Principal Exchange-Traded Funds has made a significant update regarding its Principal U.S. Small-Cap ETF, as outlined in a recent SEC filing. This update is crucial for investors as it details the fund's fees, performance metrics, and investment strategies. The filing aims to enhance transparency and provide investors with essential information to make informed decisions.

Principal Exchange-Traded Funds is an investment company based in Des Moines, Iowa. It operates under the Central Index Key (CIK) number 0001572661 and is registered with the SEC. The company focuses on managing exchange-traded funds (ETFs) and has been active in filing various forms, including the recent 497K on October 27, 2026. The investment entity primarily aims to offer investment solutions that cater to a diverse range of investors.

The recent filing provides a summary prospectus for the Principal U.S. Small-Cap ETF, effective November 1, 2026. It highlights that the fund seeks long-term growth of capital. The prospectus also outlines the fund's objective, which is to invest at least 80% of its net assets in equity securities of U.S. companies with small market capitalizations, specifically those within the Russell 2000 Index.

In terms of fees, the filing indicates that the total annual fund operating expenses are set at 0.38%. This includes management fees and other expenses associated with maintaining the fund. The filing notes that investors may incur additional costs, such as brokerage commissions, which are not reflected in the operating expenses. This transparency in cost structure is vital for investors looking to understand the total cost of investment.

The filing also discusses the fund's performance metrics, indicating that past performance is not necessarily indicative of future results. Investors are advised to review the fund's performance information, which is available online. The fund's historical performance includes a one-year return of 13.39%, a five-year return of 10.91%, and a life of fund return of 10.76%.

Principal U.S. Small-Cap ETF's investment strategy is driven by a proprietary quantitative model developed by Principal Global Investors, LLC. This model aims to identify and rank equity securities based on value characteristics, quality metrics, and momentum indicators. The fund's holdings are expected to be rebalanced at least annually, ensuring that the investment strategy remains aligned with market conditions.

While the update provides valuable insights, it also emphasizes the risks associated with investing in the fund. These risks include active management risk, equity securities risk, and smaller companies risk. The filing cautions that investments in smaller companies may involve greater volatility and risk compared to larger, more established firms. Investors are advised to consider these risks carefully before making investment decisions.

The filing does not specify what actions will follow this update, leaving investors to await further communications from Principal Exchange-Traded Funds regarding any upcoming developments or changes in fund management.