Principal has launched two strategic beta exchange traded funds (ETFs) for investors looking for portfolio growth potential.
The Principal Healthcare Innovators Index ETF (BTEC) and the Principal Millennials Index ETF (GENY) listed on Nasdaq on 22 August.
The two 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,” says 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 US Healthcare Innovators Index. This index is designed to provide exposure to early stage small-capitalisation 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 specialising 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,” says 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.