Principal Asset Management is expanding in the ETF sector with the launch of an international equity ETF.
“This ETF will be a large-cap portfolio managed by the Principal equity team. Principal Equities, with $154.8 billion in AUM, follows an investment strategy that combines global perspectives with local insights to offer a broad range of specialized equity investment solutions,” according to the firm’s statement.
The company justifies its launch by highlighting market demand for such products.
“The demand for active ETFs was the strongest in history in 2023, reaching a record high of $349 billion in the category. This trend is expected to continue, with advisor allocations to active ETFs projected to increase by 45% over the next two years,” the statement adds.
“This new offering continues to build out our active ETF lineup, leveraging our strong capabilities and providing investors with an efficient vehicle to invest in international markets,” said George Maris, CIO and Global Head of Equities at Principal Asset Management.
The Principal equity team, led by Maris, has over two decades of experience managing non-U.S. equity strategies, according to Principal.
With the addition of the international equity ETF, Principal completes a suite of 10 ETFs representing approximately $4.7 billion in AUM, “designed to enhance investor returns, mitigate risk, and improve portfolio diversification,” the statement concludes
