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Principal Active High Yield ETF

YLD

Market cap $604M

18.30 USD

+0.05

0.27%

At close Updated Nov 6, 4:00 PM EST

1 day

0.27%

5 days

0.44%

1 month

-0.11%

3 months

-3.28%

6 months

-3.99%

Year to date

-3.68%

1 year

-4.19%

5 years

-12.9%

10 years

-7.58%

News

Positive

Neutral

Negative

Sentiment 3-Months

Positive 0%

Neutral 0%

Negative 0%

YLD: High Yield Is Too Tight (Rating Downgrade)

Despite being an actively managed fund with a "bottom-up" selection process, Principal Active High Yield ETF has consistently trailed passive benchmarks like HYG and JNK over the past year. YLD maintains a high-risk profile with roughly 20% allocation to CCC-rated credits and 40% to single-B names. At a 6.75% SEC yield, investors are not being sufficiently compensated for the underlying credit risk.

YLD: High Yield Is Too Tight (Rating Downgrade)

YLD: A Step Ahead Of Traditional High-Yield ETFs

YLD joins the boom of active ETFs, presenting itself as a solution in the high-yield field, a segment that, in my opinion, must be approached actively. YLD employs a concentrated, high-conviction credit selection strategy, focusing on B/BB-rated bonds and selective CCC exposure to generate alpha. It does so by keeping a duration anchored to the benchmark, but actively selecting securities within the reference credit pool.

YLD: A Step Ahead Of Traditional High-Yield ETFs

YLD: Robust Active High Yield ETF, 7.1% Yield

Active high-yield ETFs are gaining traction as investors seek flexibility amid tight credit spreads and potential market events. Principal Active High Yield ETF (YLD) offers strong historical returns, a high Sharpe ratio, and a competitive 0.39% expense ratio. YLD's portfolio is diversified but has a notably high allocation to risky CCC-rated credits, increasing potential downside in volatile markets.

YLD: Robust Active High Yield ETF, 7.1% Yield

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