Fund Description: Principal Price Setters 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 Price Setters Index ETF seeks to provide investment results that closely correspond, before expenses, to the performance of the Nasdaq U.S. Price Setters Index. INDEX DESCRIPTION: The Nasdaq U.S. Price Setters Index is designed to provide exposure to equity securities of mid- to large-capitalization U.S. companies within the Nasdaq U.S. Large Mid Cap Index which exhibit high degrees of pricing power. Pricing power refers the extent to which a company can raise the prices of its products without reducing the demand for them. 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 all the securities that make up 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, as well as securities not included in the Index that the Sub-Advisor believes will help the fund track the Index. FUND MANAGEMENT: Principal Management Corp. will serve as the investment adviser to the Fund. Principal Global Investors, LLC will serve as the sub-adviser to the Fund.