[July 09, 2015]

The Principal Launches Income Focused ETF

The Principal Financial Group^® today listed its first exchange-traded fund (ETF) on the NYSE Arca (News - Alert). The Principal EDGE Active Income ETF (ticker: YLD) is subadvised by EDGE Asset Management, a leading manager of equity, fixed income, and asset allocation strategies and an investment boutique of Principal Global Investors.

"Many investors are looking for ways to increase income in their portfolios, but they have significant concerns about reaching too far for yield, rising rates and market volatility," said Paul Kim, managing director and head of ETFs at Principal Global Investors. "YLD may be an option to generate more income through an actively managed, multi-asset class strategy from a proven manager."

The Principal EDGE Active Income ETF seeks to provide current income through changing market environments and over market cycles. It invests opportunistically across a diversified range of income-generating asset classes while managing for risk. EDGE's proven investment process, long history of income investing, and strong risk management and credit research capabilities may help enhance returns while reducing risks.

"EDGE has over 75 years of experience managing income-focused investment strategies using a time-tested, disciplined investment process," said Jill Cuniff, president, EDGE Asset Management. "We are pleased to be able to bring our investment expertise to this new product offering."

The Principal EDGE Active Income ETF will be managed by Todd Jablonski, Jill Cuniff, and Charles Averill from EDGE Asset Management and Paul Kim and Barb McKenzie from Principal Global Investors.

For more information go to www.PrincipalETFs.com.

About Principal Global Investors

Principal Global Investors is a diversified asset management organization and a member of the Principal Financial Group^®, with expertise in equities, fixed income and real estate investments, as well as specialized overlay and advisory services. Principal Global Investors manages $342.9 billion in assets¹ primarily for retirement plans and other institutional clients².

Aout the Principal Financial Group

The Principal Financial Group^® (The Principal^®)³ is a global investment management leader offering retirement services, insurance solutions and asset management. The Principal offers businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. Founded in 1879 and a member of the FORTUNE 500^®, the Principal Financial Group has $530.3 billion in assets under management⁴ and serves some 19.9 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.

¹As of Mar. 31, 2015.
²Principal Global Investors is the asset management arm of the Principal Financial Group^® (The Principal^®) and includes the asset management operations of the following subsidiaries of The Principal: Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Principal Enterprise Capital, LLC; Liongate Capital Management LLP; Spectrum (News - Alert) Asset Management, Inc.; Post Advisory Group, LLC; Columbus Circle Investors; Edge Asset Management, Inc.; Morley Financial Services Inc.; Finisterre Capital, LLP; Origin Asset Management, LLP; Principal Global Investors (Europe) Limited; Principal Global Investors (Singapore) Ltd.; Principal Global Investors (Australia) Ltd.; Principal Global Investors (Japan) Ltd.; Principal Global Investors (Hong Kong) Ltd.; CIMB-Principal Islamic Asset Management Sdn. Bhd.; and the majority owned affiliates of Principal International, Inc. Assets under management includes assets managed by investment professionals of Principal Global Investors under dual employee arrangements with other subsidiaries of The Principal and assets managed in accordance with investment advice provided by Principal Global Investors through the delivery of a model.
³ "The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
⁴ As of March 31, 2015.

Not authorized for distribution unless preceded or accompanied by a current prospectus, or a summary prospectus if available, that includes information about the Fund's objectives, risks, charges, and expenses. Please read it carefully before investing.

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 investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investments are subject to interest rate risk; as interest rates rise, their value will decline.

Unlike typical exchange-traded funds, there are no indexes that the Funds attempt to track or replicate. Thus, the ability of the Fund to achieve its objectives will depend on the effectiveness of the portfolio manager. This Fund is 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. Ordinary brokerage commissions apply.

ALPS Distributors, Inc. is the distributor of the Principal EDGE Active Income ETF. ALPS Distributors, Inc. and the Principal Funds are not affiliated.

Control Number: PRI000117
Expiration Date: 07/2016

View source version on businesswire.com: http://www.businesswire.com/news/home/20150709005247/en/

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