finalwithwrappers.htm - Generated by SEC Publisher for SEC Filing


FACTS	WHAT DOES PRINCIPAL FUNDS DO WITH YOUR PERSONAL INFORMATION?

	Financial companies choose how they share your personal information. Federal law gives
Why?	consumers the right to limit some but not all sharing. Federal law also requires us to tell you
	how we collect, share, and protect your personal information. Please read this notice carefully
	to understand what we do.

	The types of personal information we collect and share depend on the product or service you
	have with us. This information can include:
	•	Social Security number and income
What?	•	Assets and transaction history
	•	Account transactions and account balances
	When you are no longer our customer, we continue to share your information as described in
	this notice

	All financial companies need to share customers’ personal information to run their everyday
How?	business. In the section below, we list the reasons financial companies can share their
	customers’ personal information; the reasons Principal Funds chooses to share; and whether
	you can limit this sharing.

REASONS WE CAN SHARE YOUR PERSONAL			DOES PRINCIPAL	CAN YOU LIMIT THIS
INFORMATION			FUNDS SHARE?	SHARING?
For our everyday business purposes—such as to
process your transactions, maintain your account(s),
			Yes	No
respond to court orders and legal investigations, or report
to credit bureaus

For our marketing purposes—to offer our products and
			Yes	No
services to you

For joint marketing with other financial companies			No	We don’t share

For our affiliates’ everyday business purposes—
			Yes	No
information about your transactions and experiences

For our affiliates’ everyday business purposes—
			No	We don’t share
information about your creditworthiness

For nonaffiliates to market to you			No	We don’t share


Questions?	Call 1-800-222-5852 or go to www.principalfunds.com/customer-support/contact-us

EE11865PFI-03


Page 2 Who we are Who is providing this notice?	Principal Funds includes Principal Funds, Inc., Principal Funds Distributor, Inc., and Principal Diversified Select Real Asset Fund.
What we do How does Principal Funds protect my personal information? How does Principal Funds collect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We collect your personal information, for example, when you • Open an account or seek advice about your investments •Direct us to buy securities or make deposits, or withdrawals from your account • Give us your contact information or show your government issued ID We also collect your personal information from others, such as affiliates, or other companies.

Why can’t I limit all sharing?	Federal law gives you the right to limit only •sharing for affiliates’ everyday business purposes—information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.
Definitions Affiliates	Companies related by common ownership or control. They can be financial and nonfinancial companies.
	•	Our affiliates include companies of Principal Financial Group^®

Nonaffiliates	Companies not related by common ownership or control. They can be financial and nonfinancial companies.
	•	Principal Funds does not share with nonaffiliates so they can market to you.

Joint marketing	A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
	•	Principal Funds does not jointly market.
Other important information

This Privacy Notice governs information that you provide to Principal (or that we otherwise receive) when you apply for or receive a product or service used primarily for personal, family or household purposes. We may collect additional information depending on the nature of your relationship with Principal or if you interact with us through our website or other digital technologies. Details about how we protect and use this additional information, including information about your privacy rights under California law such as the California Consumer Privacy Act, are available online at www.principal.com/privacy-policies.

If you do not have access to www.principal.com/privacy-policies, please contact us at 1-800-986-3343 to have a copy mailed to you.

EE11865PFI-03 | 01/2020


	Statements of Assets and Liabilities
	Principal Exchange-Traded Funds
	December 31, 2021 (unaudited)

										Principal
							Principal			International
			Principal				Healthcare			Adaptive
			Active High				Innovators			Multi-Factor
			Yield ETF ^(a)				ETF ^(b)			ETF
Investment in securities — at cost		$	248,600,520			$	111,319,498		$	130,863,262
Investment in affiliated funds — at cost			$	847,958		$	4,668,883		$	—
Foreign currency — at cost			$	—		$	—		$	21,548
Assets
Investment in securities — at value		$	248,815,820		^(c)	$	90,022,419	^(c)	$	131,852,862
Investment in affiliated funds — at value				847,958			4,668,883			—
Foreign currency — at value				—			—			21,710
Cash				29,780			—			—
Receivables:
Dividends				13,384			5			126,155
Interest				3,592,514			—			—
Securities lending income				230			4,093			—
Investment securities sold				906,632			853,357			6
	Total Assets		254,206,318				95,548,757			132,000,733

Liabilities
Accrued management and investment advisory fees				85,657			37,038			28,372
Accrued income distribution				1,064,065			861,124			675,974
Payables:
Investment securities purchased				7,494,454			—			—
Collateral obligation on securities loaned — at value				847,958			4,668,883			—
	Total Liabilities			9,492,134			5,567,045			704,346
Net Assets Applicable to Outstanding Shares		$	244,714,184			$	89,981,712		$	131,296,387

Net Assets Consist of:
Capital shares and additional paid-in-capital		$	234,804,680			$	105,824,344		$	131,309,161
Total distributable earnings (accumulated loss)				9,909,504			(15,842,632	)		(12,774	)
	Total Net Assets	$	244,714,184			$	89,981,712		$	131,296,387

Net Asset Value Per Share:
Net assets		$	244,714,184			$	89,981,712		$	131,296,387
Shares issued and outstanding			11,800,000		^(d)		1,900,001			5,200,001
Net asset value per share			$	20.74	^(d)	$	47.36		$	25.25

^(a)	Effective September 1, 2021, Principal Active Income ETF changed its name to Principal Active High Yield ETF.
^(b)	Effective October 29, 2021, Principal Healthcare Innovators Index ETF changed its name to Principal Healthcare Innovators ETF.
^(c)	Includes fair market value of securities loaned, see 'Securities Lending' in Notes to Financial Statements.
^(d)	Reflects a 2 to 1 stock split effective after the close of trading on August 30, 2021; see Notes to Financial Statements.

See accompanying notes.


Statements of Assets and Liabilities
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)

		Principal
		Investment
		Grade			Principal
		Corporate			Millennials			Principal
		Active ETF			ETF ^(a)			Quality ETF
Investment in securities — at cost	$	485,151,400		$	112,781,750		$	91,299,366
Investment in affiliated funds — at cost	$	1,601,613		$	2,317,867		$	—
Assets
Investment in securities — at value	$	486,475,333	^(b)	$	104,092,879	^(b)	$	96,797,640
Investment in affiliated funds — at value		1,601,613			2,317,867			—
Deposits with counterparty		643,400			—			—
Receivables:
Dividends		86			35,506			45,926
Interest		4,025,795			—			—
Securities lending income		232			737			—
Fund shares sold		—			5,802,687			—
Investment securities sold		—			1,989,896			173,123
Variation margin on financial derivative instruments		29,475			—			—
Total Assets		492,775,934			114,239,572			97,016,689

Liabilities
Accrued management and investment advisory fees		84,278			39,453			13,065
Accrued income distribution		1,283,773			2,542,964			274,755
Payables:
Investment securities purchased		—			5,309,117			—
Collateral obligation on securities loaned — at value		1,601,613			2,317,867			—
Total Liabilities		2,969,664			10,209,401			287,820
Net Assets Applicable to Outstanding Shares	$	489,806,270		$	104,030,171		$	96,728,869

Net Assets Consist of:
Capital shares and additional paid-in-capital	$	490,448,044		$	110,505,395		$	85,320,836
Total distributable earnings (accumulated loss)		(641,774	)		(6,475,224	)		11,408,033
Total Net Assets	$	489,806,270		$	104,030,171		$	96,728,869

Net Asset Value Per Share:
Net assets	$	489,806,270		$	104,030,171		$	96,728,869
Shares issued and outstanding		18,650,001			1,800,001			1,600,001
Net asset value per share	$	26.26		$	57.79		$	60.46

^(a)	Effective October 29, 2021, Principal Millennials Index ETF changed its name to Principal Millennials ETF.
^(b)	Includes fair market value of securities loaned, see 'Securities Lending' in Notes to Financial Statements.

See accompanying notes.


Statements of Assets and Liabilities
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)

					Principal
		Principal			Spectrum
		Spectrum			Tax-		Principal
		Preferred			Advantaged		Ultra-Short
		Securities			Dividend		Active
		Active ETF			Active ETF		Income ETF
Investment in securities — at cost	$	442,439,793		$	22,849,322	$	8,596,100
Investment in affiliated funds — at cost	$	7,334,728		$	—	$	4,170
Assets
Investment in securities — at value	$	449,262,550	^(a)	$	23,944,824	$	8,568,142	^(a)
Investment in affiliated funds — at value		7,334,728			—		4,170
Deposits with counterparty		—			14,955		—
Receivables:
Dividends		234			17,623		4
Interest		3,985,004			199,338		19,776
Securities lending income		3,429			—		1
Total Assets		460,585,945			24,176,740		8,592,093

Liabilities
Accrued management and investment advisory fees		218,119			13,050		1,398
Accrued income distribution		1,418,868			99,452		8,000
Payables:
Investment securities purchased		235,948			—		—
Collateral obligation on securities loaned — at value		7,334,728			—		4,170
Total Liabilities		9,207,663			112,502		13,568
Net Assets Applicable to Outstanding Shares	$	451,378,282		$	24,064,238	$	8,578,525

Net Assets Consist of:
Capital shares and additional paid-in-capital	$	451,078,429		$	23,199,193	$	8,800,419
Total distributable earnings (accumulated loss)		299,853			865,045		(221,894	)
Total Net Assets	$	451,378,282		$	24,064,238	$	8,578,525

Net Asset Value Per Share:
Net assets	$	451,378,282		$	24,064,238	$	8,578,525
Shares issued and outstanding		22,350,005			1,150,001		350,001
Net asset value per share	$	20.20		$	20.93	$	24.51

^(a)Includes fair market value of securities loaned, see 'Securities Lending' in Notes to Financial Statements.

See accompanying notes.


	Statements of Assets and Liabilities
	Principal Exchange-Traded Funds
	December 31, 2021 (unaudited)

			Principal U.S.					Principal U.S.
			Large-Cap					Small-Cap
			Adaptive			Principal U.S.		Adaptive
			Multi-Factor			Mega-Cap		Multi-Factor
				ETF		ETF		ETF
Investment in securities — at cost		$	123,771,997		$	1,495,299,872	$	6,216,933
Assets
Investment in securities — at value		$	131,911,411		$	1,866,341,022	$	6,660,494
Receivables:
Dividends				82,840		1,294,478		7,466
Fund shares sold				2,901,273		—		—
Investment securities sold				180,760		6,634,807		44,249
Expense reimbursement from Advisor				—		51,313		—
	Total Assets		135,076,284			1,874,321,620		6,712,209

Liabilities
Accrued management and investment advisory fees				18,080		256,564		1,124
Accrued income distribution				421,620		8,364,176		50,000
Payables:
Investment securities purchased				2,895,939		—		—
	Total Liabilities			3,335,639		8,620,740		51,124
Net Assets Applicable to Outstanding Shares		$	131,740,645		$	1,865,700,880	$	6,661,085

Net Assets Consist of:
Capital shares and additional paid-in-capital		$	119,455,849		$	1,307,382,814	$	6,262,759
Total distributable earnings (accumulated loss)			12,284,796			558,318,066		398,326
	Total Net Assets	$	131,740,645		$	1,865,700,880	$	6,661,085

Net Asset Value Per Share:
Net assets		$	131,740,645		$	1,865,700,880	$	6,661,085
Shares issued and outstanding				4,550,001		42,100,001		250,001
Net asset value per share			$	28.95	$	44.32	$	26.64

See accompanying notes.


Statements of Assets and Liabilities
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)

		Principal U.S.
		Small-Cap
		Multi-Factor				Principal
		ETF				Value ETF
Investment in securities — at cost	$	1,183,213,260			$	79,917,211
Investment in affiliated funds — at cost	$	10,127,850			$	—
Assets
Investment in securities — at value	$	1,238,741,207		^(a)	$	82,092,053
Investment in affiliated funds — at value		10,127,850				—
Receivables:
Dividends			1,190,513			139,963
Securities lending income			8,170			11
Investment securities sold			5,544,861			527,986
Total Assets		1,255,612,601				82,760,013

Liabilities
Accrued management and investment advisory fees			447,280			9,749
Accrued income distribution			7,734,239			609,773
Collateral obligation on securities loaned — at value		10,127,850				—
Total Liabilities		18,309,369				619,522
Net Assets Applicable to Outstanding Shares	$	1,237,303,232			$	82,140,491

Net Assets Consist of:
Capital shares and additional paid-in-capital	$	1,081,277,085			$	78,128,944
Total distributable earnings (accumulated loss)		156,026,147				4,011,547
Total Net Assets	$	1,237,303,232			$	82,140,491

Net Asset Value Per Share:
Net assets	$	1,237,303,232			$	82,140,491
Shares issued and outstanding		26,100,001				1,850,001
Net asset value per share		$	47.41		$	44.40

^(a)Includes fair market value of securities loaned, see 'Securities Lending' in Notes to Financial Statements.

See accompanying notes.


Statements of Operations
Principal Exchange-Traded Funds
Six Months Ended December 31, 2021 (unaudited)

					Principal			Principal
		Principal			Healthcare			International
		Active High			Innovators			Adaptive Multi-
		Yield ETF ^(a)			ETF ^(b)			Factor ETF
Net Investment Income (Loss)
Income:
Dividend	$	180,941		$	31,578		$	1,210,226
Withholding tax		(719	)		—			(115,551	)
Interest		4,993,710			—			—
Securities lending — net		2,880			31,254			—
Total Income		5,176,812			62,832			1,094,675

Expenses:
Management and investment advisory fees		509,111			293,536			110,792
Total Expenses		509,111			293,536			110,792
Net Investment Income (Loss)		4,667,701			(230,704	)		983,883

Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency:
Net realized gain (loss) from:
Investment transactions		6,572,508			(1,709,600	)		(1,569,884	)
In-kind redemptions		18,690,957			11,483,281			677,163
Foreign currency transactions		(478	)		—			(7,290	)
Change in unrealized appreciation (depreciation) of:
Investments		(25,072,094	)		(42,533,785	)		2,015,194
Foreign currency transactions		247			—			1,150
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency		191,140			(32,760,104	)		1,116,333
Net Increase (Decrease) in Net Assets Resulting from Operations	$	4,858,841		$	(32,990,808	)	$	2,100,216

^(a)	Effective September 1, 2021, Principal Active Income ETF changed its name to Principal Active High Yield ETF.
^(b)	Effective October 29, 2021, Principal Healthcare Innovators Index ETF changed its name to Principal Healthcare Innovators ETF.

See accompanying notes.


Statements of Operations
Principal Exchange-Traded Funds
Six Months Ended December 31, 2021 (unaudited)

		Principal
		Investment
		Grade			Principal
		Corporate			Millennials			Principal
		Active ETF			ETF ^(a)			Quality ETF
Net Investment Income (Loss)
Income:
Dividend	$	708		$	3,124,642		$	534,516
Withholding tax		—			(408,015	)		—
Interest		6,250,277			—			—
Securities lending — net		5,175			154,186			—
Total Income		6,256,160			2,870,813			534,516

Expenses:
Management and investment advisory fees		472,802			238,823			67,314
Total Expenses		472,802			238,823			67,314
Net Investment Income (Loss)		5,783,358			2,631,990			467,202

Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Futures:
Net realized gain (loss) from:
Investment transactions		1,724,414			41,750			3,344
In-kind redemptions		—			5,105,168			7,449,209
Foreign currency transactions		—			(3,472	)		—
Futures contracts		453,652			—			—
Change in unrealized appreciation (depreciation) of:
Investments		(6,996,446	)		(19,962,462	)		3,123,274
Futures contracts		(21,855	)		—			—
Foreign currency transactions		—			(445	)		—
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and
Futures		(4,840,235	)		(14,819,461	)		10,575,827
Net Increase (Decrease) in Net Assets Resulting from Operations	$	943,123		$	(12,187,471	)	$	11,043,029

^(a)Effective October 29, 2021, Principal Millennials Index ETF changed its name to Principal Millennials ETF.

See accompanying notes.


Statements of Operations
Principal Exchange-Traded Funds
Six Months Ended December 31, 2021 (unaudited)

					Principal
		Principal			Spectrum
		Spectrum			Tax-			Principal
		Preferred			Advantaged			Ultra-Short
		Securities			Dividend			Active
		Active ETF			Active ETF			Income ETF
Net Investment Income (Loss)
Income:
Dividend	$	1,148		$	74,559		$	31
Interest		7,426,831			461,865			24,451
Securities lending — net		19,472			—			90
Total Income		7,447,451			536,424			24,572

Expenses:
Management and investment advisory fees		1,141,908			71,861			7,912
Total Expenses		1,141,908			71,861			7,912
Net Investment Income (Loss)		6,305,543			464,563			16,660

Net Realized and Unrealized Gain (Loss) on Investments and Futures:
Net realized gain (loss) from:
Investment transactions		551,714			28,679			322
Futures contracts		—			(11,778	)		—
Written options					13,924
Change in unrealized appreciation (depreciation) of:
Investments		(6,769,145	)		(469,569	)		(39,375	)
Net Realized and Unrealized Gain (Loss) on Investments		(6,217,431	)		(438,744	)		(39,053	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	88,112		$	25,819		$	(22,393	)

See accompanying notes.


Statements of Operations
Principal Exchange-Traded Funds
Six Months Ended December 31, 2021 (unaudited)

	Principal U.S.							Principal U.S.
		Large-Cap						Small-Cap
		Adaptive			Principal U.S.			Adaptive
		Multi-Factor			Mega-Cap			Multi-Factor
		ETF			ETF			ETF
Net Investment Income (Loss)
Income:
Dividend	$	729,220		$	17,250,907		$	72,035
Withholding tax		(102	)		—			(62	)
Total Income		729,118			17,250,907			71,973

Expenses:
Management and investment advisory fees		82,432			1,549,433			6,228
Total Gross Expenses		82,432			1,549,433			6,228
Less: Reimbursement from Advisor		—			(309,887	)		—
Total Net Expenses		82,432			1,239,546			6,228
Net Investment Income (Loss)		646,686			16,011,361			65,745

Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) from:
Investment transactions		(795,716	)		32,206,008			(13,745	)
In-kind redemptions		4,939,114			220,013,534			—
Change in unrealized appreciation (depreciation) of:
Investments		7,766,450			(19,503,795	)		311,897
Net Realized and Unrealized Gain (Loss) on Investments		11,909,848			232,715,747			298,152
Net Increase (Decrease) in Net Assets Resulting from Operations	$	12,556,534		$	248,727,108		$	363,897

See accompanying notes.


Statements of Operations
Principal Exchange-Traded Funds
Six Months Ended December 31, 2021 (unaudited)

		Principal U.S.
		Small-Cap
		Multi-Factor			Principal
		ETF			Value ETF
Net Investment Income (Loss)
Income:
Dividend	$	16,956,641		$	1,114,036
Withholding tax		(4,498	)		—
Securities lending — net		80,527			11
Total Income		17,032,670			1,114,047

Expenses:
Management and investment advisory fees		3,010,912			44,347
Total Expenses		3,010,912			44,347
Net Investment Income (Loss)		14,021,758			1,069,700

Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) from:
Investment transactions		(11,824,431	)		81,228
In-kind redemptions		197,028,867			3,961,281
Change in unrealized appreciation (depreciation) of:
Investments		(168,080,184	)		(622,242	)
Net Realized and Unrealized Gain (Loss) on Investments		17,124,252			3,420,267
Net Increase (Decrease) in Net Assets Resulting from Operations	$	31,146,010		$	4,489,967

See accompanying notes.


Statement of Changes in Net Assets
Principal Exchange-Traded Funds
(unaudited)

		Principal Active High Yield ETF ^(a)
		Period ended			Year ended
		December 31, 2021			June 30, 2021
Operations
Net investment income (loss)	$	4,667,701		$	9,199,173
Net realized gain (loss) on investments and foreign currency		25,262,987			(6,479,099	)
Change in unrealized appreciation (depreciation) of investments and foreign currency		(25,071,847	)		42,205,061
Net Increase (Decrease) in Net Assets Resulting from Operations		4,858,841			44,925,135

Dividends to Shareholders
From net investment income and net realized gain on investments		(6,251,383	)		(9,881,656	)
Total Dividends		(6,251,383	)		(9,881,656	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		13,664,114			(72,696,915	)
Total Increase (Decrease) in Net Assets		12,271,572			(37,653,436	)

Net Assets
Beginning of period		232,442,612			270,096,048
End of period	$	244,714,184		$	232,442,612

Capital Share Transactions
Dollars:
Sold	$	71,762,801		$	2,059,299
Redeemed		(58,098,687	)		(74,756,214	)
Net Increase (Decrease)	$	13,664,114		$	(72,696,915	)
Shares: ^(b)
Sold		2,050,000			100,000
Redeemed		(1,400,000	)		(3,900,000	)
Net Increase (Decrease)		650,000			(3,800,000	)

(a)	Effective September 1, 2021, Principal Active Income ETF changed its name to Principal Active High Yield ETF.
(b)	Reflects a 2 to 1 stock split effective after the close of trading on August 30, 2021; see Notes to Financial Statements.

See accompanying notes.


Statement of Changes in Net Assets
Principal Exchange-Traded Funds
(unaudited)

	Principal Healthcare Innovators ETF ^(a)
		Period ended		Year ended
	December 31, 2021			June 30, 2021
Operations
Net investment income (loss)	$	(230,704	)	$	(372,510	)
Net realized gain (loss) on investments		9,773,681			28,979,751
Change in unrealized appreciation (depreciation) of investments		(42,533,785	)		6,955,733
Net Increase (Decrease) in Net Assets Resulting from Operations		(32,990,808	)		35,562,974

Dividends to Shareholders
From net investment income and net realized gain on investments		(861,124	)		(527,787	)
Total Dividends		(861,124	)		(527,787	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		(52,363,718	)		45,823,914
Total Increase (Decrease) in Net Assets		(86,215,650	)		80,859,101

Net Assets
Beginning of period		176,197,362			95,338,261
End of period	$	89,981,712		$	176,197,362

Capital Share Transactions
Dollars:
Sold	$	2,777,910		$	111,095,936
Redeemed		(55,141,628	)		(65,272,022	)
Net Increase (Decrease)	$	(52,363,718	)	$	45,823,914
Shares:
Sold		50,000			1,900,000
Redeemed		(1,050,000	)		(1,150,000	)
Net Increase (Decrease)		(1,000,000	)		750,000

(a) Effective October 29, 2021, Principal Healthcare Innovators Index ETF changed its name to Principal Healthcare Innovators ETF.

See accompanying notes.


Statement of Changes in Net Assets
Principal Exchange-Traded Funds
(unaudited)

		Principal International Adaptive Multi-
		Factor ETF
		Period ended		Period ended
		December 31, 2021		June 30, 2021 ^(a)
Operations
Net investment income (loss)	$	983,883		$	67,312
Net realized gain (loss) on investments and foreign currency		(900,011	)		13,912
Change in unrealized appreciation (depreciation) of investments and foreign currency		2,016,344			(1,026,037	)
Net Increase (Decrease) in Net Assets Resulting from Operations		2,100,216			(944,813	)

Dividends to Shareholders
From net investment income and net realized gain on investments		(1,153,177	)		—
Total Dividends		(1,153,177	)		—

Capital Share Transactions
Net increase (decrease) in capital share transactions		83,231,311			48,062,850
Total Increase (Decrease) in Net Assets		84,178,350			47,118,037

Net Assets
Beginning of period		47,118,037			—
End of period	$	131,296,387		$	47,118,037

Capital Share Transactions
Dollars:
Sold	$	93,195,278		$	48,062,850
Redeemed		(9,963,967	)		—
Net Increase (Decrease)	$	83,231,311		$	48,062,850
Shares:
Sold		3,700,000			1,900,001
Redeemed		(400,000	)		—
Net Increase (Decrease)		3,300,000			1,900,001

^(a)Period from May 26, 2021, date operations commenced, through June 30, 2021.

See accompanying notes.


Statement of Changes in Net Assets
Principal Exchange-Traded Funds
(unaudited)

		Principal Investment Grade Corporate Active
		ETF
		Period ended			Year ended
		December 31, 2021		June 30, 2021
Operations
Net investment income (loss)	$	5,783,358		$	7,616,986
Net realized gain (loss) on investments and futures		2,178,066			3,895,398
Change in unrealized appreciation (depreciation) of investments and futures		(7,018,301	)		403,989
Net Increase (Decrease) in Net Assets Resulting from Operations		943,123			11,916,373

Dividends to Shareholders
From net investment income and net realized gain on investments		(9,710,687	)		(14,392,204	)
Total Dividends		(9,710,687	)		(14,392,204	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		17,302,572			373,054,558
Total Increase (Decrease) in Net Assets		8,535,008			370,578,727

Net Assets
Beginning of period		481,271,262			110,692,535
End of period	$	489,806,270		$	481,271,262

Capital Share Transactions
Dollars:
Sold	$	17,302,572		$	383,550,803
Redeemed		—			(10,496,245	)
Net Increase (Decrease)	$	17,302,572		$	373,054,558
Shares:
Sold		650,000			14,250,000
Redeemed		—			(400,000	)
Net Increase (Decrease)		650,000			13,850,000

See accompanying notes.


Statement of Changes in Net Assets
Principal Exchange-Traded Funds
(unaudited)

		Principal Millennials ETF ^(a)
		Period ended		Year ended
	December 31, 2021			June 30, 2021
Operations
Net investment income (loss)	$	2,631,990		$	331,354
Net realized gain (loss) on investments and foreign currency		5,143,446			21,712,308
Change in unrealized appreciation (depreciation) of investments and foreign currency		(19,962,907	)		7,404,266
Net Increase (Decrease) in Net Assets Resulting from Operations		(12,187,471	)		29,447,928

Dividends to Shareholders
From net investment income and net realized gain on investments		(2,713,066	)		(481,261	)
Total Dividends		(2,713,066	)		(481,261	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		(7,468,588	)		71,724,249
Total Increase (Decrease) in Net Assets		(22,369,125	)		100,690,916

Net Assets
Beginning of period		126,399,296			25,708,380
End of period	$	104,030,171		$	126,399,296

Capital Share Transactions
Dollars:
Sold	$	30,366,003		$	147,097,949
Redeemed		(37,834,591	)		(75,373,700	)
Net Increase (Decrease)	$	(7,468,588	)	$	71,724,249
Shares:
Sold		500,000			2,550,000
Redeemed		(600,000	)		(1,250,000	)
Net Increase (Decrease)		(100,000	)		1,300,000

(a) Effective October 29, 2021, Principal Millennials Index ETF changed its name to Principal Millennials ETF.

See accompanying notes.


Statement of Changes in Net Assets
Principal Exchange-Traded Funds
(unaudited)

		Principal Quality ETF
		Period ended		Year ended
		December 31, 2021		June 30, 2021
Operations
Net investment income (loss)	$	467,202		$	380,155
Net realized gain (loss) on investments		7,452,553			7,418,259
Change in unrealized appreciation (depreciation) of investments		3,123,274			1,633,115
Net Increase (Decrease) in Net Assets Resulting from Operations		11,043,029			9,431,529

Dividends to Shareholders
From net investment income and net realized gain on investments		(614,556	)		(296,923	)
Total Dividends		(614,556	)		(296,923	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		27,814,769			31,399,812
Total Increase (Decrease) in Net Assets		38,243,242			40,534,418

Net Assets
Beginning of period		58,485,627			17,951,209
End of period	$	96,728,869		$	58,485,627

Capital Share Transactions
Dollars:
Sold	$	106,111,513		$	83,793,358
Redeemed		(78,296,744	)		(52,393,546	)
Net Increase (Decrease)	$	27,814,769		$	31,399,812
Shares:
Sold		1,900,000			1,700,000
Redeemed		(1,400,000	)		(1,050,000	)
Net Increase (Decrease)		500,000			650,000

See accompanying notes.


Statement of Changes in Net Assets
Principal Exchange-Traded Funds
(unaudited)

		Principal Spectrum Preferred Securities
		Active ETF
		Period ended		Year ended
		December 31, 2021		June 30, 2021
Operations
Net investment income (loss)	$	6,305,543		$	8,156,646
Net realized gain (loss) on investments		551,714			550,789
Change in unrealized appreciation (depreciation) of investments		(6,769,145	)		13,134,839
Net Increase (Decrease) in Net Assets Resulting from Operations		88,112			21,842,274

Dividends to Shareholders
From net investment income and net realized gain on investments		(9,470,707	)		(9,608,037	)
Total Dividends		(9,470,707	)		(9,608,037	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		97,427,743			211,103,817
Total Increase (Decrease) in Net Assets		88,045,148			223,338,054

Net Assets
Beginning of period		363,333,134			139,995,080
End of period	$	451,378,282		$	363,333,134

Capital Share Transactions
Dollars:
Sold	$	97,427,743		$	211,103,817
Redeemed		—			—
Net Increase (Decrease)	$	97,427,743		$	211,103,817
Shares:
Sold		4,750,000			10,350,000
Redeemed		—			—
Net Increase (Decrease)		4,750,000			10,350,000

See accompanying notes.


Statement of Changes in Net Assets
Principal Exchange-Traded Funds
(unaudited)

		Principal Spectrum Tax-Advantaged
		Dividend Active ETF
		Period ended			Year ended
		December 31, 2021		June 30, 2021
Operations
Net investment income (loss)	$	464,563		$	919,696
Net realized gain (loss) on investments		30,825			129,559
Change in unrealized appreciation (depreciation) of investments		(469,569	)		1,712,911
Net Increase (Decrease) in Net Assets Resulting from Operations		25,819			2,762,166

Dividends to Shareholders
From net investment income and net realized gain on investments		(738,053	)		(1,062,462	)
Total Dividends		(738,053	)		(1,062,462	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		2,129,041			1,000,132
Total Increase (Decrease) in Net Assets		1,416,807			2,699,836

Net Assets
Beginning of period		22,647,431			19,947,595
End of period	$	24,064,238		$	22,647,431

Capital Share Transactions
Dollars:
Sold	$	2,129,041		$	1,000,132
Redeemed		—			—
Net Increase (Decrease)	$	2,129,041		$	1,000,132
Shares:
Sold		100,000			50,000
Redeemed		—			—
Net Increase (Decrease)		100,000			50,000

See accompanying notes.


Statement of Changes in Net Assets
Principal Exchange-Traded Funds
(unaudited)

		Principal Ultra-Short Active
		Income ETF
		Period ended		Year ended
		December 31, 2021		June 30, 2021
Operations
Net investment income (loss)	$	16,660		$	89,020
Net realized gain (loss) on investments		322			13,955
Change in unrealized appreciation (depreciation) of investments		(39,375	)		(32,874	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(22,393	)		70,101

Dividends to Shareholders
From net investment income and net realized gain on investments		(56,101	)		(215,987	)
Total Dividends		(56,101	)		(215,987	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		—			(3,706,573	)
Total Increase (Decrease) in Net Assets		(78,494	)		(3,852,459	)

Net Assets
Beginning of period		8,657,019			12,509,478
End of period	$	8,578,525		$	8,657,019

Capital Share Transactions
Dollars:
Sold	$	—		$	1,238,181
Redeemed		—			(4,944,754	)
Net Increase (Decrease)	$	—		$	(3,706,573	)
Shares:
Sold		—			50,000
Redeemed		—			(200,000	)
Net Increase (Decrease)		—			(150,000	)

See accompanying notes.


Statement of Changes in Net Assets
Principal Exchange-Traded Funds
(unaudited)

		Principal U.S. Large-Cap Adaptive Multi-
		Factor ETF
		Period ended			Period ended
		December 31, 2021		June 30, 2021 ^(a)
Operations
Net investment income (loss)	$	646,686		$	15,311
Net realized gain (loss) on investments		4,143,398			110
Change in unrealized appreciation (depreciation) of investments		7,766,450			372,964
Net Increase (Decrease) in Net Assets Resulting from Operations		12,556,534			388,385

Dividends to Shareholders
From net investment income and net realized gain on investments		(660,123	)		—
Total Dividends		(660,123	)		—

Capital Share Transactions
Net increase (decrease) in capital share transactions		90,002,261			29,453,588
Total Increase (Decrease) in Net Assets		101,898,672			29,841,973

Net Assets
Beginning of period		29,841,973			—
End of period	$	131,740,645		$	29,841,973

Capital Share Transactions
Dollars:
Sold	$	138,799,895		$	29,453,588
Redeemed		(48,797,634	)		—
Net Increase (Decrease)	$	90,002,261		$	29,453,588
Shares:
Sold		5,150,000			1,150,001
Redeemed		(1,750,000	)		—
Net Increase (Decrease)		3,400,000			1,150,001

^(a)Period from May 19, 2021, date operations commenced, through June 30, 2021.

See accompanying notes.


Statement of Changes in Net Assets
Principal Exchange-Traded Funds
(unaudited)

		Principal U.S. Mega-Cap ETF
		Period ended			Year ended
		December 31, 2021			June 30, 2021
Operations
Net investment income (loss)	$	16,011,361		$	28,827,265
Net realized gain (loss) on investments		252,219,542			192,160,118
Change in unrealized appreciation (depreciation) of investments		(19,503,795	)		284,619,935
Net Increase (Decrease) in Net Assets Resulting from Operations		248,727,108			505,607,318

Dividends to Shareholders
From net investment income and net realized gain on investments		(24,965,735	)		(27,303,682	)
Total Dividends		(24,965,735	)		(27,303,682	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		(316,124,669	)		(25,285,343	)
Total Increase (Decrease) in Net Assets		(92,363,296	)		453,018,293

Net Assets
Beginning of period		1,958,064,176			1,505,045,883
End of period	$	1,865,700,880		$	1,958,064,176

Capital Share Transactions
Dollars:
Sold	$	407,861,839		$	526,851,840
Redeemed		(723,986,508	)		(552,137,183	)
Net Increase (Decrease)	$	(316,124,669	)	$	(25,285,343	)
Shares:
Sold		9,600,000			14,150,000
Redeemed		(16,850,000	)		(14,900,000	)
Net Increase (Decrease)		(7,250,000	)		(750,000	)

See accompanying notes.


Statement of Changes in Net Assets
Principal Exchange-Traded Funds
(unaudited)

		Principal U.S. Small-Cap Adaptive Multi-
		Factor ETF
		Period ended		Period ended
		December 31, 2021		June 30, 2021 ^(a)
Operations
Net investment income (loss)	$	65,745		$	6,980
Net realized gain (loss) on investments		(13,745	)		1,295
Change in unrealized appreciation (depreciation) of investments		311,897			131,664
Net Increase (Decrease) in Net Assets Resulting from Operations		363,897			139,939

Dividends to Shareholders
From net investment income and net realized gain on investments		(105,510	)		—
Total Dividends		(105,510	)		—

Capital Share Transactions
Net increase (decrease) in capital share transactions		—			6,262,759
Total Increase (Decrease) in Net Assets		258,387			6,402,698

Net Assets
Beginning of period		6,402,698			—
End of period	$	6,661,085		$	6,402,698

Capital Share Transactions
Dollars:
Sold	$	—		$	6,262,759
Redeemed		—			—
Net Increase (Decrease)	$	—		$	6,262,759
Shares:
Sold		—			250,001
Redeemed		—			—
Net Increase (Decrease)		—			250,001

(a) Period from May 19, 2021, date operations commenced, through June 30, 2021.

See accompanying notes.


Statement of Changes in Net Assets
Principal Exchange-Traded Funds
(unaudited)

		Principal U.S. Small-Cap Multi-Factor ETF
		Period ended			Year ended
		December 31, 2021			June 30, 2021
Operations
Net investment income (loss)	$	14,021,758		$	13,278,051
Net realized gain (loss) on investments		185,204,436			186,577,277
Change in unrealized appreciation (depreciation) of investments		(168,080,184	)		264,338,863
Net Increase (Decrease) in Net Assets Resulting from Operations		31,146,010			464,194,191

Dividends to Shareholders
From net investment income and net realized gain on investments		(17,349,751	)		(10,376,768	)
Total Dividends		(17,349,751	)		(10,376,768	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		(404,496,326	)		845,880,659
Total Increase (Decrease) in Net Assets		(390,700,067	)		1,299,698,082

Net Assets
Beginning of period		1,628,003,299			328,305,217
End of period	$	1,237,303,232		$	1,628,003,299

Capital Share Transactions
Dollars:
Sold	$	424,307,185		$	1,451,694,258
Redeemed		(828,803,511	)		(605,813,599	)
Net Increase (Decrease)	$	(404,496,326	)	$	845,880,659
Shares:
Sold		9,050,000			36,050,000
Redeemed		(17,650,000	)		(13,350,000	)
Net Increase (Decrease)		(8,600,000	)		22,700,000

See accompanying notes.


Statement of Changes in Net Assets
Principal Exchange-Traded Funds
(unaudited)

		Principal Value ETF
		Period ended			Year ended
		December 31, 2021		June 30, 2021
Operations
Net investment income (loss)	$	1,069,700		$	826,275
Net realized gain (loss) on investments		4,042,509			7,607,296
Change in unrealized appreciation (depreciation) of investments		(622,242	)		1,803,600
Net Increase (Decrease) in Net Assets Resulting from Operations		4,489,967			10,237,171

Dividends to Shareholders
From net investment income and net realized gain on investments		(1,428,275	)		(700,888	)
Total Dividends		(1,428,275	)		(700,888	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		34,580,463			3,055,086
Total Increase (Decrease) in Net Assets		37,642,155			12,591,369

Net Assets
Beginning of period		44,498,336			31,906,967
End of period	$	82,140,491		$	44,498,336

Capital Share Transactions
Dollars:
Sold	$	64,496,194		$	38,529,990
Redeemed		(29,915,731	)		(35,474,904	)
Net Increase (Decrease)	$	34,580,463		$	3,055,086
Shares:
Sold		1,500,000			950,000
Redeemed		(700,000	)		(1,050,000	)
Net Increase (Decrease)		800,000			(100,000	)

See accompanying notes.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)

1. Organization

The Principal Exchange-Traded Funds (the “Trust”) is a statutory trust organized under the laws of the State of Delaware in 2013 and is authorized to have multiple series or portfolios. The Trust is an open-end management investment company, registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently consists of fourteen series, Principal Active High Yield ETF, Principal Healthcare Innovators ETF, Principal International Adaptive Multi-Factor ETF, Principal Investment Grade Corporate Active ETF, Principal Millennials ETF, Principal Quality ETF, Principal Spectrum Preferred Securities Active ETF, Principal Spectrum Tax-Advantaged Dividend Active ETF, Principal Ultra-Short Active Income ETF, Principal U.S. Large-Cap Adaptive Multi-Factor ETF, Principal U.S. Mega-Cap ETF, Principal U.S. Small-Cap Adaptive Multi-Factor ETF, Principal U.S. Small-Cap Multi-Factor ETF and Principal Value ETF (collectively, the “Funds” and individually, a “Fund”). The Funds are “diversified”, and as such, the Funds' investments are required to meet certain diversification requirements under the 1940 Act. The shares of the Funds are referred to herein as “Shares”.

Each of the Funds is an investment company and applies specialized accounting and reporting under Accounting Standards Codification Topic 946, Financial Services - Investment Companies. The Funds have not provided financial support and are not contractually required to provide financial support to any investee.

The Trust issues and redeems Shares at net asset value (“NAV”) only with Authorized Participants (“APs”) and only in aggregations of 50,000 Shares with the exception of Principal International Adaptive Multi-Factor ETF which is issued and redeemed in aggregations of 100,000 shares (each a “Creation Unit” or multiples thereof “Creation Unit Aggregations”), which is subject to change. The Trust issues and redeems Creation Unit Aggregations in exchange for portfolio securities and/or cash, plus a fixed and/or variable transaction fee.

Shares trade on exchanges at market prices that may be below, at, or above NAV. Shares are listed on the respective exchanges as listed below:


Fund	Exchange
Principal Active High Yield ETF	NYSE Arca
Principal Healthcare Innovators ETF	The Nasdaq Stock Market LLC
Principal International Adaptive Multi-Factor ETF	Cboe BZX Exchange, Inc.
Principal Investment Grade Corporate Active ETF	NYSE Arca
Principal Millennials ETF	The Nasdaq Stock Market LLC
Principal Quality ETF	The Nasdaq Stock Market LLC
Principal Spectrum Preferred Securities Active ETF	NYSE Arca
Principal Spectrum Tax-Advantaged Dividend Active ETF	NYSE Arca
Principal Ultra-Short Active Income ETF	NYSE Arca
Principal U.S. Large-Cap Adaptive Multi-Factor ETF	Cboe BZX Exchange, Inc.
Principal U.S. Mega-Cap ETF	The Nasdaq Stock Market LLC
Principal U.S. Small-Cap Adaptive Multi-Factor ETF	Cboe BZX Exchange, Inc.
Principal U.S. Small-Cap Multi-Factor ETF	The Nasdaq Stock Market LLC
Principal Value ETF	The Nasdaq Stock Market LLC

Principal U.S. Large-Cap Adaptive Multi-Factor ETF and Principal U.S. Small-Cap Adaptive Multi-Factor ETF initial investments and commencement of operations was May 19, 2021. Principal International Adaptive Multi-Factor ETF initial investment and commencement of operations was May 26, 2021.

Effective September 1, 2021, Principal Active Income ETF changed its name to Principal Active High Yield ETF. In addition to the name change, the Trust's Board of Trustees authorized a 2 for 1 stock split effective after the close of trading on August 30, 2021. The stock split has been retroactively reflected on the Statement of Changes in Net Assets and Financial Highlights.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)

1. Organization (continued)

Effective October 29, 2021, the following Funds changed their names as shown below:


Previous Name	New Name
Principal Healthcare Innovators Index ETF	Principal Healthcare Innovators ETF
Principal Millennials Index ETF	Principal Millennials ETF

2. Significant Accounting Policies

The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Funds:

Security Valuation. The Funds may invest in series of Principal Funds, Inc. and other investment funds, which may include money market funds and other registered open-end investment companies. Investments in registered open-end investment companies are valued at the respective fund's closing NAV per share on the day of valuation.

The Funds value securities for which market quotations are readily available at fair value, which is determined using the last reported sale price. If no sales are reported, as is regularly the case for some securities traded over-the-counter, securities are valued using the last reported bid price or an evaluated bid price provided by a pricing service. Pricing services use modeling techniques that incorporate security characteristics such as current quotations by broker/dealers, coupon, maturity, quality, type of issue, trading characteristics, other yield and risk factors and other market conditions to determine an evaluated bid price. When reliable market quotations are not considered to be readily available, which may be the case, for example, with respect to restricted securities, certain debt securities, preferred stocks, and foreign securities, the investments are valued at their fair value as determined in good faith by the Principal Global Investors, LLC (“the Advisor”) under procedures established and periodically reviewed by the Fund's Board of Trustees.

The value of foreign securities used in computing the NAV per share is generally determined as of the close of the foreign exchange where the security is principally traded. Events that occur after the close of the applicable foreign market or exchange but prior to the calculation of the Fund’s NAV are reflected in the Fund’s NAV and these securities are valued at fair value. Many factors, provided by independent pricing services, are reviewed in the course of making a good faith determination of a security's fair value including, but not limited to, price movements in American Depository Receipts (“ADRs”), futures contracts, industry indices, general indices, and foreign currencies.

To the extent the Funds invest in foreign securities listed on foreign exchanges which trade on days on which the Funds do not determine NAV, for example, weekends and other customary national U.S. holidays, the Fund’s NAV could be significantly affected on days when shares are not able to be issued or redeemed by APs.

Certain securities issued by companies in emerging market countries may have more than one quoted valuation at any given point in time, sometimes referred to as a “local” price and a “premium” price. The premium price is often a negotiated price, which may not consistently represent a price at which a specific transaction can be effected. It is the policy of the Funds to value such securities at prices at which it is expected those shares may be sold, and the Advisor, or any sub-advisor, is authorized to make such determinations subject to such oversight by the Trust's Board of Trustees, as may occasionally be necessary.

Currency Translation. Foreign holdings are translated to U.S. dollars using the exchange rate at the daily close of the New York Stock Exchange. The identified cost of the Funds’ holdings is translated at approximate rates prevailing when acquired. Income and expense amounts are translated at approximate rates prevailing when received or paid, with daily accruals of such amounts reported at approximate rates prevailing at the date of valuation. Since the carrying amount of the foreign securities is determined based on the exchange rate and market values at the close of the period, it is not practicable to isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities during the period.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)

2. Significant Accounting Policies (continued)

Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between trade and settlement dates on security transactions, and the difference between the amount of dividends, interest income, interest expense, and foreign withholding taxes recorded on the books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies arise from changes in the exchange rate relating to assets and liabilities, other than investments in securities, purchased and held in non-U.S. denominated currencies.

The following Funds held securities denominated in foreign currencies that exceeded 5% of net assets of the respective Fund as of December 31, 2021:


Principal International Adaptive Multi-Factor ETF
Australian Dollar	6.13	%
British Pound Sterling	11.19	%
Canadian Dollar	13.44	%
Euro	25.73	%
Japanese Yen	20.24	%
Swiss Franc	10.01	%
Principal Millennials ETF
Euro	12.65	%
Japanese Yen	5.50	%
Korean Won	7.89	%

Income and Investment Transactions. The Funds record investment transactions on a trade date basis. Trade date for senior floating rate interests purchased in the primary market is considered the date on which the loan allocations are determined. Trade date for senior floating rate interests purchased in the secondary market is the date on which the transaction is entered into. The identified cost basis has been used in determining the net realized gain or loss from investment transactions and unrealized appreciation or depreciation of investments. The Funds record dividend income on the ex-dividend date, except dividend income from foreign securities whereby the ex-dividend date has passed; such dividends are recorded as soon as the Funds are informed of the ex-dividend date. Interest income is recognized on an accrual basis. Discounts and premiums on securities are accreted/amortized, respectively, on the level yield method over the expected lives of the respective securities. Callable debt securities purchased at a premium are amortized to the earliest call date and to the callable amount, if other than par.

Capital Share Transactions. Capital shares are issued and redeemed by the Funds only in a Creation Unit or Creation Unit Aggregations. Except when aggregated into at least a Creation Unit, Shares are not redeemable.

The consideration for the purchase of a Creation Unit or Creation Unit Aggregations of a Fund generally consists of a basket of cash and/or securities that the Fund specifies each business day. To offset transfer and other transaction costs associated with the issuance and redemption of Creation Unit Aggregations, APs are subject to standard creation and redemption transaction fees.

Expenses. For all Funds, a unitary investment management and advisory fee is charged. The Advisor covers all operating expenses through the investment management and advisory fee with the exception of 12b-1 fees, brokerage commissions and other expenses connected to the execution of portfolio transactions, interest expense, taxes, acquired fund fees and expenses, litigation expenses and other extraordinary expenses, if applicable.

Dividends to Shareholders. Dividends to shareholders of the Funds are recorded on the ex-dividend date. Dividends to shareholders from net investment income and net realized gain from investments and foreign currency transactions are determined in accordance with federal tax regulations, which may differ from U.S. GAAP. These differences are primarily due to differing treatments for amortization of premiums and discounts, futures contracts, net operating losses, sales of passive foreign investment companies, partnership investments, foreign currency transactions, losses deferred due to wash sales, tax straddles, mortgage-backed securities, certain preferred securities, redemptions-in-kind, real estate investment trusts (“REITs”), utilization of earnings and profits distributed to shareholders on redemption of Shares, and limitations imposed by Sections 381-384 of the Internal Revenue Code (“IRC”). Permanent

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)

2. Significant Accounting Policies (continued)

book and tax basis differences are reclassified within the capital accounts based on federal tax-basis treatment; temporary differences do not require reclassification. To the extent dividends exceed current and accumulated earnings and profits for federal income tax purposes, they are reported as return of capital distributions.

Federal Income Taxes. No provision for federal income taxes is considered necessary because the Funds each intend to qualify as a “regulated investment company” under the IRC and they intend to distribute each year substantially all of their net investment income and realized capital gains to shareholders.

Management evaluates tax positions taken or expected to be taken in the course of preparing the Funds' tax returns to determine whether it is “more likely than not” that each tax position would be sustained upon examination by a taxing authority based on the technical merits of their position. Tax positions not deemed to meet the “more likely than not” threshold would be recorded as a tax benefit or expense in the current year. During the period ended December 31, 2021, the Funds did not record any such tax benefit or expense in the accompanying financial statements. The statute of limitations remains open for the last three years, once a return is filed. No examinations are in progress at this time.

Foreign Taxes. Certain Funds are subject to foreign income taxes imposed by certain countries in which they invest. Foreign income taxes are accrued by the Funds as a reduction of income. These amounts are shown as withholding tax on the Statements of Operations.

Recent Accounting Pronouncements. In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848); Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The guidance is applicable to contracts referencing London Inter-Bank Offered Rate (“LIBOR”) or another reference rate that is expected to be discontinued due to reference rate reform. The ASU is effective as of March 12, 2020 and generally can be applied through December 31, 2022. Management is evaluating the impact of the ASU over the period of time the ASU is effective.

3. Operating Policies

Contingent Convertible Securities (“CoCos”). As footnoted in the Schedules of Investments, certain of the Funds invest in contingent convertible securities. CoCos are hybrid debt securities that may convert into equity or have their principal written down upon the occurrence of certain “triggers”. Although a contingent convertible security's equity conversion and principal write-down features are tailored to the particular issuing banking institution and its regulatory requirements, triggers are generally linked to regulatory capital thresholds or regulatory actions calling into question such institution's continued viability as a going-concern. CoCos may have no stated maturity and fully discretionary coupons, which means coupon payments can be canceled at the issuing banking institution's discretion or at the request of the relevant regulatory authority without causing a default. To provide the appropriate regulatory capital treatment, CoCos are usually issued in the form of subordinated debt instruments that rank junior to the claims of holders of more senior obligations in the event of the issuer's liquidation. If CoCos are converted into equity securities due to a trigger event, holders will be further subordinated. The future value of CoCos is unpredictable and is influenced by many factors including, without limitation: the creditworthiness of the issuer and/or fluctuations in such issuer's applicable capital ratios; supply and demand for CoCos; general market conditions and available liquidity; and economic, financial and political events that affect the issuer, its particular market or the financial markets in general. Due to these features, CoCos may have substantially greater risk than other securities in times of financial stress. Because of the uncertainty regarding whether a conversion event will occur, it may be difficult to predict when, if at all, a contingent convertible security will be converted to equity, and a fund may suffer losses as a result. If the trigger level is breached, the issuer's decision to write down, write off or convert a contingent convertible security may result in the fund's complete loss on an investment in CoCos with no chance of recovery even if the issuer remains in existence.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)

3. Operating Policies (continued)

Cross Trades. The Funds may engage in cross trades. A cross trade is a purchase or sale transaction between affiliated portfolios executed directly or through an intermediary. Mutual funds and other managed portfolios may be considered affiliated if they have a common investment advisor, so a fund may be considered affiliated with any portfolio for which the fund's sub-advisor acts as an investment advisor. Such transactions are permissible provided that the conditions of Rule 17a-7 under the 1940 Act are satisfied. For the period ended December 31, 2021, the Funds did not engage in cross trades.

Deposits with Counterparty. Cash pledged as collateral is reflected as an asset on the Statements of Assets and Liabilities as deposits with counterparty. There are a variety of security types which require varying levels of pledged collateral. Customer account agreements govern cleared derivatives transactions such as futures contracts. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission. As of December 31,2021, deposits with counterparty for Principal Investment Grade Corporate Active ETF and Principal Spectrum Tax-Advantaged Dividend Active ETF were $643,400 and $14,955.

Futures Contracts. The Funds are subject to equity price risk, interest rate risk, and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Funds may enter into futures contracts to hedge against changes in, or to gain exposure to, change in the value of equities, interest rates and foreign currencies. Initial margin deposits are made by cash deposits or segregation of specific securities as may be required by the exchange on which the transaction was conducted. Pursuant to the contracts, typically a Fund agrees to receive from or pay to the broker, an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as “variation margin” and are recorded by the Funds as variation margin receivable or payable on financial derivative instruments. For those contracts where daily variation margin payments are not received from or paid to the broker, the cumulative unrealized gains or losses are included in variation margin receivable or payable on financial derivative instruments. Futures contracts are marked to market daily at the closing settlement price or in the absence of such a price, the most recent quoted bid price. If there are no quotations available, the security is valued at the last available closing settlement price. During the period the futures contracts are open, daily changes in the fair value of the contracts are recognized as unrealized gains or losses. These unrealized gains or losses are included as a component of net unrealized appreciation (depreciation) of investments on the Statements of Assets and Liabilities. When the contracts are closed, the Funds recognize a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s cost basis in the contract. There is minimal counterparty credit risk to the Funds because futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

Long and short U.S. Treasury futures contracts are used to obtain interest rate exposure in order to manage duration of the Principal Investment Grade Corporate Active ETF. The notional values of the futures contracts will vary in accordance with changing duration of this Fund.

Illiquid Securities. Illiquid securities generally cannot be sold or disposed of in the ordinary course of business (within seven calendar days) at approximately the value at which each of the Funds has valued the investments. This may have an adverse effect on each of the Funds’ ability to dispose of particular illiquid securities at fair value and may limit each of the Funds’ ability to obtain accurate market quotations for purposes of valuing the securities.

Indemnification. In a normal course of business, the Funds enter into contracts that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve potential future claims against the Funds that have not yet occurred. Based on management's experience, the risk of loss would be remote.

Restricted Securities. Certain of the Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)

3. Operating Policies (continued)

Securities Lending. As footnoted in the Schedules of Investments, certain of the Funds may lend portfolio securities to approved brokerage firms to earn additional income. The Funds receive collateral, in the form of cash, against the loaned securities. During the period of the loan, the borrower must maintain collateral in an amount not less than 102% of the market value of the domestic and foreign fixed income loaned securities and 105% of the market value of the foreign equity loaned securities. The market value of the loaned securities is determined at the close of business of the Funds and any additional required collateral is delivered to the Funds on the next business day. The cash collateral received is usually invested in a SEC-registered money market mutual fund and the Funds could realize a loss on such investments. Further, the Funds could experience a delay in recovering their securities and possible loss of income or value if the borrower fails to return them. Securities lending income, net of related fees, is shown on the Statements of Operations.

Senior Floating Rate Interests. The Fund may invest in senior floating rate interests (bank loans). Senior floating rate interests hold the most senior position in the capital structure of a business entity (the “Borrower”), are typically secured by specific collateral and have a claim on the assets and/or stock of the Borrower that is senior to that held by subordinated debtholders and stockholders of the Borrower. Senior floating rate interests are typically structured and administered by a financial institution that acts as the agent of the lenders participating in the senior floating rate interest. Borrowers of senior floating rate interests are typically rated below investment grade, which means they are more likely to default than investment-grade loans. A default could lead to non-payment of income which would result in a reduction of income to the Fund and there can be no assurance that the liquidation of any collateral would satisfy the Borrower’s obligation in the event of non-payment of scheduled interest or principal payments, or that such collateral could be readily liquidated.

Senior floating rate interests pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank or the LIBOR rate.

Senior floating rate interests generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for the Borrower to repay, prepayments of senior floating rate interests may occur. As a result, the actual remaining maturity of senior floating rate interests may be substantially less than stated maturities shown in the Schedule of Investments.

In connection with the senior floating rate interests, the Fund may also enter into unfunded loan commitments. All or a portion of the loan commitments may be unfunded. The Fund is obligated to fund these commitments at the Borrower’s discretion. Therefore, the Fund must have funds sufficient to cover its contractual obligation. Unfunded loan commitments are marked to market daily and the unrealized gain or loss is shown as a separate line item called unrealized gain or loss on unfunded commitments on the statement of assets and liabilities and included in the net change in unrealized appreciation/(depreciation) of investments on the statements of operations, as applicable. As of period end, the unfunded loan commitments are categorized as Level 2 within the disclosure hierarchy. As of December 31, 2021, there were no unfunded loan commitments.

Underlying Funds. An underlying fund may experience relatively large redemptions or purchases as the investee fund periodically reallocates or rebalances its assets. These transactions may accelerate the realization of taxable income if sales of portfolio securities result in gains and could increase transaction costs.

The Advisor is the advisor to Principal Funds, Inc., Principal Variable Contracts Funds, Inc., affiliates of the Advisor, and other asset allocation programs. The Advisor is committed to minimizing the potential impact of underlying fund risk to the extent consistent with pursuing the investment objectives of the investee funds which it manages. Each may face conflicts of interest in fulfilling its responsibilities to all such funds.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)

3. Operating Policies (continued)

As of December 31, 2021, series of Principal Funds, Inc. and Principal Variable Contracts Funds, Inc. owned the following percentages, in aggregate, of the outstanding Shares of the Funds listed below:


	Total Percentage of
Fund	Outstanding Shares Owned
Principal Active High Yield ETF	80.46	%
Principal Investment Grade Corporate Active ETF	93.57
Principal U.S. Mega-Cap ETF	83.25
Principal U.S. Small-Cap Multi-Factor ETF	93.68

U.S. Government Agencies or Government-Sponsored Enterprises. Certain of the Funds may invest in U.S. Government agencies or government-sponsored enterprises. U.S. Government securities are obligations of, and in certain cases, guaranteed by, the U.S. Government or its agencies. The U.S. Government does not guarantee the NAV of the Funds’ Shares. Some U.S. Government securities such as treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA”) are supported by the full faith and credit of the U.S. Government. Other securities, such as those of the Federal Home Loan Bank, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury. Still other securities, such as those of the Federal National Mortgage Association (“FNMA”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations.

Government related guarantors (those not backed by the full faith and credit of the U.S. Government) include FNMA and Federal Home Loan Mortgage Corporation (“FHLMC”). FNMA is a government sponsored corporation, the common stock of which is owned entirely by private stockholders. FNMA purchases conventional residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks, credit unions, and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to the timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues participation certificates, which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but participation certificates are not backed by the full faith and credit of the U.S. Government.

Derivatives. The following tables provide information about where on the Statements of Assets and Liabilities and Statements of Operations information about derivatives can be found:


	Asset Derivatives		Liability Derivatives
	December 31, 2021		December 31, 2021

	Statement of Assets and		Statement of Assets and
Derivatives not accounted for as hedging instruments	Liabilities Location	Fair Value	Liabilities Location		Fair Value
Principal Investment Grade Corporate Active ETF
Interest rate contracts	Receivables, Total		Payables, Total
	distributable earnings		distributable earnings
	(accumulated loss)	$ —*	(accumulated loss)	$	(111,634	)*

* Includes cumulative unrealized appreciation (depreciation) of futures contracts as shown in the Schedule of Investments. Only the portion of the unrealized appreciation (depreciation) not yet cash settled is shown in the Statements of Assets and Liabilities as variation margin.


Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)



3. Operating Policies (continued)

		Net Realized Gain or				Net Change in Unrealized
		(Loss) on Derivatives				Appreciation
	Location of Gain or (Loss) on		Recognized in			(Depreciation) of
	Derivatives Recognized in		Statement of			Derivatives Recognized in
Derivatives not accounted for as hedging instruments	Statement of Operations		Operations			Statement of Operations
Principal Investment Grade Corporate Active ETF
Interest rate contracts	Net realized gain (loss) from
	Futures contracts/Net change
in unrealized appreciation/
(depreciation) of Futures
	contracts	$	453,652		$	(21,855	)

Principal Spectrum Tax-Advantaged Dividend Active ETF
Interest rate contracts	Net realized gain (loss) from
Investment transactions,
	Futures contracts and Options
	/Change in unrealized
	appreciation (depreciation) of	$	(45	)	$	—
	Investments, Futures contracts
	and Options

The following table includes a summary of the monthly average outstanding notional by derivative instrument type for the period ended December 31, 2021:


			Average Notional or
Contract Type	Derivative Type		Number of Contracts
Principal Investment Grade Corporate Active ETF
Interest rate contracts	Futures — Short	$	60,963,461

Principal Spectrum Tax-Advantaged Dividend Active ETF
Interest rate contracts	Purchased options		3
	Written options		3

4. Fair Valuation

Fair value is defined as the price that the Funds would receive upon selling a security or transferring a liability in a timely transaction to an independent buyer in the principal or most advantageous market of the security at the measurement date. In determining fair value, the Funds may use one or more of the following approaches: market, income and/or cost. A hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.

Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Funds. Unobservable inputs are inputs that reflect the Fund’s own estimates about the estimates market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

Level 1 — Quoted prices are available in active markets for identical securities as of the reporting date. Investments which are generally included in this category include listed equities and listed derivatives.

Level 2 — Other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.). Investments which are generally included in this category include certain corporate bonds, senior floating rate interests, over-the-counter (“OTC”) derivatives, mortgage-backed securities and municipal bonds.

Level 3 — Significant unobservable inputs (including the Funds' assumptions in determining the fair value of investments). Investments which are generally included in this category include certain corporate bonds and certain common stocks.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)

4. Fair Valuation (continued)

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the market place, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Funds in determining fair value is greatest for instruments categorized in Level 3.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Fair value is a market based measure considered from the perspective of a market participant who holds the asset rather than an entity specific measure. Therefore, even when market assumptions are not readily available, the Funds’ own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Funds use prices and inputs that are current as of the measurement date, to the extent available.

Investments which are included in the Level 3 category may be valued using quoted prices from brokers and dealers participating in the market for these investments. These investments are classified as Level 3 investments due to the lack of market transparency and market corroboration to support these quoted prices.

Valuation models may be used as the pricing source for other investments classified as Level 3. Valuation models rely on one or more significant unobservable inputs such as prepayment rates, probability of default, or loss severity in the event of default. Significant increases in any of those inputs in isolation would result in a significantly lower fair value measurement.

The fair values of these entities are dependent on economic, political and other considerations. The values of the underlying investee entities may be affected by significant changes in the economic conditions, changes in government policies, and other factors (e.g., natural disasters, pandemics, accidents, conflicts, etc.).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those instruments.

During the period there were no significant purchases, sales, or transfers into or out of Level 3.

The following is a summary of the inputs used as of December 31, 2021, in valuing the Funds' securities carried at fair value:


				Level 2 —
				Other		Level 3 —
		Level 1 —		Significant		Significant
		Quoted		Observable		Unobservable
Fund		Prices		Inputs		Inputs		Totals (Level 1,2,3)

Principal Active High Yield ETF
Common Stocks*	$	2,064,161	$	— $			— $	2,064,161
Bonds*		—		216,847,714			—	216,847,714
Senior Floating Rate Interests*		—		21,401,924			—	21,401,924
Investment Companies		9,349,979		—			—	9,349,979
Total investments in securities	$	11,414,140	$	238,249,638	$		— $	249,663,778

Principal Healthcare Innovators ETF
Common Stocks*	$	89,836,056	$	— $			— $	89,836,056
Investment Companies		4,855,246		—			—	4,855,246
Total investments in securities	$	94,691,302	$	— $			— $	94,691,302


Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)



4. Fair Valuation (continued)

				Level 2 —
				Other		Level 3 —
		Level 1 —		Significant		Significant
		Quoted		Observable		Unobservable
Fund		Prices		Inputs		Inputs		Totals (Level 1,2,3)

Principal International Adaptive Multi-Factor ETF
Common Stocks*
Basic Materials	$	8,530,029	$	— $			— $	8,530,029
Communications		8,089,493		—			—	8,089,493
Consumer, Cyclical		17,247,739		—			—	17,247,739
Consumer, Non-cyclical		30,440,310		—			—	30,440,310
Diversified		232,664		—			—	232,664
Energy		3,136,210		—			—	3,136,210
Financial		30,340,004		63,817			—	30,403,821
Industrial		17,760,648		94,793			—	17,855,441
Technology		9,428,101		—			—	9,428,101
Utilities		5,240,767		—			—	5,240,767
Preferred Stocks*		320,980		—			—	320,980
Investment Companies		927,307		—			—	927,307
Total investments in securities	$	131,694,252	$	158,610	$		— $	131,852,862

Principal Investment Grade Corporate Active ETF
Bonds*	$	— $		482,353,183	$		— $	482,353,183
Investment Companies		5,723,763		—			—	5,723,763
Total investments in securities	$	5,723,763	$	482,353,183	$		— $	488,076,946
Derivatives
Liabilities
Interest rate contracts
Futures	$	(111,634	) $	— $			— $	(111,634	)

Principal Millennials ETF
Common Stocks*	$	103,313,440	$	— $			— $	103,313,440
Investment Companies		3,097,306		—			—	3,097,306
Total investments in securities	$	106,410,746	$	— $			— $	106,410,746

Principal Quality ETF
Common Stocks*	$	96,527,314	$	— $			— $	96,527,314
Investment Companies		270,326		—			—	270,326
Total investments in securities	$	96,797,640	$	— $			— $	96,797,640

Principal Spectrum Preferred Securities Active ETF
Bonds*	$	— $		437,462,705	$		— $	437,462,705
Investment Companies		19,134,573		—			—	19,134,573
Total investments in securities	$	19,134,573	$	437,462,705	$		— $	456,597,278

Principal Spectrum Tax-Advantaged Dividend Active ETF
Preferred Stocks*	$	2,978,397	$	— $			— $	2,978,397
Bonds*		—		20,811,607			—	20,811,607
Investment Companies		154,820		—			—	154,820
Total investments in securities	$	3,133,217	$	20,811,607	$		— $	23,944,824

Principal Ultra-Short Active Income ETF
Bonds*	$	— $		8,086,931	$		— $	8,086,931
U.S. Government & Government
Agency Obligations*		—		199,984			—	199,984
Investment Companies		285,397		—			—	285,397
Total investments in securities	$	285,397	$	8,286,915	$		— $	8,572,312

Principal U.S. Large-Cap Adaptive Multi-Factor ETF
Common Stocks*	$	131,396,617	$	— $			— $	131,396,617
Investment Companies		514,794		—			—	514,794
Total investments in securities	$	131,911,411	$	— $			— $	131,911,411

Principal U.S. Mega-Cap ETF
Common Stocks*	$	1,862,074,458	$	— $			— $	1,862,074,458
Investment Companies		4,266,564		—			—	4,266,564
Total investments in securities	$	1,866,341,022	$	— $			— $	1,866,341,022


Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)



4. Fair Valuation (continued)

				Level 2 —
				Other	Level 3 —
		Level 1 —		Significant	Significant
		Quoted		Observable	Unobservable
Fund		Prices		Inputs	Inputs		Totals (Level 1,2,3)

Principal U.S. Small-Cap Adaptive Multi-Factor ETF
Common Stocks*	$	6,644,495	$	— $		— $	6,644,495
Investment Companies		15,999		—		—	15,999
Total investments in securities	$	6,660,494	$	— $		— $	6,660,494

Principal U.S. Small-Cap Multi-Factor ETF
Common Stocks*	$	1,233,473,213	$	— $		— $	1,233,473,213
Investment Companies		15,395,844		—		—	15,395,844
Total investments in securities	$	1,248,869,057	$	— $		— $	1,248,869,057

Principal Value ETF
Common Stocks*	$	81,818,381	$	— $		— $	81,818,381
Investment Companies		273,672		—		—	273,672
Total investments in securities	$	82,092,053	$	— $		— $	82,092,053

*	For additional detail regarding sector classifications, please see the Schedules of Investments.
5.	Management Agreement and Transactions with Affiliates

Management Services. The Funds have agreed to pay management and investment advisory fees to the Advisor computed at an annual percentage rate of each of the Funds' average daily net assets. A portion of the management fee is paid by the Advisor to the sub-advisor of the Funds, which is also an affiliate of the Advisor. The management fee schedule for the Funds is as follows:


	First		Next		Next		Over
Fund	$500 Million		$500 Million		$500 Million		$1.5 Billion
Principal Healthcare Innovators ETF	0.42	%	0.40	%	0.38	%	0.37	%
Principal Millennials ETF	0.45		0.43		0.41		0.40

Fund							All Assets
Principal Active High Yield ETF							0.39	%*
Principal International Adaptive Multi-Factor ETF							0.24
Principal Investment Grade Corporate Active ETF							0.19
Principal Quality ETF							0.15
Principal Spectrum Preferred Securities Active ETF							0.55
Principal Spectrum Tax-Advantaged Dividend Active ETF							0.60
Principal Ultra-Short Active Income ETF							0.18
Principal U.S. Large-Cap Adaptive Multi-Factor ETF							0.15
Principal U.S. Mega-Cap ETF							0.15
Principal U.S. Small-Cap Adaptive Multi-Factor ETF							0.19
Principal U.S. Small-Cap Multi-Factor ETF							0.38
Principal Value ETF							0.15
* Prior to September 1, 2021, the management fee was 0.49%.

The Advisor has contractually agreed to limit the expenses (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, tax reclaim recovery expenses, and other extraordinary expenses) for certain of the Funds. The reductions and reimbursements are in amounts that maintain total operating expenses at or below certain limits.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)

5. Management Agreement and Transactions with Affiliates (continued)

The limit is expressed as a percentage of average daily net assets attributable to each Fund on an annualized basis during the reporting period. The expenses borne by the Advisor are subject to reimbursement by the Fund through the fiscal year end, provided no reimbursement will be made if it would result in the Fund exceeding the total operating expense limit. Any amount outstanding at the end of the period are shown as an expense reimbursement from Advisor or expense reimbursement to Advisor on the Statements of Assets and Liabilities. The expense limit for Principal U.S. Mega-Cap ETF is 0.12% through October 31, 2022.

Affiliated Ownership. At December 31, 2021, Principal Financial Services, Inc., Principal Funds, Inc., and Principal Variable Contracts Funds, Inc. (each an affiliate of the Advisor) owned Shares of the Funds as follows:


Fund	Shares
Principal Active High Yield ETF	9,494,200
Principal International Adaptive Multi-Factor ETF	390,001
Principal Investment Grade Corporate Active ETF	17,450,000
Principal Spectrum Tax-Advantaged Dividend Active ETF	995,521
Principal Ultra-Short Active Income ETF	199,681
Principal U.S. Large-Cap Adaptive Multi-Factor ETF	198,571
Principal U.S. Mega-Cap ETF	35,050,000
Principal U.S. Small-Cap Adaptive Multi-Factor ETF	200,965
Principal U.S. Small-Cap Multi-Factor ETF	24,450,000

Affiliated Brokerage Commissions. With respect to Principal Spectrum Tax-Advantaged Dividend Active ETF, $248 of brokerage commissions were paid to SAMI Brokerage LLC, a member of the Principal Financial Group. The other Funds did not pay brokerage commissions to any member of the Principal Financial Group during the period ended December 31, 2021.

6. Investment Transactions

For the period ended December 31, 2021, the cost of investment securities purchased and proceeds from investment securities sold (not including short-term investments and in-kind transactions) by the Funds were as follows:


		Non-U.S. Government				U.S. Government
Fund		Purchases		Sales		Purchases		Sales
Principal Active High Yield ETF	$	270,364,742	$	205,187,908	$	—	$	—
Principal Healthcare Innovators ETF		34,728,454		35,743,564		—		—
Principal International Adaptive Multi-Factor ETF		40,839,319		29,769,802		—		—
Principal Investment Grade Corporate Active ETF		123,945,795		112,130,226		—		—
Principal Millennials ETF		7,407,698		7,976,072		—		—
Principal Quality ETF		196,375		349,761		—		—
Principal Spectrum Preferred Securities Active ETF		78,370,634		12,094,490		—		—
Principal Spectrum Tax-Advantaged Dividend Active ETF		508,643		322,197		—		—
Principal Ultra-Short Active Income ETF		3,717,965		2,774,116		—		—
Principal U.S. Large-Cap Adaptive Multi-Factor ETF		38,380,416		38,316,738		—		—
Principal U.S. Mega-Cap ETF		220,693,294		225,620,738		—		—
Principal U.S. Small-Cap Adaptive Multi-Factor ETF		2,719,076		2,744,313		—		—
Principal U.S. Small-Cap Multi-Factor ETF		506,914,962		507,628,721		—		—
Principal Value ETF		1,231,138		1,688,264		—		—

For the period ended December 31, 2021, in-kind transactions were as follows:


Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)


7. Federal Tax Information

Fund		Purchases		Sales
Principal Active High Yield ETF	$	10,921,581	$	57,639,903
Principal Healthcare Innovators ETF		2,778,151		55,147,594
Principal International Adaptive Multi-Factor ETF		81,561,771		9,526,463
Principal Investment Grade Corporate Active ETF		16,289,109		—
Principal Millennials ETF		27,938,128		35,328,764
Principal Quality ETF		106,083,308		78,270,451
Principal Spectrum Preferred Securities Active ETF		26,631,448		—
Principal Spectrum Tax-Advantaged Dividend Active ETF		1,940,785		—
Principal U.S. Large-Cap Adaptive Multi-Factor ETF		135,627,856		45,930,003
Principal U.S. Mega-Cap ETF		407,732,001		726,593,827
Principal U.S. Small-Cap Multi-Factor ETF		421,813,647		828,119,640
Principal Value ETF		64,486,566		29,924,001

Unsettled in-kind purchases and sales at the end of the period are included in investment securities purchased and investment securities sold, respectively, on the Statements of Assets and Liabilities.

Distributions to Shareholders. The federal income tax character of distributions paid for the periods ended June 30, 2021, and December 31, 2021 was as follows:


		Ordinary Income				Long-Term Capital Gain*
		Period ended		Period ended		Period ended	Period ended
Fund		December 31, 2021		June 30, 2021		December 31, 2021	June 30, 2021
Principal Active High Yield ETF	$	6,251,383	$	9,881,656	$	— $	—
Principal Healthcare Innovators ETF		861,124		527,787		—	—
Principal International Adaptive Multi-Factor ETF		1,153,177		—		—	—
Principal Investment Grade Corporate Active ETF		9,076,520		10,618,462		634,167	3,773,742
Principal Millennials ETF		2,713,066		481,261		—	—
Principal Quality ETF		614,556		296,923		—	—
Principal Spectrum Preferred Securities Active ETF		9,470,707		9,608,037		—	—
Principal Spectrum Tax-Advantaged Dividend Active ETF		707,569		1,062,462		30,484	—
Principal Ultra-Short Active Income ETF		56,101		215,987		—	—
Principal U.S. Large-Cap Adaptive Multi-Factor ETF		660,123		—		—	—
Principal U.S. Mega-Cap ETF		24,965,735		27,303,682		—	—
Principal U.S. Small-Cap Adaptive Multi-Factor ETF		105,510		—		—	—
Principal U.S. Small-Cap Multi-Factor ETF		17,349,751		10,376,768		—	—
Principal Value ETF		1,428,275		700,888		—	—

* The Funds designate these distributions as long-term capital gain dividends per IRC Sec. 852(b)(3)(C) in the 20-percent group (which may be taxed at a 20-percent rate, a 15-percent rate or a 0-percent rate, depending on the shareholder’s taxable income).

For U.S. federal income tax purposes, short-term capital gain distributions are considered ordinary income distributions.

Distributable Earnings. As of June 30, 2021, the components of distributable earnings (accumulated loss) on a federal income tax basis were:


Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)


7. Federal Tax Information (continued)

				Late Year
				Ordinary and
	Undistributed	Undistributed	Unrealized	Post Oct
	Ordinary	Long-Term	Appreciation/	Capital Loss		Capital Loss
Fund	Income	Capital Gains	(Depreciation)	Deferrals		Carryforward
Principal Active High Yield ETF	$831,649	$—	$24,849,782	$—	$	(14,379,385)
Principal Healthcare Innovators ETF	861,124	—	19,384,511	(1,381,846)		(854,489)
Principal International Adaptive Multi-Factor ETF	75,711	—	(1,035,524)	—		—
Principal Investment Grade Corporate Active ETF	1,067,183	65,131	6,993,476	—		—
Principal Millennials ETF	65,272	—	11,188,422	—		(2,828,381)
Principal Quality ETF	142,898	—	2,374,987	—		(1,538,325)
Principal Spectrum Preferred Securities Active ETF	1,381,160	—	10,176,459	—		(1,875,171)
Principal Spectrum Tax-Advantaged Dividend Active ETF	149,815	—	1,427,464	—		—
Principal Ultra-Short Active Income ETF	9,140	—	(26,912)	—		(125,628)
Principal U.S. Large-Cap Adaptive Multi-Factor ETF	15,441	247	372,697	—		—
Principal U.S. Mega-Cap ETF	8,465,068	—	389,916,580	—		(63,824,955)
Principal U.S. Small-Cap Adaptive Multi-Factor ETF	8,240	35	131,664	—		—
Principal U.S. Small-Cap Multi-Factor ETF	4,414,408	—	223,375,303	—		(85,559,823)
Principal Value ETF	340,273	—	2,791,996	—		(2,182,414)

Capital Loss Carryforwards. For federal income tax purposes, capital loss carryforwards are losses that can be used to offset future capital gains of the Fund. As of June 30, 2021, the Funds had approximate net capital loss carryforwards as follows:


		No Expiration		No Expiration			Annual
Fund		Short-Term		Long-Term		Total	Limitations*
Principal Active High Yield ETF	$	5,508,508	$	8,870,877	$	14,379,385	$ 1,874,152
Principal Healthcare Innovators ETF		—		854,489		854,489	—
Principal International Adaptive Multi-Factor ETF		—		—		—	—
Principal Investment Grade Corporate Active ETF		—		—		—	—
Principal Millennials ETF		2,819,136		9,245		2,828,381	—
Principal Quality ETF		1,157,520		380,805		1,538,325	294,429
Principal Spectrum Preferred Securities Active ETF		957,946		917,225		1,875,171	—
Principal Spectrum Tax-Advantaged Dividend Active ETF		—		—		—	—
Principal Ultra-Short Active Income ETF		71,425		54,203		125,628	—
Principal U.S. Large-Cap Adaptive Multi-Factor ETF		—		—		—	—
Principal U.S. Mega-Cap ETF		57,299,653		6,525,302		63,824,955	—
Principal U.S. Small-Cap Adaptive Multi-Factor ETF		—		—		—	—
Principal U.S. Small-Cap Multi-Factor ETF		56,960,496		28,599,327		85,559,823	—
Principal Value ETF		869,689		1,312,725		2,182,414	230,798

* In accordance with IRC Sections 381-384, a portion of certain Funds’ losses have been subjected to an annual limitation.

All of these capital losses were generated in taxable years beginning after the enactment date of the Regulated Investment Company Modernization Act of 2010 on December 22, 2010, and will be carried forward with no expiration and with the character of the loss retained.

For the year ended June 30, 2021, the Funds utilized capital loss carryforwards as follows:


Fund		Utilized
Principal Healthcare Innovators ETF	$	2,985,702
Principal Spectrum Tax-Advantaged Dividend Active ETF		5,892
Principal U.S. Mega-Cap ETF		16,646,055

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)

7. Federal Tax Information (continued)

Late-Year Losses. A regulated investment company may elect to treat any portion of its qualified late-year loss as arising on the first day of the next taxable year. Qualified late-year losses are certain capital and ordinary losses which occur during the portion of the Fund’s taxable year subsequent to October 31 and December 31, respectively.

For the taxable year ended June 30, 2021, the Funds intend to defer late-year capital and ordinary losses as follows:


Fund		Late Year Ordinary Loss		Post October Loss Capital Loss
Principal Healthcare Innovators ETF	$	—	$	(1,381,846	)

Reclassification of Capital Accounts. The Funds may record reclassifications in their capital accounts. These reclassifications have no impact on the total net assets of the Funds. The reclassifications are a result of permanent differences between U.S. GAAP and tax accounting. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Funds’ distributions may be shown in the accompanying Statement of Changes in Net Assets as from net investment income and net realized gains on investments or from tax return of capital depending on the type of book and tax differences that exist. For the period ended June 30, 2021, the Funds recorded reclassifications as follows:


		Total
		Distributable Earnings
Fund		(Accumulated Loss)			Paid In Capital
Principal Active High Yield ETF	$	(268,856	)	$	268,856
Principal Healthcare Innovators ETF		(26,764,189	)		26,764,189
Principal International Adaptive Multi-Factor ETF		(15,000	)		15,000
Principal Investment Grade Corporate Active ETF		(1,023,845	)		1,023,845
Principal Millennials ETF		(22,957,641	)		22,957,641
Principal Quality ETF		(7,315,778	)		7,315,778
Principal Spectrum Preferred Securities Active ETF		(757,854	)		757,854
Principal Spectrum Tax-Advantaged Dividend Active ETF		—			—
Principal Ultra-Short Active Income ETF		(3,091	)		3,091
Principal U.S. Large-Cap Adaptive Multi-Factor ETF		—			—
Principal U.S. Mega-Cap ETF		(175,651,470	)		175,651,470
Principal U.S. Small-Cap Adaptive Multi-Factor ETF		—			—
Principal U.S. Small-Cap Multi-Factor ETF		(208,573,293	)		208,573,293
Principal Value ETF		(7,817,645	)		7,817,645

Federal Income Tax Basis. As of June 30, 2021, the net federal income tax unrealized appreciation (depreciation) and federal tax cost of investments held by each Fund were as follows:


										Cost for
							Net Unrealized			Federal
		Unrealized		Unrealized			Appreciation			Income Tax
Fund		Appreciation		Depreciation			(Depreciation)			Purposes
Principal Active High Yield ETF	$	27,746,110	$	(2,896,082	)	$	24,850,028		$	209,215,515
Principal Healthcare Innovators ETF		32,133,352		(12,748,841	)		19,384,511			163,391,512
Principal International Adaptive Multi-Factor ETF		284,101		(1,319,182	)		(1,035,081	)		48,109,836
Principal Investment Grade Corporate Active ETF		8,896,060		(1,902,584	)		6,993,476			473,764,748
Principal Millennials ETF		13,595,959		(2,407,370	)		11,188,589			120,014,188
Principal Quality ETF		2,915,066		(540,078	)		2,374,988			56,082,189
Principal Spectrum Preferred Securities Active ETF		11,030,241		(853,781	)		10,176,460			359,885,216
Principal Spectrum Tax-Advantaged Dividend Active ETF		1,430,511		(3,048	)		1,427,463			21,025,470
Principal Ultra-Short Active Income ETF		9,124		(36,036	)		(26,912	)		8,664,026
Principal U.S. Large-Cap Adaptive Multi-Factor ETF		666,512		(293,815	)		372,697			29,514,328


Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2021 (unaudited)


7. Federal Tax Information (continued)

					Cost for
				Net Unrealized	Federal
	Unrealized	Unrealized		Appreciation	Income Tax
Fund	Appreciation	Depreciation		(Depreciation)	Purposes
Principal U.S. Mega-Cap ETF	395,022,185	(5,105,605	)	389,916,580	1,567,391,432
Principal U.S. Small-Cap Adaptive Multi-Factor ETF	331,137	(199,473	)	131,664	6,267,882
Principal U.S. Small-Cap Multi-Factor ETF	250,054,123	(26,678,820	)	223,375,303	1,420,240,060
Principal Value ETF	3,225,909	(433,914	)	2,791,995	41,630,219

8. Subsequent Events

Management has evaluated events or transactions that have occurred through the date the financial statements were issued that would merit recognition or disclosure in the financial statement. There were no additional items requiring adjustment of the financial statements or additional disclosure.


Schedule of Investments
Principal Active High Yield ETF
December 31, 2021 (unaudited)

COMMON STOCKS — 0.84%		Shares Held		Value

REITs — 0.84%
CBL & Associates Properties Inc ^(a)		66,159	$	2,064,161
TOTAL COMMON STOCKS			$	2,064,161
		Principal
BONDS — 88.61%		Amount		Value

Aerospace & Defense — 1.78%
Bombardier, Inc.
7.13%, 06/15/2026 ^(b)	$	848,000	$	879,723
Triumph Group, Inc.
7.75%, 08/15/2025 ^(c)		3,312,000		3,287,160
8.88%, 06/01/2024 ^(b)		185,000		201,776
			$	4,368,659

Airlines — 0.12%
United Airlines Pass-Through Trust
3.65%, 07/07/2027		288,587		285,375

Auto Manufacturers — 1.98%
Ford Motor Co.
3.25%, 02/12/2032		1,497,000		1,532,928
Ford Motor Credit Co. LLC
3.38%, 11/13/2025		1,889,000		1,962,520
4.39%, 01/08/2026		217,000		233,818
4.54%, 08/01/2026		1,037,000		1,126,441
			$	4,855,707

Auto Parts & Equipment — 1.52%
Tenneco, Inc.
7.88%, 01/15/2029 ^(b)		3,445,000		3,720,600

Banks — 1.43%
Deutsche Bank AG
(5-year Treasury Constant Maturity Rate + 4.52%),
6.00%, 10/30/2025 ^(d),(e),(f)		3,360,000		3,490,200

Chemicals — 3.81%
Consolidated Energy Finance SA
5.63%, 10/15/2028 ^(b)		3,560,000		3,479,900
Kobe U.S. Midco 2, Inc.
9.25%, PIK 10.00%; 11/01/2026 ^(b),(g)		943,000		963,039
Olympus Water U.S. Holding Corp.
6.25%, 10/01/2029 ^(b)		2,470,000		2,408,250
Tronox, Inc.
4.63%, 03/15/2029 ^(b)		2,470,000		2,466,912
			$	9,318,101

Commercial Services — 4.01%
Ahern Rentals, Inc.
7.38%, 05/15/2023 ^(b)		1,665,000		1,583,831
Albion Financing 1 SARL/Aggreko Holdings, Inc.
6.13%, 10/15/2026 ^(b)		2,048,000		2,068,480
Garda World Security Corp.
6.00%, 06/01/2029 ^(b)		366,000		349,530
9.50%, 11/01/2027 ^(b)		2,395,000		2,582,253
WASH Multifamily Acquisition, Inc.
5.75%, 04/15/2026 ^(b)		3,079,000		3,235,875
			$	9,819,969

Construction Materials — 2.63%
Patrick Industries, Inc.
4.75%, 05/01/2029 ^(b)		838,000		833,810
7.50%, 10/15/2027 ^(b)		1,523,000		1,621,995

See accompanying notes.


Schedule of Investments
Principal Active High Yield ETF
December 31, 2021 (unaudited)

		Principal
BONDS (continued)		Amount		Value

Construction Materials (continued)
SRM Escrow Issuer LLC
6.00%, 11/01/2028 ^(b)	$	3,718,000	$	3,969,151
			$	6,424,956

Diversified Financial Services — 5.89%
AerCap Holdings NV
(5-year Treasury Constant Maturity Rate + 4.54%),
5.88%, 10/10/2079 ^(d)		3,485,000		3,606,975
Coinbase Global, Inc.
3.63%, 10/01/2031 ^(b),(c)		591,000		543,720
Credit Acceptance Corp.
6.63%, 03/15/2026		3,392,000		3,530,529
Global Aircraft Leasing Co. Ltd.
6.50%, PIK 7.25%; 09/15/2024 ^(b),(g)		3,481,789		3,359,926
OneMain Finance Corp.
4.00%, 09/15/2030		2,425,000		2,384,697
6.63%, 01/15/2028		872,000		976,640
			$	14,402,487

Electric — 2.05%
Clearway Energy Operating LLC
4.75%, 03/15/2028 ^(b)		1,095,000		1,151,119
GenOn Energy, Inc.
0.00%, 10/15/2049 ^(a),(h),(i)		3,100,000		—
Vistra Corp.
(5-year Treasury Constant Maturity Rate + 5.74%),
7.00%, 12/15/2026 ^(b),(d),(e)		1,560,000		1,580,108
Vistra Operations Co. LLC
4.38%, 05/01/2029 ^(b)		2,285,000		2,288,725
			$	5,019,952

Engineering & Construction — 1.59%
MasTec, Inc.
4.50%, 08/15/2028 ^(b)		3,738,000		3,882,847

Entertainment — 6.41%
Boyne USA, Inc.
4.75%, 05/15/2029 ^(b)		2,295,000		2,363,850
Caesars Entertainment, Inc.
6.25%, 07/01/2025 ^(b)		406,000		426,148
8.13%, 07/01/2027 ^(b)		1,869,000		2,069,805
CCM Merger, Inc.
6.38%, 05/01/2026 ^(b)		3,470,000		3,613,138
International Game Technology PLC
5.25%, 01/15/2029 ^(b)		2,133,000		2,260,020
Lions Gate Capital Holdings LLC
5.50%, 04/15/2029 ^(b)		1,546,000		1,573,055
Peninsula Pacific Entertainment LLC/Peninsula Pacific Entertainment Finance, Inc.
8.50%, 11/15/2027 ^(b)		3,136,000		3,386,880
			$	15,692,896

Food — 5.45%
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC
4.63%, 01/15/2027 ^(b)		722,000		757,696
Chobani LLC/Chobani Finance Corp, Inc.
7.50%, 04/15/2025 ^(b)		2,861,000		2,945,256
Fresh Market, Inc.
9.75%, 05/01/2023 ^(b)		2,315,000		2,381,556
Kraft Heinz Foods Co.
3.75%, 04/01/2030		3,297,000		3,558,865

See accompanying notes.


Schedule of Investments
Principal Active High Yield ETF
December 31, 2021 (unaudited)

		Principal
BONDS (continued)		Amount		Value

Food (continued)
Pilgrim's Pride Corp.
3.50%, 03/01/2032 ^(b)	$	3,002,000	$	3,032,020
4.25%, 04/15/2031 ^(b)		624,000		655,200
			$	13,330,593

Forest Products & Paper — 1.01%
Mercer International, Inc.
5.13%, 02/01/2029		2,410,000		2,461,502

Healthcare — Services — 5.40%
Acadia Healthcare Co., Inc.
5.00%, 04/15/2029 ^(b)		3,214,000		3,302,385
Centene Corp.
2.50%, 03/01/2031		531,000		516,936
3.38%, 02/15/2030		1,929,000		1,964,474
CHS/Community Health Systems, Inc.
6.00%, 01/15/2029 ^(b)		3,438,000		3,665,768
LifePoint Health, Inc.
5.38%, 01/15/2029 ^(b)		3,792,000		3,773,040
			$	13,222,603

Home Builders — 2.19%
Empire Communities Corp.
7.00%, 12/15/2025 ^(b)		2,315,000		2,396,025
Forestar Group, Inc.
3.85%, 05/15/2026 ^(b)		566,000		567,415
5.00%, 03/01/2028 ^(b)		2,335,000		2,396,294
			$	5,359,734

Insurance — 0.80%
Acrisure LLC/Acrisure Finance, Inc.
4.25%, 02/15/2029 ^(b)		431,000		419,148
7.00%, 11/15/2025 ^(b)		1,546,000		1,544,871
			$	1,964,019

Investment Companies — 1.01%
Compass Group Diversified Holdings LLC
5.25%, 04/15/2029 ^(b)		2,352,000		2,463,720

Iron & Steel — 0.97%
TMS International Corp.
6.25%, 04/15/2029 ^(b)		2,380,000		2,368,100

Leisure Time — 2.00%
Life Time, Inc.
5.75%, 01/15/2026 ^(b)		2,395,000		2,478,825
NCL Corp. Ltd.
10.25%, 02/01/2026 ^(b)		65,000		75,604
12.25%, 05/15/2024 ^(b)		1,087,000		1,288,095
NCL Finance Ltd.
6.13%, 03/15/2028 ^(b)		1,070,000		1,053,950
			$	4,896,474

Media — 6.26%
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc.
5.88%, 08/15/2027 ^(b)		3,550,000		3,634,171
DISH DBS Corp.
5.13%, 06/01/2029		469,000		426,790
5.25%, 12/01/2026 ^(b)		674,284		684,928
5.88%, 11/15/2024		1,240,000		1,273,802
7.38%, 07/01/2028		2,072,000		2,097,900
Scripps Escrow II, Inc.
5.38%, 01/15/2031 ^(b)		983,000		998,974

See accompanying notes.


Schedule of Investments
Principal Active High Yield ETF
December 31, 2021 (unaudited)

		Principal
BONDS (continued)		Amount		Value

Media (continued)
Sirius XM Radio, Inc.
3.13%, 09/01/2026 ^(b)	$	2,305,000	$	2,305,668
UPC Holding BV
5.50%, 01/15/2028 ^(b)		1,606,000		1,666,225
Ziggo BV
5.50%, 01/15/2027 ^(b)		2,172,000		2,231,730
			$	15,320,188

Mining — 4.69%
Copper Mountain Mining Corp.
8.00%, 04/09/2026 ^(b)		2,130,600		2,229,247
First Quantum Minerals Ltd.
6.88%, 10/15/2027 ^(b)		3,090,000		3,325,612
Novelis Corp.
3.88%, 08/15/2031 ^(b)		3,054,000		3,034,913
Taseko Mines Ltd.
7.00%, 02/15/2026 ^(b)		2,769,000		2,879,760
			$	11,469,532

Oil & Gas — 6.68%
Aethon United BR LP/Aethon United Finance Corp.
8.25%, 02/15/2026 ^(b)		3,292,000		3,536,267
Antero Resources Corp.
7.63%, 02/01/2029 ^(b)		2,813,000		3,122,430
Ascent Resources Utica Holdings LLC/ARU Finance Corp.
5.88%, 06/30/2029 ^(b)		526,000		506,112
7.00%, 11/01/2026 ^(b)		2,403,000		2,436,041
Oasis Petroleum, Inc.
6.38%, 06/01/2026 ^(b)		3,520,000		3,687,200
Occidental Petroleum Corp.
3.40%, 04/15/2026		918,000		941,574
4.40%, 04/15/2046		218,000		223,450
6.13%, 01/01/2031		318,000		386,370
6.63%, 09/01/2030		1,220,000		1,509,750
			$	16,349,194

Packaging & Containers — 0.66%
LABL, Inc.
5.88%, 11/01/2028 ^(b)		257,000		264,871
8.25%, 11/01/2029 ^(b)		1,352,000		1,359,503
			$	1,624,374

Pharmaceuticals — 0.83%
Jazz Securities DAC
4.38%, 01/15/2029 ^(b)		1,974,000		2,043,959

Pipelines — 6.06%
Antero Midstream Partners LP/Antero Midstream Finance Corp.
5.38%, 06/15/2029 ^(b)		2,265,000		2,389,609
5.75%, 03/01/2027 ^(b)		1,433,000		1,484,946
CNX Midstream Partners LP
4.75%, 04/15/2030 ^(b)		3,667,000		3,653,249
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.
5.63%, 05/01/2027 ^(b)		3,550,000		3,616,562
Targa Resources Partners LP/Targa Resources Partners Finance Corp.
4.88%, 02/01/2031		3,402,000		3,694,402
			$	14,838,768

REITs — 2.26%
CBL & Associates HoldCo II LLC
10.00%, 11/15/2029		1,735,616		1,739,955

See accompanying notes.


Schedule of Investments
Principal Active High Yield ETF
December 31, 2021 (unaudited)

		Principal
BONDS (continued)		Amount		Value

REITs (continued)
CBL & Associates LP
0.00%, 12/15/2026 ^(a),(h),(i)	$	6,000,000	$	—
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp.
4.75%, 06/15/2029 ^(b)		3,698,000		3,790,450
			$	5,530,405

Retail — 5.73%
At Home Group, Inc.
4.88%, 07/15/2028 ^(b)		1,956,000		1,926,660
Bath & Body Works, Inc.
5.25%, 02/01/2028		386,000		426,530
6.63%, 10/01/2030 ^(b)		1,090,000		1,234,425
9.38%, 07/01/2025 ^(b)		416,000		507,520
BCPE Ulysses Intermediate, Inc.
7.75%, PIK 7.75%; 04/01/2027 ^(b),(g)		2,846,000		2,810,425
Dave & Buster's, Inc.
7.63%, 11/01/2025 ^(b)		1,755,000		1,871,269
Golden Nugget, Inc.
6.75%, 10/15/2024 ^(b)		1,200,000		1,200,000
LSF9 Atlantis Holdings LLC/Victra Finance Corp.
7.75%, 02/15/2026 ^(b)		2,360,000		2,386,361
Park River Holdings, Inc.
5.63%, 02/01/2029 ^(b)		1,736,000		1,657,880
			$	14,021,070

Telecommunications — 1.46%
DKT Finance ApS
9.38%, 06/17/2023 ^(b)		3,548,000		3,583,480

Transportation — 1.93%
Navios Maritime Holdings, Inc./Navios Maritime Finance II US, Inc.
7.38%, 01/15/2022 ^(b)		1,076,000		1,067,930
11.25%, 08/15/2022 ^(b)		1,296,000		1,289,520
Watco Cos LLC/Watco Finance Corp.
6.50%, 06/15/2027 ^(b)		2,270,000		2,360,800
			$	4,718,250
TOTAL BONDS			$	216,847,714
		Principal
SENIOR FLOATING RATE INTERESTS — 8.75%		Amount		Value

Airlines — 2.35%
AAdvantage Loyalty IP Ltd., 2021 Term Loan
(3-month USD LIBOR + 4.75%),
5.50%, 04/20/2028	$	3,355,000	$	3,470,613
United Airlines, Inc., 2021 Term Loan B
(3-month USD LIBOR + 3.75%),
4.50%, 04/21/2028		2,278,521		2,281,620
			$	5,752,233

Entertainment — 1.07%
Lions Gate Capital Holdings LLC, 2018 Term Loan B
(1-month USD LIBOR + 2.25%),
2.35%, 03/24/2025		1,757,039		1,740,207
The Enterprise Development Authority, Term Loan B
0.00%, 02/28/2028 ^(j)		877,215		875,390
			$	2,615,597

See accompanying notes.


Financial Statements	1
Notes to Financial Statements	25
Schedules of Investments	41
Financial Highlights (Includes performance information)	146
Shareholder Expense Example	160
Supplemental Information	162