Principal Asset Management Launches Fixed Income ETF Suite
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Principal Asset Management announced the launch of Principal Fit, a fixed income exchange-traded fund (ETF) suite that includes four newly launched exchange-traded funds, expanding the firm's lineup and enhancing fixed income capabilities for investors. The suite and newly launched ETFs are designed to support more precise and flexible portfolio positioning as investors navigate evolving interest rate, credit, and inflation dynamics. As fixed income markets grow more complex, there is an increasing need for more precise ways to align portfolio allocations with market views and desired outcomes across distinct market environments. The cohesive new suite of ETFs is designed to help simplify the process by providing targeted exposure across key segments of the fixed income market, including inflation protection, securitized credit, long duration, and collateralized loan obligations. Additionally, each ETF can serve a distinct role within a broader portfolio, with exposures aligned to different interest rates, credit, and inflation conditions, and can be used independently or in combination as conditions evolve.
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Analyst Views on PFG
Wall Street analysts forecast PFG stock price to fall
9 Analyst Rating
1 Buy
6 Hold
2 Sell
Hold
Current: 110.220
Low
74.00
Averages
91.33
High
103.00
Current: 110.220
Low
74.00
Averages
91.33
High
103.00
About PFG
Principal Financial Group, Inc. is a global financial company. The Company offers businesses, individuals, and institutional clients a range of financial products and services, including retirement, asset management and insurance, through its diverse family of financial services companies. The Company's segments include Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection. The Retirement and Income Solutions segment offers workplace savings and retirement solutions, banking, trust and custodial services, individual variable annuities, and pension risk transfer, among others. The Principal Asset Management segment provides global investment solutions to institutional, retirement, retail, and high-net worth investors. The Benefits and Protection segment is organized into Specialty Benefits, which provides group dental, group life insurance, group disability insurance, supplemental health products, and individual disability and life insurance.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Principal Launches New Fixed Income ETF Suite
- ETF Product Expansion: Principal Asset Management has launched the Principal Fit fixed income ETF suite, which includes four new ETFs designed to enhance investor flexibility and precision in navigating complex market environments, thereby strengthening the firm's competitive position in fixed income.
- Market Demand Response: As fixed income markets grow more complex, the new suite of ETFs offers targeted investment options across inflation protection, securitized credit, long duration, and collateralized loan obligations, helping investors align with market dynamics and expected returns more effectively.
- Portfolio Optimization: The newly launched ETFs can be used independently or in combination, supporting investors in making effective asset allocations as interest rates, credit, and inflation conditions evolve, thus enhancing portfolio yield and diversification.
- Asset Management Strength: Principal Asset Management currently manages approximately $10.4 billion in ETF assets and, with its global investment solutions capabilities, aims to provide unique investment opportunities for over 1,100 institutional clients, further solidifying its leadership position in the asset management industry.
See More
Principal Aligns with State Street for Enhanced Fund Services
- Deepened Partnership: Principal Financial Group® has selected State Street Corporation to provide custody, fund accounting, and administration services, indicating a focus on scalable infrastructure as it broadens its investment offerings, which is expected to enhance operational efficiency in its mutual fund business.
- Strategic Alignment: The expanded mandate allows Principal to leverage State Street's global investment servicing platform, further transforming its U.S. wealth and retirement business while improving market responsiveness and service quality.
- Historical Collaboration: The partnership between State Street and Principal spans over a decade, during which State Street has supported various investment vehicles, including exchange-traded funds (ETFs) and collective investment trusts (CITs), showcasing their joint efforts in diversifying investment products.
- Market Leadership: State Street operates in over 100 markets globally, with $54.5 trillion in assets under custody and/or administration, and its deep expertise and integrated servicing capabilities further solidify its position as a leading provider of investment servicing solutions.
See More
Principal Financial Group Stock Analysis
- Valuation Advantage: Principal Financial's price-to-book ratio stands at 1.88X, significantly lower than the industry average of 2.52X, providing a more attractive entry point for value investors, which may enhance stock demand.
- Earnings Growth Outlook: The consensus estimate for 2026 earnings per share (EPS) indicates a year-over-year increase of 13.2%, with revenues projected at $16.35 billion, reflecting the company's stable growth potential and bolstering market confidence.
- Asset Management Expansion: As of Q1 2026, total assets under management reached $770 billion, marking a 7% year-over-year increase, showcasing the company's strong performance in asset management and further solidifying its market position.
- Dividend Increase: The board raised the second-quarter dividend by 8% to 82 cents per share in April 2026, with a dividend yield of 3.1%, surpassing the industry average of 2.6%, which is likely to attract more income-seeking investors.
See More
AM Best Affirms Principal Financial Ratings
- Financial Strength Rating: AM Best has affirmed the A+ financial strength rating for Principal Life Insurance Company and Principal National Life Insurance Company, reflecting their robust balance sheet and stable operating performance, which is expected to enhance investor confidence and support future capital raising efforts.
- Stable Credit Ratings: Concurrently, AM Best has confirmed the Long-Term Issuer Credit Ratings of 'aa' for Principal Financial Group, indicating the company's excellent market position and risk management capabilities in the insurance sector, which will help bolster its competitive edge.
- Capital Adequacy Assessment: Although Principal's capital growth has been limited by dividends to the parent company, its risk-adjusted capitalization remains strong, demonstrating the company's financial resilience in the face of market fluctuations.
- International Expansion: Principal's increasing presence in international markets supports earnings diversification, further solidifying its leadership position in the global insurance market, which is expected to provide long-term growth opportunities for the company.
See More
Principal Financial Group Appoints Tim Brown as Executive Vice President and General Counsel
- Executive Appointment: Tim Brown will join Principal Financial Group as Executive Vice President, General Counsel, and Secretary on June 8, 2026, overseeing legal, government relations, and compliance, which is expected to enhance the company's governance and compliance capabilities.
- Leadership Experience: With extensive leadership experience in the financial services sector, Brown previously served as Chief Legal Officer at Venerable Holdings, demonstrating a proven ability to navigate complexities that will support Principal's long-term growth.
- Educational Background: Brown holds a Juris Doctor from the University of Michigan Law School and a Bachelor of Science cum laude from Tennessee State University, along with completion of the Harvard Business School Advanced Management Program, showcasing his strong foundation in law and management.
- Company Vision: Principal Financial Group employs approximately 19,000 individuals dedicated to improving the wealth and well-being of clients, and Brown's addition is anticipated to further drive the company's customer service and compliance management on a global scale.
See More
Short Selling Against U.S. Life Insurance Stocks Surges Over $5 Billion
- Surge in Short Selling: A Reuters analysis of ORTEX data reveals that short bets against U.S. life insurance stocks have more than doubled in the past year to over $5 billion, reflecting market concerns about exposure to the opaque private credit sector, particularly after bankruptcies and fraud allegations surfaced.
- Private Credit Risks: Analysts highlight potential structural vulnerabilities in private credit that could impact life and annuity markets, with approximately 35% of U.S. life insurers' balance sheets tied to private lending, raising concerns about future profitability amid low interest rates.
- Market Reaction: The S&P 500 U.S. insurance index has fallen nearly 5% this year, contrasting with a 4.7% rise in the broader S&P index, indicating pessimistic market expectations for life insurers' earnings, with Barclays analysts projecting a nearly 7% drop in EPS for 15 U.S. life insurance companies.
- Transparency Issues: Experts estimate that insurers have engaged in approximately $1.54 trillion worth of transactions through opaque subsidiaries, and despite recent regulatory changes, the lack of transparency remains unresolved, potentially eroding investor confidence in these companies.
See More
Principal Launches New Fixed Income ETF Suite
- ETF Product Expansion: Principal Asset Management has launched the Principal Fit fixed income ETF suite, which includes four new ETFs designed to enhance investor flexibility and precision in navigating complex market environments, thereby strengthening the firm's competitive position in fixed income.
- Market Demand Response: As fixed income markets grow more complex, the new suite of ETFs offers targeted investment options across inflation protection, securitized credit, long duration, and collateralized loan obligations, helping investors align with market dynamics and expected returns more effectively.
- Portfolio Optimization: The newly launched ETFs can be used independently or in combination, supporting investors in making effective asset allocations as interest rates, credit, and inflation conditions evolve, thus enhancing portfolio yield and diversification.
- Asset Management Strength: Principal Asset Management currently manages approximately $10.4 billion in ETF assets and, with its global investment solutions capabilities, aims to provide unique investment opportunities for over 1,100 institutional clients, further solidifying its leadership position in the asset management industry.
See More
Principal Aligns with State Street for Enhanced Fund Services
- Deepened Partnership: Principal Financial Group® has selected State Street Corporation to provide custody, fund accounting, and administration services, indicating a focus on scalable infrastructure as it broadens its investment offerings, which is expected to enhance operational efficiency in its mutual fund business.
- Strategic Alignment: The expanded mandate allows Principal to leverage State Street's global investment servicing platform, further transforming its U.S. wealth and retirement business while improving market responsiveness and service quality.
- Historical Collaboration: The partnership between State Street and Principal spans over a decade, during which State Street has supported various investment vehicles, including exchange-traded funds (ETFs) and collective investment trusts (CITs), showcasing their joint efforts in diversifying investment products.
- Market Leadership: State Street operates in over 100 markets globally, with $54.5 trillion in assets under custody and/or administration, and its deep expertise and integrated servicing capabilities further solidify its position as a leading provider of investment servicing solutions.
See More
Principal Financial Group Stock Analysis
- Valuation Advantage: Principal Financial's price-to-book ratio stands at 1.88X, significantly lower than the industry average of 2.52X, providing a more attractive entry point for value investors, which may enhance stock demand.
- Earnings Growth Outlook: The consensus estimate for 2026 earnings per share (EPS) indicates a year-over-year increase of 13.2%, with revenues projected at $16.35 billion, reflecting the company's stable growth potential and bolstering market confidence.
- Asset Management Expansion: As of Q1 2026, total assets under management reached $770 billion, marking a 7% year-over-year increase, showcasing the company's strong performance in asset management and further solidifying its market position.
- Dividend Increase: The board raised the second-quarter dividend by 8% to 82 cents per share in April 2026, with a dividend yield of 3.1%, surpassing the industry average of 2.6%, which is likely to attract more income-seeking investors.
See More
AM Best Affirms Principal Financial Ratings
- Financial Strength Rating: AM Best has affirmed the A+ financial strength rating for Principal Life Insurance Company and Principal National Life Insurance Company, reflecting their robust balance sheet and stable operating performance, which is expected to enhance investor confidence and support future capital raising efforts.
- Stable Credit Ratings: Concurrently, AM Best has confirmed the Long-Term Issuer Credit Ratings of 'aa' for Principal Financial Group, indicating the company's excellent market position and risk management capabilities in the insurance sector, which will help bolster its competitive edge.
- Capital Adequacy Assessment: Although Principal's capital growth has been limited by dividends to the parent company, its risk-adjusted capitalization remains strong, demonstrating the company's financial resilience in the face of market fluctuations.
- International Expansion: Principal's increasing presence in international markets supports earnings diversification, further solidifying its leadership position in the global insurance market, which is expected to provide long-term growth opportunities for the company.
See More
Principal Financial Group Appoints Tim Brown as Executive Vice President and General Counsel
- Executive Appointment: Tim Brown will join Principal Financial Group as Executive Vice President, General Counsel, and Secretary on June 8, 2026, overseeing legal, government relations, and compliance, which is expected to enhance the company's governance and compliance capabilities.
- Leadership Experience: With extensive leadership experience in the financial services sector, Brown previously served as Chief Legal Officer at Venerable Holdings, demonstrating a proven ability to navigate complexities that will support Principal's long-term growth.
- Educational Background: Brown holds a Juris Doctor from the University of Michigan Law School and a Bachelor of Science cum laude from Tennessee State University, along with completion of the Harvard Business School Advanced Management Program, showcasing his strong foundation in law and management.
- Company Vision: Principal Financial Group employs approximately 19,000 individuals dedicated to improving the wealth and well-being of clients, and Brown's addition is anticipated to further drive the company's customer service and compliance management on a global scale.
See More
Short Selling Against U.S. Life Insurance Stocks Surges Over $5 Billion
- Surge in Short Selling: A Reuters analysis of ORTEX data reveals that short bets against U.S. life insurance stocks have more than doubled in the past year to over $5 billion, reflecting market concerns about exposure to the opaque private credit sector, particularly after bankruptcies and fraud allegations surfaced.
- Private Credit Risks: Analysts highlight potential structural vulnerabilities in private credit that could impact life and annuity markets, with approximately 35% of U.S. life insurers' balance sheets tied to private lending, raising concerns about future profitability amid low interest rates.
- Market Reaction: The S&P 500 U.S. insurance index has fallen nearly 5% this year, contrasting with a 4.7% rise in the broader S&P index, indicating pessimistic market expectations for life insurers' earnings, with Barclays analysts projecting a nearly 7% drop in EPS for 15 U.S. life insurance companies.
- Transparency Issues: Experts estimate that insurers have engaged in approximately $1.54 trillion worth of transactions through opaque subsidiaries, and despite recent regulatory changes, the lack of transparency remains unresolved, potentially eroding investor confidence in these companies.
See More
