director of ETF Strategy for Principal Global Investors. "It is our goal to provide investment options that connect with people while offering enhanced performance."

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

The Principal Millennials Index ETF 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.

"The ETF offerings we bring to market are designed to serve both our retail and institutional customers," said Kim. "We are committed to delivering cost-effective structures that offer ongoing portfolio growth potential."

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 Principal's ETF offerings go to www.PrincipalETFs.com. To learn more about Principal research and analysis related to generational approaches to investing and finances, visit principal.com/generations.

About Principal®

Principal helps people and companies around the world build, protect and advance their financial well-being through retirement, insurance and asset management solutions that fit their lives. Our employees are passionate about helping clients of all income and portfolio sizes achieve their goals – offering innovative ideas, investment expertise and real-life solutions to make financial progress possible. To find out more, visit us 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.


Disclosure

1Source: pewresearch.org/fact-tank/2016/04/25/millennials-overtake-baby-boomers/

Carefully consider a fund's objectives, risks, charges, and expenses. For a prospectus, or summary prospectus if available, containing this, daily holdings, and other information, visit PrincipalETFs.com. Please read it carefully before investing or call Sales Support at 1.800.787.1621.

Risks

Asset allocation and diversification do not ensure a profit or protect against a loss. Investing in ETFs involves risk, including possible loss of principal. ETFs are subject to risk similar to those of stocks, including those regarding short-selling and margin account maintenance. Equity investments involve greater risk, including heightened volatility, than fixed-income investments.

Risks specific to Principal Millennials Index ETF: International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards.

Risks specific to Principal Healthcare Innovators Index ETF: Small and mid-cap stocks may have additional risks including greater price volatility. Investments concentrated in the healthcare industry may be adversely impacted by sector specific market shocks, unforeseen rate controls or regulations, higher than expected costs, or inability to bring new products to market.

Carefully consider a fund's objectives, risks, charges, and expenses. Contact your financial professional or visit principalfunds.com for a prospectus, or summary prospectus if available, containing this and other information. Please read it carefully before investing.

These Funds are new and has limited operating history. ETFs can be tax efficient in that they are exchange-traded and redeem creation units from authorized participants by using redemptions in kind, which are not taxable transactions for the Fund. However, capital gains are still possible in an ETF, and if you reinvest the earnings of the ETF, you may owe taxes on your funds even if you didn't sell any shares, potentially eating into your returns. Investor shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund.

ALPS Distributors, Inc. is the distributor of the Principal Millennials Index and Principal Healthcare Innovators Index ETFs. ALPS Distributors, Inc. and the Principal Funds are not affiliated.