Fund Description: Principal Spectrum Preferred Securities Active ETF is an actively managed exchange-traded fund or Actively Managed ETF which is a separate investment portfolio of the XPrincipal Exchange-Traded Funds, an open-end investment management company. INVESTMENT OBJECTIVE: The Principal Spectrum Preferred Securities Active ETF seeks to provide current income. The Fund is an actively managed ETF and thus, does not seek to replicate the performance of a specific index, but rather uses an active investment strategy to meet its investment objective, however, an actively managed ETF may have an index-based benchmark. Accordingly, the ETF’s investment advisors has discretion on a daily basis to actively manage the Fund’s portfolio in accordance with the Fund’s investment objective and investment policies. FUND STRATEGY: Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in preferred securities at the time of purchase. Examples of preferred securities include preferred stock, certain depositary receipts, and various types of junior subordinated debt (such debt generally includes the contractual ability to defer payment of interest without accelerating an immediate default event). In particular, the Fund focuses on preferred securities known as $1,000 par preferred securities which are issued in large, institutional lot sizes, typically by U.S. and non-U.S. financial services companies (i.e., banking, insurance and commercial finance companies) and other corporations. Preferred securities generally pay fixed and floating rate distributions and are junior to all forms of the company's senior debt, but may have preference over common stock in the payment of distributions and the liquidation of a company's assets. The Fund may invest its assets in below investment grade preferred securities (sometimes called high yield or junk) which are rated at the time of purchase Ba1 or lower by Moody's and BB+ or lower by S&P’s Rating Service. The Fund concentrates its investments (invests more than 25% of its net assets) in securities in the financial services (i.e., banking, insurance and commercial finance) industry. FUND MANAGEMENT: Principal Global Investors, LLC serves as the investment advisor to the Fund. Spectrum Asset Management, Inc. serves as the sub-advisor to the Fund.