Fund Description: Principal Millennials 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 Millennials Index ETF seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the NASDAQ Global Millennial Opportunity Index. INDEX DESCRIPTION: The NASDAQ Global Millennial Opportunity Index is designed to provide exposure to global equity securities of companies that are impacted by the spending and lifestyle activities of the Millennial generation, which refers to people born from 1980 to the mid-2000s. The Index may include equity securities of different market capitalizations (small, medium, or large) and styles (growth or value) and is weighted based upon capitalization and exposure to Millennials, determined through a qualitative assessment of a company’s business strategy, target market, products manufactured and services provided. Market segments with the greatest Millennial exposure are likely to include, without limitation, consumer goods (including fashion and apparel), social media and e-commerce, and digital media and technology. 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. 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.