Fund Description: Principal Healthcare Innovators Index ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the Principal Exchange-Traded Funds, an open-end investment management company. INVESTMENT OBJECTIVE: The Principal Healthcare Innovators Index ETF seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Nasdaq Healthcare Innovators Index. INDEX DESCRIPTION: The Nasdaq Healthcare Innovators Index is designed to provide exposure to equity securities (including growth and value stock) of small and medium capitalization U.S. healthcare companies. Most of the companies in the Index are early-stage companies within the healthcare equipment and supplies, pharmaceuticals, biotechnology, and life sciences industries. Examples of early-stage companies in these industries include companies developing products and services and companies in the pre-marketing stage seeking regulatory approvals. FUND STRATEGY: Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies that compose the Index. The Fund employs a passive investment approach designed to attempt to track the performance of the Index. In seeking its objective, the Fund typically employs a full replication strategy which involves investing in all the securities that make up the Index, in the same approximate proportions as the Index. The Fund can, however, use a sampling methodology to purchase a subset of the securities in the Index in an effort to hold a portfolio of securities with generally the same risk and return characteristics of the Index. The Fund can also invest in securities not included in the Index that the Sub-Advisor believes will help the fund track the Index. Given the present composition of the Index, the Fund expects to have more than 25% of its assets invested in the healthcare industry. FUND MANAGEMENT: Principal Management Corp. serves as the investment advisor to the Fund. Principal Global Investors, LLC serves as the sub-advisor to the Fund.