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Principal Adds To Deluge Of Thematic ETFs

Principal Adds To Deluge Of Thematic ETFs - Facebook, Inc. NASDAQ:FB, Google Inc. NASDAQ:GOOG

In recent months, various exchange-traded funds have been bringing thematic funds to market. Those offerings include ETFs devoted to Catholics, millennials (of course), hyper-focused plays on healthcare and aging trends, among other ideas.

Iowa-based Principal Financial Group Inc (NYSE: PFG) is carving out its own place in the thematic ETF universe with Monday's launch of the Principal Healthcare Innovators Index ETF (NASDAQ: BTEC) and the aptly-tickered Principal Millennials Index ETF (NASDAQ: GENY).


The Principal Healthcare Innovators Index ETF follows the Nasdaq U.S. Healthcare Innovators Index, which “is designed to provide exposure to early stage small-capitalization healthcare companies, primarily biotechnology and life science, which have the potential to create cures for cancer, develop new medical technologies, or spearhead other medical advances," said Principal.

Related Link: Stick With Passive Mid-, Small-Cap ETFs Over Active Funds

The ETF's top 10 holdings combine for about 28 percent of its weight. BTEC charges 0.42 percent, or $42 on a $10,000 investment, per year.


The Principal Millennials Index ETF follows the Nasdaq Global Millennial Opportunity Index, which “seeks to capture the global spending and lifestyle activities of the largest generation ever, offering exposure to brand name companies specializing in social media, digital media, technology, healthy lifestyles, travel and leisure. The companies will evolve over time as the spending patterns of millennials change as they age,” according to Principal.

Nearly 73 percent of GENY's sector weight is allocated to consumer sectors with almost 18 percent going to technology stocks.

GENY's top 10 holdings, which combine for about 22 percent of the new ETF's weight, include Facebook Inc (NASDAQ: FB) and Google parent Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL). GENY, which charges 0.45 percent a year, is the second ETF aimed at capturing millennial spending trends.

Principal now issues five ETFs with Monday's launches of BTEC and GENY.

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