etfsa12312022.htm - Generated by SEC Publisher for SEC Filing


Statements of Assets and Liabilities
Principal Exchange-Traded Funds
December 31, 2022 (unaudited)

								Principal
					Principal			International
		Principal			Healthcare			Adaptive
	Active High				Innovators			Multi-Factor
		Yield ETF			ETF			ETF
Investment in securities — at cost	$	208,570,062		$	84,541,275		$	13,591,381
Investment in affiliated funds — at cost	$	4,092,183		$	1,061,503			$	—
Foreign currency — at cost	$	2		$	—			$	2,436
Assets
Investment in securities — at value	$	185,963,198	^(a)	$	55,624,264	^(a)	$	12,231,753
Investment in affiliated funds — at value		4,092,183			1,061,503				—
Foreign currency — at value		2			—				2,438
Cash		244			—				—
Receivables:
Dividends		56,965			381			64,106
Interest		3,150,953			—				—
Securities lending income		3,293			4,754				—
Investment securities sold		1,417,892			—				—
Total Assets		194,684,730			56,690,902			12,298,297

Liabilities
Accrued management and investment advisory fees		83,002			21,050				2,682
Accrued distribution		1,407,549			—			41,268
Payables:
Investment securities purchased		1,210,891			—				—
Collateral obligation on securities loaned — at value		4,092,183			1,061,503				—
Total Liabilities		6,793,625			1,082,553			43,950
Net Assets Applicable to Outstanding Shares	$	187,891,105		$	55,608,349		$	12,254,347

Net Assets Consist of:
Capital shares and additional paid-in-capital	$	226,870,581		$	105,174,353		$	22,756,898
Total distributable earnings (accumulated loss)		(38,979,476	)		(49,566,004	)		(10,502,551		)
Total Net Assets	$	187,891,105		$	55,608,349		$	12,254,347

Net Asset Value Per Share:
Net assets	$	187,891,105		$	55,608,349		$	12,254,347
Shares issued and outstanding		10,550,000			1,650,001			600,001
Net asset value per share	$	17.81		$	33.70			$	20.42

^(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, 2022 (unaudited)

		Principal
		Investment				Principal
		Grade				Millennial
		Corporate				Global Growth			Principal
		Active ETF				ETF ^(a)			Quality ETF
Investment in securities — at cost	$	25,073,223			$	35,616,626		$	27,931,514
Investment in affiliated funds — at cost		$	94,750		$	181,795		$	—
Foreign currency — at cost		$	—		$	9		$	—
Assets
Investment in securities — at value	$	21,373,602		^(b)	$	25,494,738	^(b)	$	27,410,305
Investment in affiliated funds — at value			94,750			181,795			—
Foreign currency — at value			—			9			—
Cash			5,539			—			—
Deposits with counterparty			35,765			—			—
Receivables:
Dividends			2,721			50,362			13,198
Interest			219,334			—			—
Securities lending income			17			805			—
Investment securities sold			—			—			77,718
Total Assets		21,731,728				25,727,709			27,501,221

Liabilities
Accrued management and investment advisory fees			3,618			8,849			3,968
Accrued distribution			233,861			—			113,128
Payables:
Variation margin on financial derivative instruments			2,606			—			—
Collateral obligation on securities loaned — at value			94,750			181,795			—
Total Liabilities			334,835			190,644			117,096
Net Assets Applicable to Outstanding Shares	$	21,396,893			$	25,537,065		$	27,384,125

Net Assets Consist of:
Capital shares and additional paid-in-capital	$	97,907,792			$	44,877,597		$	38,782,580
Total distributable earnings (accumulated loss)		(76,510,899		)		(19,340,532	)		(11,398,455	)
Total Net Assets	$	21,396,893			$	25,537,065		$	27,384,125

Net Asset Value Per Share:
Net assets	$	21,396,893			$	25,537,065		$	27,384,125
Shares issued and outstanding			1,050,001			650,001			550,001
Net asset value per share		$	20.38		$	39.29		$	49.79

^(a)	Effective July 15, 2022, Principal Millennials ETF changed its name to Principal Millennial Global Growth 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, 2022 (unaudited)

					Principal			Principal
	Principal Real				Spectrum			Spectrum Tax-
	Estate Active				Preferred			Advantaged
	Opportunities				Securities			Dividend
		ETF			Active ETF			Active ETF
Investment in securities — at cost	$	5,525,305		$	500,964,290		$	22,563,172
Investment in affiliated funds — at cost	$	—		$	194,448		$	—
Assets
Investment in securities — at value	$	4,942,792		$	452,680,889	^(a)	$	20,496,415
Investment in affiliated funds — at value		—			194,448			—
Deposits with counterparty		—			—			17,440
Receivables:
Dividends		28,203			71,315			20,309
Interest		—			5,315,996			192,470
Securities lending income		—			768			—
Total Assets		4,970,995			458,263,416			20,726,634

Liabilities
Cash overdraft		—			50			—
Accrued management and investment advisory fees		2,967			208,146			11,283
Accrued distribution		48,437			1,784,824			101,373
Payables:
Investment securities purchased		—			3,457,964			—
Collateral obligation on securities loaned — at value		—			194,448			—
Total Liabilities		51,404			5,645,432			112,656
Net Assets Applicable to Outstanding Shares	$	4,919,591		$	452,617,984		$	20,613,978

Net Assets Consist of:
Capital shares and additional paid-in-capital	$	5,497,549		$	517,314,473		$	23,199,789
Total distributable earnings (accumulated loss)		(577,958	)		(64,696,489	)		(2,585,811	)
Total Net Assets	$	4,919,591		$	452,617,984		$	20,613,978

Net Asset Value Per Share:
Net assets	$	4,919,591		$	452,617,984		$	20,613,978
Shares issued and outstanding		220,001			26,500,005			1,150,001
Net asset value per share	$	22.36		$	17.08		$	17.93

^(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, 2022 (unaudited)

						Principal U.S.
		Principal				Large-Cap
		Ultra-Short				Adaptive
		Active Income				Multi-Factor			Principal U.S.
			ETF			ETF			Mega-Cap ETF
Investment in securities — at cost		$	7,313,413		$	6,869,377		$	1,081,471,058
Assets
Investment in securities — at value		$	7,218,457		$	5,720,615		$	1,065,813,114
Cash			—			7			—
Receivables:
Dividends			1,351			5,978			741,232
Interest			29,595			—			—
Securities lending income			241			—			—
Investment securities sold			—			15,617			2,255,668
Expense reimbursement from Advisor			—			—			29,511
	Total Assets		7,249,644			5,742,217			1,068,839,525

Liabilities
Accrued management and investment advisory fees			1,176			795			147,554
Accrued distribution			25,815			24,082			4,104,800
	Total Liabilities		26,991			24,877			4,252,354
Net Assets Applicable to Outstanding Shares		$	7,222,653		$	5,717,340		$	1,064,587,171

Net Assets Consist of:
Capital shares and additional paid-in-capital		$	7,597,223		$	13,268,491		$	1,121,026,882
Total distributable earnings (accumulated loss)			(374,570	)		(7,551,151	)		(56,439,711	)
	Total Net Assets	$	7,222,653		$	5,717,340		$	1,064,587,171

Net Asset Value Per Share:
Net assets		$	7,222,653		$	5,717,340		$	1,064,587,171
Shares issued and outstanding			300,001			250,001			29,450,001
Net asset value per share		$	24.08		$	22.87		$	36.15

See accompanying notes.


	Statements of Assets and Liabilities
	Principal Exchange-Traded Funds
	December 31, 2022 (unaudited)

		Principal U.S.
		Small-Cap				Principal U.S.
		Adaptive				Small-Cap
		Multi-Factor				Multi-Factor			Principal Value
			ETF			ETF			ETF
Investment in securities — at cost		$	5,519,157		$	253,966,718		$	56,149,298
Investment in affiliated funds — at cost		$	—		$	839,358		$	—
Assets
Investment in securities — at value		$	5,570,654		$	232,524,039	^(a)	$	57,263,659
Investment in affiliated funds — at value			—			839,358			—
Receivables:
Dividends			6,817			351,746			107,824
Securities lending income			—			1,407			—
Investment securities sold			27,741			830,668			341,637
	Total Assets		5,605,212			234,547,218			57,713,120

Liabilities
Cash overdraft			—			75			—
Accrued management and investment advisory fees			980			81,604			8,369
Accrued distribution			30,593			1,179,528			409,965
Collateral obligation on securities loaned — at value			—			839,358			—
	Total Liabilities		31,573			2,100,565			418,334
Net Assets Applicable to Outstanding Shares		$	5,573,639		$	232,446,653		$	57,294,786

Net Assets Consist of:
Capital shares and additional paid-in-capital		$	6,262,759		$	454,764,453		$	81,149,005
Total distributable earnings (accumulated loss)			(689,120	)		(222,317,800	)		(23,854,219	)
	Total Net Assets	$	5,573,639		$	232,446,653		$	57,294,786

Net Asset Value Per Share:
Net assets		$	5,573,639		$	232,446,653		$	57,294,786
Shares issued and outstanding			250,001			5,950,001			1,400,001
Net asset value per share		$	22.29		$	39.07		$	40.92

^(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, 2022 (unaudited)

								Principal
					Principal			International
		Principal			Healthcare			Adaptive
	Active High				Innovators			Multi-Factor
		Yield ETF			ETF			ETF
Net Investment Income (Loss)
Income:
Dividend	$	160,314		$	28,511		$	163,395
Withholding tax		—			—			(14,102	)
Interest		7,506,654			—			—
Securities lending — net		13,786			38,384			—
Total Income		7,680,754			66,895			149,293

Expenses:
Management and investment advisory fees		485,635			126,248			14,846
Total Expenses		485,635			126,248			14,846
Net Investment Income (Loss)		7,195,119			(59,353	)		134,447

Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investment transactions		(2,413,683	)		(13,029,358	)		(1,694,944	)
In-kind redemptions		(1,207,322	)		297,798			(319,766	)
Foreign currency transactions		—			—			(688	)
Change in unrealized appreciation (depreciation) of:
Investments		10,113,424			15,209,927			2,341,284
Foreign currency transactions		—			—			1,851
Net Realized and Unrealized Gain (Loss)		6,492,419			2,478,367			327,737
Net Increase (Decrease) in Net Assets Resulting from Operations	$	13,687,538		$	2,419,014		$	462,184

See accompanying notes.


Statements of Operations
Principal Exchange-Traded Funds
Six Months Ended December 31, 2022 (unaudited)

		Principal
		Investment			Principal
		Grade			Millennial
		Corporate		Global Growth				Principal
	Active ETF				ETF ^(a)			Quality ETF
Net Investment Income (Loss)
Income:
Dividend	$	85,001		$	215,366		$	251,601
Withholding tax		—			(5,424	)		—
Interest		2,287,846			—			—
Securities lending — net		1,570			8,511			—
Total Income		2,374,417			218,453			251,601

Expenses:
Management and investment advisory fees		132,164			50,977			27,229
Total Expenses		132,164			50,977			27,229
Net Investment Income (Loss)		2,242,253			167,476			224,372

Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investment transactions		(6,626,204	)		(206,452	)		(22,492	)
In-kind redemptions		(56,221,905	)		—			1,588,878
Foreign currency transactions		—			(208	)		—
Futures contracts		(202,687	)		—			—
Change in unrealized appreciation (depreciation) of:
Investments		64,271,632			709,277			775,262
Futures contracts		(38,456	)		—			—
Foreign currency transactions		—			171			—
Net Realized and Unrealized Gain (Loss)		1,182,380			502,788			2,341,648
Net Increase (Decrease) in Net Assets Resulting from Operations	$	3,424,633		$	670,264		$	2,566,020

^(a)Effective July 15, 2022, Principal Millennials ETF changed its name to Principal Millennial Global Growth ETF.

See accompanying notes.


Statements of Operations
Principal Exchange-Traded Funds
Six Months Ended December 31, 2022 (unaudited)

					Principal			Principal
	Principal Real				Spectrum			Spectrum Tax-
	Estate Active				Preferred			Advantaged
	Opportunities				Securities			Dividend
		ETF			Active ETF			Active ETF
Net Investment Income (Loss)
Income:
Dividend	$	82,119		$	199,655		$	79,194
Interest		—			8,080,266			484,945
Securities lending — net		—			1,396			—
Total Income		82,119			8,281,317			564,139

Expenses:
Management and investment advisory fees		17,364			1,047,424			64,191
Total Expenses		17,364			1,047,424			64,191
Net Investment Income (Loss)		64,755			7,233,893			499,948

Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investment transactions		(12,544	)		(522,966	)		(101,999	)
In-kind redemptions		—			(4,305,378	)		—
Change in unrealized appreciation (depreciation) of:
Investments		(430,779	)		4,844,451			(193,180	)
Net Realized and Unrealized Gain (Loss)		(443,323	)		16,107			(295,179	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(378,568	)	$	7,250,000		$	204,769

See accompanying notes.


Statements of Operations
Principal Exchange-Traded Funds
Six Months Ended December 31, 2022 (unaudited)

				Principal U.S.
		Principal		Large-Cap
	Ultra-Short			Adaptive
	Active Income			Multi-Factor			Principal U.S.
		ETF		ETF			Mega-Cap ETF
Net Investment Income (Loss)
Income:
Dividend	$	7,483	$	60,640		$	9,518,424
Withholding tax		—		(9	)		—
Interest		108,518		—			—
Securities lending — net		1,058		—			—
Total Income		117,059		60,631			9,518,424

Expenses:
Management and investment advisory fees		7,329		5,071			907,255
Total Gross Expenses		7,329		5,071			907,255
Less: Reimbursement from Advisor		—		—			(181,451	)
Total Net Expenses		7,329		5,071			725,804
Net Investment Income (Loss)		109,730		55,560			8,792,620

Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investment transactions		29		(567,711	)		(35,478,442	)
In-kind redemptions		—		(1,310,311	)		63,022,903
Change in unrealized appreciation (depreciation) of:
Investments		6,013		1,910,905			(17,769,837	)
Net Realized and Unrealized Gain (Loss)		6,042		32,883			9,774,624
Net Increase (Decrease) in Net Assets Resulting from Operations	$	115,772	$	88,443		$	18,567,244

See accompanying notes.


Statements of Operations
Principal Exchange-Traded Funds
Six Months Ended December 31, 2022 (unaudited)

	Principal U.S.
		Small-Cap			Principal U.S.
		Adaptive			Small-Cap
	Multi-Factor				Multi-Factor			Principal Value
		ETF			ETF			ETF
Net Investment Income (Loss)
Income:
Dividend	$	60,440		$	4,382,460		$	1,326,215
Withholding tax		(73	)		(4,126	)		—
Securities lending — net		—			22,090			—
Total Income		60,367			4,400,424			1,326,215

Expenses:
Management and investment advisory fees		5,482			756,247			80,333
Total Expenses		5,482			756,247			80,333
Net Investment Income (Loss)		54,885			3,644,177			1,245,882

Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investment transactions		(345,295	)		(19,924,763	)		165,964
In-kind redemptions		—			(33,162,491	)		3,284,310
Change in unrealized appreciation (depreciation) of:
Investments		481,497			85,470,497			6,312,213
Net Realized and Unrealized Gain (Loss)		136,202			32,383,243			9,762,487
Net Increase (Decrease) in Net Assets Resulting from Operations	$	191,087		$	36,027,420		$	11,008,369

See accompanying notes.


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

		Principal Active High Yield ETF
		Period ended		Year ended
		December 31, 2022		June 30, 2022
Operations
Net investment income (loss)	$	7,195,119		$	10,370,892
Net realized gain (loss)		(3,621,005	)		22,688,033
Change in unrealized appreciation (depreciation)		10,113,424			(58,007,435	)
Net Increase (Decrease) in Net Assets Resulting from Operations		13,687,538			(24,948,510	)

Dividends to Shareholders
From net investment income and net realized gain on investments		(9,230,411	)		(11,667,484	)
Total Dividends		(9,230,411	)		(11,667,484	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		(35,340,963	)		22,948,323
Total Increase (Decrease) in Net Assets		(30,883,836	)		(13,667,671	)

Net Assets
Beginning of period		218,774,941			232,442,612
End of period	$	187,891,105		$	218,774,941

Capital Share Transactions
Dollars:
Sold	$	145,405,761		$	102,653,195
Redeemed		(180,746,724	)		(79,704,872	)
Net Increase (Decrease)	$	(35,340,963	)	$	22,948,323
Shares:
Sold		8,000,000			3,700,000
Redeemed		(9,800,000	)		(2,500,000	)
Net Increase (Decrease)		(1,800,000	)		1,200,000

See accompanying notes.


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

	Principal Healthcare Innovators ETF
	Period ended				Year ended
	December 31, 2022				June 30, 2022
Operations
Net investment income (loss)	$	(59,353	)	$	(293,184	)
Net realized gain (loss)	(12,731,560		)		4,792,287
Change in unrealized appreciation (depreciation)		15,209,927			(65,363,644	)
Net Increase (Decrease) in Net Assets Resulting from Operations		2,419,014			(60,864,541	)

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

Capital Share Transactions
Net increase (decrease) in capital share transactions		(85,820	)		(61,196,542	)
Total Increase (Decrease) in Net Assets		2,333,194			(122,922,207	)

Net Assets
Beginning of period		53,275,155			176,197,362
End of period	$	55,608,349		$	53,275,155

Capital Share Transactions
Dollars:
Sold	$	1,657,546		$	2,777,910
Redeemed		(1,743,366	)		(63,974,452	)
Net Increase (Decrease)	$	(85,820	)	$	(61,196,542	)
Shares:
Sold		50,000			50,000
Redeemed		(50,000	)		(1,300,000	)
Net Increase (Decrease)		—			(1,250,000	)

See accompanying notes.


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

	Principal International Adaptive Multi-
		Factor ETF
	Period ended			Year ended
	December 31, 2022			June 30, 2022
Operations
Net investment income (loss)	$	134,447		$	2,037,402
Net realized gain (loss)		(2,015,398	)		(9,062,479	)
Change in unrealized appreciation (depreciation)		2,343,135			(2,677,086	)
Net Increase (Decrease) in Net Assets Resulting from Operations		462,184			(9,702,163	)

Dividends to Shareholders
From net investment income and net realized gain on investments		(387,969	)		(1,862,278	)
Total Dividends		(387,969	)		(1,862,278	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		(2,021,334	)		(21,352,130	)
Total Increase (Decrease) in Net Assets		(1,947,119	)		(32,916,571	)

Net Assets
Beginning of period		14,201,466			47,118,037
End of period	$	12,254,347		$	14,201,466

Capital Share Transactions
Dollars:
Sold	$	—		$	133,715,469
Redeemed		(2,021,334	)	(155,067,599		)
Net Increase (Decrease)	$	(2,021,334	)	$	(21,352,130	)
Shares:
Sold		—			5,400,000
Redeemed		(100,000	)		(6,600,000	)
Net Increase (Decrease)		(100,000	)		(1,200,000	)

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, 2022			June 30, 2022
Operations
Net investment income (loss)		$	2,242,253		$	11,547,215
Net realized gain (loss)		(63,050,796		)		(5,080,997	)
Change in unrealized appreciation (depreciation)			64,233,176			(76,159,657	)
Net Increase (Decrease) in Net Assets Resulting from Operations			3,424,633			(69,693,439	)

Dividends to Shareholders
From net investment income and net realized gain on investments			(3,902,873	)		(15,584,122	)
Total Dividends			(3,902,873	)		(15,584,122	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		(347,151,172		)		(26,967,396	)
Total Increase (Decrease) in Net Assets		(347,629,412		)	(112,244,957		)

Net Assets
Beginning of period		369,026,305				481,271,262
End of period		$	21,396,893		$	369,026,305

Capital Share Transactions
Dollars:
Sold		$	15,350,096		$	37,903,794
Redeemed		(362,501,268		)		(64,871,190	)
Net Increase (Decrease)	$	(347,151,172		)	$	(26,967,396	)
Shares:
Sold			700,000			1,500,000
Redeemed		(16,550,000		)		(2,600,000	)
Net Increase (Decrease)		(15,850,000		)		(1,100,000	)

See accompanying notes.


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

		Principal Millennial Global
		Growth ETF (a)
	Period ended			Year ended
	December 31, 2022			June 30, 2022
Operations
Net investment income (loss)	$	167,476		$	2,886,044
Net realized gain (loss)		(206,660	)		(14,685,302	)
Change in unrealized appreciation (depreciation)		709,448			(22,104,977	)
Net Increase (Decrease) in Net Assets Resulting from Operations		670,264			(33,904,235	)

Dividends to Shareholders
From net investment income and net realized gain on investments		(469,801	)		(2,817,266	)
Total Dividends		(469,801	)		(2,817,266	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		1,729,551			(66,070,744	)
Total Increase (Decrease) in Net Assets		1,930,014			(102,792,245	)

Net Assets
Beginning of period		23,607,051			126,399,296
End of period	$	25,537,065		$	23,607,051

Capital Share Transactions
Dollars:
Sold	$	1,729,551		$	45,979,391
Redeemed		—			(112,050,135	)
Net Increase (Decrease)	$	1,729,551		$	(66,070,744	)
Shares:
Sold		50,000			800,000
Redeemed		—			(2,100,000	)
Net Increase (Decrease)		50,000			(1,300,000	)

^(a)	Effective July 15, 2022, Principal Millennials ETF changed its name to Principal Millennial Global Growth ETF.

See accompanying notes.


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

			Principal Quality ETF
		Period ended			Year ended
		December 31, 2022			June 30, 2022
Operations
Net investment income (loss)		$	224,372		$	891,275
Net realized gain (loss)			1,566,386			(5,551,421	)
Change in unrealized appreciation (depreciation)			775,262			(3,671,471	)
Net Increase (Decrease) in Net Assets Resulting from Operations			2,566,020			(8,331,617	)

Dividends to Shareholders
From net investment income and net realized gain on investments			(452,729	)		(811,956	)
Total Dividends			(452,729	)		(811,956	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		(20,218,116		)		(3,853,104	)
Total Increase (Decrease) in Net Assets		(18,104,825		)		(12,996,677	)

Net Assets
Beginning of period			45,488,950			58,485,627
End of period		$	27,384,125		$	45,488,950

Capital Share Transactions
Dollars:
Sold		$	—		$	144,698,544
Redeemed		(20,218,116		)	(148,551,648		)
Net Increase (Decrease)	$	(20,218,116		)	$	(3,853,104	)
Shares:
Sold			—			2,600,000
Redeemed			(400,000	)		(2,750,000	)
Net Increase (Decrease)			(400,000	)		(150,000	)

See accompanying notes.


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

		Principal Real Estate Active
		Opportunities ETF
	Period ended			Period ended
	December 31, 2022			June 30, 2022 ^(a)
Operations
Net investment income (loss)	$	64,755		$	21,660
Net realized gain (loss)		(12,544	)		22,299
Change in unrealized appreciation (depreciation)		(430,779	)		(151,734	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(378,568	)		(107,775	)

Dividends to Shareholders
From net investment income and net realized gain on investments		(91,438	)		—
Total Dividends		(91,438	)		—

Capital Share Transactions
Net increase (decrease) in capital share transactions		—			5,497,372
Total Increase (Decrease) in Net Assets		(470,006	)		5,389,597

Net Assets
Beginning of period		5,389,597			—
End of period	$	4,919,591		$	5,389,597

Capital Share Transactions
Dollars:
Sold	$	—		$	5,497,372
Redeemed		—			—
Net Increase (Decrease)	$	—		$	5,497,372
Shares:
Sold		—			220,001
Redeemed		—			—
Net Increase (Decrease)		—			220,001

^(a)Period from May 18, 2022, date operations commenced, through June 30, 2022.

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, 2022			June 30, 2022
Operations
Net investment income (loss)	$	7,233,893		$	12,966,742
Net realized gain (loss)		(4,828,344	)		(1,783,750	)
Change in unrealized appreciation (depreciation)		4,844,451			(66,719,754	)
Net Increase (Decrease) in Net Assets Resulting from Operations		7,250,000			(55,536,762	)

Dividends to Shareholders
From net investment income and net realized gain on investments		(10,051,871	)		(16,461,144	)
Total Dividends		(10,051,871	)		(16,461,144	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		110,463,081			53,621,546
Total Increase (Decrease) in Net Assets		107,661,210			(18,376,360	)

Net Assets
Beginning of period		344,956,774			363,333,134
End of period	$	452,617,984		$	344,956,774

Capital Share Transactions
Dollars:
Sold	$	163,944,255		$	119,885,173
Redeemed		(53,481,174	)		(66,263,627	)
Net Increase (Decrease)	$	110,463,081		$	53,621,546
Shares:
Sold		9,500,000			5,950,000
Redeemed		(3,050,000	)		(3,500,000	)
Net Increase (Decrease)		6,450,000			2,450,000

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, 2022			June 30, 2022
Operations
Net investment income (loss)	$	499,948		$	942,323
Net realized gain (loss)		(101,999	)		28,895
Change in unrealized appreciation (depreciation)		(193,180	)		(3,438,648	)
Net Increase (Decrease) in Net Assets Resulting from Operations		204,769			(2,467,430	)

Dividends to Shareholders
From net investment income and net realized gain on investments		(678,877	)		(1,220,956	)
Total Dividends		(678,877	)		(1,220,956	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		—			2,129,041
Total Increase (Decrease) in Net Assets		(474,108	)		(1,559,345	)

Net Assets
Beginning of period		21,088,086			22,647,431
End of period	$	20,613,978		$	21,088,086

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

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, 2022			June 30, 2022
Operations
Net investment income (loss)	$	109,730		$	47,739
Net realized gain (loss)		29			(54,767	)
Change in unrealized appreciation (depreciation)		6,013			(112,386	)
Net Increase (Decrease) in Net Assets Resulting from Operations		115,772			(119,414	)

Dividends to Shareholders
From net investment income and net realized gain on investments		(129,216	)		(97,102	)
Total Dividends		(129,216	)		(97,102	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		(1,202,413	)		(1,993	)
Total Increase (Decrease) in Net Assets		(1,215,857	)		(218,509	)

Net Assets
Beginning of period		8,438,510			8,657,019
End of period	$	7,222,653		$	8,438,510

Capital Share Transactions
Dollars:
Sold	$	—		$	1,209,257
Redeemed		(1,202,413	)	(1,211,250		)
Net Increase (Decrease)	$	(1,202,413	)	$	(1,993	)
Shares:
Sold		—			50,000
Redeemed		(50,000	)		(50,000	)
Net Increase (Decrease)		(50,000	)		—

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				Year ended
	December 31, 2022			June 30, 2022
Operations
Net investment income (loss)	$	55,560		$	1,150,353
Net realized gain (loss)		(1,878,022	)		(3,811,836	)
Change in unrealized appreciation (depreciation)		1,910,905			(3,432,631	)
Net Increase (Decrease) in Net Assets Resulting from Operations		88,443			(6,094,114	)

Dividends to Shareholders
From net investment income and net realized gain on investments		(219,383	)		(1,000,323	)
Total Dividends		(219,383	)		(1,000,323	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		(6,901,309	)		(9,997,947	)
Total Increase (Decrease) in Net Assets		(7,032,249	)		(17,092,384	)

Net Assets
Beginning of period		12,749,589			29,841,973
End of period	$	5,717,340		$	12,749,589

Capital Share Transactions
Dollars:
Sold	$	—		$	172,626,760
Redeemed		(6,901,309	)		(182,624,707	)
Net Increase (Decrease)	$	(6,901,309	)	$	(9,997,947	)
Shares:
Sold		—			6,400,000
Redeemed		(300,000	)		(7,000,000	)
Net Increase (Decrease)		(300,000	)		(600,000	)

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, 2022			June 30, 2022
Operations
Net investment income (loss)	$	8,792,620		$	29,571,207
Net realized gain (loss)		27,544,461			318,629,005
Change in unrealized appreciation (depreciation)		(17,769,837	)		(388,433,052	)
Net Increase (Decrease) in Net Assets Resulting from Operations		18,567,244			(40,232,840	)

Dividends to Shareholders
From net investment income and net realized gain on investments		(15,443,347	)		(31,378,545	)
Total Dividends		(15,443,347	)		(31,378,545	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		(305,963,574	)		(519,025,943	)
Total Increase (Decrease) in Net Assets		(302,839,677	)		(590,637,328	)

Net Assets
Beginning of period		1,367,426,848			1,958,064,176
End of period	$	1,064,587,171		$	1,367,426,848

Capital Share Transactions
Dollars:
Sold	$	21,895,359		$	564,035,727
Redeemed		(327,858,933	)		(1,083,061,670	)
Net Increase (Decrease)	$	(305,963,574	)	$	(519,025,943	)
Shares:
Sold		600,000			13,400,000
Redeemed		(8,500,000	)		(25,400,000	)
Net Increase (Decrease)		(7,900,000	)		(12,000,000	)

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				Year ended
	December 31, 2022			June 30, 2022
Operations
Net investment income (loss)	$	54,885		$	96,711
Net realized gain (loss)		(345,295	)		(365,590	)
Change in unrealized appreciation (depreciation)		481,497			(561,664	)
Net Increase (Decrease) in Net Assets Resulting from Operations		191,087			(830,543	)

Dividends to Shareholders
From net investment income and net realized gain on investments		(80,693	)		(108,910	)
Total Dividends		(80,693	)		(108,910	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		—			—
Total Increase (Decrease) in Net Assets		110,394			(939,453	)

Net Assets
Beginning of period		5,463,245			6,402,698
End of period	$	5,573,639		$	5,463,245

Capital Share Transactions
Dollars:
Sold	$	—		$	—
Redeemed		—			—
Net Increase (Decrease)	$	—		$	—
Shares:
Sold		—			—
Redeemed		—			—

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, 2022			June 30, 2022
Operations
Net investment income (loss)	$	3,644,177		$	15,920,622
Net realized gain (loss)		(53,087,254	)		179,835,384
Change in unrealized appreciation (depreciation)		85,470,497			(330,521,307	)
Net Increase (Decrease) in Net Assets Resulting from Operations		36,027,420			(134,765,301	)

Dividends to Shareholders
From net investment income and net realized gain on investments		(6,083,134	)		(17,721,353	)
Total Dividends		(6,083,134	)		(17,721,353	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		(413,762,151	)		(859,252,127	)
Total Increase (Decrease) in Net Assets		(383,817,865	)		(1,011,738,781	)

Net Assets
Beginning of period		616,264,518			1,628,003,299
End of period	$	232,446,653		$	616,264,518

Capital Share Transactions
Dollars:
Sold	$	7,822,271		$	472,542,832
Redeemed		(421,584,422	)		(1,331,794,959	)
Net Increase (Decrease)	$	(413,762,151	)	$	(859,252,127	)
Shares:
Sold		200,000			10,150,000
Redeemed		(10,450,000	)		(28,650,000	)
Net Increase (Decrease)		(10,250,000	)		(18,500,000	)

See accompanying notes.


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

			Principal Value ETF
		Period ended			Year ended
		December 31, 2022			June 30, 2022
Operations
Net investment income (loss)		$	1,245,882		$	4,657,810
Net realized gain (loss)			3,450,274			(17,125,428	)
Change in unrealized appreciation (depreciation)			6,312,213			(7,994,936	)
Net Increase (Decrease) in Net Assets Resulting from Operations			11,008,369			(20,462,554	)

Dividends to Shareholders
From net investment income and net realized gain on investments			(3,830,372	)		(2,251,380	)
Total Dividends			(3,830,372	)		(2,251,380	)

Capital Share Transactions
Net increase (decrease) in capital share transactions		(165,758,468		)		194,090,855
Total Increase (Decrease) in Net Assets		(158,580,471		)		171,376,921

Net Assets
Beginning of period		215,875,257				44,498,336
End of period		$	57,294,786		$	215,875,257

Capital Share Transactions
Dollars:
Sold		$	33,354,466		$	371,175,106
Redeemed		(199,112,934		)		(177,084,251	)
Net Increase (Decrease)	$	(165,758,468		)	$	194,090,855
Shares:
Sold			850,000			8,700,000
Redeemed			(5,000,000	)		(4,200,000	)
Net Increase (Decrease)			(4,150,000	)		4,500,000

See accompanying notes.


Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2022 (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 fifteen series, Principal Active High Yield ETF, Principal Healthcare Innovators ETF, Principal
International Adaptive Multi-Factor ETF, Principal Investment Grade Corporate Active ETF, Principal Millennial
Global Growth ETF, Principal Quality ETF, Principal Real Estate Active Opportunities 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 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 and
Principal Real Estate Active Opportunities ETF which are issued and redeemed in aggregations of 100,000 shares and
20,000 shares, respectively (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 Millennial Global Growth ETF	The Nasdaq Stock Market LLC
Principal Quality ETF	The Nasdaq Stock Market LLC
Principal Real Estate Active Opportunities ETF	NYSE Arca
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

Effective July 22, 2020, Principal Spectrum Preferred Securities Active ETF issued a 5 to 1 stock split. The stock
split has been retroactively reflected on the Financial Highlights.

Effective September 1, 2021, Principal Active Income ETF changed its name to Principal Active High Yield ETF. In
addition to the name change, the 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 Financial Highlights.




26


Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2022 (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

Principal Real Estate Active Opportunities ETF initial investment and commencement of operations was May 18,
2022.

Effective July 8, 2022 and July 15, 2022, Principal U.S. Small-Cap Multi-Factor ETF and Principal Healthcare
Innovators ETF changed from passively managed funds to actively managed funds, respectively.

Effective July 15, 2022, Principal Millennials ETF changed its name to Principal Millennial Global Growth ETF and
changed from passively managed fund to actively managed fund.

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
(“OTC”), 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
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 Board of Trustees, as



27

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2022 (unaudited)

2. Significant Accounting Policies (continued)

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.

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, 2022:


Principal International Adaptive Multi-Factor ETF
Australian Dollar	7.16	%
British Pound Sterling	13.99	%
Canadian Dollar	11.98	%
Euro	25.56	%
Japanese Yen	19.51	%
Swiss Franc	8.27	%
Principal Millennial Global Growth ETF
Euro	12.81	%

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.

Distributions from Real Estate Investment Trusts ("REITs") may be characterized as ordinary income, capital gain, or a return of capital to the Funds. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, estimates are used in reporting the character of income and distributions for financial statement purposes. Principal Real Estate Active Opportunities ETF receives substantial distributions from holdings in REITs.

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.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2022 (unaudited)

2. Significant Accounting Policies (continued)

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, 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 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. The Funds recognize interest and penalties, if any, related to unrecognized tax positions as tax expense on the Statements of Operations. During the period ended December 31, 2022, 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. In December 2022, the FASB issued ASU No. 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 which updates and clarifies ASU No. 2020-04. The amendments in this ASU defer the sunset date of Topic 848 from December 31, 2022, to December 31, 2024. Management expects these ASUs will not have a material impact on the Funds' financial statements.

In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820); Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which provides clarifying guidance that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Management expects the ASU will not have a material impact on the Funds' financial statements.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2022 (unaudited)

2. Significant Accounting Policies (continued)

Tracking Basket Structure. Principal Real Estate Active Opportunities ETF operates pursuant to an exemptive order from the Securities and Exchange Commission (“SEC”) and does not publicly disclose its complete portfolio holdings each business day. Instead, the Fund publishes each business day on its website a “Tracking Basket” which is designed to closely track the daily performance of the Fund but is not the Fund's actual portfolio. The Fund's Tracking Basket structure may affect the price at which shares of the Fund trade in the secondary market. Although the Tracking Basket is intended to provide investors with enough information to allow for an effective arbitrage mechanism that will keep the market price of the Fund at or close to the Fund's NAV, there is a risk that market prices will vary significantly from NAV.

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.

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, 2022, 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, 2022, deposits with counterparty for Principal Investment Grade Corporate Active ETF and Principal Spectrum Tax-Advantaged Dividend Active ETF were $35,765 and $17,440 respectively.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2022 (unaudited)

3. Operating Policies (continued)

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.

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 transactions are accounted for as secured borrowings and the remaining contractual maturity is overnight and continuous for all securities. 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.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2022 (unaudited)

3. Operating Policies (continued)

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, 2022, 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.

As of December 31, 2022, 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	28.85	%
Principal U.S. Mega-Cap ETF	80.81
Principal U.S. Small-Cap Multi-Factor ETF	83.19

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2022 (unaudited)

3. Operating Policies (continued)

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, 2022				December 31, 2022

	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)	$	13,369	*	(accumulated loss)	$	(9,629	) *

* 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.


			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	Futures contracts	$	(202,687	)	$	(38,456	)

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2022 (unaudited)

3. Operating Policies (continued)

The following table includes a summary of the monthly average outstanding notional by derivative instrument type for the period ended December 31, 2022:


Contract Type	Derivative Type		Average Notional
Principal Investment Grade Corporate Active ETF
Interest rate contracts	Futures — Short	$	4,156,899
	Futures — Long		2,839,791

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, 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.

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.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2022 (unaudited)

4. Fair Valuation (continued)

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, 2022, 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
Bonds*	$	— $		163,417,703	$		— $	163,417,703
Senior Floating Rate Interests*		—		15,290,363			—	15,290,363
Investment Companies		11,347,315		—			—	11,347,315
Total investments in securities	$	11,347,315	$	178,708,066	$		— $	190,055,381

Principal Healthcare Innovators ETF
Common Stocks*	$	55,506,135	$	— $			— $	55,506,135
Investment Companies		1,179,632		—			—	1,179,632
Total investments in securities	$	56,685,767	$	— $			— $	56,685,767

Principal International Adaptive Multi-Factor ETF
Common Stocks*	$	12,115,748	$	— $			— $	12,115,748
Preferred Stocks*		50,001		—			—	50,001
Investment Companies		66,004		—			—	66,004
Total investments in securities	$	12,231,753	$	— $			— $	12,231,753

Principal Investment Grade Corporate Active ETF
Bonds*	$	— $		21,106,358	$		— $	21,106,358
Investment Companies		361,994		—			—	361,994
Total investments in securities	$	361,994	$	21,106,358	$		— $	21,468,352
Derivative Assets
Interest rate contracts
Futures	$	13,369	$	— $			— $	13,369
Derivative Liabilities
Interest rate contracts
Futures	$	(9,629	) $	— $			— $	(9,629	)


Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2022 (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 Millennial Global Growth ETF
Common Stocks*	$	25,430,712	$	— $			— $	25,430,712
Investment Companies		245,821		—			—	245,821
Total investments in securities	$	25,676,533	$	— $			— $	25,676,533

Principal Quality ETF
Common Stocks*	$	27,319,709	$	— $			— $	27,319,709
Investment Companies		90,596		—			—	90,596
Total investments in securities	$	27,410,305	$	— $			— $	27,410,305

Principal Real Estate Active Opportunities ETF
Common Stocks*	$	4,917,495	$	— $			— $	4,917,495
Investment Companies		25,297		—			—	25,297
Total investments in securities	$	4,942,792	$	— $			— $	4,942,792

Principal Spectrum Preferred Securities Active ETF
Bonds*	$	— $		433,892,562	$		— $	433,892,562
Investment Companies		18,982,775		—			—	18,982,775
Total investments in securities	$	18,982,775	$	433,892,562	$		— $	452,875,337

Principal Spectrum Tax-Advantaged Dividend Active ETF
Preferred Stocks*	$	2,278,263	$	— $			— $	2,278,263
Bonds*		—		17,822,177			—	17,822,177
Investment Companies		395,975		—			—	395,975
Total investments in securities	$	2,674,238	$	17,822,177	$		— $	20,496,415

Principal Ultra-Short Active Income ETF
Bonds*	$	— $		6,124,359	$		— $	6,124,359
U.S. Government & Government Agency
Obligations*		—		497,513			—	497,513
Investment Companies		596,585		—			—	596,585
Total investments in securities	$	596,585	$	6,621,872	$		— $	7,218,457

Principal U.S. Large-Cap Adaptive Multi-Factor ETF
Common Stocks*	$	5,701,058	$	— $			— $	5,701,058
Investment Companies		19,557		—			—	19,557
Total investments in securities	$	5,720,615	$	— $			— $	5,720,615

Principal U.S. Mega-Cap ETF
Common Stocks*	$	1,062,252,229	$	— $			— $	1,062,252,229
Investment Companies		3,560,885		—			—	3,560,885
Total investments in securities	$	1,065,813,114	$	— $			— $	1,065,813,114

Principal U.S. Small-Cap Adaptive Multi-Factor ETF
Common Stocks*	$	5,554,302	$	— $			— $	5,554,302
Investment Companies		16,352		—			—	16,352
Total investments in securities	$	5,570,654	$	— $			— $	5,570,654

Principal U.S. Small-Cap Multi-Factor ETF
Common Stocks*	$	231,620,719	$	— $			— $	231,620,719
Investment Companies		1,742,678		—			—	1,742,678
Total investments in securities	$	233,363,397	$	— $			— $	233,363,397

Principal Value ETF
Common Stocks*	$	57,044,635	$	— $			— $	57,044,635
Investment Companies		219,024		—			—	219,024
Total investments in securities	$	57,263,659	$	— $			— $	57,263,659

* For additional detail regarding sector classifications, please see the Schedules of Investments.




36

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2022 (unaudited)

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	%

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 Millennial Global Growth ETF							0.38
Principal Quality ETF							0.15
Principal Real Estate Active Opportunities ETF							0.65
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 November 1, 2022, the management fee for Principal Millennial Global Growth ETF was 0.45%, 0.43%, 0.41% and 0.40% for the first $500 million, next $500 million, next $500 million and over $1.5 billion, respectively.

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.

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, 2023. No other Funds had expense limitation agreements in place during the period.

Affiliated Ownership. At December 31, 2022, Principal Financial Services, Inc. (an affiliate of the Advisor) owned Shares of the Funds as follows:


Fund	Shares
Principal International Adaptive Multi-Factor ETF	390,001
Principal Real Estate Active Opportunities ETF	199,204
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. Small-Cap Adaptive Multi-Factor ETF	200,965

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2022 (unaudited)

6. Investment Transactions

For the period ended December 31, 2022, 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	$	132,824,876	$	32,474,606		$	—	$	—
Principal Healthcare Innovators ETF		23,247,044		23,257,993			—		—
Principal International Adaptive Multi-Factor ETF		5,118,871			5,368,353		—		—
Principal Investment Grade Corporate Active ETF		45,225,957		73,420,381			—		—
Principal Millennial Global Growth ETF		266,741			503,121		—		—
Principal Quality ETF		151,377			431,389		—		—
Principal Real Estate Active Opportunities ETF		546,231			450,243		—		—
Principal Spectrum Preferred Securities Active ETF		167,994,518		14,406,651			—		—
Principal Spectrum Tax-Advantaged Dividend Active ETF		992,597			836,872		—		—
Principal Ultra-Short Active Income ETF		648,364			2,161,242		—		—
Principal U.S. Large-Cap Adaptive Multi-Factor ETF		3,034,777			3,174,603		—		—
Principal U.S. Mega-Cap ETF		139,674,872		150,490,804			—		—
Principal U.S. Small-Cap Adaptive Multi-Factor ETF		3,763,284			3,764,623		—		—
Principal U.S. Small-Cap Multi-Factor ETF		149,043,785		151,702,820			—		—
Principal Value ETF		963,941		13,204,694			—		—

For the period ended December 31, 2022, in-kind transactions were as follows:

Fund					Purchases			Sales
Principal Active High Yield ETF				$	25,197,985		$	156,522,251
Principal Healthcare Innovators ETF					1,657,751			1,728,305
Principal International Adaptive Multi-Factor ETF						—		1,917,634
Principal Investment Grade Corporate Active ETF					11,641,184			314,840,964
Principal Millennial Global Growth ETF					1,665,043				—
Principal Quality ETF						—		20,087,911
Principal Spectrum Preferred Securities Active ETF					3,861,472			49,540,164
Principal U.S. Large-Cap Adaptive Multi-Factor ETF						—		6,896,659
Principal U.S. Mega-Cap ETF					21,685,862			321,237,518
Principal U.S. Small-Cap Multi-Factor ETF					7,787,069			419,771,257
Principal Value ETF					33,208,994			188,492,106

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.


Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2022 (unaudited)


7. Federal Tax Information (continued)

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, 2022, 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		$	7,039,031	$		3,626,864	$	10,665,895		$	1,874,152
Principal Healthcare Innovators ETF			4,713,904			2,860,993		7,574,897			—
Principal International Adaptive Multi-Factor ETF			6,905,658			190,186		7,095,844			—
Principal Millennial Global Growth ETF			6,704,798			1,575,171		8,279,969			—
Principal Quality ETF			11,901,054			535,279		12,436,333			294,429
Principal Spectrum Preferred Securities Active ETF			1,575,986			2,670,596		4,246,582			—
Principal Ultra-Short Active Income ETF			138,959			112,248		251,207			—
Principal U.S. Large-Cap Adaptive Multi-Factor ETF			4,479,912			30,536		4,510,448			—
Principal U.S. Mega-Cap ETF			67,835,985			—		67,835,985			—
Principal U.S. Small-Cap Multi-Factor ETF			123,369,770			24,400,180		147,769,950			—
Principal Value ETF			26,347,409			2,188,584		28,535,993			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, 2022, the Fund utilized capital loss carryforwards as follows:

Fund			ST Utilized					LT Utilized
Principal Active High Yield ETF	$		503,494			$		3,209,996

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, 2022, 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	$		(62,480		)	$			—
Principal Investment Grade Corporate Active ETF				—				(6,346,076		)
Principal Spectrum Tax-Advantaged Dividend Active ETF				—					(74,106	)
Principal U.S. Small-Cap Adaptive Multi-Factor ETF				—					(393,295	)




40

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2022 (unaudited)

7. Federal Tax Information (continued)

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, 2022, the Funds recorded reclassifications as follows:


		Total
		Distributable Earnings
Fund		(Accumulated Loss)			Paid In Capital
Principal Active High Yield ETF	$	(18,122,655	)	$	18,122,655
Principal Healthcare Innovators ETF		(8,268,653	)		8,268,653
Principal International Adaptive Multi-Factor ETF		1,947,488			(1,947,488	)
Principal Investment Grade Corporate Active ETF		1,119,112			(1,119,112	)
Principal Millennial Global Growth ETF		8,755,193			(8,755,193	)
Principal Quality ETF		(5,347,733	)		5,347,733
Principal Real Estate Active Opportunities ETF		(177	)		177
Principal Spectrum Preferred Securities Active ETF		420,840			(420,840	)
Principal Spectrum Tax-Advantaged Dividend Active ETF		(596	)		596
Principal Ultra-Short Active Income ETF		(1,210	)		1,210
Principal U.S. Large-Cap Adaptive Multi-Factor ETF		(714,159	)		714,159
Principal U.S. Mega-Cap ETF		(322,508,916	)		322,508,916
Principal U.S. Small-Cap Multi-Factor ETF		(242,005,320	)		242,005,320
Principal Value ETF		(9,268,137	)		9,268,137

Federal Income Tax Basis. As of June 30, 2022, 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	$	252	$	(34,101,871	)	$	(34,101,619	)	$	255,295,377
Principal Healthcare Innovators ETF		2,533,747		(46,881,387	)		(44,347,640	)		98,732,608
Principal International Adaptive Multi-Factor ETF		70,898		(3,806,019	)		(3,735,121	)		17,830,074
Principal Investment Grade Corporate Active ETF		15,915		(70,850,339	)		(70,834,424	)		437,573,083
Principal Millennial Global Growth ETF		560,554		(12,242,107	)		(11,681,553	)		36,257,708
Principal Quality ETF		864,760		(2,162,390	)		(1,297,630	)		46,761,488
Principal Real Estate Active Opportunities ETF		70,464		(223,068	)		(152,604	)		5,521,210
Principal Spectrum Preferred Securities Active ETF		—		(58,938,366	)		(58,938,366	)		403,130,366
Principal Spectrum Tax-Advantaged Dividend Active ETF		35,886		(2,174,048	)		(2,138,162	)		23,020,020
Principal Ultra-Short Active Income ETF		—		(122,759	)		(122,759	)		8,607,011
Principal U.S. Large-Cap Adaptive Multi-Factor ETF		86,836		(3,162,317	)		(3,075,481	)		15,813,692
Principal U.S. Mega-Cap ETF		92,823,010		(91,208,363	)		1,614,647			1,365,161,637
Principal U.S. Small-Cap Adaptive Multi-Factor ETF		206,124		(638,834	)		(432,710	)		5,887,994
Principal U.S. Small-Cap Multi-Factor ETF		18,787,829		(125,893,642	)		(107,105,813	)		728,319,299
Principal Value ETF		943,803		(6,141,653	)		(5,197,850	)		220,734,528


Schedule of Investments
Principal Active High Yield ETF
December 31, 2022 (unaudited)

		Principal
BONDS — 86.97%		Amount		Value

Aerospace & Defense — 1.13%
Bombardier, Inc.
7.50%, 03/15/2025 ^(a)	$	516,000	$	511,002
Triumph Group, Inc.
7.75%, 08/15/2025 ^(b)		1,900,000		1,616,121
			$	2,127,123

Airlines — 0.08%
United Airlines 2016-1 Class B Pass Through Trust
3.65%, 07/07/2027		167,782		151,806

Auto Manufacturers — 1.87%
Ford Motor Co.
3.25%, 02/12/2032		1,668,000		1,250,903
Ford Motor Credit Co. LLC
3.38%, 11/13/2025		1,808,000		1,634,455
4.39%, 01/08/2026		114,000		106,186
4.54%, 08/01/2026		558,000		514,144
			$	3,505,688

Banks — 1.42%
JPMorgan Chase & Co.
(6-month Secured Overnight Financing Rate + 3.13%),
4.60%, 02/01/2025 ^(c),(d)		3,032,000		2,671,950

Chemicals — 2.92%
Consolidated Energy Finance SA
5.63%, 10/15/2028 ^(a)		2,628,000		2,232,951
Kobe U.S. Midco 2, Inc.
9.25%, PIK 10.00%; 11/01/2026 ^(a),(e)		585,000		409,500
Olympus Water U.S. Holding Corp.
6.25%, 10/01/2029 ^(a),(b)		2,072,000		1,573,075
Tronox, Inc.
4.63%, 03/15/2029 ^(a)		1,521,000		1,264,331
			$	5,479,857

Commercial Services — 5.29%
Ahern Rentals, Inc.
7.38%, 05/15/2023 ^(a)		2,130,000		2,130,000
Albion Financing 1 SARL/Aggreko Holdings, Inc.
6.13%, 10/15/2026 ^(a)		1,899,000		1,693,547
Garda World Security Corp.
6.00%, 06/01/2029 ^(a)		299,000		242,952
9.50%, 11/01/2027 ^(a)		1,925,000		1,853,999
WASH Multifamily Acquisition, Inc.
5.75%, 04/15/2026 ^(a)		2,487,000		2,343,997
ZipRecruiter, Inc.
5.00%, 01/15/2030 ^(a)		2,033,000		1,676,046
			$	9,940,541

Construction Materials — 1.46%
Smyrna Ready Mix Concrete LLC
6.00%, 11/01/2028 ^(a)		3,062,000		2,739,571

Diversified Financial Services — 5.77%
AerCap Holdings NV
(5-year Treasury Constant Maturity Rate + 4.54%),
5.88%, 10/10/2079 ^(c)		3,281,000		2,987,186

See accompanying notes.


	Schedule of Investments
	Principal Active High Yield ETF
	December 31, 2022 (unaudited)

		Principal
BONDS (continued)		Amount		Value

Diversified Financial Services (continued)
Credit Acceptance Corp.
6.63%, 03/15/2026	$	2,827,000	$	2,678,971
Global Aircraft Leasing Co. Ltd.
6.50%, PIK 7.25%; 09/15/2024 ^(a),(e)		2,935,933		2,495,543
OneMain Finance Corp.
4.00%, 09/15/2030		2,690,000		2,007,116
6.63%, 01/15/2028		729,000		671,285
			$	10,840,101

Electric — 4.12%
Clearway Energy Operating LLC
3.75%, 02/15/2031 ^(a)		3,080,000		2,557,167
GenOn Energy, Inc.
0.00%, 10/15/2020 ^(f),(g),(h)		3,100,000		—
NRG Energy, Inc.
3.88%, 02/15/2032 ^(a)		2,835,000		2,129,227
Vistra Corp.
(5-year Treasury Constant Maturity Rate + 5.74%),
7.00%, 12/15/2026 ^(a),(c),(d)		1,303,000		1,185,643
Vistra Operations Co. LLC
4.38%, 05/01/2029 ^(a)		2,165,000		1,865,400
			$	7,737,437

Electronics — 1.35%
Sensata Technologies BV
4.00%, 04/15/2029 ^(a)		345,000		297,562
Sensata Technologies, Inc.
3.75%, 02/15/2031 ^(a)		2,731,000		2,246,630
			$	2,544,192

Entertainment — 7.93%
Boyne USA, Inc.
4.75%, 05/15/2029 ^(a)		3,487,000		3,086,150
CCM Merger, Inc.
6.38%, 05/01/2026 ^(a)		2,854,000		2,689,381
CDI Escrow Issuer, Inc.
5.75%, 04/01/2030 ^(a)		2,624,000		2,352,230
Cinemark USA, Inc.
5.25%, 07/15/2028 ^(a),(b)		2,673,000		1,984,943
International Game Technology PLC
5.25%, 01/15/2029 ^(a)		3,466,000		3,229,825
Lions Gate Capital Holdings LLC
5.50%, 04/15/2029 ^(a)		2,679,000		1,553,276
			$	14,895,805

Food — 3.53%
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC
4.88%, 02/15/2030 ^(a)		2,065,000		1,842,930
Chobani LLC/Chobani Finance Corp., Inc.
7.50%, 04/15/2025 ^(a),(b)		2,261,000		2,201,649
Pilgrim's Pride Corp.
3.50%, 03/01/2032 ^(a)		2,903,000		2,271,598
4.25%, 04/15/2031 ^(a)		379,000		322,360
			$	6,638,537

See accompanying notes.


	Schedule of Investments
	Principal Active High Yield ETF
	December 31, 2022 (unaudited)

		Principal
BONDS (continued)		Amount		Value

Forest Products & Paper — 0.57%
Mercer International, Inc.
5.13%, 02/01/2029	$	1,289,000	$	1,077,617

Healthcare — Services — 5.34%
Acadia Healthcare Co., Inc.
5.00%, 04/15/2029 ^(a)		3,050,000		2,805,085
Centene Corp.
2.50%, 03/01/2031		1,399,000		1,094,680
3.38%, 02/15/2030		1,852,000		1,565,625
CHS/Community Health Systems, Inc.
6.00%, 01/15/2029 ^(a)		2,640,000		2,208,307
Tenet Healthcare Corp.
6.13%, 10/01/2028 ^(a)		2,643,000		2,366,331
			$	10,040,028

Home Builders — 1.25%
Forestar Group, Inc.
3.85%, 05/15/2026 ^(a)		526,000		461,139
5.00%, 03/01/2028 ^(a)		2,196,000		1,884,091
			$	2,345,230

Insurance — 0.77%
Acrisure LLC/Acrisure Finance, Inc.
4.25%, 02/15/2029 ^(a)		321,000		264,958
7.00%, 11/15/2025 ^(a)		1,281,000		1,176,999
			$	1,441,957

Investment Companies — 0.87%
Compass Group Diversified Holdings LLC
5.25%, 04/15/2029 ^(a)		1,919,000		1,642,263

Iron & Steel — 0.56%
TMS International Corp.
6.25%, 04/15/2029 ^(a)		1,482,000		1,060,015

Leisure Time — 1.44%
Life Time, Inc.
5.75%, 01/15/2026 ^(a)		2,910,000		2,707,755

Media — 7.08%
CCO Holdings LLC/CCO Holdings Capital Corp.
4.25%, 02/01/2031 ^(a)		3,041,000		2,439,232
4.75%, 02/01/2032 ^(a)		930,000		753,951
Directv Financing LLC/Directv Financing Co.-Obligor, Inc.
5.88%, 08/15/2027 ^(a)		3,331,000		2,980,112
DISH DBS Corp.
5.13%, 06/01/2029		289,000		186,437
5.25%, 12/01/2026 ^(a)		13,284		11,189
5.88%, 11/15/2024		885,000		822,372
7.38%, 07/01/2028		1,524,000		1,078,230
DISH Network Corp.
11.75%, 11/15/2027 ^(a)		473,000		487,143
Scripps Escrow II, Inc.
5.38%, 01/15/2031 ^(a)		986,000		790,288
Sirius XM Radio, Inc.
3.13%, 09/01/2026 ^(a)		2,996,000		2,660,268

See accompanying notes.


Schedule of Investments
Principal Active High Yield ETF
December 31, 2022 (unaudited)

		Principal
BONDS (continued)		Amount		Value

Media (continued)
UPC Holding BV
5.50%, 01/15/2028 ^(a)	$	1,226,000	$	1,088,075
			$	13,297,297

Mining — 2.96%
Copper Mountain Mining Corp.
8.00%, 04/09/2026 ^(a)		2,091,973		1,940,305
First Quantum Minerals Ltd.
6.88%, 10/15/2027 ^(a)		772,000		724,308
Novelis Corp.
3.88%, 08/15/2031 ^(a)		1,730,000		1,412,359
Taseko Mines Ltd.
7.00%, 02/15/2026 ^(a)		1,683,000		1,479,928
			$	5,556,900

Oil & Gas — 6.17%
Aethon United BR LP/Aethon United Finance Corp.
8.25%, 02/15/2026 ^(a)		2,624,000		2,602,867
Antero Resources Corp.
7.63%, 02/01/2029 ^(a)		2,070,000		2,081,398
Apache Corp.
4.75%, 04/15/2043		90,000		67,905
5.10%, 09/01/2040		1,820,000		1,508,257
5.25%, 02/01/2042		133,000		108,626
Ascent Resources Utica Holdings LLC/ARU Finance Corp.
7.00%, 11/01/2026 ^(a)		921,000		893,388
Comstock Resources, Inc.
5.88%, 01/15/2030 ^(a)		1,105,000		949,968
MEG Energy Corp.
7.13%, 02/01/2027 ^(a)		1,803,000		1,838,865
Occidental Petroleum Corp.
6.13%, 01/01/2031		320,000		322,941
6.63%, 09/01/2030		1,179,000		1,218,355
			$	11,592,570

Oil & Gas Services — 0.96%
Archrock Partners LP/Archrock Partners Finance Corp.
6.25%, 04/01/2028 ^(a)		1,963,000		1,796,169

Packaging & Containers — 1.18%
Clydesdale Acquisition Holdings, Inc.
6.63%, 04/15/2029 ^(a)		345,000		328,009
8.75%, 04/15/2030 ^(a)		1,083,000		927,017
LABL, Inc.
5.88%, 11/01/2028 ^(a)		222,000		193,422
8.25%, 11/01/2029 ^(a)		968,000		770,985
			$	2,219,433

Pharmaceuticals — 2.31%
BellRing Brands, Inc.
7.00%, 03/15/2030 ^(a)		1,700,000		1,635,825
Jazz Securities DAC
4.38%, 01/15/2029 ^(a)		3,044,000		2,712,661
			$	4,348,486

See accompanying notes.


Schedule of Investments
Principal Active High Yield ETF
December 31, 2022 (unaudited)

		Principal
BONDS (continued)		Amount		Value

Pipelines — 7.94%
Antero Midstream Partners LP/Antero Midstream Finance Corp.
5.38%, 06/15/2029 ^(a)	$	1,786,000	$	1,632,833
5.75%, 03/01/2027 ^(a)		1,130,000		1,068,254
CNX Midstream Partners LP
4.75%, 04/15/2030 ^(a)		2,628,000		2,156,708
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.
5.63%, 05/01/2027 ^(a)		2,875,000		2,673,750
EnLink Midstream LLC
6.50%, 09/01/2030 ^(a)		1,807,000		1,788,388
Hess Midstream Operations LP
4.25%, 02/15/2030 ^(a)		2,127,000		1,818,417
Kinetik Holdings LP
5.88%, 06/15/2030 ^(a)		2,892,000		2,712,068
Targa Resources Partners LP/Targa Resources Partners Finance Corp.
4.88%, 02/01/2031		1,188,000		1,072,704
			$	14,923,122

REITs — 2.44%
CBL & Associates LP
0.00%, 12/15/2026 ^(f),(g),(h)		6,000,000		—
HAT Holdings I LLC/HAT Holdings II LLC
3.38%, 06/15/2026 ^(a)		2,040,000		1,772,352
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp.
4.75%, 06/15/2029 ^(a)		3,476,000		2,806,383
			$	4,578,735

Retail — 4.81%
Bath & Body Works, Inc.
5.25%, 02/01/2028		614,000		570,191
6.63%, 10/01/2030 ^(a)		1,025,000		961,863
9.38%, 07/01/2025 ^(a)		325,000		346,185
BCPE Ulysses Intermediate, Inc.
7.75%, PIK 8.50%; 04/01/2027 ^(a),(e)		702,000		433,774
Dave & Buster's, Inc.
7.63%, 11/01/2025 ^(a)		1,771,000		1,779,855
Fertitta Entertainment LLC/Fertitta Entertainment Finance Co., Inc.
4.63%, 01/15/2029 ^(a)		1,332,000		1,127,185
6.75%, 01/15/2030 ^(a)		911,000		734,813


Financial Statements	1
Notes to Financial Statements	26
Schedules of Investments	43
Financial Highlights (Includes performance information)	146
Shareholder Expense Example	161
Supplemental Information	164