finaltwelvethirtyoneetf.htm - Generated by SEC Publisher for SEC Filing

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Principal Global Investors, LLC, 801 Grand Avenue, Des Moines, IA 50309 (Name and address of agent for service)

May lose value • Not a deposit • No bank or credit union guarantee Not insured by any Federal government agency


Statements of Assets and Liabilities
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)


			Principal			Principal
		Active Global				Contrarian			Principal EDGE
			Dividend			Value			Active Income
		Income ETF				Index ETF			ETF
Investments in securities — at cost		$	666,860,085		$	3,940,525		$	279,857,038

Assets
Investments in securities — at value		$	624,393,424		$	3,347,253		$	270,230,009
Cash			5,797,390			13,783			7,780,390
Receivables:
Dividends and interest			2,080,098			5,362			3,323,068
Investment securities sold			—			10,457			321,351
	Total Assets		632,270,912			3,376,855			281,654,818
Liabilities
Accrued management and investment advisory fees			328,255			892			162,662
Accrued income distribution			3,745,303			17,296			1,151,348
	Total Liabilities		4,073,558			18,188			1,314,010
Net Assets Applicable to Outstanding Shares		$	628,197,354		$	3,358,667		$	280,340,808

Net Assets Consist of:
Capital shares and additional paid-in-capital		$	670,579,518		$	3,993,175		$	294,127,562
Total distributable earnings (loss)			(42,382,164	)		(634,508	)		(13,786,754	)
	Total Net Assets	$	628,197,354		$	3,358,667		$	280,340,808

Net Asset Value Per Share:
Net Assets		$	628,197,354		$	3,358,667		$	280,340,808
Shares Issued and Outstanding			25,850,001			150,001			7,525,000
Net Asset Value per share		$	24.30		$	22.39		$	37.25


Statements of Assets and Liabilities
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)


									Principal
			Principal			Principal			Investment
			Healthcare			International			Grade
			Innovators			Multi-Factor			Corporate
			Index ETF			Index ETF			Active ETF
Investments in securities — at cost		$	51,101,956		$	14,272,550		$	221,646,710

Assets
Investments in securities — at value		$	44,327,004		$	12,662,330		$	216,865,042
Cash			113,417			51,058			4,913,084
Receivables:
Dividends and interest			2,817			27,157			2,260,973
Investment securities sold			—			18,203			—
	Total Assets		44,443,238			12,758,748			224,039,099
Liabilities
Cash overdraft			—			1,341			—
Accrued management and investment advisory fees			16,755			4,427			50,910
Accrued income distribution			—			42,860			766,413
Payables:
Investment securities purchased			—			102			—
	Total Liabilities		16,755			48,730			817,323
Net Assets Applicable to Outstanding Shares		$	44,426,483		$	12,710,018		$	223,221,776

Net Assets Consist of:
Capital shares and additional paid-in-capital		$	51,741,671		$	15,000,100		$	229,064,950
Total distributable earnings (loss)			(7,315,188	)		(2,290,082	)		(5,843,174	)
	Total Net Assets	$	44,426,483		$	12,710,018		$	223,221,776

Net Asset Value Per Share:
Net Assets		$	44,426,483		$	12,710,018		$	223,221,776
Shares Issued and Outstanding			1,600,001			150,001			9,300,001
Net Asset Value per share		$	27.77		$	84.73		$	24.00


Statements of Assets and Liabilities
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)


			Principal			Principal Price			Principal
			Millennials			Setters Index			Shareholder
			Index ETF			ETF			Yield Index ETF
Investments in securities — at cost		$	16,058,347		$	18,418,942		$	13,379,312

Assets
Investments in securities — at value		$	14,097,265		$	17,126,981		$	11,083,054
Cash			44,851			63,664			58,141
Receivables:
Dividends and interest			5,873			13,485			18,052
Investment securities sold			21,121			38,490			48,800
Expense reimbursement from Manager			—			1,576			1,239
	Total Assets		14,169,110			17,244,196			11,209,286
Liabilities
Accrued management and investment advisory fees			6,275			5,729			4,506
Accrued income distribution			35,077			66,724			84,837
	Total Liabilities		41,352			72,453			89,343
Net Assets Applicable to Outstanding Shares		$	14,127,758		$	17,171,743		$	11,119,943

Net Assets Consist of:
Capital shares and additional paid-in-capital		$	15,545,706		$	18,088,557		$	13,448,657
Total distributable earnings (loss)			(1,417,948	)		(916,814	)		(2,328,714	)
	Total Net Assets	$	14,127,758		$	17,171,743		$	11,119,943

Net Asset Value Per Share:
Net Assets		$	14,127,758		$	17,171,743		$	11,119,943
Shares Issued and Outstanding			450,001			550,001			400,001
Net Asset Value per share		$	31.39		$	31.22		$	27.80


Statements of Assets and Liabilities
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)


			Principal
			Spectrum			Principal			Principal U.S.
			Preferred			Sustainable			Mega-Cap
			Securities			Momentum			Multi-Factor
			Active ETF			Index ETF			Index ETF
Investments in securities — at cost		$	53,035,637		$	5,384,420		$	1,479,414,517

Assets
Investments in securities — at value		$	48,008,367		$	4,882,569		$	1,420,865,270
Cash			796,215			16,305			4,726,022
Receivables:
Dividends and interest			570,521			4,005			1,849,148
Investment securities sold			—			5,241			7,552,024
Expense reimbursement from Manager			—			—			38,643
	Total Assets		49,375,103			4,908,120			1,435,031,107
Liabilities
Accrued management and investment advisory fees			23,954			1,274			193,214
Accrued income distribution			249,194			12,107			9,722,580
	Total Liabilities		273,148			13,381			9,915,794
Net Assets Applicable to Outstanding Shares		$	49,101,955		$	4,894,739		$	1,425,115,313

Net Assets Consist of:
Capital shares and additional paid-in-capital		$	54,527,568		$	5,482,190		$	1,482,307,888
Total distributable earnings (loss)			(5,425,613	)		(587,451	)		(57,192,575	)
	Total Net Assets	$	49,101,955		$	4,894,739		$	1,425,115,313

Net Asset Value Per Share:
Net Assets		$	49,101,955		$	4,894,739		$	1,425,115,313
Shares Issued and Outstanding			550,001			200,001			56,750,001
Net Asset Value per share		$	89.28		$	24.47		$	25.11


Statements of Operations
Principal Exchange-Traded Funds
Six months ended December 31, 2018 (unaudited)


		Principal			Principal
		Active Global			Contrarian			Principal EDGE
		Dividend			Value			Active Income
		Income ETF			Index ETF			ETF
Net Investment Income (Loss)
Income:
Dividend income	$	9,477,945		$	36,879		$	1,543,441
Withholding tax		(408,419	)		—			(15,022	)
Interest		48,410			—			11,822,589
Total Income		9,117,936			36,879			13,351,008
Expenses:
Management and investment advisory fees		2,067,418			5,699			968,294
Total Expenses		2,067,418			5,699			968,294
Net Investment Income (Loss)		7,050,518			31,180			12,382,714
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) from:
Investment transactions		2,589,874			26,229			(8,495,918	)
In-kind redemptions		1,309,464			—			—
Foreign currency transactions		(61,324	)		—			(361	)
Change in unrealized appreciation/depreciation of:
Investments		(74,104,861	)		(571,889	)		(15,735,569	)
Foreign currency transactions		2,675			—			(215	)
Net Realized and Unrealized Gain (Loss) on Investments		(70,264,172	)		(545,660	)		(24,232,063	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(63,213,654	)	$	(514,480	)	$	(11,849,349	)


Statements of Operations
Principal Exchange-Traded Funds
Six months ended December 31, 2018 (unaudited)


								Principal
		Principal			Principal			Investment
		Healthcare			International			Grade
		Innovators			Multi-Factor			Corporate
		Index ETF			Index ETF			Active ETF
Net Investment Income (Loss)
Income:
Dividend income	$	11,379		$	150,207		$	—
Withholding tax		—			(10,986	)		—
Interest		—			—			4,846,601
Total Income		11,379			139,221			4,846,601
Expenses:
Management and investment advisory fees		111,045			27,848			299,263
Total Expenses		111,045			27,848			299,263
Net Investment Income (Loss)		(99,666	)		111,373			4,547,338
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) from:
Investment transactions		(764,387	)		(526,974	)		(898,891	)
In-kind redemptions		1,237,354			—			—
Foreign currency transactions		—			(755	)		—
Change in unrealized appreciation/depreciation of:
Investments		(11,127,038	)		(1,494,373	)		(3,661,148	)
Foreign currency transactions		—			157			—
Net Realized and Unrealized Gain (Loss) on Investments		(10,654,071	)		(2,021,945	)		(4,560,039	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(10,753,737	)	$	(1,910,572	)	$	(12,701	)


Statements of Operations
Principal Exchange-Traded Funds
Six months ended December 31, 2018 (unaudited)


		Principal			Principal Price			Principal
		Millennials			Setters Index			Shareholder
		Index ETF			ETF			Yield Index ETF
Net Investment Income (Loss)
Income:
Dividend income	$	104,070		$	163,933		$	180,187
Withholding tax		(4,702	)		—			(165	)
Total Income		99,368			163,933			180,022
Expenses:
Management and investment advisory fees		43,861			42,157			29,192
Total Gross Expenses		43,861			42,157			29,192
Less: Reimbursement from Manager		—			(11,593	)		(8,028	)
Total Expenses		43,861			30,564			21,164
Net Investment Income (Loss)		55,507			133,369			158,858
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) from:
Investment transactions		1,091			(321	)		(9,071	)
In-kind redemptions		801,988			570,818			(5,599	)
Foreign currency transactions		(21	)		—			—
Change in unrealized appreciation/depreciation of:
Investments		(3,652,676	)		(1,522,608	)		(2,024,453	)
Foreign currency transactions		(15	)		—			—
Net Realized and Unrealized Gain (Loss) on Investments		(2,849,633	)		(952,111	)		(2,039,123	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(2,794,126	)	$	(818,742	)	$	(1,880,265	)


Statements of Operations
Principal Exchange-Traded Funds
Six months ended December 31, 2018 (unaudited)


		Principal
		Spectrum			Principal			Principal U.S.
		Preferred			Sustainable			Mega-Cap
		Securities			Momentum			Multi-Factor
		Active ETF			Index ETF			Index ETF
Net Investment Income (Loss)
Income:
Dividend income	$	—		$	27,410		$	20,223,414
Interest		1,504,148			—			—
Total Income		1,504,148			27,410			20,223,414
Expenses:
Management and investment advisory fees		143,174			8,197			1,227,594
Total Gross Expenses		143,174			8,197			1,227,594
Less: Reimbursement from Manager		—			—			(245,519	)
Total Expenses		143,174			8,197			982,075
Net Investment Income (Loss)		1,360,974			19,213			19,241,339
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) from:
Investment transactions		(68,902	)		(12,177	)		(18,433,703	)
In-kind redemptions		—			—			42,417,398
Change in unrealized appreciation/depreciation of:
Investments		(2,527,890	)		(687,204	)		(52,045,574	)
Net Realized and Unrealized Gain (Loss) on Investments		(2,596,792	)		(699,381	)		(28,061,879	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(1,235,818	)	$	(680,168	)	$	(8,820,540	)


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


		Principal Active Global Dividend
		Income ETF
		Period ended		Year ended
		December 31, 2018		June 30, 2018
Operations
Net investment income (loss)	$	7,050,518		$	14,790,307
Net realized gain (loss) on investments		3,838,014			6,620,794
Change in unrealized appreciation/depreciation of investments and foreign currency		(74,102,186	)		29,433,500
Net Increase (Decrease) in Net Assets Resulting from Operations		(63,213,654	)		50,844,601
Dividends and Distributions to Shareholders ^(a)
From net investment income and net realized gain on investments		(21,288,698	)		(13,283,286	)
Total Dividends and Distributions		(21,288,698	)		(13,283,286	)
Capital Share Transactions
Net increase (decrease) in capital share transactions		7,264,504			239,306,479
Total Increase (Decrease) in Net Assets		(77,237,848	)		276,867,794
Net Assets ^(b)
Beginning of period		705,435,202			428,567,408
End of period	$	628,197,354		$	705,435,202

Capital Share Transactions
Dollars:
Sold	$	17,013,447		$	239,306,479
Redeemed		(9,748,943	)		—
Net Increase (Decrease)	$	7,264,504		$	239,306,479
Shares:
Sold		600,000			8,700,000
Redeemed		(350,000	)		—
Net Increase (Decrease)		250,000			8,700,000


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


		Principal Contrarian Value Index ETF
		Period ended		Period ended
		December 31, 2018		June 30, 2018 ^(a)
Operations
Net investment income (loss)	$	31,180		$	43,859
Net realized gain (loss) on investments		26,229			188,232
Change in unrealized appreciation/depreciation of investments and foreign currency		(571,889	)		(21,383	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(514,480	)		210,708
Dividends and Distributions to Shareholders ^(b)
From net investment income and net realized gain on investments		(44,896	)		(28,200	)
Total Dividends and Distributions		(44,896	)		(28,200	)
Capital Share Transactions
Net increase (decrease) in capital share transactions		—			3,735,535
Total Increase (Decrease) in Net Assets		(559,376	)		3,918,043
Net Assets ^(c)
Beginning of period		3,918,043			—
End of period	$	3,358,667		$	3,918,043

Capital Share Transactions
Dollars:
Sold	$	—		$	6,395,207
Redeemed		—			(2,659,672	)
Net Increase (Decrease)	$	—		$	3,735,535
Shares:
Sold		—			250,001
Redeemed		—			(100,000	)
Net Increase (Decrease)		—			150,001


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


		Principal EDGE Active Income ETF
		Period ended			Year ended
		December 31, 2018		June 30, 2018
Operations
Net investment income (loss)	$	12,382,714		$	12,661,124
Net realized gain (loss) on investments		(8,496,279	)		3,699,713
Change in unrealized appreciation/depreciation of investments and foreign currency		(15,735,784	)		(7,458,891	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(11,849,349	)		8,901,946
Dividends and Distributions to Shareholders ^(a)
From net investment income and net realized gain on investments		(10,753,603	)		(16,412,761	)
Total Dividends and Distributions		(10,753,603	)		(16,412,761	)
Capital Share Transactions
Net increase (decrease) in capital share transactions		9,977,017			14,393,113
Total Increase (Decrease) in Net Assets		(12,625,935	)		6,882,298
Net Assets ^(b)
Beginning of period		292,966,743			286,084,445
End of period	$	280,340,808		$	292,966,743

Capital Share Transactions
Dollars:
Sold	$	9,977,017		$	14,393,113
Net Increase (Decrease)	$	9,977,017		$	14,393,113
Shares:
Sold		250,000			350,000
Net Increase (Decrease)		250,000			350,000


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


		Principal Healthcare Innovators Index
		ETF
		Period ended			Year ended
		December 31, 2018			June 30, 2018
Operations
Net investment income (loss)	$	(99,666	)	$	(141,135	)
Net realized gain (loss) on investments		472,967			4,422,410
Change in unrealized appreciation/depreciation of investments and foreign currency		(11,127,038	)		3,811,547
Net Increase (Decrease) in Net Assets Resulting from Operations		(10,753,737	)		8,092,822
Dividends and Distributions to Shareholders ^(a)
From net investment income and net realized gain on investments		—			(79,577	)
Total Dividends and Distributions		—			(79,577	)
Capital Share Transactions
Net increase (decrease) in capital share transactions		3,076,447			36,950,430
Total Increase (Decrease) in Net Assets		(7,677,290	)		44,963,675
Net Assets ^(b)
Beginning of period		52,103,773			7,140,098
End of period	$	44,426,483		$	52,103,773

Capital Share Transactions
Dollars:
Sold	$	7,780,545		$	53,405,667
Redeemed		(4,704,098	)		(16,455,237	)
Net Increase (Decrease)	$	3,076,447		$	36,950,430
Shares:
Sold		250,000			1,750,000
Redeemed		(150,000	)		(500,000	)
Net Increase (Decrease)		100,000			1,250,000


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


		Principal International Multi-Factor
		Index ETF
		Period ended		Period ended
		December 31, 2018		June 30, 2018 ^(a)
Operations
Net investment income (loss)	$	111,373		$	269,246
Net realized gain (loss) on investments		(527,729	)		(146,369	)
Change in unrealized appreciation/depreciation of investments and foreign currency		(1,494,216	)		(116,227	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,910,572	)		6,650
Dividends and Distributions to Shareholders ^(b)
From net investment income and net realized gain on investments		(280,560	)		(105,600	)
Total Dividends and Distributions		(280,560	)		(105,600	)
Capital Share Transactions
Net increase (decrease) in capital share transactions		—			15,000,100
Total Increase (Decrease) in Net Assets		(2,191,132	)		14,901,150
Net Assets ^(c)
Beginning of period		14,901,150			—
End of period	$	12,710,018		$	14,901,150

Capital Share Transactions
Dollars:
Sold	$	—		$	15,000,100
Net Increase (Decrease)	$	—		$	15,000,100
Shares:
Sold		—			150,001
Net Increase (Decrease)		—			150,001


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


		Principal Investment Grade Corporate
		Active ETF
		Period ended		Period ended
		December 31, 2018		June 30, 2018 ^(a)
Operations
Net investment income (loss)	$	4,547,338		$	1,197,951
Net realized gain (loss) on investments		(898,891	)		186,469
Change in unrealized appreciation/depreciation of investments and foreign currency		(3,661,148	)		(1,120,520	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(12,701	)		263,900
Dividends and Distributions to Shareholders ^(b)
From net investment income and net realized gain on investments		(5,475,469	)		(618,904	)
Total Dividends and Distributions		(5,475,469	)		(618,904	)
Capital Share Transactions
Net increase (decrease) in capital share transactions		—			229,064,950
Total Increase (Decrease) in Net Assets		(5,488,170	)		228,709,946
Net Assets ^(c)
Beginning of period		228,709,946			—
End of period	$	223,221,776		$	228,709,946

Capital Share Transactions
Dollars:
Sold	$	—		$	229,064,950
Net Increase (Decrease)	$	—		$	229,064,950
Shares:
Sold		—			9,300,001
Net Increase (Decrease)		—			9,300,001


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


		Principal Millennials Index ETF
		Period ended			Year ended
		December 31, 2018			June 30, 2018
Operations
Net investment income (loss)	$	55,507		$	86,576
Net realized gain (loss) on investments		803,058			1,031,588
Change in unrealized appreciation/depreciation of investments and foreign currency		(3,652,691	)		1,259,349
Net Increase (Decrease) in Net Assets Resulting from Operations		(2,794,126	)		2,377,513
Dividends and Distributions to Shareholders ^(a)
From net investment income and net realized gain on investments		(107,378	)		(88,747	)
Total Dividends and Distributions		(107,378	)		(88,747	)
Capital Share Transactions
Net increase (decrease) in capital share transactions		(3,187,767	)		10,698,562
Total Increase (Decrease) in Net Assets		(6,089,271	)		12,987,328
Net Assets ^(b)
Beginning of period		20,217,029			7,229,701
End of period	$	14,127,758		$	20,217,029

Capital Share Transactions
Dollars:
Sold	$	1,766,928		$	14,219,990
Redeemed		(4,954,695	)		(3,521,428	)
Net Increase (Decrease)	$	(3,187,767	)	$	10,698,562
Shares:
Sold		50,000			400,000
Redeemed		(150,000	)		(100,000	)
Net Increase (Decrease)		(100,000	)		300,000


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


		Principal Price Setters Index ETF
		Period ended			Year ended
		December 31, 2018			June 30, 2018
Operations
Net investment income (loss)	$	133,369		$	187,597
Net realized gain (loss) on investments		570,497			2,147,776
Change in unrealized appreciation/depreciation of investments and foreign currency		(1,522,608	)		(154,823	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(818,742	)		2,180,550
Dividends and Distributions to Shareholders ^(a)
From net investment income and net realized gain on investments		(193,324	)		(152,223	)
Total Dividends and Distributions		(193,324	)		(152,223	)
Capital Share Transactions
Net increase (decrease) in capital share transactions		(3,470,993	)		12,369,418
Total Increase (Decrease) in Net Assets		(4,483,059	)		14,397,745
Net Assets ^(b)
Beginning of period		21,654,802			7,257,057
End of period	$	17,171,743		$	21,654,802

Capital Share Transactions
Dollars:
Sold	$	4,841,853		$	25,876,656
Redeemed		(8,312,846	)		(13,507,238	)
Net Increase (Decrease)	$	(3,470,993	)	$	12,369,418
Shares:
Sold		150,000			800,000
Redeemed		(250,000	)		(400,000	)
Net Increase (Decrease)		(100,000	)		400,000


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


		Principal Shareholder Yield Index ETF
		Period ended			Year ended
		December 31, 2018			June 30, 2018
Operations
Net investment income (loss)	$	158,858		$	199,903
Net realized gain (loss) on investments		(14,670	)		1,002,526
Change in unrealized appreciation/depreciation of investments and foreign currency		(2,024,453	)		(358,383	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,880,265	)		844,046
Dividends and Distributions to Shareholders ^(a)
From net investment income and net realized gain on investments		(226,838	)		(146,115	)
Total Dividends and Distributions		(226,838	)		(146,115	)
Capital Share Transactions
Net increase (decrease) in capital share transactions		(1,395,058	)		6,633,709
Total Increase (Decrease) in Net Assets		(3,502,161	)		7,331,640
Net Assets ^(b)
Beginning of period		14,622,104			7,290,464
End of period	$	11,119,943		$	14,622,104

Capital Share Transactions
Dollars:
Sold	$	1,572,464		$	13,234,720
Redeemed		(2,967,522	)		(6,601,011	)
Net Increase (Decrease)	$	(1,395,058	)	$	6,633,709
Shares:
Sold		50,000			400,000
Redeemed		(100,000	)		(200,000	)
Net Increase (Decrease)		(50,000	)		200,000


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


		Principal Spectrum Preferred Securities
		Active ETF
		Period ended		Period ended
		December 31, 2018		June 30, 2018 ^(a)
Operations
Net investment income (loss)	$	1,360,974		$	1,787,217
Net realized gain (loss) on investments		(68,902	)		(220,092	)
Change in unrealized appreciation/depreciation of investments and foreign currency		(2,527,890	)		(2,499,380	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,235,818	)		(932,255	)
Dividends and Distributions to Shareholders ^(b)
From net investment income and net realized gain on investments		(1,611,397	)		(1,646,143	)
Total Dividends and Distributions		(1,611,397	)		(1,646,143	)
Capital Share Transactions
Net increase (decrease) in capital share transactions		—			54,527,568
Total Increase (Decrease) in Net Assets		(2,847,215	)		51,949,170
Net Assets ^(c)
Beginning of period		51,949,170			—
End of period	$	49,101,955		$	51,949,170

Capital Share Transactions
Dollars:
Sold	$	—		$	54,527,568
Net Increase (Decrease)	$	—		$	54,527,568
Shares:
Sold		—			550,001
Net Increase (Decrease)		—			550,001


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


		Principal Sustainable Momentum Index
		ETF
		Period ended		Period ended
		December 31, 2018		June 30, 2018 ^(a)
Operations
Net investment income (loss)	$	19,213		$	31,402
Net realized gain (loss) on investments		(12,177	)		267,364
Change in unrealized appreciation/depreciation of investments and foreign currency		(687,204	)		185,353
Net Increase (Decrease) in Net Assets Resulting from Operations		(680,168	)		484,119
Dividends and Distributions to Shareholders ^(b)
From net investment income and net realized gain on investments		(27,807	)		(22,700	)
Total Dividends and Distributions		(27,807	)		(22,700	)
Capital Share Transactions
Net increase (decrease) in capital share transactions		—			5,141,295
Total Increase (Decrease) in Net Assets		(707,975	)		5,602,714
Net Assets ^(c)
Beginning of period		5,602,714			—
End of period	$	4,894,739		$	5,602,714

Capital Share Transactions
Dollars:
Sold	$	—		$	7,943,624
Redeemed		—			(2,802,329	)
Net Increase (Decrease)	$	—		$	5,141,295
Shares:
Sold		—			300,001
Redeemed		—			(100,000	)
Net Increase (Decrease)		—			200,001


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


		Principal U.S. Mega-Cap Multi-Factor
		Index ETF
		Period ended		Period ended
		December 31, 2018		June 30, 2018 ^(a)
Operations
Net investment income (loss)	$	19,241,339		$	16,854,431
Net realized gain (loss) on investments		23,983,695			(7,524,427	)
Change in unrealized appreciation/depreciation of investments and foreign currency		(52,045,574	)		(6,503,673	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(8,820,540	)		2,826,331
Dividends and Distributions to Shareholders ^(b)
From net investment income and net realized gain on investments		(27,709,355	)		(8,361,236	)
Total Dividends and Distributions		(27,709,355	)		(8,361,236	)
Capital Share Transactions
Net increase (decrease) in capital share transactions		(204,880,068	)		1,672,060,181
Total Increase (Decrease) in Net Assets		(241,409,963	)		1,666,525,276
Net Assets ^(c)
Beginning of period		1,666,525,276			—
End of period	$	1,425,115,313		$	1,666,525,276

Capital Share Transactions
Dollars:
Sold	$	111,245,217		$	1,909,927,244
Redeemed		(316,125,285	)		(237,867,063	)
Net Increase (Decrease)	$	(204,880,068	)	$	1,672,060,181
Shares:
Sold		4,200,000			73,450,001
Redeemed		(11,500,000	)		(9,400,000	)
Net Increase (Decrease)		(7,300,000	)		64,050,001


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


		Principal U.S. Small-Cap Multi-Factor
		Index ETF
		Period ended			Year ended
		December 31, 2018		June 30, 2018
Operations
Net investment income (loss)	$	2,540,176		$	3,022,452
Net realized gain (loss) on investments		7,986,183			26,142,347
Change in unrealized appreciation/depreciation of investments and foreign currency		(69,921,356	)		23,950,375
Net Increase (Decrease) in Net Assets Resulting from Operations		(59,394,997	)		53,115,174
Dividends and Distributions to Shareholders ^(a)
From net investment income and net realized gain on investments		(3,048,584	)		(3,208,941	)
Total Dividends and Distributions		(3,048,584	)		(3,208,941	)
Capital Share Transactions
Net increase (decrease) in capital share transactions		25,217,933			25,803,832
Total Increase (Decrease) in Net Assets		(37,225,648	)		75,710,065
Net Assets ^(b)
Beginning of period		351,175,630			275,465,565
End of period	$	313,949,982		$	351,175,630

Capital Share Transactions
Dollars:
Sold	$	112,276,823		$	259,486,789
Redeemed		(87,058,890	)		(233,682,957	)
Net Increase (Decrease)	$	25,217,933		$	25,803,832
Shares:
Sold		3,600,000			8,450,000
Redeemed		(2,800,000	)		(7,500,000	)
Net Increase (Decrease)		800,000			950,000

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)

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 thirteen series, the Principal Active Global Dividend Income ETF, Principal Contrarian Value Index ETF, Principal EDGE Active Income ETF, Principal Healthcare Innovators Index ETF, Principal International Multi-Factor Index ETF, Principal Investment Grade Corporate Active ETF, Principal Millennials Index ETF, Principal Price Setters Index ETF, Principal Shareholder Yield Index ETF, Principal Spectrum Preferred Securities Active ETF, Principal Sustainable Momentum Index ETF, Principal U.S. Mega-Cap Multi-Factor Index ETF, and Principal U.S. Small-Cap Multi-Factor Index ETF (the “Funds”). The Funds are “diversified”, and as such, the Funds’ investments are required to meet certain diversification requirements under the 1940 Act. 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 (each a “Creation Unit” or a “Creation Unit Aggregation”), which is subject to change. Each Fund issues and redeems Creation Units in exchange for portfolio securities and/or cash, plus a fixed and/or variable transaction fee.

Shares of the Principal Active Global Dividend Income ETF and Principal Spectrum Preferred Securities Active ETF are listed on the Bats BZX Exchange (“Bats” or the “Exchange”). Shares of the Principal EDGE Active Income ETF and Principal Investment Grade Corporate Active EFT are listed on the NYSE Arca, Inc. (“NYSE Arca” or the “Exchange”). Shares of the Principal Contrarian Value Index ETF, Principal Healthcare Innovators Index ETF, Principal International Multi-Factor Index ETF, Principal Millennials Index ETF, Principal Price Setters Index ETF, Principal Shareholder Yield Index ETF, Principal Sustainable Momentum Index ETF, Principal U.S. Mega-Cap Multi-Factor Index ETF, and Principal U.S. Small-Cap Multi-Factor Index ETF are listed on The National Association of Securities Dealers Automated Quotation System (“NASDAQ” or the “Exchange”). Shares trade on the Exchange at market prices that may be below, at, or above NAV.

Principal Active Global Dividend Income ETF initial investment and commencement of operations was on May 9, 2017. Principal Spectrum Preferred Securities Active ETF initial investment and commencement of operations was July 10, 2017. Principal U.S. Mega-Cap Multi-Factor Index ETF initial investment and commencement of operations was October 11, 2017. Principal Contrarian Value Index ETF and Principal Sustainable Momentum Index ETF initial investment and commencement of operations was October 18, 2017. Principal International Multi-Factor Index ETF initial investment and commencement of operations was November 8, 2017 Principal Investment Grade Corporate Active ETF initial investment and commencement of operations was April 18, 2018.

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 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, 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, market conditions and dealer-supplied valuations 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 Trust’s Board of Trustees.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)

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. Significant events that occur after the close of the applicable foreign market or exchange but prior to the calculation of the Funds’ NAV are reflected in the Funds’ NAV and these securities are valued at fair value as determined in good faith by the Principal Global Investors, LLC (“the Advisor”) under procedures established and periodically reviewed by the Trust’s Board of Trustees.

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 Funds’ NAV could be significantly affected on days when shares are 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 Trust’s Board of Trustees as may occasionally be necessary.

Income and Investment Transactions. The Funds record investment transactions on a trade date basis. 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.

Capital Share Transactions. Capital shares are issued and redeemed by the Funds only in Creation Units or multiples thereof. Except when aggregated in Creation Units, shares of the Funds are not redeemable. Transactions in capital shares for the Funds are disclosed in detail in the statements of changes in net assets.

The consideration for the purchase of Creation Units 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 Units, APs are subject to standard creation and redemption transaction fees.

Expenses. For all Funds, a unitary investment management and advisory fee is charged.

Distributions to Shareholders. Dividends and distributions to shareholders of the Funds are recorded on the ex-dividend date. Dividends and distributions 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 foreign currency transactions, losses deferred due to wash sales, tax straddles, mortgage-backed securities, certain preferred securities, redemptions-in-kind, Real Estate Investment Trust’s, utilization of earnings and profits distributed to shareholders on redemption of shares, and limitations imposed by Sections 381-384 of the Internal Revenue Code. 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 and distributions 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 intend to qualify as a “regulated investment company” under the Internal Revenue Code and they intend to distribute each year substantially all of their net investment income and realized capital gains to shareholders.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)

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. During the year ended June 30, 2018, 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 foreign dividends on the statement of operations.

Recent Accounting Pronouncements. In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-08 Premium Amortization on Purchased Callable Debt Securities, which amends the accounting standards to shorten the amortization period of certain purchased callable debt securities to the earliest call date. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods thereafter. The Funds will adopt the new amendments for periods beginning after December 15, 2018.

In August 2018, the FASB issued ASU No. 2018-13 Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which amends and eliminates certain disclosure requirements for fair value as part of its framework project. The ASU is effective for annual and interim periods beginning after December 15, 2019. The early adoption of the removal or modification of disclosures and delay of adoption of the additional disclosures is permitted. As of December 31, 2018, the Funds have adopted the removal of certain disclosures.

In August 2018, the Securities and Exchange Commission (“SEC”) approved a final rule, Disclosure Update and Simplification. The SEC adopted amendments to certain disclosures that have become redundant or superseded in light of other SEC disclosure requirements, U.S. GAAP or changes in the information environment. As of December 31, 2018, the Funds have adopted the new amendments.

Indemnifications. 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. 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.

Underlying Funds. Series of Principal Funds, Inc. and Principal Variable Contracts Funds, Inc., affiliates of the Advisor, may invest in certain of the Funds (the “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. and Principal Variable Contracts Funds, Inc. and the underlying funds. The Advisor is committed to minimizing the potential impact of underlying fund risk on underlying funds 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.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)

As of December 31, 2018, Principal Funds, Inc. and Principal Variable Contracts Funds, Inc. owned the following percentages, in the aggregate, of the outstanding shares of the underlying funds listed below:

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 United States Government) include FNMA and the 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.

Fair value is defined as the price that the Funds would receive upon selling a security 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 techniques: 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. The type of securities included in Level 1 includes 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 corporate bonds 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 mortgage backed securities.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)

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.

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 & 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, accidents, conflicts, etc.).

Fair value of these investments is determined in good faith by the Advisor under procedures established and periodically reviewed by the Fund’s Board of Trustees. The Advisor has established a valuation committee (“Valuation Committee”) of senior officers and employees, with the responsibility of overseeing the pricing and valuation of all securities, including securities where market quotations are not readily available. The Valuation Committee meets at least monthly and reports directly to the Board of Trustees. A pricing group (the “Pricing Group”) who reports to the Valuation Committee relies on the established pricing policies to determine fair valuation. Included in the pricing policies is an overview of the approved valuation approaches established for each asset class. The Pricing Group will consider all appropriate information when determining fair valuation.

The Pricing Group relies on externally provided valuation inputs to determine the value of Level 3 securities. Security values are updated as new information becomes available. Valuation data and changes in valuation amounts are reviewed on a daily basis based on specified criteria for the security, asset class, and other factors. In addition, valuation data is periodically compared to actual transactions executed by the Funds (i.e., purchases/sales) and differences between transaction prices and prior period valuation data are investigated based on specific tolerances.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those instruments.

There were no significant purchases, sales, or transfers into or out of Level 3.

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)

The following is a summary of the inputs used as of December 31, 2018 in valuing the Funds’ securities carried at value:


					Level 2 —
					Other		Level 3 —
		Level 1 —			Significant		Significant
			Quoted		Observable		Unobservable			Totals
Fund			Prices		Inputs		Inputs			(Level 1,2,3)
Principal Active Global Dividend Income ETF
Common Stocks*		$	624,393,424	$	—		$	—	$	624,393,424
Total investments in securities		$	624,393,424	$	—		$	—	$	624,393,424
Principal Contrarian Value Index ETF
Common Stocks*		$	3,347,253	$	—		$	—	$	3,347,253
Total investments in securities		$	3,347,253	$	—		$	—	$	3,347,253
Principal EDGE Active Income ETF
Common Stocks
Basic Materials		$	786,905	$	—		$	—	$	786,905
Communications			1,365,010		—			—		1,365,010
Consumer, Cyclical			1,172,977		—			—		1,172,977
Consumer, Non-cyclical			8,901,019		—			—		8,901,019
Energy			9,391,692		—			—		9,391,692
Financial			22,586,738		—			—		22,586,738
Industrial			1,409,541		—			—		1,409,541
Technology			2,100,160		—			—		2,100,160
Utilities			4,992,652		—		1,176,123			6,168,775
Preferred Stocks*			13,735,386		—			—		13,735,386
Bonds*			—		202,611,806			—		202,611,806
Total investments in securities		$	66,442,080	$	202,611,806	$	1,176,123		$	270,230,009
Principal Healthcare Innovators Index ETF
Common Stocks*		$	44,327,004	$	—		$	—	$	44,327,004
Total investments in securities		$	44,327,004	$	—		$	—	$	44,327,004
Principal International Multi-Factor Index ETF
Common Stocks*		$	12,613,799	$	—		$	—	$	12,613,799
Preferred Stocks*			48,531		—			—		48,531
Total investments in securities		$	12,662,330	$	—		$	—	$	12,662,330
Principal Investment Grade Corporate Active ETF
Bonds*		$	—	$	216,865,042		$	—	$	216,865,042
Total investments in securities		$	—	$	216,865,042		$	—	$	216,865,042
Principal Millennials Index ETF
Common Stocks*		$	14,097,265	$	—		$	—	$	14,097,265
Total investments in securities		$	14,097,265	$	—		$	—	$	14,097,265
Principal Price Setters Index ETF
Common Stocks*		$	17,126,981	$	—		$	—	$	17,126,981
Total investments in securities		$	17,126,981	$	—		$	—	$	17,126,981
Principal Shareholder Yield Index ETF
Common Stocks*		$	11,083,054	$	—		$	—	$	11,083,054
Total investments in securities		$	11,083,054	$	—		$	—	$	11,083,054
Principal Spectrum Preferred Securities Active ETF
Bonds*		$	—	$	48,008,367		$	—	$	48,008,367
Total investments in securities		$	—	$	48,008,367		$	—	$	48,008,367
Principal Sustainable Momentum Index ETF
Common Stocks*		$	4,882,569	$	—		$	—	$	4,882,569
Total investments in securities		$	4,882,569	$	—		$	—	$	4,882,569
Principal U.S. Mega-Cap Multi-Factor Index ETF
Common Stocks*	$	1,420,865,270		$	—		$	—	$	1,420,865,270
Total investments in securities	$	1,420,865,270		$	—		$	—	$	1,420,865,270
Principal U.S. Small-Cap Multi-Factor Index ETF
Common Stocks*		$	312,826,670	$	—		$	—	$	312,826,670
Total investments in securities		$	312,826,670	$	—		$	—	$	312,826,670

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

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)

Management Services. The Funds have agreed to pay investment advisory and management 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, some of which are affiliates of the Advisor. The management fee schedule for the Funds is as follows:

In addition, the Advisor has contractually agreed to limit the expenses (excluding interest expense, expenses related to fund investments, acquired fund fees and 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 limits are expressed as a percentage of average daily net assets attributable to each Fund on an annualized basis during the reporting period. The expense limits will expire on October 31, 2019.

Affiliated Ownership. At December 31, 2018, Principal Financial Services, Inc., Principal Funds, Inc., Principal Variable Contracts Funds, Inc., (each an affiliate of the Advisor) owned shares of the Funds as follows (amounts in thousands):

For the period ended December 31, 2018, 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:

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)


		Non-U.S. Government				U.S. Government
Fund		Purchases		Sales		Purchases		Sales
Principal Millennials Index ETF	$	222,469	$	208,241	$	—	$	—
Principal Price Setters Index ETF		36,563		41,952		—		—
Principal Shareholder Yield Index ETF		49,970		76,305		—		—
Principal Spectrum Preferred Securities Active ETF		3,300,000		3,414,400		—		—
Principal Spectrum Preferred Securities Active ETF		3,300,000		3,414,400		—		—
Principal Sustainable Momentum Index ETF		45,249		41,788		—		—
Principal U.S. Mega-Cap Multi-Factor Index ETF		288,297,196		498,726,916		—		—
Principal U.S. Small-Cap Multi-Factor Index ETF		136,651,528		136,325,506		—		—


For the period ended December 31, 2018, in-kind transactions were as follows:

Fund		Purchases				Sales
Principal Active Global Dividend Income ETF	$	19,374,136			$	12,591,860
Principal EDGE Active Income ETF		1,599,474				2,607,579
Principal Healthcare Innovators Index ETF		7,780,833				4,181,794
Principal International Multi-Factor Index ETF		39,486				72,674
Principal Investment Grade Corporate Active ETF		4,687,532				4,689,437
Principal Millennials Index ETF		1,777,638				4,986,844
Principal Price Setters Index ETF		4,840,520				8,311,458
Principal Shareholder Yield Index ETF		1,572,084				2,967,624
Principal U.S. Mega-Cap Multi-Factor Index ETF		111,219,896				316,843,551
Principal U.S. Small-Cap Multi-Factor Index ETF		112,251,340				87,000,639

Distributions to Shareholders. The federal income tax character of distributions paid to shareholders for the periods ended June 30, 2018, and December 31, 2018 was as follows:

For U.S. federal income tax purposes, short-term capital gain distributions are considered ordinary income distributions.

Distributable Earnings. As of June 30, 2018, the components of distributable earnings on a federal income tax basis were:

Capital Loss Carryforwards. As of June 30, 2018, the following Fund had net realized capital loss carryforwards, for U.S. federal income tax purposes, available to be used to offset future realized capital gains:

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.

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 capital depending on the type of book and tax differences that exist. For the year ended June 30, 2018, the Funds recorded reclassifications as follows:

Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)

Federal Income Tax Basis. As of December 31, 2018, the net federal income tax unrealized appreciation (depreciation) and federal tax cost of investments held by each Fund were as follows:


							Net			Cost for
							Unrealized			Federal
		Unrealized		Unrealized			Appreciation			Income Tax
Fund		Appreciation		Depreciation			(Depreciation)			Purposes
Principal Active Global Dividend Income ETF	$	30,772,634	$	(73,239,295	)	$	(42,466,661	)	$	666,860,085
Principal Contrarian Value Index ETF		76,524		(669,796	)		(593,272	)		3,940,525
Principal EDGE Active Income ETF		8,641,629		(18,268,658	)		(9,627,029	)		279,857,038
Principal Healthcare Innovators Index ETF		4,339,636		(11,114,588	)		(6,774,952	)		51,101,956
Principal International Multi-Factor Index ETF		197,287		(1,807,507	)		(1,610,220	)		14,272,550
Principal Investment Grade Corporate Active ETF		754,811		(5,536,479	)		(4,781,668	)		221,646,710
Principal Millennials Index ETF		577,560		(2,538,642	)		(1,961,082	)		16,058,347
Principal Price Setters Index ETF		466,805		(1,758,766	)		(1,291,961	)		18,418,942
Principal Shareholder Yield Index ETF		154,312		(2,450,570	)		(2,296,258	)		13,379,312
Principal Spectrum Preferred Securities Active ETF		—		(5,027,270	)		(5,027,270	)		53,035,637
Principal Sustainable Momentum Index ETF		230,056		(731,907	)		(501,851	)		5,384,420
Principal U.S. Mega-Cap Multi-Factor Index ETF		60,880,081		(119,429,328	)		(58,549,247	)		1,479,414,517
Principal U.S. Small-Cap Multi-Factor Index ETF		12,037,242		(43,380,929	)		(31,343,687	)		344,170,357

Management has evaluated events or transactions that have occurred through the date the financial statements were issued that would merit recognition or disclosure in the financial statements. There were no items requiring adjustment of the financial statements or additional disclosure.


COMMON STOCKS — 99.39%	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Aerospace & Defense — 1.77%				Insurance (continued)
Boeing Co/The	34,515	$	11,131,087	Swiss Re AG	103,342	$	9,475,207

Airlines — 0.88%						$	25,185,365
Alaska Air Group Inc	90,668		5,517,148	Media — 1.10%
Apparel — 2.09%				Walt Disney Co/The	63,000		6,907,950
LVMH Moet Hennessy Louis Vuitton SE	44,504		13,165,732	Metal Fabrication & Hardware — 1.26%
Auto Manufacturers — 3.79%				Norma Group SE	159,952		7,913,381
Nissan Motor Co Ltd	1,078,400		8,661,243	Multi-National — 1.94%
PACCAR Inc	265,426		15,166,441	Banco Latinoamericano de Comercio Exterior
		$	23,827,684	SA	705,023		12,196,898
Auto Parts & Equipment — 3.91%				Oil & Gas — 6.23%
Autoliv Inc	91,536		6,428,573	Chevron Corp	141,477		15,391,283
Bridgestone Corp	297,400		11,493,877	Royal Dutch Shell PLC, Class B	473,961		14,136,187
Magna International Inc	146,094		6,631,589	Vermilion Energy Inc	454,962		9,584,462
		$	24,554,039			$	39,111,932
Banks — 8.85%				Oil & Gas Services — 0.97%
Banco Bilbao Vizcaya Argentaria SA	799,838		4,248,038	Core Laboratories NV	101,988		6,084,604
BNP Paribas SA	179,423		8,115,028
ING Groep NV	833,878		8,990,459	Pharmaceuticals — 8.14%
JPMorgan Chase & Co	157,391		15,364,509	GlaxoSmithKline PLC	189,612		3,603,924
Nordea Bank Abp	700,000		5,890,364	Novo Nordisk A/S, Class B	277,353		12,679,116
PacWest Bancorp	390,689		13,002,130	Pfizer Inc	394,634		17,225,774
				Roche Holding AG	71,134		17,615,236
		$	55,610,528
						$	51,124,050
Beverages — 4.15%
Ambev SA ADR	3,616,080		14,175,033	Real Estate — 1.80%
Diageo PLC	333,207		11,870,521	Daito Trust Construction Co Ltd	82,400		11,288,135
		$	26,045,554	REITs — 1.63%
				Keppel DC REIT	6,700,000		6,636,340
Biotechnology — 1.41%				Omega Healthcare Investors Inc	102,849		3,615,143
CSL Ltd	68,139		8,886,512
						$	10,251,483
Chemicals — 5.00%
Albemarle Corp	99,493		7,667,925	Retail — 1.25%
Croda International PLC	140,120		8,367,266	Nordstrom Inc	168,689		7,862,594
Givaudan SA	3,600		8,336,148	Semiconductors — 7.25%
Petronas Chemicals Group Bhd	3,144,900		7,069,842	Lam Research Corp	68,000		9,259,560
		$	31,441,181	Microchip Technology Inc	215,687		15,512,209

Commercial Services — 2.73%				Taiwan Semiconductor Manufacturing Co Ltd ADR	562,348		20,756,265
Experian PLC	300,067		7,285,965
Ritchie Bros Auctioneers Inc	301,635		9,869,497			$	45,528,034
		$	17,155,462	Software — 5.69%
				Broadridge Financial Solutions Inc	87,741		8,445,072
Computers — 2.59%				Microsoft Corp	174,767		17,751,084
Apple Inc	103,000		16,247,220	SAP SE	95,639		9,525,646
Construction Materials — 0.99%						$	35,721,802
James Hardie Industries PLC	582,398		6,202,405
				Telecommunications — 3.56%
Diversified Financial Services — 2.14%				BCE Inc	323,374		12,774,363
Deutsche Boerse AG	111,761		13,438,861	Telenor ASA	314,155		6,085,811
Electric — 1.30%				Vodacom Group Ltd	384,105		3,524,021
CLP Holdings Ltd	725,000		8,193,921			$	22,384,195

Electronics — 1.74%				Toys, Games & Hobbies — 2.02%
TE Connectivity Ltd	144,250		10,909,627	Hasbro Inc	156,269		12,696,856

Food — 2.84%				Transportation — 1.87%
B&G Foods Inc	91,346		2,640,813	Union Pacific Corp	85,024		11,752,868
BIM Birlesik Magazalar AS	337,745		5,551,973
Danone SA	137,124		9,663,822	TOTAL COMMON STOCKS		$	624,393,424
		$	17,856,608	Total Investments		$	624,393,424
				Other Assets and Liabilities — 0.61%		$	3,803,930
Gas — 1.94%
Rubis SCA	226,760		12,179,902	TOTAL NET ASSETS — 100.00%		$	628,197,354

Household Products/Wares — 2.55%
Avery Dennison Corp	40,000		3,593,200	Portfolio Summary (unaudited)
Reckitt Benckiser Group PLC	162,139		12,426,606	Country			Percent
		$	16,019,806	United States			35.52	%
Insurance — 4.01%				Switzerland			8.58	%
Beazley PLC	1,266,586		8,128,455	United Kingdom			8.23	%
Chubb Ltd	58,691		7,581,703	France			6.86	%
				Canada			6.19	%


COMMON STOCKS — 99.66%	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value

Advertising — 0.20%				Commercial Services (continued)
Interpublic Group of Cos Inc/The	331	$	6,829	CoreLogic Inc ^(a)	168	$	5,615
				CoStar Group Inc ^(a)	22		7,421
Aerospace & Defense — 1.37%
				Deluxe Corp	102		3,921
Curtiss-Wright Corp	54		5,515	Euronet Worldwide Inc ^(a)	87		8,907
L3 Technologies Inc	85		14,761
Teledyne Technologies Inc ^(a)	95		19,672	ManpowerGroup Inc	149		9,655
				Quanta Services Inc	738		22,214
United Technologies Corp	57		6,069	WEX Inc ^(a)	51		7,143
		$	46,017
						$	89,156
Agriculture — 0.74%
				Computers — 2.19%
Archer-Daniels-Midland Co	611		25,033
				Cognizant Technology Solutions Corp, Class A	89		5,650
Airlines — 0.76%				Conduent Inc ^(a)	1,342		14,266
JetBlue Airways Corp ^(a)	1,202		19,304	DXC Technology Co	290		15,419
Southwest Airlines Co	134		6,228	Hewlett Packard Enterprise Co	1,360		17,966

		$	25,532	Leidos Holdings Inc	281		14,814
				Lumentum Holdings Inc ^(a)	126		5,293
Apparel — 2.67%
Columbia Sportswear Co	234		19,677			$	73,408
PVH Corp	176		16,359	Construction Materials — 2.36%
Ralph Lauren Corp	242		25,037	Eagle Materials Inc	78		4,760
Skechers U.S.A. Inc, Class A ^(a)	432		9,889	Fortune Brands Home & Security Inc	120		4,559
Under Armour Inc, Class A ^(a)	1,052		18,589	Johnson Controls International PLC	689		20,429

		$	89,551	Louisiana-Pacific Corp	891		19,798
				Martin Marietta Materials Inc	87		14,953
Auto Manufacturers — 0.43%				Vulcan Materials Co	149		14,721
PACCAR Inc	254		14,514
						$	79,220

Auto Parts & Equipment — 0.90%				Distribution/Wholesale — 0.31%
BorgWarner Inc	356		12,368	LKQ Corp ^(a)	446		10,584
Goodyear Tire & Rubber Co/The	874		17,838

		$	30,206	Diversified Financial Services — 1.02%
				Jefferies Financial Group Inc	1,074		18,645
Banks — 6.54%				Legg Mason Inc	477		12,168
Associated Banc-Corp	787		15,575	Stifel Financial Corp	83		3,438
Bank of America Corp	591		14,562
Bank of New York Mellon Corp/The	227		10,685			$	34,251
BankUnited Inc	319		9,551	Electric — 0.69%
BB&T Corp	238		10,310	MDU Resources Group Inc	966		23,029
Chemical Financial Corp	232		8,493
				Electronics — 5.28%
Citigroup Inc	252		13,119
				Avnet Inc	597		21,552
Fifth Third Bancorp	392		9,224
				Corning Inc	876		26,464
First Citizens BancShares Inc, Class A	32		12,066
				FLIR Systems Inc	155		6,749
First Hawaiian Inc	191		4,299
				Garmin Ltd	295		18,680
First Horizon National Corp	279		3,672
				Gentex Corp	767		15,501
FNB Corp	1,352		13,304
				Jabil Inc	937		23,228
Hancock Whitney Corp	250		8,662	Keysight Technologies Inc ^(a)	372		23,094
Huntington Bancshares Inc	339		4,041
				PerkinElmer Inc	233		18,302
JPMorgan Chase & Co	46		4,490
				TE Connectivity Ltd	75		5,672
KeyCorp	251		3,710
				Woodward Inc	246		18,275
Morgan Stanley	231		9,159
PNC Financial Services Group Inc/The	82		9,587			$	177,517

Regions Financial Corp	666		8,911	Engineering & Construction — 1.57%
SunTrust Banks Inc	185		9,331	EMCOR Group Inc	231		13,788
UMB Financial Corp	73		4,451	Fluor Corp	450		14,490
Umpqua Holdings Corp	913		14,517	Jacobs Engineering Group Inc	421		24,612
Wells Fargo & Co	91		4,193
Wintrust Financial Corp	63		4,189			$	52,890
Zions Bancorp NA	236		9,615	Entertainment — 0.44%

		$	219,716	Cinemark Holdings Inc	410		14,678

Biotechnology — 1.58%				Environmental Control — 0.56%
Alexion Pharmaceuticals Inc ^(a)	148		14,409	Republic Services Inc	260		18,743

Bio-Rad Laboratories Inc, Class A ^(a)	94		21,829	Food — 2.73%
United Therapeutics Corp ^(a)	154		16,771	Conagra Brands Inc	212		4,528

		$	53,009	Flowers Foods Inc	841		15,533
				Hain Celestial Group Inc/The ^(a)	726		11,514
Chemicals — 1.46%
				Hormel Foods Corp	235		10,030
Air Products & Chemicals Inc	47		7,522
				Ingredion Inc	56		5,118
Albemarle Corp	75		5,780
				JM Smucker Co/The	201		18,792
Cabot Corp	293		12,582
				Kroger Co/The	284		7,810
Eastman Chemical Co	251		18,351
Univar Inc ^(a)	268		4,754	Tyson Foods Inc, Class A	342		18,263
						$	91,588
		$	48,989
				Food Service — 0.16%
Commercial Services — 2.65%
				Aramark	185		5,359
AMERCO	74		24,280


COMMON STOCKS (continued)	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Forest Products & Paper — 0.15%				Leisure Time — 0.99%
International Paper Co	122	$	4,924	Brunswick Corp	311	$	14,446
				Carnival Corp	381		18,783
Hand/Machine Tools — 1.38%
Regal Beloit Corp	352		24,658			$	33,229
Snap-on Inc	112		16,272	Machinery — Construction & Mining — 0.75%
Stanley Black & Decker Inc	46		5,508	Oshkosh Corp	223		13,672
		$	46,438	Terex Corp	420		11,580
Healthcare — Products — 6.12%						$	25,252
Abbott Laboratories	290		20,976	Machinery — Diversified — 2.16%
Baxter International Inc	113		7,438	AGCO Corp	385		21,433
Cooper Cos Inc/The	76		19,342	Cummins Inc	44		5,880
Danaher Corp	263		27,120	Dover Corp	95		6,740
DENTSPLY SIRONA Inc	451		16,782	Flowserve Corp	420		15,969
Henry Schein Inc ^(a)	114		8,951
				Roper Technologies Inc	27		7,196
Hill-Rom Holdings Inc	92		8,146	Wabtec Corp	217		15,244
Hologic Inc ^(a)	190		7,809
ICU Medical Inc ^(a)	76		17,452			$	72,462
Medtronic PLC	318		28,925	Media — 2.71%
NuVasive Inc ^(a)	157		7,781
				Comcast Corp, Class A	482		16,412
Patterson Cos Inc	801		15,748	Discovery Inc, Class A ^(a)	1,047		25,903
Thermo Fisher Scientific Inc	85		19,022	DISH Network Corp, Class A ^(a)	420		10,487
		$	205,492	Liberty Broadband Corp, Class C ^(a)	61		4,394
				Liberty Media Corp-Liberty Braves, Series C ^(a)	320		7,965
Healthcare — Services — 4.34%
Anthem Inc	109		28,627	News Corp, Class A	1,567		17,785
Centene Corp ^(a)	253		29,171	Walt Disney Co/The	74		8,114
Humana Inc	28		8,021			$	91,060
Laboratory Corp of America Holdings ^(a)	147		18,575
				Metal Fabrication & Hardware — 1.04%
Molina Healthcare Inc ^(a)	105		12,203
				Timken Co/The	582		21,720
Quest Diagnostics Inc	170		14,156	Valmont Industries Inc	118		13,092
Universal Health Services Inc, Class B	223		25,993
WellCare Health Plans Inc ^(a)	39		9,207			$	34,812
		$	145,953	Mining — 1.61%
Home Builders — 0.62%				Freeport-McMoRan Inc	390		4,021
DR Horton Inc	604		20,935	Newmont Mining Corp	663		22,973
				Royal Gold Inc	315		26,980
Household Products — 0.57%						$	53,974
Edgewell Personal Care Co ^(a)	511		19,086
				Miscellaneous Manufacture — 4.55%
Insurance — 7.37%				AptarGroup Inc	85		7,996
Alleghany Corp	32		19,946	Carlisle Cos Inc	169		16,988
Arch Capital Group Ltd ^(a)	180		4,810	Colfax Corp ^(a)	810		16,929
Assurant Inc	224		20,035	Crane Co	84		6,063
Athene Holding Ltd, Class A ^(a)	403		16,051
				Eaton Corp PLC	314		21,559
Axis Capital Holdings Ltd	386		19,933	Hexcel Corp	115		6,594
Berkshire Hathaway Inc, Class B ^(a)	62		12,659
				Ingersoll-Rand PLC	200		18,246
Cincinnati Financial Corp	71		5,497	ITT Inc	347		16,749
CNO Financial Group Inc	864		12,856	Textron Inc	424		19,500
Enstar Group Ltd ^(a)	65		10,892
				Trinity Industries Inc	1,081		22,258
Hanover Insurance Group Inc/The	53		6,189
Hartford Financial Services Group Inc/The	101		4,489			$	152,882
Lincoln National Corp	249		12,776	Oil & Gas — 1.55%
Loews Corp	386		17,571	Continental Resources Inc ^(a)	160		6,430
MetLife Inc	417		17,122	EOG Resources Inc	75		6,541
MGIC Investment Corp ^(a)	385		4,027
				Exxon Mobil Corp	335		22,844
Old Republic International Corp	951		19,562	Occidental Petroleum Corp	266		16,327
Radian Group Inc	259		4,237
Travelers Cos Inc/The	38		4,550			$	52,142
Unum Group	257		7,551	Oil & Gas Services — 1.18%
White Mountains Insurance Group Ltd	24		20,585	Baker Hughes a GE Co	974		20,941
WR Berkley Corp	83		6,135	National Oilwell Varco Inc	726		18,658
		$	247,473			$	39,599
Internet — 0.92%				Packaging & Containers — 1.66%
Expedia Group Inc	72		8,111	Ball Corp	185		8,506
Symantec Corp	296		5,593	Bemis Co Inc	175		8,033
TripAdvisor Inc ^(a)	191		10,302	Graphic Packaging Holding Co	474		5,043
Twitter Inc ^(a)	243		6,984
				Sonoco Products Co	367		19,499
		$	30,990	Westrock Co	387		14,613
Iron & Steel — 1.54%						$	55,694
Nucor Corp	387		20,051	Pharmaceuticals — 2.91%
Reliance Steel & Aluminum Co	284		20,212	Cardinal Health Inc	365		16,279
Steel Dynamics Inc	377		11,325	Cigna Corp	39		7,407
		$	51,588	CVS Health Corp	376		24,636


COMMON STOCKS (continued)	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Pharmaceuticals (continued)				Transportation (continued)
Jazz Pharmaceuticals PLC ^(a)	121	$	14,999	XPO Logistics Inc ^(a)	177	$	10,096
McKesson Corp	118		13,035			$	103,285
Pfizer Inc	489		21,345
		$	97,701	TOTAL COMMON STOCKS		$	3,347,253
REITs — 4.54%				Total Investments		$	3,347,253
American Campus Communities Inc	146		6,043	Other Assets and Liabilities — 0.34%		$	11,414
American Homes 4 Rent, Class A	993		19,711	TOTAL NET ASSETS — 100.00%		$	3,358,667
Apple Hospitality REIT Inc	761		10,852
Cousins Properties Inc	1,549		12,237	^(a)Non-income producing security
Equity Commonwealth	702		21,067
Hudson Pacific Properties Inc	409		11,886
Invitation Homes Inc	594		11,928	Portfolio Summary (unaudited)
Kimco Realty Corp	856		12,540	Sector			Percent
Omega Healthcare Investors Inc	212		7,452	Industrial			25.76	%
Senior Housing Properties Trust	845		9,903	Consumer, Non-cyclical			21.65	%
SL Green Realty Corp	55		4,349	Financial			20.59	%
Sunstone Hotel Investors Inc	368		4,788	Consumer, Cyclical			9.43	%
VEREIT Inc	2,780		19,877	Technology			7.80	%
		$	152,633	Communications			6.26	%
Retail — 2.15%				Basic Materials			4.75	%
CarMax Inc ^(a)	123		7,716	Energy			2.73	%
Casey’s General Stores Inc	66		8,457	Utilities			0.69	%
Genuine Parts Co	83		7,970	Other Assets and Liabilities			0.34	%
Target Corp	231		15,267	TOTAL NET ASSETS			100.00	%
Walgreens Boots Alliance Inc	258		17,629
Walmart Inc	82		7,638
Williams-Sonoma Inc	147		7,416
		$	72,093
Savings & Loans — 1.12%
Investors Bancorp Inc	959		9,973
New York Community Bancorp Inc	1,412		13,287
People’s United Financial Inc	993		14,329
		$	37,589
Semiconductors — 3.48%
Analog Devices Inc	193		16,565
Cypress Semiconductor Corp	996		12,669
Intel Corp	354		16,613
Marvell Technology Group Ltd	1,098		17,777
MKS Instruments Inc	158		10,208
ON Semiconductor Corp ^(a)	731		12,069
Qorvo Inc ^(a)	315		19,130
QUALCOMM Inc	118		6,715
Teradyne Inc	160		5,021
		$	116,767
Software — 2.14%
Akamai Technologies Inc ^(a)	258		15,759
Fidelity National Information Services Inc	181		18,561
j2 Global Inc	103		7,146
Oracle Corp	152		6,863
SS&C Technologies Holdings Inc	351		15,834
Synopsys Inc ^(a)	91		7,666
		$	71,829
Telecommunications — 2.43%
AT&T Inc	697		19,893
Cisco Systems Inc	389		16,855
Juniper Networks Inc	989		26,614
LogMeIn Inc	223		18,190
		$	81,552
Transportation — 3.07%
CSX Corp	329		20,441
FedEx Corp	31		5,001
Kansas City Southern	246		23,481
Norfolk Southern Corp	183		27,366
Ryder System Inc	351		16,900


COMMON STOCKS — 19.22%	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Banks — 4.82%				Semiconductors — 0.36%
Bank of Hawaii Corp	21,255	$	1,430,887	Microchip Technology Inc	14,059	$	1,011,123
Bank of Nova Scotia/The	31,780		1,584,868
Columbia Banking System Inc	45,092		1,636,389	Telecommunications — 0.49%
Cullen / Frost Bankers Inc	18,390		1,617,216	BCE Inc	34,531		1,365,010
East West Bancorp Inc	31,344		1,364,404	Toys, Games & Hobbies — 0.35%
JPMorgan Chase & Co	17,077		1,667,057	Hasbro Inc	12,082		981,663
PacWest Bancorp	32,842		1,092,982
US Bancorp	34,346		1,569,612	TOTAL COMMON STOCKS		$	53,882,817
Washington Trust Bancorp Inc	32,681		1,553,328	PREFERRED STOCKS — 4.90%	Shares Held		Value
		$	13,516,743	Banks — 1.65%
Chemicals — 0.28%				Bank of America Corp; Series K
DowDuPont Inc	14,714		786,905	(3-month USD LIBOR + 1.33%),
				6.45%, 01/30/2019	15,000		378,000
Computers — 0.39%
				Bank of America Corp; Series EE
Apple Inc	6,904		1,089,037	6.00%, 04/25/2021 ^(c)	10,000		250,500
Diversified Financial Services — 0.68%				Bank of America Corp; Series Y
BGC Partners Inc, Class A	174,246		900,852	6.50%, 01/27/2020 ^(c)	20,000		507,600
BlackRock Inc	2,533		995,013	Goldman Sachs Group Inc/The; Series B
				6.20%, 01/30/2019 ^(c)	7,500		191,250
		$	1,895,865
				Goldman Sachs Group Inc/The; Series N
Electric — 2.20%				6.30%, 05/10/2021 ^(c)	30,000		760,800
ALLETE Inc	18,784		1,431,717	JPMorgan Chase & Co; Series BB
Eversource Energy	10,455		679,993	6.15%, 09/01/2020 ^(c)	25,000		644,500
GenOn Energy Inc ^(a),(b)	8,401		1,176,123
				Morgan Stanley; Series I
WEC Energy Group Inc	21,097		1,461,178	(3-month USD LIBOR + 3.71%),
Xcel Energy Inc	28,816		1,419,764	6.38%, 10/15/2024 ^(c),(d)	25,000		630,750
		$	6,168,775	Morgan Stanley; Series E
Electronics — 0.23%				(3-month USD LIBOR + 4.32%),
				7.13%, 10/15/2023 ^(c),(d)	35,000		922,950
Garmin Ltd	10,425		660,111
				Wells Fargo & Co; Series Y
Food — 0.59%				5.63%, 06/15/2022 ^(c)	15,000		352,500
B&G Foods Inc	36,981		1,069,121
Kraft Heinz Co/The	13,571		584,096			$	4,638,850
		$	1,653,217	Electric — 0.66%
				Duke Energy Corp
Healthcare — Products — 0.80%				5.13%, 01/15/2073	16,000		363,200
Abbott Laboratories	17,113		1,237,783	Entergy Louisiana LLC
Medtronic PLC	11,054		1,005,472	4.88%, 09/01/2021	25,000		576,500
		$	2,243,255	Entergy Mississippi Inc
Housewares — 0.07%				4.90%, 10/01//2026	25,000		555,250
Tupperware Brands Corp	6,060		191,314	NextEra Energy Capital Holdings Inc; Series I
				5.13%, 11/15/2072	16,000		358,240
Machinery — Diversified — 0.27%						$	1,853,190
Deere & Co	5,024		749,430
				Hand/Machine Tools — 0.21%
Oil & Gas — 2.42%				Stanley Black & Decker Inc
Chevron Corp	12,597		1,370,428	5.75%, 07/25/2052	25,000		592,750
Exxon Mobil Corp	19,826		1,351,935
HollyFrontier Corp	24,834		1,269,514	Insurance — 0.17%
Marathon Petroleum Corp	22,450		1,324,774	Prudential Financial Inc
Occidental Petroleum Corp	23,829		1,462,624	5.75%, 12/15/2052	20,000		474,800
		$	6,779,275	REITs — 2.11%
Pharmaceuticals — 1.78%				Boston Properties Inc
				5.25%, 01/31/2019 ^(c)	20,000		457,000
Johnson & Johnson	11,440		1,476,332
Merck & Co Inc	23,105		1,765,453	Digital Realty Trust Inc; Series H
				7.38%, 03/26/2019 ^(c)	55,000		1,386,550
Pfizer Inc	40,384		1,762,762
				Kimco Realty Corp; Series L
		$	5,004,547	5.13%, 08/16/2022 ^(c)	5,000		98,550
Pipelines — 0.93%				Kimco Realty Corp; Series I
EnLink Midstream LLC	86,842		824,130	6.00%, 01/31/2019 ^(c)	15,000		359,850
Plains GP Holdings LP, Class A ^(a)	26,628		535,223	PS Business Parks Inc; Series W
Targa Resources Corp	34,788		1,253,064	5.20%, 10/20/2021 ^(c)	39,618		819,696
		$	2,612,417	PS Business Parks Inc; Series Y
				5.20%, 12/07/2022 ^(c)	10,000		205,500
Real Estate — 0.15%				Public Storage; Series E
Newmark Group Inc	53,470		428,829	4.90%, 10/14/2021 ^(c)	15,000		309,300
REITs — 2.41%				Public Storage; Series Y
Annaly Capital Management Inc	55,325		543,292	6.38%, 03/17/2019 ^(c)	35,000		878,850
Digital Realty Trust Inc	14,838		1,580,989	Ventas Realty LP / Ventas Capital Corp
EPR Properties	24,690		1,580,901	5.45%, 03/15/2043	15,000		363,000
Medical Properties Trust Inc	108,180		1,739,534	Vornado Realty Trust; Series M
Omega Healthcare Investors Inc	37,001		1,300,585	5.25%, 12/13/2022 ^(c)	50,000		1,027,500
		$	6,745,301			$	5,905,796


Schedule of Investments
Principal EDGE Active Income ETF
December 31, 2018 (unaudited)


								Principal
PREFERRED STOCKS (continued)		Shares Held			Value	BONDS (continued)		Amount		Value
Telecommunications — 0.10%						Food — 1.39%
Qwest Corp						B&G Foods Inc
6.13%, 06/01/2053		15,000		$	270,000	4.63%, 06/01/2021	$	2,000,000	$	1,950,000
						JBS USA LUX SA / JBS USA Finance Inc
TOTAL PREFERRED STOCKS			$	13,735,386		5.75%, 06/15/2025 ^(e)		1,000,000		955,000
						7.25%, 06/01/2021 ^(e)		1,000,000		1,005,000
		Principal
BONDS — 72.27%		Amount			Value				$	3,910,000
Auto Parts & Equipment — 1.76%						Healthcare — Products — 1.93%
Titan International Inc						Hologic Inc
6.50%, 11/30/2023	$	5,500,000		$	4,922,500	4.63%, 02/01/2028 ^(e)		6,000,000		5,400,000

Banks — 1.78%						Healthcare — Services — 5.29%
Citigroup Inc						Encompass Health Corp
6.68%, 09/13/2043		1,000,000			1,179,680	5.75%, 09/15/2025		3,000,000		2,925,000
JPMorgan Chase & Co						HCA Inc
(3-month USD LIBOR + 3.25%),						5.63%, 09/01/2028		3,000,000		2,895,000
5.15%, 12/29/2049 ^(c),(d)		4,000,000			3,810,400	5.88%, 05/01/2023		2,000,000		2,025,000
				$	4,990,080	Surgery Center Holdings Inc
						6.75%, 07/01/2025 ^(e)		3,500,000		2,975,000
Chemicals — 3.06%						Tenet Healthcare Corp
Kraton Polymers LLC / Kraton Polymers Capital						8.13%, 04/01/2022		4,000,000		4,010,000
Corp
7.00%, 04/15/2025 ^(e)		4,000,000			3,680,000				$	14,830,000
OCI NV						Home Builders — 2.03%
6.63%, 04/15/2023 ^(e)		5,000,000			4,912,500	KB Home
				$	8,592,500	7.50%, 09/15/2022		2,000,000		2,055,000
						PulteGroup Inc
Commercial Services — 1.03%						6.38%, 05/15/2033		4,000,000		3,650,000
Avis Budget Car Rental LLC / Avis Budget
Finance Inc									$	5,705,000
5.50%, 04/01/2023		3,000,000			2,895,000	Insurance — 1.35%
						MetLife Inc
Computers — 1.07%						9.25%, 04/08/2038 ^(e)		3,000,000		3,780,000
Dell International LLC / EMC Corp
6.02%, 06/15/2026 ^(e)		3,000,000			3,013,565	Internet — 0.35%
						VeriSign Inc

Diversified Financial Services — 1.07%						5.25%, 04/01/2025		1,000,000		990,000
Jefferies Group LLC
6.25%, 01/15/2036		3,000,000			3,008,088	Iron & Steel — 1.85%
						Allegheny Technologies Inc

						7.88%, 08/15/2023		3,000,000		3,060,000
Electric — 4.87%
Emera Inc
(3-month USD LIBOR + 5.44%),						ArcelorMittal
6.75%, 06/15/2076 ^(d)		3,000,000			3,005,760	6.25%, 02/25/2022		2,000,000		2,114,000
GenOn Energy Inc									$	5,174,000
0.00%, 10/15/2020 ^(a),(g)		3,100,000			—	Lodging — 1.08%
GenOn Energy Inc / NRG Americas Inc						Boyd Gaming Corp
(3-month USD LIBOR + 6.50%),						6.88%, 05/15/2023		3,000,000		3,030,000
9.39%, 12/01/2023		672,070			658,627
NRG Energy Inc						Media — 5.95%
6.25%, 05/01/2024		2,000,000			2,030,000	CCO Holdings LLC / CCO Holdings Capital Corp
						5.13%, 05/01/2027 ^(e)		1,000,000		931,400
PPL Capital Funding Inc,
(3-month USD LIBOR + 2.67%),						5.75%, 01/15/2024		2,000,000		1,980,000
5.47%, 03/30/2067		4,000,000			3,460,000	CSC Holdings LLC
Talen Energy Supply LLC						6.75%, 11/15/2021		3,000,000		3,075,000
4.60%, 12/15/2021		5,000,000			4,500,000	DISH DBS Corp
						5.88%, 11/15/2024		4,000,000		3,220,000
			$	13,654,387		Sirius XM Radio Inc
Engineering & Construction — 0.76%						5.38%, 04/15/2025 ^(e)		4,000,000		3,790,000
Engility Corp						Viacom Inc
8.88%, 09/01/2024		2,000,000			2,135,000	(3-month USD LIBOR + 3.90%),
						5.88%, 02/28/2057 ^(d)		2,000,000		1,814,985
Entertainment — 0.61%
						(3-month USD LIBOR + 3.90%),
AMC Entertainment Holdings Inc						6.25%, 02/28/2057 ^(d)		2,000,000		1,864,298
6.13%, 05/15/2027		2,000,000			1,710,000
									$	16,675,683
Environmental Control — 5.04%
Advanced Disposal Services Inc						Mining — 1.32%
5.63%, 11/15/2024 ^(e)		4,000,000			3,910,000	Freeport-McMoRan Inc
Covanta Holding Corp						3.88%, 03/15/2023		4,000,000		3,700,000
5.88%, 03/01/2024		5,000,000			4,700,000	Mortgage Backed Securities — 6.94%
5.88%, 07/01/2025		2,000,000			1,840,000	Citigroup Commercial Mortgage Trust 2015-GC29
Waste Pro USA Inc						4.14%, 04/10/2048 ^(f)		750,000		737,560
5.50%, 02/15/2026 ^(e)		4,000,000			3,680,000	COMM 2014-UBS3 Mortgage Trust
			$	14,130,000		4.78%, 06/10/2047 ^(f)		2,000,000		1,984,914


		Principal					Principal
BONDS (continued)		Amount		Value	BONDS (continued)		Amount		Value
Mortgage Backed Securities (continued)					Pipelines — 3.81%
COMM 2015-CCRE22 Mortgage Trust					EnLink Midstream Partners LP
4.12%, 03/10/2048 ^(f)	$	500,000	$	485,826	4.15%, 06/01/2025	$	5,000,000	$	4,507,686
GS Mortgage Securities Trust 2013-GC13					4.85%, 07/15/2026		750,000		676,325
4.08%, 07/10/2046 ^(e),(f)		500,000		494,415	NGPL PipeCo LLC
GS Mortgage Securities Trust 2013-GCJ12					4.88%, 08/15/2027 ^(e)		2,000,000		1,885,000
4.18%, 06/10/2046 ^(f)		2,000,000		1,956,241	Transcanada Trust
GS Mortgage Securities Trust 2014-GC20					(3-month USD LIBOR + 3.53%),
4.97%, 04/10/2047 ^(f)		2,000,000		1,991,340	5.63%, 05/20/2075 ^(d)		4,000,000		3,605,000
GS Mortgage Securities Trust 2014-GC24							$		10,674,011
4.53%, 09/10/2047 ^(f)		500,000		491,059
GS Mortgage Securities Trust 2015-GC32					REITs — 1.64%
4.41%, 07/10/2048 ^(f)		1,241,000		1,226,636	CBL & Associates LP
JP Morgan Chase Commercial Mortgage					5.95%, 12/15/2026		6,000,000		4,590,000
Securities Trust 2012-LC9					Storage/Warehousing — 1.05%
4.37%, 12/15/2047 ^(e),(f)		1,750,000		1,623,618	Mobile Mini Inc
JP Morgan Chase Commercial Mortgage					5.88%, 07/01/2024		3,000,000		2,940,000
Securities Trust 2015-JP1
4.24%, 01/15/2049 ^(e),(f)		1,000,000		905,048	Telecommunications — 2.91%
					Sprint Corp
JPMBB Commercial Mortgage Securities Trust					7.88%, 09/15/2023		4,000,000		4,105,000
2014-C19					T-Mobile USA Inc
4.66%, 04/15/2047 ^(f)		2,000,000		1,989,580
					6.38%, 03/01/2025		4,000,000		4,040,000
Wells Fargo Commercial Mortgage Trust
2014-LC16							$		8,145,000
4.46%, 08/15/2050		1,000,000		986,079	Transportation — 1.06%
Wells Fargo Commercial Mortgage Trust					XPO Logistics Inc
2015-C26					6.50%, 06/15/2022 ^(e)		3,000,000		2,973,750
3.59%, 02/15/2048 ^(e)		1,425,000		1,225,682
Wells Fargo Commercial Mortgage Trust					TOTAL BONDS	$	202,611,806
2015-SG1					Total Investments	$	270,230,009
4.47%, 09/15/2048 ^(f)		1,600,000		1,555,208	Other Assets and Liabilities — 3.61%		$		10,110,799
WFRBS Commercial Mortgage Trust 2013-C14
3.98%, 06/15/2046 ^(e),(f)		500,000		453,459	TOTAL NET ASSETS — 100.00%	$	280,340,808
WFRBS Commercial Mortgage Trust 2014-C22
					^(a)Non-income producing security
3.76%, 09/15/2057 ^(f)		1,000,000		947,504
3.90%, 09/15/2057 ^(e),(f)		500,000		399,131	^(b)The value of these investments was determined using significant
			$	19,453,300	unobservable inputs.
					^(c)Perpetual security. Perpetual securities pay an indefinite stream of interest,
Office & Business Equipment — 0.70%
CDW LLC / CDW Finance Corp					but they may be called by the issuer at an earlier date. Date shown, if any,
5.50%, 12/01/2024		2,000,000		1,975,000	reflects the next call date or final legal maturity date. Rate shown is as of
					period end.
Oil & Gas — 5.60%
					^(d)Rate shown is as of period end. The rate may be a variable or floating rate
Gulfport Energy Corp
6.38%, 01/15/2026		6,000,000		5,190,000	or a fixed rate which may convert to a variable or floating rate in the future.
Nabors Industries Inc					^(e)Security exempt from registration under Rule 144A of the Securities Act of
5.50%, 01/15/2023		2,000,000		1,587,442	1933. These securities may be resold in transactions exempt from
Rowan Cos Inc					registration, normally to qualified institutional buyers. At the end of the
4.75%, 01/15/2024		3,000,000		2,265,000	period, the value of these securities totaled $58,400,068 or 20.83% of net assets.
4.88%, 06/01/2022		2,000,000		1,650,000
W&T Offshore Inc
9.75%, 11/01/2023 ^(e)		3,000,000		2,625,000	^(f)Certain variable rate securities are not based on a published reference rate
Whiting Petroleum Corp					and spread but are determined by the issuer or agent and are based on
5.75%, 03/15/2021		2,500,000		2,375,000	current market conditions. These securities do not indicate a reference rate
			$	15,692,442	and spread in their description. Rate shown is the rate in effect as of period
Oil & Gas Services — 2.19%					end.
Archrock Partners LP / Archrock Partners Finance					^(g)Security is defaulted.
Corp
6.00%, 04/01/2021		2,000,000		1,920,000	Portfolio Summary (unaudited)
6.00%, 10/01/2022		2,000,000		1,880,000	Sector				Percent
Weatherford International Ltd
4.50%, 04/15/2022		4,000,000		2,340,000	Financial				17.83	%
					Energy				14.94	%
			$	6,140,000	Consumer, Non-cyclical				14.57	%
Packaging & Containers — 1.02%					Communications				9.79	%
Reynolds Group Issuer Inc / Reynolds Group					Industrial				8.60	%
Issuer LLC / Reynolds Group Issuer					Utilities				7.73	%
(Luxembourg) S.A.					Consumer, Cyclical				6.95	%
5.13%, 07/15/2023 ^(e)		3,000,000		2,857,500	Mortgage Securities				6.94	%
					Basic Materials				6.51	%
Pharmaceuticals — 1.76%					Technology				2.53	%
HLF Financing Sarl LLC / Herbalife International					Other Assets and Liabilities				3.61	%
Inc
7.25%, 08/15/2026 ^(e)		5,000,000		4,925,000	TOTAL NET ASSETS				100.00	%


COMMON STOCKS — 99.78%	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Biotechnology — 44.66%				Biotechnology (continued)
Abeona Therapeutics Inc ^(a)	5,781	$	41,276	Seattle Genetics Inc ^(a)	22,987	$	1,302,443
ACADIA Pharmaceuticals Inc ^(a)	17,938		290,057	Solid Biosciences Inc ^(a)	5,084		136,251
Acceleron Pharma Inc ^(a)	6,602		287,517	Spark Therapeutics Inc ^(a)	5,392		211,043
Achillion Pharmaceuticals Inc ^(a)	19,886		31,619	Spectrum Pharmaceuticals Inc ^(a)	15,205		133,044
Acorda Therapeutics Inc ^(a)	6,813		106,147	Stemline Therapeutics Inc ^(a)	4,335		41,182
Adverum Biotechnologies Inc ^(a)	8,921		28,101	Theravance Biopharma Inc ^(a)	7,907		202,340
Agenus Inc ^(a)	12,467		29,671	Ultragenyx Pharmaceutical Inc ^(a)	7,201		313,099
Alder Biopharmaceuticals Inc ^(a)	9,791		100,358	Unum Therapeutics Inc ^(a)	4,286		18,858
Alnylam Pharmaceuticals Inc ^(a)	14,580		1,063,028	Verastem Inc ^(a)	10,560		35,482
AMAG Pharmaceuticals Inc ^(a)	4,947		75,145	Vericel Corp ^(a)	5,229		90,985
Amicus Therapeutics Inc ^(a)	27,140		260,001	Viking Therapeutics Inc ^(a)	7,309		55,914
AnaptysBio Inc ^(a)	3,449		220,012	ZIOPHARM Oncology Inc ^(a)	18,918		35,377
Arena Pharmaceuticals Inc ^(a)	7,082		275,844
						$	19,842,157
ArQule Inc ^(a)	15,615		43,254
Arrowhead Pharmaceuticals Inc ^(a)	12,631		156,877	Energy-Alternate Sources — 0.06%
Assembly Biosciences Inc ^(a)	2,906		65,734	Amyris Inc ^(a)	7,227		24,138
Atara Biotherapeutics Inc ^(a)	6,507		226,053	Healthcare — Products—19.18%
Audentes Therapeutics Inc ^(a)	5,357		114,211	Accelerate Diagnostics Inc ^(a)	7,350		84,525
AVEO Pharmaceuticals Inc ^(a)	16,976		27,162	AtriCure Inc ^(a)	4,749		145,319
Avrobio Inc ^(a)	3,434		57,176	AxoGen Inc ^(a)	4,959		101,312
Axovant Sciences Ltd ^(a)	17,518		17,448	BioLife Solutions Inc ^(a)	2,362		28,415
BioCryst Pharmaceuticals Inc ^(a)	15,696		126,667	Cardiovascular Systems Inc ^(a)	4,689		133,590
Biohaven Pharmaceutical Holding Co Ltd ^(a)	5,540		204,869	CareDx Inc ^(a)	5,215		131,105
BioMarin Pharmaceutical Inc ^(a)	18,592		1,583,109	Cerus Corp ^(a)	19,202		97,354
Bluebird Bio Inc ^(a)	7,820		775,744	Cutera Inc ^(a)	1,985		33,785
Blueprint Medicines Corp ^(a)	6,298		339,525	DENTSPLY SIRONA Inc	32,193		1,197,901
Cara Therapeutics Inc ^(a)	5,638		73,294	Endologix Inc ^(a)	11,740		8,406
CRISPR Therapeutics AG ^(a)	6,829		195,105	Genomic Health Inc ^(a)	5,145		331,389
Cymabay Therapeutics Inc ^(a)	6,278		49,408	Glaukos Corp ^(a)	4,941		277,536
CytomX Therapeutics Inc ^(a)	6,452		97,425	Haemonetics Corp ^(a)	7,492		749,575
Deciphera Pharmaceuticals Inc ^(a)	5,404		113,430	Inspire Medical Systems Inc ^(a)	3,064		129,454
Denali Therapeutics Inc ^(a)	13,550		279,943	Insulet Corp ^(a)	8,289		657,483
Dicerna Pharmaceuticals Inc ^(a)	7,598		81,223	Intersect ENT Inc ^(a)	4,065		114,552
Dynavax Technologies Corp ^(a)	5,524		50,545	Invacare Corp	4,715		20,274
Editas Medicine Inc ^(a)	6,841		155,633	iRhythm Technologies Inc ^(a)	3,262		226,644
Epizyme Inc ^(a)	9,973		61,434	Natus Medical Inc ^(a)	4,758		161,915
Esperion Therapeutics Inc ^(a)	3,846		176,916	Nevro Corp ^(a)	4,064		158,049
Exact Sciences Corp ^(a)	14,166		893,875	Novocure Ltd ^(a)	13,331		446,322
Fate Therapeutics Inc ^(a)	7,572		97,149	OPKO Health Inc ^(a)	80,324		241,775
FibroGen Inc ^(a)	12,241		566,513	Quidel Corp ^(a)	4,639		226,476
Five Prime Therapeutics Inc ^(a)	5,106		47,486	Sientra Inc ^(a)	4,080		51,857
Geron Corp ^(a)	26,348		26,348	STAAR Surgical Co ^(a)	6,013		191,875
GlycoMimetics Inc ^(a)	6,178		58,506	Surmodics Inc ^(a)	1,916		90,550
GTx Inc ^(a)	3,450		2,691	Tandem Diabetes Care Inc ^(a)	8,211		311,772
Halozyme Therapeutics Inc ^(a)	20,707		302,943	Teleflex Inc	6,627		1,712,947
ImmunoGen Inc ^(a)	21,384		102,643	ViewRay Inc ^(a)	9,708		58,927
Immunomedics Inc ^(a)	27,125		387,074	Wright Medical Group NV ^(a)	14,739		401,196
Incyte Corp ^(a)	26,096		1,659,445
Inovio Pharmaceuticals Inc ^(a)	13,129		52,516			$	8,522,280
Insmed Inc ^(a)	11,055		145,042	Healthcare — Services — 6.47%
Intercept Pharmaceuticals Inc ^(a)	4,243		427,652	Brookdale Senior Living Inc ^(a)	26,662		178,636
Intrexon Corp ^(a)	16,956		110,892	Capital Senior Living Corp ^(a)	4,295		29,206
Ionis Pharmaceuticals Inc ^(a)	19,881		1,074,767	Community Health Systems Inc ^(a)	16,306		45,983
Iovance Biotherapeutics Inc ^(a)	13,717		121,395	Evolus Inc ^(a)	3,828		45,553
Karyopharm Therapeutics Inc ^(a)	8,691		81,435	Invitae Corp ^(a)	7,706		85,228
Lexicon Pharmaceuticals Inc ^(a)	15,193		100,881	Molina Healthcare Inc ^(a)	8,260		959,977
Loxo Oncology Inc ^(a)	4,419		618,969	Natera Inc ^(a)	8,746		122,094
MacroGenics Inc ^(a)	6,061		76,975	R1 RCM Inc ^(a)	15,782		125,467
Medicines Co/The ^(a)	10,588		202,654	Surgery Partners Inc ^(a)	7,004		68,569
NeoGenomics Inc ^(a)	11,715		147,726	Syneos Health Inc ^(a)	14,925		587,299
Novavax Inc ^(a)	54,900		101,016	Teladoc Health Inc ^(a)	6,558		325,080
Omeros Corp ^(a)	6,968		77,623	Tenet Healthcare Corp ^(a)	14,250		244,245
Pacific Biosciences of California Inc ^(a)	18,933		140,104	Triple-S Management Corp, Class B ^(a)	3,192		55,509
Pieris Pharmaceuticals Inc ^(a)	7,728		20,556
						$	2,872,846
Prothena Corp PLC ^(a)	5,717		58,885
PTC Therapeutics Inc ^(a)	7,213		247,550	Pharmaceuticals — 28.87%
				Achaogen Inc ^(a)	6,487		7,979
Puma Biotechnology Inc ^(a)	5,457		111,050
				Aclaris Therapeutics Inc ^(a)	4,445		32,848
Radius Health Inc ^(a)	6,525		107,597
				Adamas Pharmaceuticals Inc ^(a)	3,902		33,323
REGENXBIO Inc ^(a)	5,082		213,190
				Aerie Pharmaceuticals Inc ^(a)	6,489		234,253
Retrophin Inc ^(a)	5,802		131,299
				Agios Pharmaceuticals Inc ^(a)	8,321		383,681
Rigel Pharmaceuticals Inc ^(a)	23,883		54,931
				Aimmune Therapeutics Inc ^(a)	8,392		200,737
Sage Therapeutics Inc ^(a)	6,768		648,307
				Akebia Therapeutics Inc ^(a)	8,186		45,269
Sangamo Therapeutics Inc ^(a)	14,590		167,493
				Akorn Inc ^(a)	18,001		61,023


COMMON STOCKS (continued)	Shares Held		Value	Portfolio Summary (unaudited)
Pharmaceuticals (continued)				Sector	Percent
Alkermes PLC ^(a)	22,519	$	664,536
				Consumer, Non-cyclical	99.18	%
Amneal Pharmaceuticals Inc ^(a)	16,485		223,042
				Technology	0.41	%
Apellis Pharmaceuticals Inc ^(a)	8,061		106,325
				Consumer, Cyclical	0.13	%
Array BioPharma Inc ^(a)	30,500		434,625
				Energy	0.06	%
Assertio Therapeutics Inc ^(a)	9,172		33,111
				Other Assets and Liabilities	0.22	%
Athenex Inc ^(a)	9,520		120,809
Bellicum Pharmaceuticals Inc ^(a)	6,221		18,165	TOTAL NET ASSETS	100.00	%
Clovis Oncology Inc ^(a)	7,555		135,688
Coherus Biosciences Inc ^(a)	9,732		88,075
Collegium Pharmaceutical Inc ^(a)	4,767		81,849
Corbus Pharmaceuticals Holdings Inc ^(a)	8,209		47,941
Dermira Inc ^(a)	6,031		43,363
DexCom Inc ^(a)	12,276		1,470,665
Dova Pharmaceuticals Inc ^(a)	4,047		30,676
Endo International PLC ^(a)	32,132		234,564
Flexion Therapeutics Inc ^(a)	5,427		61,434
G1 Therapeutics Inc ^(a)	4,793		91,786
Global Blood Therapeutics Inc ^(a)	7,470		306,643
Heron Therapeutics Inc ^(a)	5,261		136,470
Horizon Pharma PLC ^(a)	23,910		467,201
Insys Therapeutics Inc ^(a)	10,653		37,285
Intellia Therapeutics Inc ^(a)	6,199		84,616
Intra-Cellular Therapies Inc ^(a)	7,851		89,423
Ironwood Pharmaceuticals Inc ^(a)	19,972		206,910
Kala Pharmaceuticals Inc ^(a)	3,528		17,252
Kura Oncology Inc ^(a)	5,450		76,518
La Jolla Pharmaceutical Co ^(a)	2,619		24,697
Madrigal Pharmaceuticals Inc ^(a)	2,042		230,174
MannKind Corp ^(a)	21,953		23,270
Marinus Pharmaceuticals Inc ^(a)	5,815		16,689
Mirati Therapeutics Inc ^(a)	4,153		176,170
Momenta Pharmaceuticals Inc ^(a)	11,238		124,067
MyoKardia Inc ^(a)	5,756		281,238
Nektar Therapeutics ^(a)	24,988		821,355
Neurocrine Biosciences Inc ^(a)	13,105		935,828
Ocular Therapeutix Inc ^(a)	4,169		16,593
Optinose Inc ^(a)	5,915		36,673
Pacira Pharmaceuticals Inc ^(a)	5,878		252,872
Paratek Pharmaceuticals Inc ^(a)	4,553		23,357
Portola Pharmaceuticals Inc ^(a)	9,483		185,108
Progenics Pharmaceuticals Inc ^(a)	12,118		50,896
Reata Pharmaceuticals Inc, Class A ^(a)	3,406		191,077
Revance Therapeutics Inc ^(a)	5,301		106,709
Rhythm Pharmaceuticals Inc ^(a)	4,904		131,819
Rocket Pharmaceuticals Inc ^(a)	5,654		83,792
Sarepta Therapeutics Inc ^(a)	9,623		1,050,158
Senseonics Holdings Inc ^(a)	25,259		65,421
Sorrento Therapeutics Inc ^(a)	12,547		30,113
Synergy Pharmaceuticals Inc ^(a)	35,585		4,053
TESARO Inc ^(a)	7,965		591,401
TG Therapeutics Inc ^(a)	7,797		31,968
TherapeuticsMD Inc ^(a)	33,780		128,702
uniQure NV ^(a)	5,330		153,611
Vanda Pharmaceuticals Inc ^(a)	7,516		196,393
Vital Therapies Inc ^(a)	6,080		1,133
Voyager Therapeutics Inc ^(a)	4,655		43,757
Xencor Inc ^(a)	8,011		289,678
Zogenix Inc ^(a)	6,002		218,833
		$	12,825,690
Retail — 0.13%
PetIQ Inc ^(a)	2,419		56,774

Software — 0.41%
Tabula Rasa HealthCare Inc ^(a)	2,872		183,119

TOTAL COMMON STOCKS		$	44,327,004
Total Investments		$	44,327,004
Other Assets and Liabilities — 0.22%		$		99,479
TOTAL NET ASSETS — 100.00%		$	44,426,483

^(a)Non-income Producing Security


COMMON STOCKS — 99.24%	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Advertising — 0.60%				Beverages (continued)
Dentsu Inc	800	$	35,801	Coca-Cola Amatil Ltd	2,381	$	13,735
Hakuhodo DY Holdings Inc	400		5,748	Coca-Cola HBC AG	799		24,971
Publicis Groupe SA	594		34,083	Davide Campari-Milano SpA	1,325		11,211
		$	75,632	Diageo PLC	5,659		201,602
				Fevertree Drinks PLC	328		9,193
Aerospace & Defense — 1.02%				Kirin Holdings Co Ltd	1,800		37,748
CAE Inc	300		5,514	Pernod Ricard SA	798		131,021
Meggitt PLC	2,378		14,276	Royal Unibrew A/S	188		12,954
MTU Aero Engines AG	70		12,704	Suntory Beverage & Food Ltd	400		18,101
Safran SA	809		97,696
						$	568,041
		$	130,190
				Biotechnology — 1.03%
Agriculture — 0.86%				CSL Ltd	940		122,592
British American Tobacco PLC	2,757		87,852	Swedish Orphan Biovitrum AB ^(a)	364		7,927
Swedish Match AB	558		21,979
						$	130,519
		$	109,831
				Chemicals — 2.20%
Airlines — 0.55%				Arkema SA	231		19,839
International Consolidated Airlines Group SA	5,490		43,245	Asahi Kasei Corp	2,000		20,619
Qantas Airways Ltd	6,558		26,745	Covestro AG ^(b)	447		22,115
		$	69,990	Croda International PLC	416		24,841
Apparel — 2.81%				Koninklijke DSM NV	426		34,869
adidas AG	311		64,994	Methanex Corp	100		4,810
Gildan Activewear Inc	142		4,310	Mitsubishi Chemical Holdings Corp	3,100		23,549
Hermes International	66		36,660	Nissan Chemical Corp	300		15,766
Kering SA	196		92,432	Novozymes A/S	667		29,775
LVMH Moet Hennessy Louis Vuitton SE	485		143,479	Shin-Etsu Chemical Co Ltd	900		70,092
Moncler SpA	463		15,347	Solvay SA	135		13,506
		$	357,222			$	279,781
Auto Manufacturers — 2.86%				Coal — 0.13%
Bayerische Motoren Werke AG	1,078		87,323	Whitehaven Coal Ltd	5,309		16,154
Honda Motor Co Ltd	2,800		73,944	Commercial Services — 3.73%
Nissan Motor Co Ltd	9,760		78,388	Ashtead Group PLC	1,235		25,769
Renault SA	1,086		67,876	Atlantia SpA	937		19,399
Suzuki Motor Corp	1,100		55,870	Edenred	422		15,526
		$	363,401	Experian PLC	2,975		72,236
				Nihon M&A Center Inc	400		8,087
Auto Parts & Equipment — 0.95%				Park24 Co Ltd	300		6,605
Aisin Seiki Co Ltd	400		13,941	Randstad NV	274		12,586
CIE Automotive SA	205		5,036	Recruit Holdings Co Ltd	1,900		46,154
Cie Plastic Omnium SA	193		4,460	RELX PLC	8,088		166,645
Continental AG	298		41,228	SGS SA	32		71,950
Faurecia SA	332		12,580	Wirecard AG	195		29,670
Hella GmbH & Co KGaA	95		3,788
Magna International Inc	497		22,560			$	474,627
NGK Spark Plug Co Ltd	300		6,000	Computers — 1.86%
Stanley Electric Co Ltd	200		5,638	Atos SE	267		21,867
Yokohama Rubber Co Ltd/The	300		5,652	Capgemini SE	616		61,262
		$	120,883	CGI Group Inc, Class A ^(a)	433		26,483
				Computershare Ltd	2,076		25,136
Banks — 11.42%				Logitech International SA	1,218		38,316
Bank Leumi Le-Israel BM	8,359		50,522	Nomura Research Institute Ltd	300		11,154
Bank of Montreal	1,868		122,038	Obic Co Ltd	100		7,746
Canadian Imperial Bank of Commerce	1,964		146,279	Otsuka Corp	300		8,266
DBS Group Holdings Ltd	4,600		79,954	SCSK Corp	200		7,098
DNB ASA	2,120		33,872	Teleperformance	185		29,590
FinecoBank Banca Fineco SpA	1,422		14,302
Hang Seng Bank Ltd	1,000		22,451			$	236,918
Intesa Sanpaolo SpA	42,962		95,484	Construction Materials — 2.10%
KBC Group NV	345		22,405	Daikin Industries Ltd	500		53,351
Macquarie Group Ltd	1,142		87,394	Geberit AG	267		103,850
National Bank of Canada	1,614		66,265	Kingspan Group PLC	755		32,335
Royal Bank of Canada	2,730		186,853	Sika AG	580		73,525
Skandinaviska Enskilda Banken AB, Class A	4,977		48,349	Xinyi Glass Holdings Ltd	4,000		4,424
Sumitomo Mitsui Financial Group Inc	4,800		159,628			$	267,485
Svenska Handelsbanken AB, Class A	3,246		36,002
Swedbank AB, Class A	2,818		62,875	Distribution/Wholesale — 2.75%
Toronto-Dominion Bank/The	3,608		179,343	Ferguson PLC	695		44,443
United Overseas Bank Ltd	2,100		37,857	Inchcape PLC	1,095		7,697
				ITOCHU Corp	3,200		54,508
		$	1,451,873	Marubeni Corp	3,600		25,370
Beverages — 4.47%				Mitsubishi Corp	2,900		79,905
Anheuser-Busch InBev SA	1,037		68,556	Mitsui & Co Ltd	4,000		61,694
Asahi Group Holdings Ltd	1,000		38,949	Sojitz Corp	6,200		21,608


COMMON STOCKS (continued)	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Distribution/Wholesale (continued)				Gas — 0.84%
Sumitomo Corp	3,000	$	42,740	Enagas SA	1,681	$	45,473
Toyota Tsusho Corp	400		11,843	Hong Kong & China Gas Co Ltd	14,600		30,205
		$	349,808	Snam SpA	7,148		31,277
Diversified Financial Services — 3.13%						$	106,955
CI Financial Corp	418		5,291	Hand/Machine Tools — 0.74%
Hargreaves Lansdown PLC	829		19,537	Fuji Electric Co Ltd	400		11,842
Hong Kong Exchanges & Clearing Ltd	3,200		92,602	Sandvik AB	1,807		25,761
IG Group Holdings PLC	937		6,807	Schindler Holding AG	245		48,531
Japan Exchange Group Inc	700		11,362	Techtronic Industries Co Ltd	1,500		7,969
Julius Baer Group Ltd ^(a)	1,660		59,128
						$	94,103
London Stock Exchange Group PLC	1,285		66,530
Mitsubishi UFJ Lease & Finance Co Ltd	700		3,372	Healthcare — Products — 2.03%
ORIX Corp	3,100		45,409	Cochlear Ltd	187		22,862
Partners Group Holding AG	95		57,605	Coloplast A/S, Class B	430		39,922
				ConvaTec Group PLC ^(b)	3,156		5,590
SBI Holdings Inc	700		13,789
Schroders PLC	393		12,237	DiaSorin SpA	37		2,997
Tokyo Century Corp	100		4,407	GN Store Nord A/S	483		18,033
				Shimadzu Corp	500		9,917
		$	398,076	Smith & Nephew PLC	2,469		46,072
Electric — 0.87%				Sonova Holding AG	309		50,489
A2A SpA	5,547		9,994	Sysmex Corp	200		9,627
CLP Holdings Ltd	2,000		22,604	Terumo Corp	700		39,750
Fortum OYJ	1,131		24,751	William Demant Holding A/S ^(a)	444		12,598
Red Electrica Corp SA	2,353		52,557			$	257,857
		$	109,906	Healthcare — Services — 0.28%
Electrical Components & Equipment — 0.05%				Fresenius Medical Care AG & Co KGaA	366		23,752
Brother Industries Ltd	400		5,952	PeptiDream Inc ^(a)	300		11,879

Electronics — 1.48%						$	35,631
Assa Abloy AB	1,830		32,654	Holding Companies — Diversified — 0.08%
Electrocomponents PLC	1,227		7,923	Swire Pacific Ltd, Class A	1,000		10,561
Halma PLC	1,232		21,419
Hoya Corp	700		42,247	Home Builders — 1.07%
MINEBEA MITSUMI Inc	1,400		20,309	Barratt Developments PLC	4,438		26,179
Nidec Corp	500		56,909	Bellway PLC	378		12,117
Venture Corp Ltd	700		7,165	Berkeley Group Holdings PLC	665		29,488
				Haseko Corp	1,000		10,538
		$	188,626	Persimmon PLC	1,322		32,521
Engineering & Construction — 1.31%				Taylor Wimpey PLC	14,407		25,020
ACS Actividades de Construccion y Servicios SA	641		24,845			$	135,863
Aena SME SA ^(b)	168		26,130
COMSYS Holdings Corp	300		7,343	Home Furnishings — 1.31%
Eiffage SA	385		32,184	Hoshizaki Corp	100		6,095
HomeServe PLC	816		9,002	Howden Joinery Group PLC	2,612		14,502
Kajima Corp	1,200		16,182	Sony Corp	3,000		145,778
Sydney Airport	7,065		33,490			$	166,375
Taisei Corp	400		17,171	Household Products — 4.79%
		$	166,347	Kao Corp	800		59,516
Entertainment — 0.27%				Kose Corp	100		15,747
Aristocrat Leisure Ltd	2,211		34,012	L’Oreal SA	652		150,302
				Pigeon Corp	200		8,576
Environmental Control — 0.10%				Pola Orbis Holdings Inc	400		10,835
Waste Connections Inc	175		12,989	Unicharm Corp	800		25,977
Food — 2.69%				Unilever NV	3,158		171,579
Chr Hansen Holding A/S	239		21,147	Unilever PLC	3,180		166,527
Danone SA	2,048		144,333			$	609,059
Kikkoman Corp	300		16,176	Insurance — 4.31%
Koninklijke Ahold Delhaize NV	3,091		78,179	AIA Group Ltd	12,000		99,610
Loblaw Cos Ltd	392		17,547	Allianz SE	870		174,580
Marine Harvest ASA	1,272		26,877	Assicurazioni Generali SpA	3,843		64,285
Metro Inc	282		9,779	Dai-ichi Life Holdings Inc	2,100		32,916
Salmar ASA	137		6,782	Hannover Rueck SE	139		18,745
SSP Group PLC	865		7,138	NN Group NV	527		21,013
Tate & Lyle PLC	1,589		13,367	Sampo OYJ	1,058		46,561
		$	341,325	Sony Financial Holdings Inc	500		9,375
Forest Products & Paper — 0.64%				Tokio Marine Holdings Inc	1,700		81,212
Mondi PLC	1,190		24,777			$	548,297
Smurfit Kappa Group PLC	977		26,037	Internet — 1.18%
UPM-Kymmene OYJ	836		21,216	Auto Trader Group PLC ^(b)	3,251		18,846
West Fraser Timber Co Ltd	187		9,238	Kakaku.com Inc	500		8,859
		$	81,268	M3 Inc	800		10,759


COMMON STOCKS (continued)	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Internet (continued)				Pharmaceuticals (continued)
MonotaRO Co Ltd	500	$	12,399	Sumitomo Dainippon Pharma Co Ltd	400	$	12,755
Rakuten Inc ^(a)	4,400		29,546	UCB SA	203		16,583
Rightmove PLC	3,570		19,669			$	1,023,639
Scout24 AG ^(b)	127		5,844
Trend Micro Inc ^(a)	400		21,787	Real Estate — 1.92%
ZOZO Inc	1,200		22,006	Aeon Mall Co Ltd	400		6,383
				Castellum AB	828		15,260
		$	149,715	CK Asset Holdings Ltd	4,000		29,270
Iron & Steel — 0.41%				Deutsche Wohnen SE	561		25,711
BlueScope Steel Ltd	2,851		22,009	LEG Immobilien AG	117		12,215
Evraz PLC	1,114		6,823	Mitsui Fudosan Co Ltd	2,300		51,307
voestalpine AG	766		22,906	REA Group Ltd	312		16,258
		$	51,738	Sumitomo Realty & Development Co Ltd	1,200		44,078
				Vonovia SE	970		43,999
Leisure Time — 0.43%
Carnival PLC	865		41,488			$	244,481
Yamaha Corp	300		12,810	REITs — 1.78%
		$	54,298	Ascendas Real Estate Investment Trust	12,800		24,136
				Canadian Apartment Properties REIT	200		6,490
Lodging — 0.55%				CapitaLand Mall Trust	11,500		19,069
Crown Resorts Ltd	1,906		15,922	Goodman Group	5,077		38,013
InterContinental Hotels Group PLC	544		29,378	GPT Group/The	9,123		34,314
Sands China Ltd	5,600		24,530	Link REIT	3,500		35,445
		$	69,830	Merlin Properties Socimi SA	1,184		14,630
Machinery — Construction & Mining — 0.22%				Mirvac Group	17,047		26,896
Atlas Copco AB, Class A ^(a)	1,192		28,311	Vicinity Centres	15,196		27,828
						$	226,821
Machinery — Diversified — 1.77%
Hexagon AB	598		27,529	Retail — 3.13%
Keyence Corp	200		101,601	ABC-Mart Inc	200		11,094
Kubota Corp	1,700		24,219	Alimentation Couche-Tard Inc	456		22,683
SMC Corp	100		30,327	Canadian Tire Corp Ltd	130		13,592
Spirax-Sarco Engineering PLC	142		11,294	Dollarama Inc	367		8,729
Yaskawa Electric Corp	1,200		29,539	Fast Retailing Co Ltd	300		154,291
				HUGO BOSS AG	153		9,452
		$	224,509
				Industria de Diseno Textil SA	2,722		69,704
Media — 0.90%				JD Sports Fashion PLC	1,314		5,842
Informa PLC	5,306		42,620	Matsumotokiyoshi Holdings Co Ltd	200		6,140
Pearson PLC	3,597		43,023	Next PLC	406		20,653
Wolters Kluwer NV	490		29,003	Pandora A/S	401		16,326
		$	114,646	Restaurant Brands International Inc	365		19,068
				Ryohin Keikaku Co Ltd	100		24,223
Mining — 3.55%				Sundrug Co Ltd	200		5,976
Anglo American PLC	2,536		56,496	USS Co Ltd	300		5,061
Boliden AB	950		20,578	Welcia Holdings Co Ltd	100		4,525
Evolution Mining Ltd	7,432		19,316
Kirkland Lake Gold Ltd	300		7,823			$	397,359
Rio Tinto Ltd	2,498		138,065	Semiconductors — 1.95%
Rio Tinto PLC	3,369		160,171	Advantest Corp	1,200		24,568
South32 Ltd	16,072		37,923	ASML Holding NV	515		80,933
Teck Resources Ltd	500		10,764	SUMCO Corp	3,500		39,182
		$	451,136	Tokyo Electron Ltd	900		102,764
Miscellaneous Manufacture — 0.09%						$	247,447
Nikon Corp	800		11,934	Software — 2.58%
Oil & Gas — 0.24%				Amadeus IT Group SA	1,178		82,115
Neste OYJ	394		30,408	Constellation Software Inc	18		11,522
				Dassault Systemes SE	329		39,090
Packaging & Containers — 0.05%				Nemetschek SE	17		1,865
CCL Industries Inc, Class B	163		5,977	Open Text Corp	331		10,789
Pharmaceuticals — 8.05%				Oracle Corp Japan	100		6,387
Alfresa Holdings Corp	300		7,672	SAP SE	1,251		124,600
Astellas Pharma Inc	6,100		78,000	Temenos AG	197		23,630
Bayer AG	1,625		112,753	TIS Inc	200		7,892
				Ubisoft Entertainment SA ^(a)	246		19,865
Chugai Pharmaceutical Co Ltd	600		34,925
GlaxoSmithKline PLC	9,210		175,053			$	327,755
Grifols SA	802		21,043	Telecommunications — 3.39%
Ipsen SA	101		13,059	BCE Inc	1,400		55,305
Medipal Holdings Corp	400		8,595	BT Group PLC	20,644		62,651
Merck KGaA	415		42,784	KDDI Corp	3,800		90,974
Novartis AG	2,546		217,688	Nippon Telegraph & Telephone Corp	1,900		77,695
Roche Holding AG	901		223,119	NTT DOCOMO Inc	3,000		67,675
Shionogi & Co Ltd	800		45,772	Sunrise Communications Group AG ^(b)	209		18,382
Sino Biopharmaceutical Ltd	21,000		13,838	Telenor ASA	1,422		27,547

^(b)Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities totaled $96,907 or 0.76% of net assets.


		Principal					Principal
BONDS — 97.15%		Amount		Value	BONDS (continued)		Amount		Value
Aerospace & Defense — 1.54%					Banks (continued)
United Technologies Corp					Royal Bank of Canada
3.10%, 06/01/2022	$	510,000	$	499,414	3.70%, 10/05/2023	$	1,130,000	$	1,134,532
3.95%, 08/16/2025		935,000		927,759	Royal Bank of Scotland Group PLC
4.13%, 11/16/2028		1,785,000		1,768,402	(3-month USD LIBOR + 1.47%),
4.63%, 11/16/2048		245,000		236,593	4.09%, 05/15/2023 ^(b)		1,485,000		1,440,530
					5.13%, 05/28/2024		3,520,000		3,412,873
			$	3,432,168	Santander UK PLC
Agriculture — 2.43%					5.00%, 11/07/2023 ^(a)		1,185,000		1,157,141
Altria Group Inc					Skandinaviska Enskilda Banken AB
2.85%, 08/09/2022		1,800,000		1,727,958	(5-year Swap rate + 3.85%),
4.50%, 05/02/2043		315,000		262,163	5.75%, 05/13/2020 ^(b),(c)		3,000,000		2,920,332
5.38%, 01/31/2044		1,945,000		1,813,647	State Street Corp
BAT Capital Corp					(3-month USD LIBOR + 1.03%),
3.22%, 08/15/2024		880,000		810,563	4.14%, 12/03/2029 ^(b)		845,000		872,201
4.54%, 08/15/2047		800,000		636,840	SunTrust Bank
Reynolds American Inc					4.05%, 11/03/2025		510,000		518,614
5.85%, 08/15/2045		190,000		176,516	Svenska Handelsbanken AB
					3.90%, 11/20/2023		1,055,000		1,064,623
			$	5,427,687	Synchrony Bank
Airlines — 2.15%					3.00%, 06/15/2022		3,461,000		3,234,058
					UBS AG
American Airlines 2013-2 Class A Pass Through					4.50%, 06/26/2048 ^(a)		435,000		449,375
Trust
4.95%, 07/15/2024		1,652,669		1,677,541	UBS Group Funding Switzerland AG
					(3-month USD LIBOR + 0.95%),
Continental Airlines 2012-1 Class A Pass Through					3.57%, 08/15/2023 ^(a),(b)		2,000,000		1,957,786
Trust
					Wells Fargo & Co
4.15%, 10/11/2025		816,813		814,689	4.40%, 06/14/2046		1,000,000		917,312
United Airlines 2014-2 Class A Pass Through Trust					Zions Bancorp NA
3.75%, 03/03/2028		1,244,011		1,215,859	3.50%, 08/27/2021		1,195,000		1,191,295
US Airways 2013-1 Class A Pass Through Trust
3.95%, 05/15/2027		1,077,522		1,085,309				$	51,295,923
			$	4,793,398	Beverages — 3.48%
					Anheuser-Busch Cos LLC / Anheuser-Busch
Auto Manufacturers — 2.31%					InBev Worldwide Inc
Daimler Finance North America LLC					3.65%, 02/01/2026 ^(a)		1,700,000		1,607,432
2.25%, 03/02/2020 ^(a)		3,600,000		3,551,536	4.90%, 02/01/2046 ^(a)		205,000		190,114
General Motors Financial Co Inc					Anheuser-Busch InBev Finance Inc
3.85%, 01/05/2028		480,000		417,963	2.65%, 02/01/2021		489,000		480,881
3.95%, 04/13/2024		1,250,000		1,187,138	Anheuser-Busch InBev Worldwide Inc
			$	5,156,637	4.60%, 04/15/2048		960,000		860,409
					Bacardi Ltd
Banks — 22.98%					4.70%, 05/15/2028 ^(a)		335,000		321,930
Bank of America Corp					5.15%, 05/15/2038 ^(a)		425,000		390,400
4.20%, 08/26/2024		2,800,000		2,777,040	5.30%, 05/15/2048 ^(a)		100,000		90,277
4.25%, 10/22/2026		3,275,000		3,185,260	Constellation Brands Inc
Citigroup Inc					4.40%, 11/15/2025		545,000		546,078
(3-month USD LIBOR + 0.95%),					Keurig Dr Pepper Inc
3.44%, 07/24/2023 ^(b)		1,905,000		1,860,078	3.55%, 05/25/2021 ^(a)		1,815,000		1,812,250
(3-month USD LIBOR + 1.15%),					4.42%, 05/25/2025 ^(a)		1,465,000		1,458,221
3.52%, 10/27/2028 ^(b)		2,000,000		1,865,181				$	7,757,992
4.13%, 07/25/2028		2,475,000		2,322,655	Biotechnology — 0.89%
4.65%, 07/23/2048		740,000		723,213	Gilead Sciences Inc
DBS Group Holdings Ltd					2.55%, 09/01/2020		2,000,000		1,983,825
(5-year Swap rate + 1.59%),
4.52%, 12/11/2028 ^(a),(b)		3,650,000		3,729,391	Chemicals — 0.89%
First Republic Bank					Dow Chemical Co/The
					5.55%, 11/30/2048 ^(a)		155,000		157,163
2.50%, 06/06/2022		1,740,000		1,686,209
4.63%, 02/13/2047		635,000		611,580	DowDuPont Inc
Goldman Sachs Group Inc/The					5.32%, 11/15/2038		555,000		571,474
(3-month USD LIBOR + 1.05%),					5.42%, 11/15/2048		385,000		399,993
2.91%, 06/05/2023 ^(b)		2,195,000		2,107,178	SABIC Capital II BV
					4.00%, 10/10/2023 ^(a)		865,000		860,675
(3-month USD LIBOR + 1.00%),
3.49%, 07/24/2023 ^(b)		1,025,000		995,981				$	1,989,305
3.85%, 01/26/2027		3,690,000		3,470,989	Computers — 2.55%
5.95%, 01/15/2027		470,000		494,911	Apple Inc
JPMorgan Chase & Co					3.35%, 02/09/2027		1,950,000		1,900,063
(3-month USD LIBOR + 0.85%),					4.65%, 02/23/2046		1,950,000		2,064,150
3.26%, 01/10/2025 ^(b)		1,500,000		1,436,244	Dell International LLC / EMC Corp
5.63%, 08/16/2043		980,000		1,077,308	8.35%, 07/15/2046 ^(a)		1,600,000		1,732,464
Morgan Stanley								$	5,696,677
5.00%, 11/24/2025		465,000		474,145	Distribution/Wholesale — 0.33%
(3-month USD LIBOR + 3.81%),					Ferguson Finance PLC
5.55%, 07/15/2020 ^(b),(c)		2,275,000		2,207,888	4.50%, 10/24/2028 ^(a)		740,000		739,258


		Principal					Principal
BONDS (continued)		Amount		Value	BONDS (continued)		Amount		Value

Diversified Financial Services — 1.47%					Insurance (continued)
Brookfield Finance Inc					American International Group Inc
4.70%, 09/20/2047	$	1,010,000	$	928,710	3.90%, 04/01/2026	$	1,600,000	$	1,539,308
					4.50%, 07/16/2044		1,280,000		1,142,309
Brookfield Finance LLC					AXA Equitable Holdings Inc
4.00%, 04/01/2024		1,350,000		1,334,619	5.00%, 04/20/2048 ^(a)		1,065,000		944,689
Nuveen LLC
4.00%, 11/01/2028 ^(a)		985,000		1,014,970	Markel Corp
					4.30%, 11/01/2047		1,000,000		868,172
			$	3,278,299	Nuveen Finance LLC
					4.13%, 11/01/2024 ^(a)		1,770,000		1,802,912
Electric — 6.03%
Consolidated Edison Co of New York Inc					Prudential Financial Inc
4.00%, 12/01/2028		425,000		435,551	(3-month USD LIBOR + 3.92%),
					5.63%, 06/15/2043 ^(b)		1,500,000		1,468,995
Dominion Energy Inc
4.25%, 06/01/2028		920,000		923,083	XLIT Ltd
Duke Energy Florida LLC					4.45%, 03/31/2025		510,000		506,824
3.80%, 07/15/2028		890,000		898,895	5.50%, 03/31/2045		975,000		1,008,193
Exelon Corp								$	10,880,207
3.50%, 06/01/2022		1,480,000		1,447,291	Media — 6.84%
Florida Power & Light Co					21st Century Fox America Inc
3.95%, 03/01/2048		935,000		913,161	3.00%, 09/15/2022		405,000		400,179
4.13%, 06/01/2048		150,000		150,384	6.20%, 12/15/2034		180,000		218,847
Fortis Inc					6.40%, 12/15/2035		1,000,000		1,247,553
3.06%, 10/04/2026		920,000		839,859	Charter Communications Operating LLC / Charter
MidAmerican Energy Co					Communications Operating Capital
3.95%, 08/01/2047		765,000		740,574	3.58%, 07/23/2020		730,000		729,213
Pacific Gas & Electric Co					4.20%, 03/15/2028		1,000,000		942,001
3.30%, 12/01/2027		600,000		489,629	6.48%, 10/23/2045		700,000		719,557
4.65%, 08/01/2028 ^(a)		1,730,000		1,586,009	Comcast Corp
Southern Co/The					3.38%, 02/15/2025		3,325,000		3,256,600
(3-month USD LIBOR + 3.63%),					3.95%, 10/15/2025		485,000		490,741
5.50%, 03/15/2057 ^(b)		1,590,000		1,525,221	4.15%, 10/15/2028		525,000		533,102
Tucson Electric Power Co					4.60%, 10/15/2038		975,000		984,534
4.85%, 12/01/2048		1,185,000		1,232,561	4.60%, 08/15/2045		385,000		375,122
Virginia Electric & Power Co					4.70%, 10/15/2048		780,000		788,487
3.80%, 04/01/2028		1,995,000		2,003,399	Discovery Communications LLC
4.60%, 12/01/2048		270,000		281,611	5.00%, 09/20/2037		435,000		403,494
					5.20%, 09/20/2047		45,000		41,357
			$	13,467,228	NBCUniversal Media LLC
Environmental Control — 0.27%					4.45%, 01/15/2043		510,000		491,604
Waste Connections Inc					Viacom Inc
4.25%, 12/01/2028		590,000		602,910	4.38%, 03/15/2043		825,000		651,390
Food — 4.02%					Warner Media LLC
					3.60%, 07/15/2025		900,000		852,410
General Mills Inc					4.05%, 12/15/2023		1,450,000		1,448,243
3.70%, 10/17/2023		2,400,000		2,385,996	5.38%, 10/15/2041		725,000		698,265
4.55%, 04/17/2038		565,000		524,201
4.70%, 04/17/2048		945,000		864,853				$	15,272,699
McCormick & Co Inc					Mining — 1.62%
3.15%, 08/15/2024		1,500,000		1,445,937	BHP Billiton Finance USA Ltd
3.40%, 08/15/2027		1,275,000		1,204,452	(5-year Swap rate + 5.09%),
Nestle Holdings Inc					6.75%, 10/19/2075 ^(a),(b)		2,415,000		2,504,307
3.35%, 09/24/2023 ^(a)		1,240,000		1,252,276	Glencore Finance Canada Ltd
3.50%, 09/24/2025 ^(a)		1,285,000		1,290,751	5.55%, 10/25/2042 ^(a)		620,000		558,074
			$	8,968,466	Glencore Funding LLC
					3.88%, 10/27/2027 ^(a)		625,000		558,737
Forest Products & Paper — 0.28%
International Paper Co								$	3,621,118
4.35%, 08/15/2048		725,000		620,290	Miscellaneous Manufacture — 0.86%
Healthcare — Products — 2.42%					General Electric Co
Abbott Laboratories					4.50%, 03/11/2044		210,000		171,272
					5.30%, 02/11/2021		1,750,000		1,752,169
3.75%, 11/30/2026		390,000		385,163
4.90%, 11/30/2046		1,025,000		1,075,967				$	1,923,441
Becton Dickinson and Co					Oil & Gas — 5.28%
3.70%, 06/06/2027		1,010,000		955,296	Canadian Natural Resources Ltd
Medtronic Inc					3.85%, 06/01/2027		1,500,000		1,414,981
2.50%, 03/15/2020		3,000,000		2,984,641	Concho Resources Inc
			$	5,401,067	4.38%, 01/15/2025		900,000		888,933
					Continental Resources Inc
Healthcare — Services — 0.46%					3.80%, 06/01/2024		2,415,000		2,286,206
UnitedHealth Group Inc					4.90%, 06/01/2044		1,530,000		1,354,159
3.88%, 12/15/2028		1,020,000		1,033,200	Marathon Oil Corp
Insurance — 4.87%					4.40%, 07/15/2027		625,000		593,876
AIA Group Ltd					5.20%, 06/01/2045		410,000		378,855
3.20%, 03/11/2025 ^(a)		1,660,000		1,598,805	6.60%, 10/01/2037		2,415,000		2,706,723


		Principal					Principal
BONDS (continued)		Amount		Value	BONDS (continued)		Amount		Value
Oil & Gas (continued)					Retail — 0.63%
Newfield Exploration Co					Home Depot Inc/The
5.38%, 01/01/2026	$	1,395,000	$	1,367,100	3.90%, 12/06/2028	$	305,000	$	312,398
5.63%, 07/01/2024		395,000		399,937	5.88%, 12/16/2036		600,000		720,871
Shell International Finance BV					McDonald’s Corp
4.00%, 05/10/2046		145,000		140,021	4.45%, 09/01/2048		355,000		337,705
Valero Energy Corp					Walmart Inc
4.35%, 06/01/2028		250,000		247,665	4.05%, 06/29/2048		45,000		44,776
			$	11,778,456			$		1,415,750
Oil & Gas Services — 0.89%
Baker Hughes a GE Co LLC / Baker Hughes					Savings & Loans — 0.61%
Co-Obligor Inc					Nationwide Building Society
3.34%, 12/15/2027		1,265,000		1,163,918	(5-year Swap rate + 1.85%),
Halliburton Co					4.13%, 10/18/2032 ^(a),(b)		1,540,000		1,362,868
4.75%, 08/01/2043		875,000		834,396
					Semiconductors — 0.47%
			$	1,998,314	Xilinx Inc
Packaging & Containers — 0.50%					2.95%, 06/01/2024		1,105,000		1,054,702
Packaging Corp of America					Software — 1.77%
4.50%, 11/01/2023		1,080,000		1,107,074	Fiserv Inc
Pharmaceuticals — 5.07%					3.80%, 10/01/2023		485,000		488,020
AbbVie Inc					4.20%, 10/01/2028		380,000		379,239
3.38%, 11/14/2021		435,000		434,591	Microsoft Corp
4.25%, 11/14/2028		215,000		208,721	3.70%, 08/08/2046		1,250,000		1,197,479
Bayer US Finance II LLC					Oracle Corp
3.88%, 12/15/2023 ^(a)		1,150,000		1,129,137	3.80%, 11/15/2037		660,000		617,207
4.38%, 12/15/2028 ^(a)		1,940,000		1,852,220	4.00%, 11/15/2047		795,000		740,701
Cigna Corp					6.13%, 07/08/2039		440,000		528,142
3.75%, 07/15/2023 ^(a)		610,000		607,969
4.13%, 11/15/2025 ^(a)		575,000		574,190			$		3,950,788
4.38%, 10/15/2028 ^(a)		2,125,000		2,136,859	Telecommunications — 2.71%
CVS Health Corp					AT&T Inc
3.70%, 03/09/2023		1,875,000		1,854,928	4.10%, 02/15/2028		1,000,000		961,576
4.30%, 03/25/2028		930,000		909,176	4.75%, 05/15/2046		1,700,000		1,509,420
5.05%, 03/25/2048		665,000		646,786	4.90%, 08/15/2037		335,000		312,351
Zoetis Inc					British Telecommunications PLC
3.90%, 08/20/2028		760,000		744,581	4.50%, 12/04/2023		300,000		304,065
4.45%, 08/20/2048		225,000		220,483	5.13%, 12/04/2028		605,000		608,406
			$	11,319,641	Telefonica Emisiones SA
Pipelines — 7.30%					5.21%, 03/08/2047		460,000		421,083
Andeavor Logistics LP / Tesoro Logistics Finance					Verizon Communications Inc
Corp					5.25%, 03/16/2037		1,855,000		1,932,291
4.25%, 12/01/2027		1,155,000		1,090,326			$		6,049,192
Energy Transfer Operating LP
5.15%, 03/15/2045		500,000		432,550	Transportation — 1.18%
EnLink Midstream Partners LP					Burlington Northern Santa Fe LLC
5.05%, 04/01/2045		1,085,000		847,675	4.15%, 12/15/2048		700,000		681,698
Kinder Morgan Energy Partners LP					Canadian National Railway Co
3.50%, 03/01/2021		1,015,000		1,011,878	4.45%, 01/20/2049		710,000		751,691
4.70%, 11/01/2042		2,250,000		1,958,280	CSX Corp
MPLX LP					4.75%, 11/15/2048		415,000		419,503
4.00%, 03/15/2028		580,000		543,605	Union Pacific Corp
4.50%, 07/15/2023		1,870,000		1,888,721	3.50%, 06/08/2023		430,000		430,817
4.80%, 02/15/2029		180,000		179,557	3.75%, 03/15/2024		345,000		347,984
Plains All American Pipeline LP / PAA Finance							$		2,631,693
Corp
4.50%, 12/15/2026		605,000		582,736	TOTAL BONDS	$	216,865,042
Sabine Pass Liquefaction LLC
5.00%, 03/15/2027		750,000		752,505	Total Investments	$	216,865,042
5.75%, 05/15/2024		3,745,000		3,907,372	Other Assets and Liabilities — 2.85%		$		6,356,734
Western Gas Partners LP					TOTAL NET ASSETS — 100.00%	$	223,221,776
5.30%, 03/01/2048		130,000		112,179
5.45%, 04/01/2044		1,500,000		1,344,267
Williams Cos Inc/The					^(a)Security exempt from registration under Rule 144A of the Securities Act of
5.75%, 06/24/2044		1,625,000		1,633,173	1933. These securities may be resold in transactions exempt from registration,
			$	16,284,824	normally to qualified institutional buyers. At the end of the period, the value
					of these securities totaled $40,980,186 or 18.36% of net assets.
REITs — 2.05%
					^(b)Rate shown is as of period end. The rate may be a variable or floating rate
Alexandria Real Estate Equities Inc
3.45%, 04/30/2025		920,000		885,544	or a fixed rate which may convert to a variable or floating rate in the future.
4.70%, 07/01/2030		2,170,000		2,196,157	^(c)Perpetual security. Perpetual securities pay an indefinite stream of interest, but
Camden Property Trust					they may be called by the issuer at an earlier date. Date shown, if any, reflects
4.10%, 10/15/2028		1,470,000		1,488,244
					the next call date or final legal maturity date. Rate shown is as of period end.
			$	4,569,945

Schedule of Investments Principal Millennials Index ETF December 31, 2018 (unaudited)


COMMON STOCKS — 99.78%	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Apparel — 5.37%				Internet (continued)
adidas AG	1,681	$	351,303	Facebook Inc, Class A ^(a)	557	$	73,017
Carter’s Inc	427		34,852	GrubHub Inc ^(a)	1,729		132,804
Columbia Sportswear Co	582		48,940	IAC/InterActiveCorp ^(a)	1,504		275,292
Deckers Outdoor Corp ^(a)	495		63,335	Just Eat PLC ^(a)	20,791		155,503
Gildan Activewear Inc	1,768		53,667	Match Group Inc	6,928		296,310
Michael Kors Holdings Ltd ^(a)	5,454		206,816	Naspers Ltd, Class N	1,113		223,743
				Netflix Inc ^(a)	1,192		319,051
		$	758,913
				Pandora Media Inc ^(a)	35,037		283,449
Beverages — 6.12%				Rightmove PLC	8,362		46,070
Anheuser-Busch InBev SA	929		61,416	SEEK Ltd	3,573		42,582
Brown-Forman Corp, Class B	1,640		78,031	Tencent Holdings Ltd	7,807		313,058
Constellation Brands Inc, Class A	391		62,881	Trade Me Group Ltd	16,907		72,060
Davide Campari-Milano SpA	13,518		114,381	YY Inc ADR ^(a)	3,229		193,288
Diageo PLC	3,021		107,623
Molson Coors Brewing Co, Class B	1,181		66,325			$	3,867,600
Pernod Ricard SA	614		100,810	Leisure Time — 1.77%
Treasury Wine Estates Ltd	26,218		273,306	Planet Fitness Inc, Class A ^(a)	4,667		250,245

		$	864,773	Media — 3.73%
Commercial Services — 14.88%				AMC Networks Inc, Class A ^(a)	857		47,032
Bright Horizons Family Solutions Inc ^(a)	2,946		328,332	MSG Networks Inc, Class A ^(a)	1,941		45,730
Care.com Inc ^(a)	10,834		209,205	Sirius XM Holdings Inc	14,152		80,808
Global Payments Inc	791		81,576	Vivendi SA	10,518		256,445
Navitas Ltd	89,121		317,628	Walt Disney Co/The	879		96,383
PayPal Holdings Inc ^(a)	3,098		260,511			$	526,398
RELX PLC	4,970		102,401
TAL Education Group ADR ^(a)	7,307		194,951	REITs — 1.97%
				American Campus Communities Inc	1,133		46,895
Wirecard AG	3,449		524,784
Worldpay Inc, Class A ^(a)	1,082		82,697	AvalonBay Communities Inc	542		94,335
				Essex Property Trust Inc	370		90,728
		$	2,102,085	UNITE Group PLC/The	4,591		47,164
Computers — 1.90%						$	279,122
Apple Inc	531		83,760
				Retail — 19.79%
HP Inc	4,074		83,354
				American Eagle Outfitters Inc	2,194		42,410
Ingenico Group SA	629		35,702	At Home Group Inc ^(a)	1,370		25,564
International Business Machines Corp	579		65,815
				Bed Bath & Beyond Inc	2,066		23,387
		$	268,631	Children’s Place Inc/The	328		29,550
Construction Materials — 0.40%				Chipotle Mexican Grill Inc ^(a)	545		235,326
Fortune Brands Home & Security Inc	1,497		56,871	Dick’s Sporting Goods Inc	1,248		38,938
				Domino’s Pizza Inc	382		94,732
Diversified Financial Services — 2.22%				Fast Retailing Co Ltd	700		360,011
Discover Financial Services	4,901		289,061	Foot Locker Inc	965		51,338
Pagseguro Digital Ltd, Class A ^(a)	1,312		24,574
				Hennes & Mauritz AB, Class B	18,147		258,028
		$	313,635	Hibbett Sports Inc ^(a)	1,835		26,241
Electronics — 0.78%				Home Depot Inc/The	1,975		339,344
Garmin Ltd	1,737		109,987	Industria de Diseno Textil SA	3,289		84,223
				JD Sports Fashion PLC	10,839		48,188
Food — 3.43%				Lowe’s Cos Inc	1,007		93,007
Sprouts Farmers Market Inc ^(a)	1,869		43,940	Lululemon Athletica Inc ^(a)	999		121,488
Takeaway.com NV ^(a),(b)	6,381		429,888	Mr Price Group Ltd	8,429		144,208
United Natural Foods Inc ^(a)	1,013		10,728	Qurate Retail Inc ^(a)	3,512		68,554
		$	484,556	Signet Jewelers Ltd	1,335		42,413
				Starbucks Corp	1,526		98,274
Home Builders — 0.97%				Truworths International Ltd	22,335		136,765
DR Horton Inc	2,010		69,666	Urban Outfitters Inc ^(a)	7,931		263,309
Toll Brothers Inc	2,034		66,980	Williams-Sonoma Inc	842		42,479
		$	136,646	Zalando SE ^(a),(b)	4,987		128,219
Home Furnishings — 1.93%						$	2,795,996
Electrolux AB, Series B	3,252		68,651	Semiconductors — 1.44%
Sleep Number Corp ^(a)	1,245		39,504
				NVIDIA Corp	1,521		203,053
Sony Corp	2,100		102,045
Whirlpool Corp	581		62,091	Software — 3.71%
		$	272,291	Blackbaud Inc	437		27,487
				Cornerstone OnDemand Inc ^(a)	1,125		56,734
Internet — 27.37%				First Data Corp, Class A ^(a)	5,531		93,529
Alibaba Group Holding Ltd ADR ^(a)	2,215		303,610	Microsoft Corp	968		98,320
Alphabet Inc, Class C ^(a)	341		353,143	Momo Inc ADR ^(a)	9,060		215,175
Amazon.com Inc ^(a)	162		243,319	Square Enix Holdings Co Ltd	1,200		32,703
ASOS PLC ^(a)	2,061		59,816
Baozun Inc ADR ^(a)	1,121		32,744			$	523,948
Booking Holdings Inc ^(a)	169		291,089
Ctrip.com International Ltd ADR ^(a)	5,826		157,652

Schedule of Investments
Principal Millennials Index ETF
December 31, 2018 (unaudited)


COMMON STOCKS — 99.74%	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Aerospace & Defense — 2.07%				Electronics (continued)
Boeing Co/The	510	$	164,475	Garmin Ltd	2,155	$	136,454
Raytheon Co	251		38,491	Mettler-Toledo International Inc ^(a)	210		118,772
TransDigm Group Inc ^(a)	449		152,687
						$	530,904
		$	355,653	Environmental Control — 2.25%
Banks — 0.66%				Republic Services Inc	2,720		196,085
Fifth Third Bancorp	1,653		38,895	Waste Management Inc	2,139		190,349
M&T Bank Corp	288		41,222			$	386,434
State Street Corp	515		32,481
				Food — 5.02%
		$	112,598	Campbell Soup Co	4,247		140,109
Beverages — 1.40%				Hershey Co/The	1,861		199,462
Brown-Forman Corp, Class B	1,010		48,056	JM Smucker Co/The	1,010		94,425
Constellation Brands Inc, Class A	591		95,045	Kellogg Co	825		47,033
Monster Beverage Corp ^(a)	863		42,477	Kraft Heinz Co/The	1,905		81,991
PepsiCo Inc	499		55,129	Lamb Weston Holdings Inc	1,010		74,296
		$	240,707	McCormick & Co Inc	1,204		167,645
				Sysco Corp	917		57,459
Biotechnology — 0.23%
Celgene Corp ^(a)	627		40,184			$	862,420
				Forest Products & Paper — 0.22%
Chemicals — 1.72%
Eastman Chemical Co	1,261		92,192	International Paper Co	918		37,050
PPG Industries Inc	1,134		115,929	Gas — 0.37%
Sherwin-Williams Co/The	136		53,510	Atmos Energy Corp	679		62,957
Westlake Chemical Corp	505		33,416
				Hand/Machine Tools — 0.24%
		$	295,047	Stanley Black & Decker Inc	346		41,430

Commercial Services — 7.63%				Healthcare — Products — 2.37%
Automatic Data Processing Inc	477		62,544	IDEXX Laboratories Inc ^(a)	978		181,928
Ecolab Inc	992		146,171	Intuitive Surgical Inc ^(a)	127		60,823
Equifax Inc	1,128		105,051	Zimmer Biomet Holdings Inc	1,581		163,981
FleetCor Technologies Inc ^(a)	638		118,489
Global Payments Inc	1,124		115,918			$	406,732
Moody’s Corp	763		106,851	Healthcare — Services — 4.04%
S&P Global Inc	963		163,652	Anthem Inc	232		60,930
Total System Services Inc	2,077		168,839	Humana Inc	676		193,661
TransUnion	2,255		128,084	Laboratory Corp of America Holdings ^(a)	1,070		135,205
Verisk Analytics Inc ^(a)	1,789		195,073	Quest Diagnostics Inc	1,236		102,922
		$	1,310,672	UnitedHealth Group Inc	808		201,289
Computers — 1.99%						$	694,007
Accenture PLC, Class A	1,148		161,880	Home Builders — 0.92%
Apple Inc	306		48,269	NVR Inc ^(a)	65		158,404
Cognizant Technology Solutions Corp, Class A	1,555		98,711
DXC Technology Co	619		32,912	Household Products — 1.58%
				Estee Lauder Cos Inc/The, Class A	924		120,212
		$	341,772	Procter & Gamble Co/The	1,649		151,576
Distribution/Wholesale — 1.02%						$	271,788
Fastenal Co	3,341		174,701
				Household Products/Wares — 3.28%
Diversified Financial Services — 7.91%				Avery Dennison Corp	464		41,681
Alliance Data Systems Corp	528		79,242	Church & Dwight Co Inc	2,600		170,976
BlackRock Inc	337		132,380	Clorox Co/The	1,423		219,341
CME Group Inc	780		146,734	Kimberly-Clark Corp	1,153		131,373
Intercontinental Exchange Inc	2,500		188,325			$	563,371
Mastercard Inc, Class A	1,040		196,196
Nasdaq Inc	2,264		184,675	Insurance — 4.22%
SEI Investments Co	1,750		80,850	Aflac Inc	4,113		187,388
T Rowe Price Group Inc	1,643		151,682	Arthur J Gallagher & Co	1,846		136,050
Visa Inc, Class A	1,495		197,250	Progressive Corp/The	3,179		191,789
				Reinsurance Group of America Inc	355		49,782
		$	1,357,334	Torchmark Corp	2,141		159,569
Electric — 5.21%						$	724,578
American Electric Power Co Inc	1,947		145,519
Dominion Energy Inc	1,721		122,983	Internet — 2.90%
Duke Energy Corp	725		62,567	CDW Corp	2,507		203,193
NextEra Energy Inc	1,202		208,932	F5 Networks Inc ^(a)	1,242		201,241
Pinnacle West Capital Corp	1,683		143,392	Facebook Inc, Class A ^(a)	714		93,598
WEC Energy Group Inc	3,052		211,381			$	498,032
		$	894,774	Lodging — 0.53%
Electrical Components & Equipment — 0.96%				Las Vegas Sands Corp	1,750		91,088
AMETEK Inc	2,438		165,053	Machinery — Diversified — 3.57%
Electronics — 3.09%				Cognex Corp	1,018		39,366
Amphenol Corp, Class A	1,395		113,023	Dover Corp	680		48,246
Fortive Corp	2,404		162,655	IDEX Corp	948		119,695


COMMON STOCKS (continued)	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Machinery — Diversified (continued)				Transportation (continued)
Nordson Corp	952	$	113,621	FedEx Corp	221	$	35,654
Roper Technologies Inc	671		178,835	Kansas City Southern	531		50,684
Xylem Inc	1,709		114,024	Norfolk Southern Corp	917		137,128
		$	613,787	Union Pacific Corp	422		58,333
				United Parcel Service Inc, Class B	524		51,106
Media — 0.30%
Comcast Corp, Class A	1,512		51,484			$	453,417

Miscellaneous Manufacture — 1.99%				Water — 0.85%
3M Co	784		149,383	American Water Works Co Inc	1,609		146,049
Eaton Corp PLC	677		46,483
Illinois Tool Works Inc	792		100,338	TOTAL COMMON STOCKS		$	17,126,981
Parker-Hannifin Corp	306		45,637	Total Investments		$	17,126,981
		$	341,841	Other Assets and Liabilities — 0.26%		$	44,762
Pharmaceuticals — 3.73%				TOTAL NET ASSETS — 100.00%		$	17,171,743
AbbVie Inc	1,101		101,501
Cigna Corp	661		125,537	^(a)Non-Income Producing Security
Pfizer Inc	5,038		219,909
Zoetis Inc	2,260		193,320	Portfolio Summary (unaudited)
		$	640,267	Sector			Percent
Real Estate — 0.64%				Consumer, Non-cyclical			29.29	%
CBRE Group Inc, Class A ^(a)	2,727		109,189	Technology			17.68	%
REITs — 3.95%				Financial			17.37	%
American Tower Corp	1,312		207,545	Industrial			16.82	%
Essex Property Trust Inc	578		141,731	Utilities			6.43	%
Extra Space Storage Inc	2,149		194,442	Consumer, Cyclical			6.18	%
Public Storage	666		134,805	Communications			4.04	%
				Basic Materials			1.93	%
		$	678,523
				Other Assets and Liabilities			0.26	%
Retail — 3.71%
Domino’s Pizza Inc	245		60,757	TOTAL NET ASSETS			100.00	%
Home Depot Inc/The	706		121,305
Lowe’s Cos Inc	610		56,339
McDonald’s Corp	1,170		207,757
Starbucks Corp	957		61,631
Walgreens Boots Alliance Inc	1,881		128,529
		$	636,318
Semiconductors — 3.68%
Applied Materials Inc	949		31,070
IPG Photonics Corp ^(a)	222		25,150
KLA-Tencor Corp	482		43,134
Lam Research Corp	664		90,417
Maxim Integrated Products Inc	897		45,612
Microchip Technology Inc	615		44,231
Micron Technology Inc ^(a)	1,119		35,506
NVIDIA Corp	225		30,038
ON Semiconductor Corp ^(a)	5,332		88,031
Teradyne Inc	1,207		37,876
Texas Instruments Inc	1,706		161,217
		$	632,282
Software — 12.01%
Adobe Inc ^(a)	874		197,734
ANSYS Inc ^(a)	342		48,886
Broadridge Financial Solutions Inc	1,820		175,175
CDK Global Inc	1,857		88,913
Cerner Corp ^(a)	852		44,679
Fidelity National Information Services Inc	1,881		192,897
Fiserv Inc ^(a)	2,563		188,355
Intuit Inc	1,096		215,748
Jack Henry & Associates Inc	1,566		198,130
MSCI Inc	1,305		192,396
Paychex Inc	2,836		184,765
Red Hat Inc ^(a)	1,241		217,969
SS&C Technologies Holdings Inc	2,575		116,158
		$	2,061,805
Telecommunications — 0.84%
Arista Networks Inc ^(a)	685		144,329

Transportation — 2.64%
CSX Corp	1,018		63,248
Expeditors International of Washington Inc	841		57,264


COMMON STOCKS — 99.67%	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Advertising — 2.05%				Construction Materials — 0.37%
Interpublic Group of Cos Inc/The	5,297	$	109,277	Fortune Brands Home & Security Inc	1,078	$	40,953
Omnicom Group Inc	1,614		118,209
				Distribution/Wholesale — 1.70%
		$	227,486	Watsco Inc	395		54,960
Aerospace & Defense — 2.57%				WW Grainger Inc	473		133,556
Boeing Co/The	342		110,295			$	188,516
General Dynamics Corp	294		46,220	Diversified Financial Services — 8.15%
Spirit AeroSystems Holdings Inc, Class A	715		51,544	Alliance Data Systems Corp	513		76,991
TransDigm Group Inc ^(a)	227		77,194
				American Express Co	670		63,864
		$	285,253	Capital One Financial Corp	668		50,494
Airlines — 2.48%				Discover Financial Services	1,572		92,717
Alaska Air Group Inc	1,908		116,102	Intercontinental Exchange Inc	895		67,420
Delta Air Lines Inc	1,212		60,479	Invesco Ltd	2,009		33,631
Southwest Airlines Co	2,126		98,816	Lazard Ltd, Class A	2,297		84,782
				Legg Mason Inc	3,086		78,724
		$	275,397	Mastercard Inc, Class A	374		70,555
Apparel — 2.06%				Nasdaq Inc	1,524		124,313
Carter’s Inc	1,062		86,680	Navient Corp	9,515		83,827
Hanesbrands Inc	6,330		79,315	Synchrony Financial	3,375		79,178
VF Corp	877		62,565			$	906,496
		$	228,560	Electronics — 1.61%
Auto Manufacturers — 1.30%				Allegion PLC	777		61,935
Ford Motor Co	11,675		89,314	Gentex Corp	2,878		58,164
General Motors Co	1,662		55,594	Honeywell International Inc	449		59,322
		$	144,908			$	179,421
Auto Parts & Equipment — 2.75%				Entertainment — 0.60%
Allison Transmission Holdings Inc	3,107		136,428	Vail Resorts Inc	318		67,041
BorgWarner Inc	2,525		87,719	Food — 1.84%
Lear Corp	663		81,456	General Mills Inc	1,292		50,310
		$	305,603	Kroger Co/The	2,409		66,248
				Tyson Foods Inc, Class A	1,652		88,217
Banks — 8.23%
Associated Banc-Corp	2,646		52,364			$	204,775
Bank of New York Mellon Corp/The	2,170		102,142	Hand/Machine Tools — 1.01%
BB&T Corp	1,203		52,114	Snap-on Inc	773		112,309
Citigroup Inc	865		45,032
				Healthcare — Products — 0.69%
Citizens Financial Group Inc	1,503		44,684
				Patterson Cos Inc	3,927		77,205
Huntington Bancshares Inc	7,898		94,144
PacWest Bancorp	1,253		41,700	Healthcare — Services — 3.41%
PNC Financial Services Group Inc/The	415		48,518	Anthem Inc	278		73,011
Popular Inc	2,931		138,402	Humana Inc	242		69,328
Regions Financial Corp	6,384		85,418	Quest Diagnostics Inc	1,202		100,091
State Street Corp	616		38,851	UnitedHealth Group Inc	548		136,518
Synovus Financial Corp	2,513		80,391			$	378,948
Zions Bancorp NA	2,253		91,787
				Home Builders — 0.44%
		$	915,547	Toll Brothers Inc	1,490		49,066

Biotechnology — 2.06%				Home Furnishings — 0.73%
Amgen Inc	670		130,429	Whirlpool Corp	763		81,542
Gilead Sciences Inc	1,574		98,454
				Household Products — 0.55%
		$	228,883
				Estee Lauder Cos Inc/The, Class A	472		61,407
Chemicals — 3.29%
Air Products & Chemicals Inc	407		65,140	Household Products/Wares — 0.78%
Celanese Corp, Series A	648		58,301	Church & Dwight Co Inc	1,325		87,132
Eastman Chemical Co	1,215		88,829	Housewares — 0.98%
LyondellBasell Industries NV, Class A	1,136		94,470	Toro Co/The	1,950		108,966
PPG Industries Inc	580		59,293
				Insurance — 6.21%
		$	366,033	Allstate Corp/The	1,333		110,146
Commercial Services — 1.18%				American Financial Group Inc	1,129		102,208
H&R Block Inc	2,581		65,480	Axis Capital Holdings Ltd	1,324		68,371
Robert Half International Inc	1,145		65,494	CNO Financial Group Inc	5,448		81,066
				Fidelity National Financial Inc	1,638		51,499
		$	130,974	First American Financial Corp	2,136		95,351
Computers — 2.54%				MetLife Inc	1,416		58,141
Apple Inc	691		108,998	Primerica Inc	1,271		124,190
Cognizant Technology Solutions Corp, Class A	798		50,657			$	690,972
International Business Machines Corp	420		47,742
Seagate Technology PLC	1,223		47,196	Internet — 1.23%
Western Digital Corp	756		27,949	CDW Corp	1,688		136,812
		$	282,542	Leisure Time — 0.83%
				Harley-Davidson Inc	2,709		92,431


COMMON STOCKS (continued)	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Lodging — 0.41%				Shipbuilding — 0.43%
Wyndham Destinations Inc	1,256	$	45,015	Huntington Ingalls Industries Inc	249	$	47,387

Machinery — Diversified — 0.88%				Software — 1.59%
Cummins Inc	736		98,359	Broadridge Financial Solutions Inc	651		62,659
				CDK Global Inc	952		45,582
Media — 2.27%
				MSCI Inc	462		68,112
Comcast Corp, Class A	1,804		61,426
Sirius XM Holdings Inc	10,407		59,424			$	176,353
Walt Disney Co/The	1,201		131,690	Telecommunications — 2.89%
		$	252,540	Cisco Systems Inc	2,748		119,071
				Juniper Networks Inc	2,547		68,540
Miscellaneous Manufacture — 2.22%
				Motorola Solutions Inc	1,159		133,331
Carlisle Cos Inc	635		63,830
Eaton Corp PLC	809		55,546			$	320,942
Ingersoll-Rand PLC	1,395		127,266	Transportation — 1.17%
		$	246,642	Union Pacific Corp	945		130,627

Oil & Gas — 1.94%				TOTAL COMMON STOCKS		$	11,083,054
Marathon Petroleum Corp	1,920		113,299
Valero Energy Corp	1,366		102,409	Total Investments		$	11,083,054
				Other Assets and Liabilities — 0.33%		$	36,889
		$	215,708
				TOTAL NET ASSETS — 100.00%		$	11,119,943
Oil & Gas Services — 0.91%
Baker Hughes a GE Co	4,692		100,878
				^(a)Non-income producing security
Packaging & Containers — 0.83%
Silgan Holdings Inc	2,297		54,255	Portfolio Summary (unaudited)
Westrock Co	993		37,496
				Sector			Percent
		$	91,751
				Financial			27.02	%
Pharmaceuticals — 4.03%				Consumer, Cyclical			25.95	%
AbbVie Inc	564		51,995	Consumer, Non-cyclical			14.55	%
Allergan PLC	804		107,463	Industrial			11.08	%
Cardinal Health Inc	944		42,102	Communications			8.43	%
CVS Health Corp	1,829		119,836	Technology			6.50	%
McKesson Corp	438		48,386	Basic Materials			3.29	%
Pfizer Inc	1,795		78,352	Energy			2.85	%
		$	448,134	Other Assets and Liabilities			0.33	%
Real Estate — 1.10%				TOTAL NET ASSETS			100.00	%
Jones Lang LaSalle Inc	406		51,400
Realogy Holdings Corp	4,805		70,537
		$	121,937
REITs — 2.46%
American Tower Corp	468		74,033
Extra Space Storage Inc	769		69,579
Host Hotels & Resorts Inc	3,520		58,678
Simon Property Group Inc	426		71,564
		$	273,854
Retail — 11.67%
Bed Bath & Beyond Inc	5,738		64,954
Cracker Barrel Old Country Store Inc	430		68,740
Foot Locker Inc	2,681		142,629
Home Depot Inc/The	675		115,978
Kohl’s Corp	989		65,610
Lowe’s Cos Inc	1,383		127,734
Nordstrom Inc	2,398		111,771
Signet Jewelers Ltd	2,465		78,313
Target Corp	1,643		108,586
TJX Cos Inc/The	1,582		70,779
Tractor Supply Co	1,897		158,286
Walgreens Boots Alliance Inc	949		64,845
Williams-Sonoma Inc	2,378		119,970
		$	1,298,195
Savings & Loans — 0.86%
Investors Bancorp Inc	9,183		95,503

Semiconductors — 2.37%
Entegris Inc	1,968		54,897
Lam Research Corp	646		87,966
Skyworks Solutions Inc	1,134		76,001
Teradyne Inc	1,440		45,187
		$	264,051


		Principal					Principal
BONDS — 97.77%		Amount		Value	BONDS (continued)		Amount		Value
Banks — 46.98%					Insurance (continued)
Bank of America Corp					Catlin Insurance Co Ltd
(3-month USD LIBOR + 3.90%),					(3-month USD LIBOR + 2.98%),
6.10%, 03/17/2025 ^(a),(b)	$	2,200,000	$	2,167,000	5.43%, 04/19/2019 ^(b)	$	1,650,000	$	1,544,400
Bank of New York Mellon Corp/The					Dai-ichi Life Insurance Co Ltd/The
(3-month USD LIBOR + 3.42%),					(3-month USD LIBOR + 3.68%),
4.95%, 06/20/2020 ^(a),(b)		1,100,000		1,072,500	5.10%, 10/28/2024 ^(a),(b),(c)		2,200,000		2,189,000
BNP Paribas SA					Legal & General Group PLC
(3-month USD LIBOR + 1.29%),					(5-year Swap rate + 3.69%),
7.20%, 06/25/2037 ^(a),(b),(c)		2,200,000		2,244,000	5.25%, 03/21/2047 ^(a)		2,200,000		1,961,846
Citigroup Inc					Lincoln National Corp
(3-month USD LIBOR + 4.06%),					(3-month USD LIBOR + 2.04%),
5.88%, 03/27/2020 ^(a),(b)		1,100,000		1,061,500	4.51%, 04/20/2067		1,100,000		857,450
Citizens Financial Group Inc					Meiji Yasuda Life Insurance Co
(3-month USD LIBOR + 3.16%),					(5-year Swap rate + 4.23%),
6.38%, 04/06/2024 ^(a),(b)		1,100,000		1,028,500	5.20%, 10/20/2045 ^(a),(c)		1,100,000		1,100,000
Credit Agricole SA					MetLife Inc
(3-month USD LIBOR + 6.98%),					9.25%, 04/08/2038 ^(c)		1,635,000		2,060,100
8.38%, 10/13/2019 ^(a),(b),(c)		1,650,000		1,687,125	Progressive Corp/The
Dresdner Funding Trust I					(3-month USD LIBOR + 2.54%),
8.15%, 06/30/2031 ^(c)		1,650,000		1,987,425	5.38%, 03/15/2023 ^(a),(b)		1,650,000		1,546,132
Goldman Sachs Group Inc/The					Prudential Financial Inc
(3-month USD LIBOR + 3.92%),					(3-month USD LIBOR + 3.92%),
5.38%, 05/10/2020 ^(a),(b)		1,650,000		1,594,346	5.63%, 06/15/2043 ^(a)		1,650,000		1,615,894
HSBC Capital Funding Dollar 1 LP					QBE Insurance Group Ltd
(3-month USD LIBOR + 4.98%),					(10-year Swap rate + 4.40%),
10.18%, 06/30/2030 ^(a),(b)		1,600,000		2,296,000	5.88%, 06/17/2046 ^(a)		1,100,000		1,043,744
JPMorgan Chase & Co					Voya Financial Inc
(3-month USD LIBOR + 3.78%),					(United States Treasury + 3.36%)
6.75%, 02/01/2024 ^(a),(b)		1,100,000		1,136,575	6.13%, 09/15/2023 ^(a),(b)		1,100,000		1,043,625
Lloyds Bank PLC								$	16,991,691
(3-month USD LIBOR + 11.76%),
12.00%, 12/16/2024 ^(a),(b),(c)		1,650,000		1,929,429	Pipelines — 6.90%
Morgan Stanley					Enbridge Inc
(3-month USD LIBOR + 3.81%),					(3-month USD LIBOR + 3.89%),
5.55%, 07/15/2020 ^(a),(b)		1,100,000		1,067,550	6.00%, 01/15/2077 ^(a)		1,650,000		1,481,666
Standard Chartered PLC					Enterprise Products Operating LLC
(3-month USD LIBOR + 1.46%),					(3-month USD LIBOR + 3.03%),
7.01%, 07/30/2037 ^(a),(b),(c)		2,200,000		2,194,500	5.25%, 08/16/2077 ^(a)		1,100,000		915,447
US Bancorp					Transcanada Trust
(3-month USD LIBOR + 2.91%),					(3-month USD LIBOR + 3.53%),
5.30%, 04/15/2027 ^(a),(b)		550,000		517,000	5.63%, 05/20/2075 ^(a)		1,100,000		991,375
Wells Fargo & Co								$	3,388,488
(3-month USD LIBOR + 3.99%),
5.88%, 06/15/2025 ^(a),(b)		1,100,000		1,087,295	TOTAL BONDS			$	48,008,367
			$	23,070,745	Total Investments			$	48,008,367
					Other Assets and Liabilities — 2.23%			$	1,093,588
Diversified Financial Services — 4.25%					TOTAL NET ASSETS — 100.00%			$	49,101,955
American Express Co
(3-month USD LIBOR + 3.43%),
5.20%, 11/15/2019 ^(a),(b)		1,650,000		1,625,250	^(a)Rate shown is as of period end. The rate may be a variable or floating rate
Charles Schwab Corp/The					or a fixed rate which may convert to a variable or floating rate in the future.
(3-month USD LIBOR + 2.58%),					^(b)Perpetual securities pay an indefinite stream of interest, but they may be
5.00%, 12/01/2027 ^(a),(b)		550,000		460,625	called by the issuer at an earlier date. Date shown, if any, reflects the next
			$	2,085,875	call date or final legal maturity date. Rate shown is as of period end.
					^(c)Security exempt from registration under Rule 144A of the Securities Act of
Electric — 3.37%
Emera Inc					1933. These securities may be resold in transactions exempt from registration,
(3-month USD LIBOR + 5.44%),					normally to qualified institutional buyers. At the end of the period, the value
6.75%, 06/15/2076 ^(a)		1,650,000		1,653,168	of these securities totaled $16,209,979 or 33.01% of net assets.
Gas — 1.67%
NiSource Inc					Portfolio Summary (unaudited)
(5-year Swap rate + 2.84%)					Sector				Percent
5.65%, 06/15/2023 ^(a),(b),(c)		880,000		818,400
					Financial				85.84	%
Insurance — 34.60%					Energy				6.90	%
Allstate Corp/The					Utilities				5.03	%
(3-month USD LIBOR + 2.94%),					Other Assets and Liabilities				2.23	%
5.75%, 08/15/2053 ^(a)		1,100,000		1,072,500
					TOTAL NET ASSETS				100.00	%
American International Group Inc
(3-month USD LIBOR + 2.87%),
5.75%, 04/01/2048 ^(a)		1,100,000		957,000


COMMON STOCKS — 99.75%	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Aerospace & Defense — 6.08%				Diversified Financial Services (continued)
Boeing Co/The	136	$	43,860	SEI Investments Co	590	$	27,258
Curtiss-Wright Corp	326		33,291	T Rowe Price Group Inc	415		38,313
Harris Corp	274		36,894	TD Ameritrade Holding Corp	746		36,524
HEICO Corp	644		49,897	Visa Inc, Class A	241		31,798
Lockheed Martin Corp	85		22,256			$	424,468
Northrop Grumman Corp	128		31,347
Raytheon Co	204		31,284	Electric — 0.63%
Teledyne Technologies Inc ^(a)	236		48,869	NextEra Energy Inc	176		30,592
		$	297,698	Electrical Components & Equipment — 0.82%
				AMETEK Inc	590		39,943
Apparel — 2.61%
Columbia Sportswear Co	377		31,702	Electronics — 2.83%
PVH Corp	291		27,048	FLIR Systems Inc	883		38,446
Ralph Lauren Corp	400		41,384	Keysight Technologies Inc ^(a)	846		52,520
VF Corp	387		27,609	National Instruments Corp	570		25,866
				TE Connectivity Ltd	289		21,857
		$	127,743
						$	138,689
Banks — 1.59%
Comerica Inc	459		31,529	Energy-Alternate Sources — 0.35%
				First Solar Inc ^(a)	404		17,152
JPMorgan Chase & Co	262		25,576
Regions Financial Corp	1,550		20,739	Entertainment — 0.60%
		$	77,844	Churchill Downs Inc	120		29,273
Beverages — 1.22%				Food — 1.14%
Brown-Forman Corp, Class B	824		39,206	Lamb Weston Holdings Inc	761		55,979
Constellation Brands Inc, Class A	126		20,263	Healthcare — Products — 5.33%
		$	59,469	Abbott Laboratories	481		34,791
				ABIOMED Inc ^(a)	152		49,406
Chemicals — 1.17%
Eastman Chemical Co	425		31,072	Bio-Techne Corp	296		42,837
Westlake Chemical Corp	398		26,335	Cantel Medical Corp	258		19,208
				ICU Medical Inc ^(a)	175		40,185
		$	57,407	Insulet Corp ^(a)	517		41,009
Commercial Services — 11.62%				ResMed Inc	292		33,250
2U Inc ^(a)	524		26,053			$	260,686
ASGN Inc ^(a)	548		29,866
Bright Horizons Family Solutions Inc ^(a)	445		49,595	Healthcare — Services — 1.59%
Cimpress NV ^(a)	285		29,475	Chemed Corp	164		46,458
				Encompass Health Corp	512		31,590
Cintas Corp	169		28,390
CoStar Group Inc ^(a)	122		41,156			$	78,048
FleetCor Technologies Inc ^(a)	143		26,558	Household Products — 0.78%
Grand Canyon Education Inc ^(a)	274		26,342	Estee Lauder Cos Inc/The, Class A	295		38,380
Moody’s Corp	278		38,931
S&P Global Inc	232		39,426	Insurance — 2.71%
Square Inc, Class A ^(a)	909		50,986	Fidelity National Financial Inc	720		22,637
Total System Services Inc	519		42,190	First American Financial Corp	491		21,918
United Rentals Inc ^(a)	255		26,145	Hanover Insurance Group Inc/The	380		44,373
Verisk Analytics Inc ^(a)	430		46,887	Progressive Corp/The	725		43,739
Weight Watchers International Inc ^(a)	703		27,101			$	132,667
WEX Inc ^(a)	282		39,497	Internet — 7.30%
		$	568,598	Amazon.com Inc ^(a)	31		46,561
				GoDaddy Inc ^(a)	729		47,837
Computers — 4.09%				GrubHub Inc ^(a)	441		33,873
Cognizant Technology Solutions Corp, Class A	358		22,726	IAC/InterActiveCorp ^(a)	283		51,800
DXC Technology Co	331		17,599	Netflix Inc ^(a)	150		40,149
EPAM Systems Inc ^(a)	252		29,234
				Palo Alto Networks Inc ^(a)	246		46,334
Fortinet Inc ^(a)	834		58,739
				VeriSign Inc ^(a)	243		36,035
NetApp Inc	716		42,724	Zendesk Inc ^(a)	934		54,518
Seagate Technology PLC	753		29,058
						$	357,107
		$	200,080
				Lodging — 2.59%
Distribution/Wholesale — 2.66%				Choice Hotels International Inc	360		25,769
Copart Inc ^(a)	867		41,425	Hilton Worldwide Holdings Inc	366		26,279
KAR Auction Services Inc	532		25,387	Hyatt Hotels Corp, Class A	588		39,749
Watsco Inc	248		34,507	Marriott International Inc, Class A	324		35,173
WW Grainger Inc	102		28,801
						$	126,970
		$	130,120
				Machinery — Construction & Mining — 0.35%
Diversified Financial Services — 8.67%				BWX Technologies Inc	454		17,356
BlackRock Inc	82		32,211
CME Group Inc	277		52,109	Machinery — Diversified — 2.71%
Credit Acceptance Corp ^(a)	135		51,538	Deere & Co	186		27,746
E*TRADE Financial Corp	797		34,972	IDEX Corp	310		39,141
LPL Financial Holdings Inc	725		44,283	Roper Technologies Inc	103		27,451
Mastercard Inc, Class A	253		47,728	Xylem Inc	574		38,297
Nasdaq Inc	340		27,734			$	132,635


COMMON STOCKS (continued)	Shares Held		Value	Portfolio Summary (unaudited)
Oil & Gas — 3.05%				Sector	Percent
Continental Resources Inc ^(a)	760	$	30,544
				Consumer, Non-cyclical	25.32	%
HollyFrontier Corp	916		46,826	Technology	19.78	%
Marathon Petroleum Corp	612		36,114	Financial	15.60	%
Valero Energy Corp	476		35,686	Industrial	14.88	%
		$	149,170	Consumer, Cyclical	10.11	%
Pharmaceuticals — 3.64%				Communications	8.86	%
Herbalife Nutrition Ltd ^(a)	909		53,586	Energy	3.40	%
Nektar Therapeutics ^(a)	416		13,674	Basic Materials	1.17	%
Sarepta Therapeutics Inc ^(a)	603		65,805	Utilities	0.63	%
Zoetis Inc	529		45,251	Other Assets and Liabilities	0.25	%
		$	178,316	TOTAL NET ASSETS	100.00	%
Real Estate — 1.42%
CBRE Group Inc, Class A ^(a)	935		37,437
Jones Lang LaSalle Inc	253		32,030
		$	69,467
REITs — 1.21%
Rayonier Inc	1,253		34,696
Ryman Hospitality Properties Inc	370		24,675
		$	59,371
Retail — 1.64%
Burlington Stores Inc ^(a)	216		35,137
Kohl’s Corp	684		45,376
		$	80,513
Semiconductors — 2.08%
Intel Corp	860		40,360
IPG Photonics Corp ^(a)	124		14,048
Micron Technology Inc ^(a)	551		17,483
ON Semiconductor Corp ^(a)	1,805		29,801
		$	101,692
Software — 13.62%
Adobe Inc ^(a)	205		46,379
ANSYS Inc ^(a)	183		26,158
Aspen Technology Inc ^(a)	562		46,185
Broadridge Financial Solutions Inc	403		38,789
Intuit Inc	258		50,787
Jack Henry & Associates Inc	239		30,238
Microsoft Corp	316		32,096
MSCI Inc	296		43,639
Paycom Software Inc ^(a)	413		50,572
PTC Inc ^(a)	574		47,585
RealPage Inc ^(a)	558		26,890
Red Hat Inc ^(a)	296		51,990
salesforce.com Inc ^(a)	248		33,969
ServiceNow Inc ^(a)	267		47,539
Splunk Inc ^(a)	292		30,616
SS&C Technologies Holdings Inc	836		37,712
Tyler Technologies Inc ^(a)	136		25,272
		$	666,416
Telecommunications — 1.56%
Cisco Systems Inc	1,043		45,193
Motorola Solutions Inc	273		31,406
		$	76,599
Transportation — 2.09%
CH Robinson Worldwide Inc	478		40,195
Old Dominion Freight Line Inc	301		37,171
XPO Logistics Inc ^(a)	434		24,755
		$	102,121

TOTAL COMMON STOCKS		$	4,882,569
Total Investments		$	4,882,569
Other Assets and Liabilities — 0.25%		$		12,170
TOTAL NET ASSETS — 100.00%		$	4,894,739

^(a)Non-Income Producing Security


COMMON STOCKS — 99.70%	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Aerospace & Defense — 3.60%				Pharmaceuticals (continued)
Boeing Co/The	84,731	$	27,325,747	Pfizer Inc	1,076,403	$	46,984,991
United Technologies Corp	225,383		23,998,782			$	176,697,053
		$	51,324,529	Retail — 7.38%
Agriculture — 2.71%				Home Depot Inc/The	228,943		39,336,986
Altria Group Inc	258,507		12,767,661	McDonald’s Corp	283,613		50,361,161
Philip Morris International Inc	386,456		25,799,802	Walmart Inc	166,016		15,464,390
		$	38,567,463			$	105,162,537
Banks — 7.30%				Semiconductors — 1.60%
Bank of America Corp	1,069,634		26,355,782	Intel Corp	329,680		15,471,882
Citigroup Inc	439,239		22,866,782	NVIDIA Corp	55,478		7,406,313
JPMorgan Chase & Co	279,258		27,261,166			$	22,878,195
Wells Fargo & Co	599,545		27,627,034
				Software — 6.74%
		$	104,110,764	Adobe Inc ^(a)	57,753		13,066,038
Beverages — 5.60%				Microsoft Corp	275,521		27,984,668
Coca-Cola Co/The	1,026,981		48,627,551	Oracle Corp	919,805		41,529,196
PepsiCo Inc	281,859		31,139,782	salesforce.com Inc ^(a)	98,035		13,427,854
		$	79,767,333			$	96,007,756
Biotechnology — 2.08%				Telecommunications — 7.35%
Amgen Inc	152,019		29,593,539	AT&T Inc	938,416		26,782,393
				Cisco Systems Inc	647,726		28,065,967
Chemicals — 1.84%
				Verizon Communications Inc	888,623		49,958,385
DowDuPont Inc	490,004		26,205,414
						$	104,806,745
Computers — 4.93%
Apple Inc	295,143		46,555,857	Transportation — 1.88%
International Business Machines Corp	208,394		23,688,146	Union Pacific Corp	193,518		26,749,993

		$	70,244,003	TOTAL COMMON STOCKS		$	1,420,865,270
Diversified Financial Services — 3.82%				Total Investments		$	1,420,865,270
Mastercard Inc, Class A	141,553		26,703,973	Other Assets and Liabilities — 0.30%		$	4,250,043
Visa Inc, Class A	209,949		27,700,671
				TOTAL NET ASSETS — 100.00%		$	1,425,115,313
		$	54,404,644
Electronics — 1.77%				^(a)Non-income producing security
Honeywell International Inc	191,498		25,300,716

Healthcare — Products — 4.22%				Portfolio Summary (unaudited)
Abbott Laboratories	429,544		31,068,918	Sector			Percent
Medtronic PLC	320,340		29,138,126
				Consumer, Non-cyclical			33.80	%
		$	60,207,044	Communications			17.19	%
Healthcare — Services — 3.12%				Technology			13.27	%
UnitedHealth Group Inc	178,309		44,420,338	Financial			13.23	%
				Industrial			9.25	%
Household Products — 3.68%				Consumer, Cyclical			7.38	%
Procter & Gamble Co/The	570,016		52,395,871	Energy			3.74	%
Insurance — 2.11%				Basic Materials			1.84	%
Berkshire Hathaway Inc, Class B ^(a)	147,177		30,050,600	Other Assets and Liabilities			0.30	%

Internet — 6.71%				TOTAL NET ASSETS			100.00	%
Alphabet Inc, Class A ^(a)	26,106		27,279,726
Amazon.com Inc ^(a)	29,805		44,766,216
Facebook Inc, Class A ^(a)	94,798		12,427,070
Netflix Inc ^(a)	41,672		11,153,927
		$	95,626,939
Media — 3.12%
Comcast Corp, Class A	440,288		14,991,806
Walt Disney Co/The	269,472		29,547,605
		$	44,539,411
Miscellaneous Manufacture — 2.00%
3M Co	149,552		28,495,638

Oil & Gas — 3.74%
Chevron Corp	257,694		28,034,530
Exxon Mobil Corp	370,644		25,274,215
		$	53,308,745
Pharmaceuticals — 12.40%
AbbVie Inc	164,840		15,196,600
Eli Lilly & Co	293,654		33,981,641
Johnson & Johnson	228,061		29,431,272
Merck & Co Inc	668,794		51,102,549


COMMON STOCKS — 99.64%	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Aerospace & Defense — 0.73%				Banks (continued)
Aerovironment Inc ^(a)	15,072	$	1,024,142	TriState Capital Holdings Inc ^(a)	17,877	$	347,886
Kaman Corp	22,643		1,270,046	Triumph Bancorp Inc ^(a)	27,416		814,255
		$	2,294,188	Trustmark Corp	56,316		1,601,064
				Veritex Holdings Inc ^(a)	27,227		582,113
Agriculture — 0.03%				Walker & Dunlop Inc	20,953		906,217
Turning Point Brands Inc	3,804		103,545	WesBanco Inc	20,683		758,859
Airlines — 1.08%						$	30,106,860
Allegiant Travel Co	6,429		644,314	Beverages — 0.54%
SkyWest Inc	9,236		410,725	Boston Beer Co Inc/The, Class A ^(a)	7,095		1,708,760
Spirit Airlines Inc ^(a)	40,475		2,344,312
				Biotechnology — 3.06%
		$	3,399,351	Adverum Biotechnologies Inc ^(a)	12,880		40,572
Apparel — 1.76%				Arrowhead Pharmaceuticals Inc ^(a)	31,690		393,590
Deckers Outdoor Corp ^(a)	23,340		2,986,353	Cambrex Corp ^(a)	24,223		914,660
Oxford Industries Inc	11,445		813,053	ChemoCentryx Inc ^(a)	4,862		53,044
Steven Madden Ltd	56,662		1,714,592	CRISPR Therapeutics AG ^(a)	32,894		939,782
				Emergent BioSolutions Inc ^(a)	16,825		997,386
		$	5,513,998
				Halozyme Therapeutics Inc ^(a)	50,192		734,309
Auto Parts & Equipment — 0.62%				ImmunoGen Inc ^(a)	73,643		353,486
Altra Industrial Motion Corp	67,375		1,694,481	Innoviva Inc ^(a)	47,085		821,633
Douglas Dynamics Inc	7,290		261,638	Intercept Pharmaceuticals Inc ^(a)	12,791		1,289,205
		$	1,956,119	Myriad Genetics Inc ^(a)	28,536		829,542
				NeoGenomics Inc ^(a)	30,192		380,721
Banks — 9.59%				Palatin Technologies Inc ^(a)	37,356		26,463
Allegiance Bancshares Inc ^(a)	3,006		97,304
				PDL BioPharma Inc ^(a)	75,716		219,576
BancFirst Corp	5,109		254,939	PTC Therapeutics Inc ^(a)	29,114		999,193
Banner Corp	25,628		1,370,585	Retrophin Inc ^(a)	12,850		290,796
Baycom Corp ^(a)	6,179		142,673
				Vericel Corp ^(a)	16,255		282,837
Blue Hills Bancorp Inc	9,446		201,578	XOMA Corp ^(a)	2,117		26,780
Camden National Corp	2,786		100,212
Cathay General Bancorp	51,484		1,726,259			$	9,593,575
CBTX Inc	11,383		334,660	Chemicals — 1.21%
City Holding Co	8,334		563,295	American Vanguard Corp	7,400		112,406
Community Bank System Inc	28,819		1,680,148	Balchem Corp	8,616		675,064
ConnectOne Bancorp Inc	15,010		277,235	Innospec Inc	8,627		532,803
Enterprise Financial Services Corp	13,983		526,180	PQ Group Holdings Inc ^(a)	23,323		345,414
Equity Bancshares Inc, Class A ^(a)	8,817		310,799	Sensient Technologies Corp	25,794		1,440,595
FB Financial Corp	10,822		378,986	Stepan Co	9,419		697,006
Financial Institutions Inc	10,226		262,808			$	3,803,288
First Bancshares Inc/The	4,770		144,293
				Coal — 0.88%
First Commonwealth Financial Corp	52,051		628,776
				Arch Coal Inc, Class A	18,899		1,568,428
First Financial Corp	3,504		140,686	Warrior Met Coal Inc	49,398		1,190,986
First Interstate BancSystem Inc, Class A	27,209		994,761
First Merchants Corp	17,847		611,617			$	2,759,414
First Mid-Illinois Bancshares Inc	4,347		138,756	Commercial Services — 5.04%
First Midwest Bancorp Inc	56,429		1,117,859	Aaron’s Inc	15,418		648,327
Franklin Financial Network Inc ^(a)	13,847		365,145	Adtalem Global Education Inc ^(a)	15,970		755,700
Great Western Bancorp Inc	27,137		848,031	Barrett Business Services Inc	1,937		110,893
Hanmi Financial Corp	18,300		360,510	BG Staffing Inc	5,393		111,365
Heartland Financial USA Inc	25,845		1,135,888	Care.com Inc ^(a)	6,022		116,285
Heritage Commerce Corp	24,948		282,910	Carriage Services Inc	6,165		95,558
Heritage Financial Corp	49,609		1,474,380	Cass Information Systems Inc	3,331		176,277
Horizon Bancorp Inc	11,741		185,273	CBIZ Inc ^(a)	26,829		528,531
Independent Bank Corp	10,496		737,974	CorVel Corp ^(a)	2,059		127,081
Independent Bank Group Inc	27,997		1,281,423	CRA International Inc	3,442		146,457
Lakeland Bancorp Inc	17,368		257,220	Deluxe Corp	42,969		1,651,728
Lakeland Financial Corp	11,070		444,571	Ennis Inc	6,471		124,567
LegacyTexas Financial Group Inc	25,250		810,273	EVERTEC Inc	36,020		1,033,774
Live Oak Bancshares Inc	14,609		216,359	Forrester Research Inc	3,565		159,356
Luther Burbank Corp	9,827		88,640	FTI Consulting Inc ^(a)	24,347		1,622,484
Merchants Bancorp	5,505		109,880	Hackett Group Inc/The	7,961		127,456
Metropolitan Bank Holding Corp ^(a)	2,637		81,352	HMS Holdings Corp ^(a)	21,543		606,005
NBT Bancorp Inc	11,042		381,943	ICF International Inc	8,182		530,030
Old Line Bancshares Inc	13,482		354,846	Kforce Inc	14,571		450,535
				LiveRamp Holdings Inc ^(a)	22,067		852,448
Old Second Bancorp Inc	13,050		169,650
Opus Bank	17,466		342,159	Medifast Inc	8,319		1,040,041
Peoples Bancorp Inc	6,002		180,660	Monro Inc	10,757		739,544
Preferred Bank	18,597		806,180	Navigant Consulting Inc	18,403		442,592
S&T Bancorp Inc	11,836		447,874	Nutrisystem Inc	37,798		1,658,576
				Paylocity Holding Corp ^(a)	15,566		937,229
Seacoast Banking Corp of Florida ^(a)	21,317		554,668
ServisFirst Bancshares Inc	14,536		463,262	Strategic Education Inc	4,759		539,766
				Vectrus Inc ^(a)	3,398		73,329
Sierra Bancorp	6,717		161,410
				Viad Corp	8,387		420,105
Southside Bancshares Inc	15,988		507,619
Sterling Bancorp Inc	6,037		41,957			$	15,826,039


COMMON STOCKS (continued)	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Computers — 1.59%				Engineering & Construction — 1.61%
ExlService Holdings Inc ^(a)	13,674	$	719,526	Comfort Systems USA Inc	21,276	$	929,336
Insight Enterprises Inc ^(a)	16,116		656,727	Exponent Inc	15,461		784,027
Presidio Inc	11,791		153,873	KBR Inc	131,521		1,996,489
Qualys Inc ^(a)	20,408		1,525,294	NV5 Global Inc ^(a)	4,140		250,677
Unisys Corp ^(a)	45,867		533,433	TopBuild Corp ^(a)	24,010		1,080,450
Varonis Systems Inc ^(a)	18,155		960,399
						$	5,040,979
Virtusa Corp ^(a)	10,377		441,956
				Entertainment — 0.63%
		$	4,991,208	Eldorado Resorts Inc ^(a)	40,886		1,480,482
Construction Materials — 1.51%				International Speedway Corp, Class A	10,517		461,276
Boise Cascade Co	35,129		837,827	RCI Hospitality Holdings Inc	1,736		38,765
Continental Building Products Inc ^(a)	25,508		649,178
						$	1,980,523
Gibraltar Industries Inc ^(a)	8,711		310,024
PGT Innovations Inc ^(a)	40,981		649,549	Environmental Control — 0.60%
				Evoqua Water Technologies Corp ^(a)	63,581		610,378
Simpson Manufacturing Co Inc	11,291		611,182
Summit Materials Inc, Class A ^(a)	136,467		1,692,191	Tetra Tech Inc	19,426		1,005,684
				US Ecology Inc	4,194		264,138
		$	4,749,951
						$	1,880,200
Distribution/Wholesale — 0.91%
Dorman Products Inc ^(a)	9,168		825,303	Food — 0.98%
G-III Apparel Group Ltd ^(a)	27,460		765,859	Calavo Growers Inc	10,921		796,796
Nexeo Solutions Inc ^(a)	29,189		250,734	Chefs’ Warehouse Inc/The ^(a)	7,294		233,262
Systemax Inc	7,054		168,520	John B Sanfilippo & Son Inc	5,437		302,624
				Simply Good Foods Co/The ^(a)	24,034		454,243
Triton International Ltd	27,408		851,567
				Sprouts Farmers Market Inc ^(a)	55,481		1,304,358
		$	2,861,983
						$	3,091,283
Diversified Financial Services — 4.20%
Blucora Inc ^(a)	18,638		496,516	Forest Products & Paper — 0.28%
Cohen & Steers Inc	15,329		526,091	Neenah Inc	10,037		591,380
Diamond Hill Investment Group Inc	1,606		240,017	Schweitzer-Mauduit International Inc	10,976		274,949
Enova International Inc ^(a)	21,249		413,506			$	866,329
Federated Investors Inc, Class B	95,011		2,522,542	Gas — 0.17%
FRP Holdings Inc ^(a)	1,775		81,668
				Chesapeake Utilities Corp	6,539		531,621
Hamilton Lane Inc, Class A	17,524		648,388
Houlihan Lokey Inc	35,519		1,307,099	Hand/Machine Tools — 0.12%
Legg Mason Inc	88,725		2,263,375	Franklin Electric Co Inc	8,426		361,307
Moelis & Co, Class A	47,767		1,642,229	Healthcare — Products — 6.58%
PennyMac Financial Services Inc	8,131		172,865	AngioDynamics Inc ^(a)	10,161		204,541
PJT Partners Inc, Class A	10,848		420,469	Apxy Medical Corp	4,562		29,562
Regional Management Corp ^(a)	5,123		123,208
				AtriCure Inc ^(a)	7,886		241,312
TPG RE Finance Trust Inc	59,844		1,093,948	Atrion Corp	368		272,717
Waddell & Reed Financial Inc, Class A	67,796		1,225,752	Avanos Medical Inc ^(a)	15,870		710,817
		$	13,177,673	BioLife Solutions Inc ^(a)	7,226		86,929
				BioTelemetry Inc ^(a)	14,864		887,678
Electric — 1.32%
Ameresco Inc, Class A ^(a)	6,136		86,517	Cardiovascular Systems Inc ^(a)	13,636		388,490
				CareDx Inc ^(a)	10,420		261,959
Black Hills Corp	47,615		2,989,270
				Cerus Corp ^(a)	43,511		220,601
Clearway Energy Inc	62,516		1,078,401
				CONMED Corp	12,384		795,053
		$	4,154,188	CryoLife Inc ^(a)	6,539		185,577
Electrical Components & Equipment — 1.27%				CytoSorbents Corp ^(a)	8,643		69,835
Encore Wire Corp	5,178		259,832	Genomic Health Inc ^(a)	15,449		995,070
EnerSys	17,344		1,346,068	Glaukos Corp ^(a)	9,371		526,369
Generac Holdings Inc ^(a)	44,076		2,190,577	Integer Holdings Corp ^(a)	18,392		1,402,574
Insteel Industries Inc	7,290		177,001	Invacare Corp	22,579		97,090
				iRadimed Corp ^(a)	2,656		64,966
		$	3,973,478
				iRhythm Technologies Inc ^(a)	11,165		775,744
Electronics — 1.61%				LeMaitre Vascular Inc	6,292		148,743
Alarm.com Holdings Inc ^(a)	26,857		1,393,073
				Luminex Corp	9,612		222,133
Atkore International Group Inc ^(a)	22,745		451,261
				Meridian Bioscience Inc	14,449		250,835
Badger Meter Inc	9,205		452,978	Merit Medical Systems Inc ^(a)	27,150		1,515,241
Brady Corp, Class A	18,932		822,785	NanoString Technologies Inc ^(a)	7,767		115,185
Comtech Telecommunications Corp	7,062		171,889	Novocure Ltd ^(a)	21,657		725,076
Control4 Corp ^(a)	15,102		265,795
				NuVasive Inc ^(a)	30,513		1,512,224
Napco Security Technologies Inc ^(a)	2,978		46,903
				Orthofix Medical Inc ^(a)	6,333		332,419
Stoneridge Inc ^(a)	14,238		350,967
				Patterson Cos Inc	113,245		2,226,397
Vishay Precision Group Inc ^(a)	3,811		115,206
				Quidel Corp ^(a)	12,994		634,367
Watts Water Technologies Inc, Class A	15,105		974,726	Repligen Corp ^(a)	24,601		1,297,457
		$	5,045,583	STAAR Surgical Co ^(a)	14,050		448,335
				Surmodics Inc ^(a)	5,031		237,765
Energy-Alternate Sources — 0.48%
				Tactile Systems Technology Inc ^(a)	6,401		291,566
Amyris Inc ^(a)	25,429		84,933
				Tandem Diabetes Care Inc ^(a)	63,391		2,406,956
Pattern Energy Group Inc, Class A	58,085		1,081,543
TPI Composites Inc ^(a)	13,719		337,213	Utah Medical Products Inc	918		76,267
		$	1,503,689			$	20,657,850


COMMON STOCKS (continued)	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Healthcare — Services — 2.38%				Leisure Time (continued)
Addus HomeCare Corp ^(a)	7,542	$	511,951	MasterCraft Boat Holdings Inc ^(a)	5,454	$	101,990
Amedisys Inc ^(a)	17,237		2,018,625
						$	2,339,620
American Renal Associates Holdings Inc ^(a)	4,437		51,114
Ensign Group Inc/The	13,773		534,255	Lodging — 0.05%
Invitae Corp ^(a)	21,906		242,280	Marcus Corp/The	4,054		160,133
LHC Group Inc ^(a)	17,173		1,612,201	Machinery — Diversified — 0.99%
Medpace Holdings Inc ^(a)	16,272		861,277	Applied Industrial Technologies Inc	16,588		894,757
National HealthCare Corp	2,909		228,211	Cactus Inc, Class A ^(a)	26,089		715,099
R1 RCM Inc ^(a)	19,164		152,354	Chart Industries Inc ^(a)	11,629		756,234
RadNet Inc ^(a)	12,087		122,925	CSW Industrials Inc ^(a)	7,374		356,533
Select Medical Holdings Corp ^(a)	35,771		549,085
				Kadant Inc	4,713		383,921
Surgery Partners Inc ^(a)	12,321		120,623
Triple-S Management Corp, Class B ^(a)	7,553		131,347			$	3,106,544
US Physical Therapy Inc	3,281		335,810	Media — 2.27%
				AMC Networks Inc, Class A ^(a)	34,120		1,872,505
		$	7,472,058
				Gray Television Inc ^(a)	28,174		415,285
Home Builders — 0.33%				John Wiley & Sons Inc, Class A	12,375		581,254
Cavco Industries Inc ^(a)	3,394		442,510
				Nexstar Media Group Inc	27,337		2,149,782
Winnebago Industries Inc	25,011		605,516	World Wrestling Entertainment Inc, Class A	28,325		2,116,444
		$	1,048,026			$	7,135,270
Home Furnishings — 0.30%				Metal Fabrication & Hardware — 0.62%
Sleep Number Corp ^(a)	29,541		937,336
				Advanced Drainage Systems Inc	20,696		501,878
Household Products — 0.15%				Rexnord Corp ^(a)	62,712		1,439,240
Inter Parfums Inc	7,400		485,218			$	1,941,118
Household Products/Wares — 1.07%				Mining — 0.36%
ACCO Brands Corp	42,880		290,726	Covia Holdings Corp ^(a)	33,287		113,841
Helen of Troy Ltd ^(a)	13,639		1,789,164	Kaiser Aluminum Corp	11,482		1,025,228
WD-40 Co	7,031		1,288,501			$	1,139,069
		$	3,368,391	Miscellaneous Manufacture — 2.01%
Insurance — 2.89%				ESCO Technologies Inc	8,305		547,715
American Equity Investment Life Holding Co	69,267		1,935,320	Fabrinet ^(a)	31,768		1,630,016
FBL Financial Group Inc, Class A	1,939		127,295	Federal Signal Corp	11,392		226,701
FedNat Holding Co	5,884		117,209	Harsco Corp ^(a)	31,366		622,929
HCI Group Inc	4,460		226,613	Hillenbrand Inc	16,646		631,383
Health Insurance Innovations Inc, Class A ^(a)	10,904		291,464	Myers Industries Inc	8,944		135,144
Horace Mann Educators Corp	14,655		548,830	Proto Labs Inc ^(a)	8,804		993,003
Kinsale Capital Group Inc	7,652		425,145	Raven Industries Inc	5,866		212,290
Mercury General Corp	25,354		1,311,055	Standex International Corp	2,941		197,576
National General Holdings Corp	22,805		552,109	Tredegar Corp	5,093		80,775
NMI Holdings Inc, Class A ^(a)	23,894		426,508	Trinseo SA	22,450		1,027,761
RLI Corp	24,436		1,685,840			$	6,305,293
Safety Insurance Group Inc	5,208		426,067
United Fire Group Inc	6,625		367,356	Office & Business Equipment — 0.32%
Universal Insurance Holdings Inc	16,951		642,782	Pitney Bowes Inc	170,267		1,006,278
		$	9,083,593	Office Furnishings — 0.48%
Internet — 2.12%				Herman Miller Inc	27,396		828,729
Cogent Communications Holdings Inc	19,614		886,749	Interface Inc	27,799		396,136
HealthStream Inc	8,318		200,880	Knoll Inc	17,602		290,081
Match Group Inc	49,693		2,125,370			$	1,514,946
New Media Investment Group Inc	29,008		335,622	Oil & Gas — 2.48%
NIC Inc	32,233		402,268	Callon Petroleum Co ^(a)	138,418		898,333
Perficient Inc ^(a)	16,492		367,112
				Carrizo Oil & Gas Inc ^(a)	84,909		958,623
Shutterfly Inc ^(a)	42,223		1,699,898
				CVR Energy Inc	26,765		922,857
Shutterstock Inc	12,649		455,490	Denbury Resources Inc ^(a)	239,591		409,701
TechTarget Inc ^(a)	16,068		196,190
				Evolution Petroleum Corp	6,975		47,569
		$	6,669,579	Gulfport Energy Corp ^(a)	135,120		885,036
Investment Companies — 0.18%				Mammoth Energy Services Inc	14,451		259,829
				Par Pacific Holdings Inc ^(a)	8,892		126,089
B. Riley Financial Inc	4,539		64,454
				Penn Virginia Corp ^(a)	7,408		400,476
Newtek Business Services Corp	9,491		165,523
				Southwestern Energy Co ^(a)	542,184		1,848,847
TCG BDC Inc	27,073		335,705
				SRC Energy Inc ^(a)	116,808		548,998
		$	565,682	Unit Corp ^(a)	12,521		178,800
Iron & Steel — 0.21%				VAALCO Energy Inc ^(a)	12,222		17,966
Carpenter Technology Corp	18,232		649,242	W&T Offshore Inc ^(a)	68,186		280,926

Leisure Time — 0.75%						$	7,784,050
Acushnet Holdings Corp	17,803		375,109	Oil & Gas Services — 0.49%
Callaway Golf Co	69,277		1,059,938	Archrock Inc	36,744		275,212
Fox Factory Holding Corp ^(a)	8,067		474,904	FTS International Inc ^(a)	20,727		147,369
Johnson Outdoors Inc, Class A	1,288		75,657	Matrix Service Co ^(a)	6,324		113,453
Malibu Boats Inc, Class A ^(a)	7,242		252,022


COMMON STOCKS (continued)	Shares Held		Value	COMMON STOCKS (continued)	Shares Held		Value
Oil & Gas Services (continued)				Retail (continued)
Oceaneering International Inc ^(a)	54,954	$	664,943	PC Connection Inc	4,377	$	130,128
SEACOR Holdings Inc ^(a)	9,146		338,402	PetIQ Inc ^(a)	20,548		482,262
		$	1,539,379	PetMed Express Inc	19,321		449,407
				RH ^(a)	20,920		2,506,634
Pharmaceuticals — 2.59%				Ruth’s Hospitality Group Inc	7,498		170,430
Antares Pharma Inc ^(a)	41,855		113,846
				Shoe Carnival Inc	8,134		272,570
BioSpecifics Technologies Corp ^(a)	1,127		68,296
				Tailored Brands Inc	36,268		494,696
Concert Pharmaceuticals Inc ^(a)	5,978		75,024
				Tilly’s Inc, Class A	8,550		92,853
Corcept Therapeutics Inc ^(a)	51,892		693,277
				Wingstop Inc	13,885		891,278
Enanta Pharmaceuticals Inc ^(a)	9,436		668,352	Zumiez Inc ^(a)	13,740		263,396
Endo International PLC ^(a)	101,162		738,483
Heska Corp ^(a)	1,954		168,239			$	19,378,915
Horizon Pharma PLC ^(a)	64,262		1,255,679	Savings & Loans — 1.44%
Momenta Pharmaceuticals Inc ^(a)	16,163		178,439	Axos Financial Inc ^(a)	44,184		1,112,553
MyoKardia Inc ^(a)	11,052		540,001	First Defiance Financial Corp	6,566		160,933
Owens & Minor Inc	31,149		197,173	Meridian Bancorp Inc	24,239		347,102
Phibro Animal Health Corp, Class A	9,017		289,987	Northfield Bancorp Inc	9,121		123,590
Premier Inc, Class A ^(a)	31,527		1,177,533	Northwest Bancshares Inc	81,331		1,377,747
Sorrento Therapeutics Inc ^(a)	48,389		116,134	Washington Federal Inc	52,405		1,399,737
Supernus Pharmaceuticals Inc ^(a)	31,271		1,038,823
						$	4,521,662
USANA Health Sciences Inc ^(a)	6,849		806,333
				Semiconductors — 1.74%
		$	8,125,619	Brooks Automation Inc	19,647		514,359
Pipelines — 0.18%				Cabot Microelectronics Corp	15,455		1,473,634
SemGroup Corp, Class A	40,073		552,206	Cohu Inc	12,192		195,925
				Nanometrics Inc ^(a)	19,152		523,424
Private Equity — 0.59%				Power Integrations Inc	14,030		855,549
Kennedy-Wilson Holdings Inc	101,111		1,837,187	Semtech Corp ^(a)	22,793		1,045,515
Real Estate — 1.17%				SMART Global Holdings Inc ^(a)	28,804		855,479
Marcus & Millichap Inc ^(a)	26,938		924,781
						$	5,463,885
McGrath RentCorp	11,107		571,788
Realogy Holdings Corp	134,242		1,970,673	Software — 4.83%
				Alteryx Inc, Class A ^(a)	31,372		1,865,693
RMR Group Inc/The, Class A	3,635		192,946
				Appfolio Inc, Class A ^(a)	6,020		356,504
		$	3,660,188	Apptio Inc, Class A ^(a)	24,509		930,362
REITs — 6.11%				Bottomline Technologies de Inc ^(a)	22,927		1,100,496
AG Mortgage Investment Trust Inc	35,043		558,235	Cornerstone OnDemand Inc ^(a)	33,679		1,698,432
Alexander’s Inc	851		259,334	CSG Systems International Inc	16,574		526,556
Apollo Commercial Real Estate Finance Inc	146,763		2,445,072	Ebix Inc	13,507		574,858
Arbor Realty Trust Inc	154,660		1,557,426	Envestnet Inc ^(a)	19,071		938,102
Ares Commercial Real Estate Corp	19,068		248,647	Manhattan Associates Inc ^(a)	34,861		1,477,061
Braemar Hotels & Resorts Inc	14,642		130,753	ManTech International Corp, Class A	12,310		643,751
CareTrust REIT Inc	71,361		1,317,324	Monotype Imaging Holdings Inc	20,221		313,830
Chesapeake Lodging Trust	39,801		969,154	Omnicell Inc ^(a)	17,282		1,058,350
CorEnergy Infrastructure Trust Inc	8,868		293,354	Progress Software Corp	19,172		680,414
Four Corners Property Trust Inc	33,175		869,185	QAD Inc, Class A	2,903		114,175
Hersha Hospitality Trust	44,730		784,564	Simulations Plus Inc	2,764		55,004
KKR Real Estate Finance Trust Inc	36,288		694,915	SPS Commerce Inc ^(a)	8,592		707,809
National Health Investors Inc	27,182		2,053,328	Tabula Rasa HealthCare Inc ^(a)	11,748		749,052
NexPoint Residential Trust Inc	6,464		226,563	Upland Software Inc ^(a)	13,859		376,688
PennyMac Mortgage Investment Trust	70,420		1,311,220	Verint Systems Inc ^(a)	23,675		1,001,689
Redwood Trust Inc	170,506		2,569,526			$	15,168,826
Tanger Factory Outlet Centers Inc	121,019		2,447,004
Western Asset Mortgage Capital Corp	54,453		454,138	Storage/Warehousing — 0.11%
				Mobile Mini Inc	10,386		329,756
		$	19,189,742
Retail — 6.17%				Telecommunications — 2.39%
				CalAmp Corp ^(a)	30,535		397,260
America’s Car-Mart Inc ^(a)	1,563		113,239
				Casa Systems Inc ^(a)	26,419		346,881
BJ’s Restaurants Inc	13,027		658,775
Bloomin’ Brands Inc	61,332		1,097,230	Consolidated Communications Holdings Inc	30,693		303,247
Bojangles’ Inc ^(a)	7,278		117,030	InterDigital Inc	28,183		1,872,197
				Iridium Communications Inc ^(a)	49,401		911,448
Boot Barn Holdings Inc ^(a)	16,748		285,218
Brinker International Inc	43,169		1,898,573	Plantronics Inc	30,120		996,972
Caleres Inc	12,942		360,176	Shenandoah Telecommunications Co	9,704		429,402
Cheesecake Factory Inc/The	30,728		1,336,975	Switch Inc, Class A	49,528		346,696
Chico’s FAS Inc	86,684		487,164	Telephone & Data Systems Inc	30,805		1,002,395
				Vonage Holdings Corp ^(a)	104,405		911,456
Citi Trends Inc	2,993		61,027
Container Store Group Inc/The ^(a)	4,331		20,659			$	7,517,954
Dave & Buster’s Entertainment Inc	31,578		1,407,116	Textiles — 0.38%
Dick’s Sporting Goods Inc	78,051		2,435,191	UniFirst Corp	8,281		1,184,763
DSW Inc, Class A	39,503		975,724
Duluth Holdings Inc, Class B ^(a)	4,953		124,964	Transportation — 1.54%
Group 1 Automotive Inc	10,977		578,707	ArcBest Corp	14,487		496,325
La-Z-Boy Inc	20,887		578,779	Forward Air Corp	11,577		634,999
National Vision Holdings Inc ^(a)	38,648		1,088,714	Marten Transport Ltd	19,786		320,335


Financial Highlights
Principal Exchange-Traded Funds
(unaudited)


Principal Active Global Dividend Income ETF

For a share outstanding for the year ended June 30 (except as noted):

	Period ended				Year ended			Period ended
	December 31, 2018 ^(b)				June 30, 2018			June 30, 2017 ^(a)
Net asset value, beginning of period	$	27.56		$	25.36		$	25.00
Investment Operations:
Net investment income (loss) ^(c)		0.28			0.69			0.17
Net realized and change in unrealized gain (loss)		(2.71	)		2.15			0.19
Total from investment operations		(2.43	)		2.84			0.36
Dividends and Distributions to Shareholders from:
Net investment income		(0.53	)		(0.51	)		—
Net realized gains		(0.30	)		(0.13	)		—
Total dividends and distributions to stockholders		(0.83	)		(0.64	)		—
Net asset value, end of period	$	24.30		$	27.56		$	25.36
Total Return:		(8.95	)% ^(d)		11.24	%		1.43% ^(d)
Ratios/Supplemental Data:
Net assets, end of period (000s)	$	628,197		$	705,435		$	428,567
Ratio of expenses to average net assets		0.58	% ^(e)		0.58	%		0.58% ^(e)
Ratio of net investment income (loss) to average net assets		2.03	% ^(e)		2.51	%		4.56% ^(e)
Portfolio turnover rate ^(f)		37.1	% ^(e)		22.0	%		0.0% ^(e)


Financial Highlights
Principal Exchange-Traded Funds
		(unaudited)

Principal EDGE Active Income ETF

For a share outstanding for the year ended June 30 (except as noted):

		Period ended		Year ended				Year ended			Period ended
	December 31, 2018 ^(b)			June 30, 2018				June 30, 2017			June 30, 2016 ^(a)
Net asset value, beginning of period	$	40.27		$	41.31		$	39.12		$	40.00
Investment Operations:
Net investment income (loss) ^(c)		1.67			1.78			1.95			2.13
Net realized and change in unrealized gain (loss)		(3.24	)		(0.50	)		2.22			(1.39	)
Total from investment operations		(1.57	)		1.28			4.17			0.74
Dividends and Distributions to Shareholders from:
Net investment income		(1.11	)		(1.87	)		(1.98	)		(1.62	)
Net realized gains		(0.34	)		(0.45	)		—			—
Total dividends and distributions to stockholders		(1.45	)		(2.32	)		(1.98	)		(1.62	)
Net asset value, end of period	$	37.25		$	40.27		$	41.31		$	39.12
Total Return:		(4.09	)% ^(d)		3.10	%		10.92	%		2.13	% ^(d)
Ratios/Supplemental Data:
Net assets, end of period (000s)	$	280,341		$	292,267		$	286,084		$	265,013
Ratio of expenses to average net assets		0.65	% ^(f)		0.65	% ^(e)		0.77	% ^(e)		0.85% ^(e)(f)
Ratio of gross expenses to average net assets		0.65	% ^(f)		0.68	%		0.80	%		1.34	% ^(f)
Ratio of net investment income (loss) to average net assets		8.36	% ^(f)		4.34	%		4.82	%		5.99	% ^(f)
Portfolio turnover rate ^(g)		22.6	% ^(f)		11.0	%		30.7	%		34.3	% ^(f)


Financial Highlights
Principal Exchange-Traded Funds
(unaudited)


Principal Healthcare Innovators Index ETF

For a share outstanding for the year ended June 30 (except as noted):

		Period ended			Year ended			Period ended
	December 31, 2018 ^(b)				June 30, 2018			June 30, 2017 ^(a)
Net asset value, beginning of period	$	34.74		$	28.56		$	25.00
Investment Operations:
Net investment income (loss) ^(c)		(0.06	)		(0.12	)		(0.08	)
Net realized and change in unrealized gain (loss)		(6.91	)		6.35			3.64
Total from investment operations		(6.97	)		6.23			3.56
Dividends and Distributions to Shareholders from:
Net realized gains		—			(0.05	)		—
Total dividends and distributions to stockholders		—			(0.05	)		—
Net asset value, end of period	$	27.77		$	34.74		$	28.56
Total Return:		(20.06	)% ^(d)		21.83	%		14.24	% ^(d)
Ratios/Supplemental Data:
Net assets, end of period (000s)	$	44,426		$	52,104		$	7,140
Ratio of expenses to average net assets		0.42	% ^(e)		0.42	%		0.42	% ^(e)
Ratio of net investment income (loss) to average net assets		(0.38	)% ^(e)		(0.38	)%		(0.32	)% ^(e)
Portfolio turnover rate ^(f)		27.9	% ^(e)		33.6	%		18.2	% ^(e)


Financial Highlights
Principal Exchange-Traded Funds
(unaudited)


Principal Millennials Index ETF

For a share outstanding for the year ended June 30 (except as noted):

		Period ended			Year ended			Period ended
	December 31, 2018 ^(b)				June 30, 2018			June 30, 2017 ^(a)
Net asset value, beginning of period	$	36.76		$	28.92		$	25.00
Investment Operations:
Net investment income (loss) ^(c)		0.10			0.23			0.17
Net realized and change in unrealized gain (loss)		(5.26	)		7.91			3.87
Total from investment operations		(5.16	)		8.14			4.04
Dividends and Distributions to Shareholders from:
Net investment income		(0.21	)		(0.23	)		(0.09	)
Net realized gains		—			(0.07	)		(0.03	)
Total dividends and distributions to stockholders		(0.21	)		(0.30	)		(0.12	)
Net asset value, end of period	$	31.39		$	36.76		$	28.92
Total Return:		(14.08)% ^(d)			28.31	%		16.23	% ^(d)
Ratios/Supplemental Data:
Net assets, end of period (000s)	$	14,128		$	20,217		$	7,230
Ratio of expenses to average net assets		0.45	% ^(e)		0.45	%		0.45	% ^(e)
Ratio of expenses to average net assets excluding interest expense		—^(f)			0.45	%		—^(f)
Ratio of net investment income (loss) to average net assets		0.57	% ^(e)		0.66	%		0.71	% ^(e)
Portfolio turnover rate ^(g)		2.2	% ^(e)		35.6	%		5.1	% ^(e)


Financial Highlights
Principal Exchange-Traded Funds
(unaudited)


Principal Price Setters Index ETF

For a share outstanding for the year ended June 30 (except as noted):

		Period ended		Year ended				Year ended			Period ended
	December 31, 2018 ^(b)			June 30, 2018				June 30, 2017			June 30, 2016 ^(a)
Net asset value, beginning of period	$	33.32		$	29.03		$	26.08		$	25.00
Investment Operations:
Net investment income (loss) ^(c)		0.22			0.39			0.34			0.09
Net realized and change in unrealized gain (loss)		(2.00	)		4.20			3.06			0.99
Total from investment operations		(1.78	)		4.59			3.40			1.08
Dividends and Distributions to Shareholders from:
Net investment income		(0.32	)		(0.27	)		(0.39	)		—
Net realized gains		—			(0.03	)		(0.06	)		—
Total dividends and distributions to stockholders		(0.32	)		(0.30	)		(0.45	)		—
Net asset value, end of period	$	31.22		$	33.32		$	29.03		$	26.08
Total Return:		(5.38	)% ^(d)		15.89	%		13.23	%		4.31% ^(d)
Ratios/Supplemental Data:
Net assets, end of period (000s)	$	17,172		$	21,655		$	7,257		$	6,519
Ratio of expenses to average net assets		0.29% ^(e)(f)			0.29	% ^(e)		0.40	%		0.40% ^(f)
Ratio of gross expenses to average net assets		0.40	% ^(f)		0.40	%		—^(g)			—^(g)
Ratio of net investment income (loss) to average net assets		1.27	% ^(f)		1.22	%		1.26	%		1.32% ^(f)
Portfolio turnover rate ^(h)		0.3	% ^(f)		63.5	%		2.0	%		0.0% ^(f)


	Financial Highlights
Principal Exchange-Traded Funds
		(unaudited)

Principal Shareholder Yield Index ETF

For a share outstanding for the year ended June 30 (except as noted):

		Period ended		Year ended				Year ended			Period ended
	December 31, 2018 ^(b)			June 30, 2018				June 30, 2017			June 30, 2016 ^(a)
Net asset value, beginning of period	$	32.49		$	29.16		$	24.65		$	25.00
Investment Operations:
Net investment income (loss) ^(c)		0.35			0.61			0.54			0.18
Net realized and change in unrealized gain (loss)		(4.51	)		3.21			4.67			(0.53	)
Total from investment operations		(4.16	)		3.82			5.21			(0.35	)
Dividends and Distributions to Shareholders from:
Net investment income		(0.53	)		(0.47	)		(0.67	)		—
Net realized gains		—			(0.02	)		(0.03	)		—
Total dividends and distributions to stockholders		(0.53	)		(0.49	)		(0.70	)		—
Net asset value, end of period	$	27.80		$	32.49		$	29.16		$	24.65
Total Return:		(12.97	)% ^(d)		13.17	%		21.42	%		(1.39	)% ^(d)
Ratios/Supplemental Data:
Net assets, end of period (000s)	$	11,120		$	14,622		$	7,290		$	6,6163
Ratio of expenses to average net assets		0.29% ^(e)(f)			0.29	% ^(f)		0.40	%		0.40	% ^(e)
Ratio of gross expenses to average net assets		0.40	% ^(e)		0.40	%		—^(g)			—^(g)
Ratio of net investment income (loss) to average net assets		2.19	% ^(e)		1.90	%		1.98	%		2.73	% ^(e)
Portfolio turnover rate		0.7	% ^(e)		55.5	%		3.0	%		7.1% ^(e)(h)


Financial Highlights
Principal Exchange-Traded Funds
(unaudited)


Principal U.S. Small-Cap Multi-Factor Index ETF ^(a)

For a share outstanding for the year ended June 30 (except as noted):

		Period ended			Year ended			Period ended
	December 31, 2018 ^(c)				June 30, 2018			June 30, 2017 ^(b)
Net asset value, beginning of period	$	33.45		$	28.84		$	25.00
Investment Operations:
Net investment income (loss) ^(d)		0.24			0.29			0.26
Net realized and change in unrealized gain (loss)		(5.63	)		4.64			3.75
Total from investment operations		(5.39	)		4.93			4.01
Dividends and Distributions to Shareholders from:
Net investment income		(0.28	)		(0.30	)		(0.17	)
Net realized gains		—			(0.02	)		—
Total dividends and distributions to stockholders		(0.28	)		(0.32	)		(0.17	)
Net asset value, end of period	$	27.78		$	33.45		$	28.84
Total Return:		(16.17)% ^(e)			17.14	%		16.08	% ^(e)
Ratios/Supplemental Data:
Net assets, end of period (000s)	$	313,950		$	351,176		$	275,466
Ratio of expenses to average net assets		0.38	% ^(f)		0.38	%		0.38	% ^(f)
Ratio of net investment income (loss) to average net assets		1.43	% ^(f)		0.94	%		1.21	% ^(f)
Portfolio turnover rate ^(g)		77.2	% ^(f)		76.3	%		44.7	% ^(f)

Shareholder Expense Example
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions paid on purchases and sales of Fund shares and (2) ongoing costs, including management fees. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other exchange-traded funds.

The Examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018, except as noted in the following table.

The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

The second section of table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other fund.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as contingent deferred sales charges, redemption fees or exchange fees. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different fund. In addition, if these transaction costs were included, your costs would have been higher.


		Beginning		Ending	Annualized			Expenses Paid
		Account Value		Account Value	Expense Ratio			During Period
Principal Active Global Dividend Income ETF
Actual Fund Return	$	1,000	$	910.50	0.58	%	$	2.84
Hypothetical 5% Annual Return	$	1,000	$	1,022.23	0.58	%	$	3.01
Principal Contrarian Value Index ETF
Actual Fund Return	$	1,000	$	867.60	0.29	%	$	1.37
Hypothetical 5% Annual Return	$	1,000	$	1,023.74	0.29	%	$	1.48
Principal EDGE Active Income ETF
Actual Fund Return	$	1,000	$	959.10	0.65	%	$	3.21
Hypothetical 5% Annual Return	$	1,000	$	1,021.93	0.65	%	$	3.31
Principal Healthcare Innovators Index ETF
Actual Fund Return	$	1,000	$	799.40	0.42	%	$	1.90
Hypothetical 5% Annual Return	$	1,000	$	1,023.09	0.42	%	$	2.14
Principal International Multi-Factor Index ETF
Actual Fund Return	$	1,000	$	869.80	0.39	%	$	1.97
Hypothetical 5% Annual Return	$	1,000	$	1,023.24	0.39	%	$	1.99
Principal Investment Grade Corporate Active ETF
Actual Fund Return	$	1,000	$	999.90	0.26	%	$	1.31
Hypothetical 5% Annual Return	$	1,000	$	1,023.89	0.26	%	$	1.33
Principal Millennials Index ETF
Actual Fund Return	$	1,000	$	859.20	0.45	%	$	2.11
Hypothetical 5% Annual Return	$	1,000	$	1,022.94	0.45	%	$	2.29
Principal Price Setters Index ETF
Actual Fund Return	$	1,000	$	946.20	0.29	%	$	1.42
Hypothetical 5% Annual Return	$	1,000	$	1,023.74	0.29	%	$	1.48
Principal Shareholder Yield Index ETF
Actual Fund Return	$	1,000	$	870.30	0.29	%	$	1.37
Hypothetical 5% Annual Return	$	1,000	$	1,023.74	0.29	%	$	1.48

Principal Exchange-Traded Funds
(unaudited)
Notification of Source of Distributions
Pursuant to Rule 19a-1 of the Investment Company Act of 1940

As noted in the table provided below, certain of the Principal Exchange-Traded Funds made distributions for the months of October 2018 and December 2018 for which a portion is estimated to be in excess of the fund’s current and accumulated net income. As of these month ends, the estimated sources of these distributions were as follows:

The ultimate composition of these distributions may vary from the estimates provided above due to a variety of factors including future income and expenses, and realized gains and losses from the purchase and sale of securities.

Please note that this information is being provided to satisfy certain notice requirements under the Investment Company Act of 1940. Tax reporting information for shareholders of the funds will not be available until the end of the funds’ fiscal year.

As a result, shareholders should not use the information provided in this notice for tax reporting purposes.

Under Delaware law, a Board of Trustees oversees the Trust. The Trustees have financial or other relevant experience and meet several times during the year to review contracts, Trust activities and the quality of services provided to the Trust. Each trustee also has the same position with Principal Funds, Inc. and Principal Variable Contracts Funds, Inc. which are also sponsored by Principal Life Insurance Company. Each trustee holds office for an indefinite term or until reaching age 72. Trustees considered to be “interested persons” as defined in the Investment Company Act of 1940, as shown below are considered to be interested because of an affiliation with the Manager and Principal Life Insurance Company.

The following Trustees are considered not to be “interested persons” as defined in the 1940 Act


		Number of
Name,		Portfolios in Fund	Other Directorships
Position Held with the Trust,	Principal Occupation(s)	Complex Overseen	Held by Trustee
Year of Birth	During past 5 years	by Trustee	During Past 5 Years
Elizabeth Ballantine	Principal, EBA Associates	133	Durango Herald, Inc;
Trustee since 2014			McClatchy
Member, Nominating and Governance			Newspapers, Inc.
Committee
1948

Leroy T. Barnes, Jr.	Retired.	133	McClatchy
Trustee since 2014			Newspapers, Inc.;
Member, Audit Committee			Herbalife Ltd.;
1951			Frontier
			Communications, Inc.

Craig Damos	President, The Damos Company	133	Hardin Construction
Trustee since 2014
Member, Audit Committee
Member, 15(c) Committee
1954

Mark A. Grimmett	Formerly, Executive Vice President	133	None
Trustee since 2014	and CFO, Merle Norman Cosmetics,
Member, Nominating and Governance	Inc.
Committee
Member, 15(c) Committee
Member, Executive Committee
1960

Fritz S. Hirsch	Formerly, CEO, MAM USA	133	Focus Products
Trustee since 2014			Group; MAM USA
Member, Operations Committee
Member, 15(c) Committee
1951

Tao Huang	Retired.	133	Armstrong World
Trustee since 2014			Industries, Inc.
Member, Operations Committee
Member, 15(c) Committee
1962

Karen (“Karrie”) McMillan	Managing Director, Patomak Global	133	None
Trustee since 2014	Partners, LLC.
Member, Operations Committee	Formerly, General Counsel,
1961	Investment Company Institute

Elizabeth A. Nickels	Formerly, Executive Director,	133	Charlotte Russe;
Trustee since 2015	Herman Miller Foundation;		Follet Corporation;
Member, Audit Committee	Formerly President, Herman Miller		PetSmart;
1962	Healthcare		SpartanNash;
			Spectrum Health
			Systems

The following Trustees are considered to be “interested persons” as defined in the 1940 Act, because of an affiliation with the Manager and Principal Life.


		Number of
Name,		Portfolios in Fund	Other Directorships
Position Held with the Trust,	Principal Occupation(s)	Complex Overseen	Held by Trustee
Year of Birth	During past 5 years	by Trustee	During Past 5 Years
Michael J. Beer	Chief Executive Officer, Principal	133	None
Trustee since 2014	Funds Distributor, Inc. (“PFD”)
President, Chief Executive Officer	since 2015
Member, Executive Committee	Executive Director — Funds,
1961	Principal Global Investors, LLC
	(“PGI”) since 2017
	Director, PGI since 2017
	Director, PFD since 2015
	Vice President/Mutual Funds and
	Broker Dealer, Principal Life
	Insurance Company (“PLIC”)
	(2001-2014)
	Vice President/Chief Operating
	Officer, Principal Funds, PLIC
	(2014-2015)
	Executive Director, Principal Funds &
	Trust, PLIC since 2015
	Director, Principal Management
	Corporation, (“PMC”) (2006-2015)
	President & Chief Executive Officer,
	PMC (2015-2017)
	Executive Vice President/Chief
	Operating Officer, PMC
	(2008-2015)
	Chair, PMC (2015-2017)
	Director, Principal Securities, Inc.
	(“PSI”) (2005- 2015)
	President, PSI (2005-2015)
	Director, Principal Shareholder
	Services (“PSS”) (2007-2015)
	Chairman, PSS since 2015
	President, PSS (2007-2015)
	Executive Vice President, PSS
	since 2015


		Number of
Name,		Portfolios in Fund	Other Directorships
Position Held with the Trust,	Principal Occupation(s)	Complex Overseen	Held by Trustee
Year of Birth	During past 5 years	by Trustee	During Past 5 Years
Nora M. Everett	Director, Finisterre Capital LLP	133	None
Trustee since 2014	since 2011
Chair Member, Executive Committee	Director, Origin Asset Management
1959	LLP since 2011
	Chairman, Principal Financial
	Advisors, Inc. (“PFA”) (2010-2015)
	Chairman, PFD (2011-2015)
	Senior Vice President/Retirement and
	Income Solutions (“RIS”), PLIC
	(2008-2015)
	President/RIS, PLIC since 2015
	Chairman, PMC (2011-2015)
	President, PMC (2008-2015)
	Director, PSI (2008-2011, and
	since 2015)
	Chairman, PSI (2011-2015)
	Chief Executive Officer, PSI
	(2009-2015)
	Chairman, PSS (2011-2015)

Patrick Halter	Director Morley Capital Management,	133	None
Trustee since 2017	Inc. (“Morley”) since 2017
Member, Executive Committee	Chair, Post Advisory Group, LLC
1959	(“Post”) since 2017
	Chief Operating Office, PGI
	since 2017
	Director, PGI since 2003
	Chair, PREI since 2004
	Chief Executive Office, PREI
	since 2005
	Chair, Spectrum since 2017

Correspondence intended for each Trustee who is other than an Interested Trustee may be sent to 655 9th Street, Des Moines, IA 50392.


The following table presents officers of the Trust.

Name,
Position Held with the Trust,	Principal Occupation(s)
Address, and Year of Birth	During past 5 years
Randy L. Bergstrom	Counsel, PGI
Assistant Tax Counsel	Counsel, PLIC
Des Moines, IA 50392
1955

Jennifer A. Block	Vice President and Counsel (2017-2018)
Deputy Chief Compliance Officer	Assistant Counsel (2010-2017
Des Moines, IA 50392	Assistant Secretary (2015-2018
1973	Counsel, PGI (2017-2018)
	Counsel, PFD (2009-2013)
	Counsel, PLIC (2009-2018)
	Counsel, PMC (2009-2013, 2014-2017)
	Counsel, PSI (2009-2013)
	Counsel, PSS (2009-2013)

Tracy Bollin	Managing Director, PGI since 2016
Chief Financial Officer	Chief Operating Officer, PMC (2015-2017)
Des Moines, IA 50392	Chief Financial Officer, PFA (2010-2015)
1970	Senior Vice President, PFD since 2015
	Chief Financial Officer, PFD (2010-2016)
	Senior Vice President, PMC (2015–2017)
	Chief Financial Officer, PMC (2010-2015)
	Director, PMC (2014–2017)
	Chief Financial Officer, PSI (2010-2015)
	Director, PSS since 2014
	President, PSS since 2015
	Chief Financial Officer, PSS (2010-2015)

Gina L. Graham	Vice President/Treasurer, PFA since 2016
Treasurer	Vice President/ Treasurer, Morley since 2016
Des Moines, IA 50392	Vice President/Treasurer, PFD since 2016
1965	Vice President/Treasurer, PGI since 2016
	Vice President/Treasurer, PLIC since 2016
	Vice President/Treasurer, PMC (2016-2017)
	Vice President/Treasurer, Principal Real Estate Investors,
	LLC since 2016
	Vice President/Treasurer, PSI since 2016
	Vice President/Treasurer, PSS since 2016

Laura B. Latham	Counsel, PGI since 2018
Assistant Counsel and Assistant Secretary	Prior thereto, Attorney in Private Practice
Des Moines, IA 50392
1986

Diane K. Nelson	Chief Compliance Officer/AML Officer, PSS (Since 2015)
AML Officer	Compliance Advisor, PMC (2013-2015)
Des Moines, 50392
1965

Layne A. Rasmussen	Vice President/Controller, PMC
Vice President	Director — Accounting, PLIC since 2015
Des Moines, IA 50392	Finance Controller, PLIC prior to 2015
1958

Sara L. Reece	Director — Accounting, PLIC since 2015
Vice President and Controller	Assistant Financial Controller, PLIC prior to 2015
Des Moines, IA 50392
1975


Name,
Position Held with the Trust,	Principal Occupation(s)
Address, and Year of Birth	During past 5 years
Teri R. Root	Interim Chief Compliance Office (2018)
Chief Compliance Officer	Deputy Chief Compliance Officer (2015-2018)
Des Moines, IA 50392	Deputy Chief Compliance Officer, PGI since 2017
1979	Vice President and Chief Compliance Officer, PMC
	(2015-2017)
	Compliance Office, PMC (2010-2013)
	Vice President, PSS Since 2015
Britney L. Schnathorst	Counsel, PLIC since 2013
Assistant Counsel and Assistant Secretary	Prior thereto, Attorney in Private Practice
Des Moines, IA 50392
1981
Adam U. Shaikh	Assistant General Counsel, PGI (2018)
Assistant Counsel	Counsel, PGI (2017-2018)
Des Moines, IA 50392	Counsel, PFD (2006-2013)
1972	Counsel, PLIC (since 2006)
	Counsel, PMC (2007-2013, 2014-2017)
	Counsel, PSI (2007-2013)
Dan L. Westholm	Assistant Vice President/Treasurer, PGI since 2017
Assistant Treasurer	Assistant Vice President/Treasury, PFA since 2013
Des Moines, IA 50392	Director — Treasury, PFA (2011-2013)
1966	Assistant Vice President/Treasury, PFD since 2013
	Director — Treasury, PFD (2011-2013)
	Assistant Vice President/Treasury, PLIC since 2014
	Director — Treasury, PLIC (2007-2014)
	Director — Treasury, PMC (2003-2013)
	Assistant Vice President/Treasury, PMC (2013-2017)
	Assistant Vice President/Treasury, PSI since 2013
	Director — Treasury, PSI (2011-2013)
	Assistant Vice President/Treasury, PSS since 2013
	Director — Treasury, PSS (2007-2013)
Beth Wilson	Director and Secretary — Funds, PLIC
Vice President and Secretary	Vice President, PMC (2007-2013)
Des Moines, IA 50392
1956
Clint L. Woods	Vice President, Associate General Counsel, Governance
Vice President and Counsel	Officer, and Assistant Corporate Secretary, PLIC since 2015
Des Moines, IA 50392	Assistant General Counsel, Assistant Corporate Secretary, and
1961	Governance Officer, PLIC (2013-2015)
Jared A. Yepsen	Associate General Counsel, AEGON (2003-2012)
Assistant Tax Counsel	Counsel, PGI since 2017
Des Moines, IA 50392	Counsel, PLIC since 2015
1981	Senior Attorney, Transamerica Life Insurance Company
	(TLIC) (2013-2015)
	Attorney, TLIC (2010-2013)

The 15(c) Committee assists the Board in performing the annual review of the Trust’s advisory and sub-advisory agreements pursuant to Section 15(c) of the 1940 Act.

The Audit Committee selects the independent auditors for the Trust and oversees the activities of the independent auditors as well as the internal auditors. The committee also receives reports about accounting and financial matters affecting the Trust.

The Executive Committee is selected by the Board. It may exercise all the powers of the Board, with certain exceptions, when the Board is not in session. The Committee must report its actions to the Board.

The Nominating and Governance Committee selects and nominates all candidates who are not “interested persons” of the Trust for election to the Board. The committee also oversees the structure and efficiency of the Board of Trustees and the committees the Board establishes.

The Operations Committee oversees the provision of administrative and distribution services to the Trust, communications with the Trusts’ shareholders, and provides review and oversight of the Trusts’ operations.

Additional information about the Trust is available in the Prospectuses dated September 20, 2016, November 1, 2016, and May 8, 2017, and the Statements of Additional Information dated September 20, 2016 and November 1, 2016. These documents may be obtained free of charge by writing Principal Exchange-Traded Funds, c/o ALPS Distributors, Inc., 1290 Broadway, Suite 1100, Denver, CO 80203 or telephoning 1-800-787-1621. The prospectuses may be viewed at www.PrincipalETFs.com.

A description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities and the results of the proxy votes for the most recent twelve months ended June 30 may be obtained free of charge by telephoning 1-800-787-1621, or on the SEC website at www.sec.gov.

The Trust files complete schedules of investments with the Securities and Exchange Commission as of March 31 and September 30 of each year on Form N-Q. The Trust’s Form N-Q can be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. or on the Commission’s website at www.sec.gov. Information on the operation of the Public Reference Room may be obtained by calling the Commission at 1-202-551-8090.

During the period covered by this report, the Board of Trustees of Principal Exchange-Traded Funds (“PETF”) approved the annual review and renewal of the Management Agreements and for all Funds and a subadvisory agreement for the Principal Spectrum Preferred Securities Active ETF.

Annual Review and Renewal of Management Agreement and Sub-Advisory Agreements

At its September 12, 2018 meeting, the Board performed its annual review and renewal process relating to the Management Agreement and the Subadvisory Agreements for all Funds.

Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”) requires the Board, including a majority of the Directors who have no direct or indirect interest in the investment advisory agreements and who are not “interested persons” of PETF, as defined in the 1940 Act (the “Independent Directors”), annually to review and to consider the continuation of: (1) the Management Agreement between the Principal Global Investors, LLC (the “Manager”) and PETF, on behalf of each of the fifteen (15) series of PETF (each series is referred to as a “Fund”); and (2) the Subadvisory Agreement between the Manager and Spectrum Asset Management Inc. (“Spectrum”) (the “Subadvisor”). The Management Agreement and the Subadvisory Agreement are collectively referred to as the “Advisory Agreements.”

The Board, including the Independent Directors, considered the factors and reached the conclusions described below relating to the continuation of the Advisory Agreements. In evaluating the Advisory Agreements, the Board, including the Independent Directors, reviewed a broad range of information requested for this purpose by the Independent Directors, including, among other information, information regarding performance, advisory fees, total expenses, profitability from the Advisory Agreements to the Manager and information about economies of scale. The Board reviewed the materials provided and concluded that it was provided all information reasonably necessary to evaluate the Advisory Agreements.

With respect to the Management Agreement for each Fund, the Board considered, among other factors, that the Manager, along with Principal Management Corporation (“PMC”), the previous investment adviser to the Funds that merged with and into the Manager on May 1, 2017, and its affiliates have demonstrated a long-term commitment to support the Funds. In addition, the Board considered the following factors, and made certain findings and conclusions with respect thereto, for each of the Funds. The Board concluded that a relationship with a capable and conscientious adviser is in the best interests of each Fund.

The Board considered the nature, quality and extent of the services provided under the Management Agreement, including accounting and administrative services, as applicable. The Board considered the experience and skills of senior management leading Fund operations, the experience and skills of the personnel performing the functions under the Management Agreement and the resources made available to such personnel, the ability of the Manager to attract and retain high-quality personnel and the organizational depth and stability of the Manager. The Board concluded that appropriate resources were provided under the Management Agreement. The Board also considered that, during the periods reviewed, the Manager had delegated day-to-day portfolio management responsibility for the Principal Spectrum Preferred Securities Active ETF to Spectrum. The Board noted that the Manager’s process for the selection of subadvisors emphasizes the selection of Principal-affiliated subadvisors that are determined to be qualified under the Manager’s due diligence process, but that the Manager will select an unaffiliated subadvisor to manage all or a portion of a Fund’s investment portfolio when deemed necessary or appropriate based upon a consideration of the Fund’s investment mandate and available expertise and resources within the Principal organization. Based upon all relevant factors, the Board concluded that the nature, quality and extent of the services provided by the Manager to the Funds under the Management Agreement was satisfactory.

The Board reviewed each Fund’s investment performance over longer-term periods, reviewing both the investment return during the three-year period ended March 31, 2018 and the blended investment return (50%/50%) of the three- and five-year periods ended March 31, 2018, and compared those returns to various agreed-upon performance measures, including peer-group data based upon a broad-based, industry category determined by Morningstar.

For Funds that did not have a three-year or five-year performance history, the Board reviewed performance for a one-year or three-year period ended March 31, 2018, respectively, if available. The Board also compared each Fund’s investment performance over the one-, three- and five-year periods ended March 31, 2018, as available, to one or more relevant benchmark

indices. The Board noted that certain Funds had commenced operations recently and, accordingly, no or limited performance information was considered. The Board also considered whether investment results were consistent with a Fund’s investment objective(s) and policies. For most Funds, the Board concluded that the Fund’s investment returns met acceptable levels of investment performance. There were certain Funds that had not attained during the relevant period(s) a level of investment performance considered satisfactory by the Board. For such Funds, the Board also considered other factors, such as the longer-term performance of each such Fund, remedial efforts being taken to improve performance and/or the Manager’s explanation for the performance of such Fund. The Board considered the Manager’s due diligence process for evaluating the performance of all Funds for which they received regular reporting and concluded that the Manager has in place an effective due diligence process to monitor investment performance, and to encourage remedial action if necessary.

The Board considered each Fund’s management fee. For each Fund, the Board received certain information from Broadridge including actual total expense ratio (including, as applicable, acquired fund fees and expenses and after any expense caps or fee waivers) at average fiscal-year asset levels for commons shares of the Funds against a peer group selected by Broadridge (“Expense Group”), and, if available, a broad-based, industry category defined by Broadridge (“Expense Universe”).

In evaluating the management fees, the Board considered a variety of factors, including the amount of the fees, breakpoints, comparison to fees of peer group funds and other funds and non-fund accounts managed by the Manager, subadvisory fees paid, services provided, investment performance, total net expense ratios, profitability, the existence and sharing of economies of scale and expense caps and fee waivers. The Board considered that certain Funds with similar investment strategies and policies have different management fees and noted the reasons cited by the Manager for the differing fees. In reviewing the fees of other accounts managed by the Manager, the Board considered information provided by the Manager regarding differences between the services provided to the Funds and the services provided to such other accounts.

Considering all factors they deemed relevant, the Board concluded that the management fee payable by each Fund was reasonable in light of the nature, quality and extent of the services provided by the Manager and other relevant factors.

The Board reviewed detailed information regarding revenues PMC, the previous investment advisor to the Funds, and its affiliate, the Manager, received under the Management Agreement and the estimated direct and indirect costs incurred in providing to each Fund the services described in the Management Agreement for the year ended December 31, 2017. The Board also considered the returns on revenue generated in connection with the payment of subadvisory fees to Spectrum and the aggregated return on revenue to PMC and its affiliates for the year ended December 31, 2017. The Board concluded that the management fee for each Fund was reasonable, taking into account the profitability information presented by the Manager.

The Board considered whether there are economies of scale with respect to the management of each Fund and whether the Funds benefit from any such economies of scale. The Board determined that no breakpoints are necessary at this time for the Principal Investment Grade Corporate Active ETF, the Principal Spectrum Preferred Securities Active ETF, the Principal EDGE Active Global Dividend Income ETF, the Principal EDGE Active Income ETF, the Principal Contrarian Value Index ETF, the Principal Emerging Markets Multi-Factor Index ETF, the Principal International Multi-Factor Index ETF, the Principal Morley Short Duration Index ETF, the Principal Price Setters Index ETF, the Principal Shareholder Yield Index ETF, the Principal Sustainable Momentum Index ETF, the Principal U.S. Mega-Cap Multi-Factor Index ETF or the Principal U.S. SmallCap Index ETF due, among other factors, to their current asset levels and taking into account levels of profitability to the Manager.

The Board consideredthe nature, quality and extent of the services provided under the Subadvisory Agreement. The Board considered the reputation, qualifications and background of Spectrum, the investment approach of Spectrum, the experience and skills of investment personnel responsible for the day-to-day management of the Principal Spectrum Preferred Securities Active ETF and the resources made available to such personnel. The Board also considered Spectrum’s compliance with investment policies and general legal compliance. Based upon all relevant factors, the Board concluded that the nature, quality and extent of the services provided by Spectrum to the Principal Spectrum Preferred Securities Active ETF Funds under the Subadvisory Agreement is satisfactory.

As to the Principal Spectrum Preferred Securities Active ETF, the Manager had advised the Board that the investment services delivered by Spectrum was reasonable. Based upon all relevant factors, the Board concluded that Spectrum is qualified and that the investment performance of the Subadvisor met acceptable levels of investment performance

For the Principal Spectrum Preferred Securities Active ETF, the Board considered the subadvisory fees, noting that the Manager compensates Spectrum from its own management fee, so that shareholders pay only the management fee.

The Board also considered the character and amount of other incidental benefits received by the Manager and its affiliates from their relationships with the Funds. The Board concluded that the management and subadvisory fees w ere reasonable in light of these fall-out benefits.

The Board also considered the character and amount of other incidental benefits received by Spectrum when evaluating the subadvisory fee. The Board concluded that taking into account these fall-out benefits, the subadvisory fee was reasonable.

Based upon all of the information considered and the conclusions reached, the Board determined that the terms of each Advisory Agreement continue to be fair and reasonable and that the continuation of each Advisory Agreement, with the actions proposed by the Manager, is in the best interests of each Fund.

Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.

ITEM 7 – DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

ITEM 9 – PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing).

(b) There have been no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12 – DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.CERT.

(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906CERT.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


Registrant’s telephone number, including area code:		515-248-0156
Date of fiscal year end:	June 30, 2019
Date of reporting period:	December 31, 2018


	Total Percentage of
Fund	Outstanding Shares Owned
Principal Active Global Dividend Income ETF	99.61	%
Principal EDGE Active Income ETF	92.32	%
Principal Investment Grade Corporate Active ETF	99.46	%
Principal U.S. Mega-Cap Multi-Factor Index ETF	96.71	%
Principal U.S. Small-Cap Multi-Factor Index ETF	95.85	%


									Late Year
									Ordinary and
		Undistributed		Undistributed		Unrealized			Post Oct			Other
		Ordinary		Long-Term		Appreciation/			Capital Loss			Temporary			Capital Loss
Fund		Income		Capital Gains		(Depreciation)			Deferrals			Differences*			Carryforward
Principal Active Global Dividend Income ETF	$	9,346,182	$	1,264,493	$	31,509,513		$	—		$	—		$	—
Principal Contrarian Value Index ETF		15,659		—		(21,524	)		—			—			(69,267	)
Principal EDGE Active Income ETF		1,031,288		2,538,828		5,615,133			—			(369,051	)		—
Principal Healthcare Innovators Index ETF		—		—		4,344,350			(905,801	)		—			—
Principal International Multi-Factor Index ETF		169,110		—		(120,536	)		—			—			(147,524	)
Principal Investment Grade Corporate Active ETF		845,301		—		(1,200,305	)		—			—			—


Notes to Financial Statements
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)


7. Federal Tax Information (continued)

									Late Year
									Ordinary and
		Undistributed		Undistributed		Unrealized			Post Oct			Other
		Ordinary		Long-Term		Appreciation/			Capital Loss			Temporary		Capital Loss
Fund		Income		Capital Gains		(Depreciation)			Deferrals			Differences*		Carryforward
Principal Millennials Index ETF	$	53,354	$	—	$	1,688,913		$	(258,711	)	$	—	$	—
Principal Price Setters Index ETF		62,809		—		227,062			(194,619	)		—		—
Principal Shareholder Yield Index ETF		71,481		—		(275,213	)		(17,879	)		—		—
Principal Spectrum Preferred Securities Active ETF		241,166		—		(2,581,141	)		(238,423	)		—		—
Principal Sustainable Momentum Index ETF		8,702		—		185,278			—			—		(73,456	)
Principal U.S. Mega-Cap Multi-Factor Index ETF		8,493,195		—		(6,533,906	)		—			—		(22,621,969	)
Principal U.S. Small-Cap Multi-Factor Index ETF		633,577		—		38,529,245			—			—		(10,400,144	)

* Represents book-to-tax accounting differences related to defaulted securities.


801 Grand Avenue, Des Moines, IA	50309
(Address of principal executive offices)	(Zip code)


Financial Statements	1
Notes to Financial Statements	24
Schedules of Investments	34
Financial Highlights (Includes performance information)	67
Shareholder Expense Example	80
Supplemental Information	82


Statement of Assets and Liabilities
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)


			Principal U.S.
			Small-Cap
			Multi-Factor
			Index ETF
Investments in securities — at cost		$	344,170,357

Assets
Investments in securities — at value		$	312,826,670
Cash			1,359,452
Receivables:
Dividends and interest			543,896
Investment securities sold			853,245
	Total Assets		315,583,263
Liabilities
Accrued management and investment advisory fees			109,205
Accrued income distribution			1,524,076
	Total Liabilities		1,633,281
Net Assets Applicable to Outstanding Shares		$	313,949,982

Net Assets Consist of:
Capital shares and additional paid-in-capital		$	347,630,885
Total distributable earnings (loss)			(33,680,903	)
	Total Net Assets	$	313,949,982

Net Asset Value Per Share:
Net Assets		$	313,949,982
Shares Issued and Outstanding			11,300,001
Net Asset Value per share		$	27.78


Statement of Operations
Principal Exchange-Traded Funds
Six months ended December 31, 2018 (unaudited)


		Principal U.S.
		Small-Cap
		Multi-Factor
		Index ETF
Net Investment Income (Loss)
Income:
Dividend income	$	3,218,106
Total Income		3,218,106
Expenses:
Management and investment advisory fees		677,930
Total Expenses		677,930
Net Investment Income (Loss)		2,540,176
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) from:
Investment transactions		(13,268,058	)
In-kind redemptions		21,254,241
Change in unrealized appreciation/depreciation of:
Investments		(69,921,356	)
Net Realized and Unrealized Gain (Loss) on Investments		(61,935,173	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(59,394,997	)

^(a)	For the year ended June 30, 2018, dividends and distributions to shareholders totaled $10,404,928 from net investment income and $2,878,358 from net realized gain on investments.
^(b)	As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $6,617,701.

^(a)	Period from October 18, 2017, date operations commenced, through June 30, 2018.
^(b)	For the year ended June 30, 2018, dividends and distributions to shareholders totaled $28,200 from net investment income.
^(c)	As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $15,659.

^(a)	Period from November 8, 2017, date operations commenced, through June 30, 2018.
^(b)	For the year ended June 30, 2018, dividends and distributions to shareholders totaled $105,600 from net investment income.
^(c)	As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $165,846.

^(a)	Period from April 18, 2018, date operations commenced, through June 30, 2018.
^(b)	For the year ended June 30, 2018, dividends and distributions to shareholders totaled $618,904 from net investment income.
^(c)	As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $579,166.

^(a)	Period from July 10, 2017, date operations commenced, through June 30, 2018.
^(b)	For the year ended June 30, 2018, dividends and distributions to shareholders totaled $1,638,002 from net investment income and $8,141 from net realized gain on investments.
^(c)	As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $127,978.

^(a)	Period from October 11, 2017, date operations commenced, through June 30, 2018.
^(b)	For the year ended June 30, 2018, dividends and distributions to shareholders totaled $8,361,236 from net investment income.
^(c)	As of June 30, 2018, undistributed (overdistributed) net investment income (loss) totaled $8,493,195.


	First		Next		Next		Over
Fund	$500 Million		$500 Million		$500 Million		$1.5 Billion
Principal Healthcare Innovators Index ETF	0.42	%	0.40	%	0.38	%	0.37	%
Principal Millennials Index ETF	0.45	%	0.43	%	0.41	%	0.40	%
Principal Price Setters Index ETF	0.40	%	0.38	%	0.36	%	0.35	%
Principal Shareholder Yield Index ETF	0.40	%	0.38	%	0.36	%	0.35	%


Fund	All Assets
Principal Active Global Dividend Income ETF	0.58	%
Principal Contrarian Value Index ETF	0.29	%
Principal EDGE Active Income ETF	0.65	%
Principal International Multi-Factor Index ETF	0.39	%
Principal Investment Grade Corporate Active ETF	0.26	%



Fund	All Assets
Principal Spectrum Preferred Securities Active ETF	0.55	%
Principal Sustainable Momentum Index ETF	0.29	%
Principal U.S. Mega-Cap Multi-Factor Index ETF	0.15	%
Principal U.S. Small-Cap Multi-Factor Index ETF	0.38	%


Fund	Shares
Principal Contrarian Value Index ETF	119,905
Principal International Multi-Factor Index ETF	140,015
Principal Millennials Index ETF	200,001
Principal Price Setters Index ETF	200,001
Principal Shareholder Yield Index ETF	200,001
Principal Spectrum Preferred Securities Active ETF	249,004
Principal Sustainable Momentum Index ETF	119,905


		Ordinary Income				Long-Term Capital Gain*
		Period ended		Year ended		Period ended		Year ended
Fund		December 31, 2018		June 30, 2018		December 31, 2018		June 30, 2018
Principal Active Global Dividend Income ETF	$	16,316,502	$	13,248,973	$	4,972,196	$	34,313
Principal Contrarian Value Index ETF		44,896		28,200		—		—
Principal EDGE Active Income ETF		8,214,772		15,210,889		2,538,831		1,201,872
Principal Healthcare Innovators Index ETF		—		64,403		—		15,174
Principal International Multi-Factor Index ETF		280,560		105,600		—		—
Principal Investment Grade Corporate Active ETF		5,475,469		618,904		—		—
Principal Millennials Index ETF		107,378		88,655		—		92
Principal Price Setters Index ETF		193,324		152,119		—		104
Principal Shareholder Yield Index ETF		226,838		145,989		—		126
Principal Spectrum Preferred Securities Active ETF		1,611,397		1,646,143		—		—
Principal Sustainable Momentum Index ETF		27,807		22,700		—		—
Principal U.S. Mega-Cap Multi-Factor Index ETF		27,709,355		8,361,236		—		—
Principal U.S. Small-Cap Multi-Factor Index ETF		3,048,584		3,208,941		—		—


	No Expiration		No Expiration					Annual
Fund	Short-Term		Long-Term			Total		Limitations*
Principal Contrarian Value Index ETF	$	69,267	$	—	$	69,267	$	—
Principal International Multi-Factor Index ETF		147,524		—		147,524		—
Principal Sustainable Momentum Index ETF		73,456		—		73,456		—
Principal U.S. Mega-Cap Multi-Factor Index ETF		22,621,969		—		22,621,969		72,515
Principal U.S. Small-Cap Multi-Factor Index ETF		7,275,696		3,124,448		10,400,144		—

* In accordance with Sections 381-384 of the Internal Revenue Code, a portion of certain Fund’s losses have been subjected to an annual limitation.


For the taxable period ended June 30, 2018, the Funds had late-year capital and ordinary losses as follows:

Fund	Late Year Ordinary Loss		Post October Loss Capital Loss
Principal Healthcare Innovators Index ETF	$	102,816	$	802,985
Principal Millennials Index ETF		—		258,711
Principal Price Setters Index ETF		—		194,619
Principal Shareholder Yield Index ETF		—		17,879
Principal Spectrum Preferred Securities Active ETF		—		238,423


		Accumulated			Accumulated
		Undistributed Net			Net Realized Gain
Fund		Investment Income (Loss)			(Loss) on Investment			Paid In Capital
Principal Active Global Dividend Income ETF	$	(134,613	)	$	134,613		$	—
Principal Contrarian Value Index ETF		—			(257,640	)		257,640
Principal EDGE Active Income ETF		(55,535	)		55,535			—
Principal Healthcare Innovators Index ETF		38,319			(5,217,585	)		5,179,266
Principal International Multi-Factor Index ETF		2,200			(2,200	)		—
Principal Investment Grade Corporate Active ETF		119			(119	)		—
Principal Millennials Index ETF		7,163			(1,270,655	)		1,263,492
Principal Price Setters Index ETF		(1	)		(2,326,287	)		2,326,288
Principal Shareholder Yield Index ETF		—			(1,019,042	)		1,019,042
Principal Spectrum Preferred Securities Active ETF		(21,237	)		21,237			—
Principal Sustainable Momentum Index ETF		—			(340,895	)		340,895
Principal U.S. Mega-Cap Multi-Factor Index ETF		—			(15,127,775	)		15,127,775
Principal U.S. Small-Cap Multi-Factor Index ETF		(3	)		(36,589,814	)		36,589,817

^(a)	Non-Income Producing Security
^(b)	Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities totaled $558,107 or 3.95% of net assets.

^(a)	Period from May 9, 2017, date operations commenced, through June 30, 2017.
^(b)	Six months ended December 31, 2018.
^(c)	Calculated on average shares outstanding during the period.
^(d)	Total return amounts have not been annualized.
^(e)	Computed on an annualized basis.
^(f)	Portfolio turnover rate excludes in-kind transactions.

^(a)	Period from July 8, 2015, date operations commenced, through June 30, 2016.
^(b)	Six months ended December 31, 2018.
^(c)	Calculated on average shares outstanding during the period.
^(d)	Total return amounts have not been annualized.
^(e)	Includes Reimbursements from the Manager.
^(f)	Computed on an annualized basis.
^(g)	Portfolio turnover rate excludes in-kind transactions.

^(a)	Period from August 19, 2016, date operations commenced, through June 30, 2017.
^(b)	Six months ended December 31, 2018.
^(c)	Calculated on average shares outstanding during the period.
^(d)	Total return amounts have not been annualized.
^(e)	Computed on an annualized basis.
^(f)	Portfolio turnover rate excludes in-kind transactions.

^(a)	Period from March 21, 2016, date operations commenced, through June 30, 2016.
^(b)	Six months ended December 31, 2018.
^(c)	Calculated on average shares outstanding during the period.
^(d)	Total return amounts have not been annualized.
^(e)	Includes Reimbursements from the Manager.
^(f)	Computed on an annualized basis.
^(g)	Ratio is not applicable as there was no Reimbursement from Manager in the period.
^(h)	Portfolio turnover rate excludes in-kind transactions.

^(a)	Period from July 7, 2017, date operations commenced, through June 30, 2018.
^(b)	Six months ended December 31, 2018.
^(c)	Calculated on average shares outstanding during the period.
^(d)	Total return amounts have not been annualized.
^(e)	Computed on an annualized basis.
^(f)	Portfolio turnover rate excludes in-kind transactions.

^(a)	Effective October 27, 2017, Principal U.S. Small-Cap Index ETF changed its name to Principal U.S. Small-Cap Multi-Factor Index ETF.
^(b)	Period from September 21, 2016, date operations commenced, through June 30, 2017.
^(c)	Six months ended December 31, 2018.
^(d)	Calculated on average shares outstanding during the period.
^(e)	Total return amounts have not been annualized.
^(f)	Computed on an annualized basis.
^(g)	Portfolio turnover rate excludes in-kind transactions.


Shareholder Expense Example
Principal Exchange-Traded Funds
December 31, 2018 (unaudited)


		Beginning		Ending	Annualized			Expenses Paid
		Account Value		Account Value	Expense Ratio			During Period
Principal Spectrum Preferred Securities Active ETF
Actual Fund Return	$	1,000	$	975.50	0.55	%	$	2.74
Hypothetical 5% Annual Return	$	1,000	$	1,022.43	0.55	%	$	2.80
Principal Sustainable Momentum Index ETF
Actual Fund Return	$	1,000	$	878.20	0.29	%	$	1.37
Hypothetical 5% Annual Return	$	1,000	$	1,023.74	0.29	%	$	1.48
Principal U.S. Mega-Cap Multi-Factor Index ETF
Actual Fund Return	$	1,000	$	982.50	0.12	%	$	0.60
Hypothetical 5% Annual Return	$	1,000	$	1,024.60	0.12	%	$	0.61
Principal U.S. Small-Cap Multi-Factor Index ETF
Actual Fund Return	$	1,000	$	838.30	0.38	%	$	1.99
Hypothetical 5% Annual Return	$	1,000	$	1,023.29	0.38	%	$	1.94


October 2018

Fund	Net Income		Realized Gain		Capital Sources
Principal Millennials Index ETF	87.72	%	12.28	%	0.00	%

December 2018

Fund	Net Income		Realized Gain		Capital Sources
Principal International Multi-Factor Index ETF	80.51	%	0.00	%	19.49	%
Principal Investment Grade Corporate Active ETF	98.33		0.00		1.67
Principal Millennials Index ETF	96.35		3.65		0.00