Investment objective & strategy
As of Feb. 27, 2026 · prospectusObjective. The Fund seeks to provide a high level of current income.
Strategy. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in below investment grade bonds and bank loans (sometimes called high yield or junk), which are rated Ba1 or lower by Moodys Investors Service, Inc. (Moodys) and BB+ or lower by S&P Global Ratings (S&P Global). If the bond or bank loan has been rated by only one of the rating agencies, that rating will determine the rating of the bond or bank loan; if the bond or bank loan is rated differently by the rating agencies, the highest rating will be used; and if the bond or bank loan has not been rated by either of those agencies, those selecting … Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in below investment grade bonds and bank loans (sometimes called high yield or junk), which are rated Ba1 or lower by Moodys Investors Service, Inc. (Moodys) and BB+ or lower by S&P Global Ratings (S&P Global). If the bond or bank loan has been rated by only one of the rating agencies, that rating will determine the rating of the bond or bank loan; if the bond or bank loan is rated differently by the rating agencies, the highest rating will be used; and if the bond or bank loan has not been rated by either of those agencies, those selecting such investments will determine the quality of the bond or bank loan. The Fund also invests in investment grade bank loans (also known as senior floating rate interests) and securities of foreign issuers. Under normal circumstances, the Fund maintains an average portfolio duration that is within 20% of the duration of the Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index, which as of January 31, 2026 was 2.91 years. The Fund is not managed to a particular maturity.
Top holdings
As of Jan. 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| Principal Government Money Market Fund - Class R-6 | — | $83.95M | 1.29% |
| US TREASURY N/B | — | $70.99M | 1.09% |
| Energy Transfer LP | — | $52.78M | 0.81% |
| EchoStar Corp | — | $49.85M | 0.77% |
| Smyrna Ready Mix Concrete LLC | — | $49.78M | 0.76% |
| Lightning Power LLC | — | $47.35M | 0.73% |
| Jazz Securities DAC | — | $46.87M | 0.72% |
| Freedom Mortgage Holdings LLC | — | $46.85M | 0.72% |
| Victra Holdings LLC / Victra Finance Corp | — | $45.16M | 0.69% |
| Archrock Partners LP / Archrock Partners Finance Corp | — | $44.37M | 0.68% |
Portfolio moves
Oct 31, 2025 → Jan 31, 2026How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| Principal Active High Yield ETF · YLD | 37% | 0.39% |
| Pacer Trendpilot US Bond ETF · PTBD | 22% | 0.60% |
| Xtrackers USD High Yield Corporate Bond ETF · HYLB | 21% | 0.05% |
Advisers
| Firm | Role |
|---|---|
| Principal Global Investors, LLC | Adviser |
Footnotes
- Expense ratio as of February 27, 2026, from the fund's prospectus.
- Net assets and holdings count as of January 31, 2026, from the fund's N-PORT filing.
- Total return for calendar year 2025, before tax and after fund expenses. Computed by compounding the twelve monthly total returns the fund reported in its SEC N-PORT filings for 2025 (the latest prospectus does not yet chart this year).
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