What Is the PIEQ ETF? A Complete Guide to Returns, Expense Ratio, Holdings & Alternative ETFs
Actively invests in quality global equities ex-US, pursuing market-beating returns and long-term growth through proprietary company analysis.
SubscribeWhat Is This ETF?
It uses the MSCI World ex-US Index as its benchmark and concentrates investments in publicly listed companies outside the United States. Rather than simply tracking index weightings, it employs an active management strategy that conducts in-depth analysis of companies' intrinsic value and growth potential to capture return opportunities the market has yet to recognize.
It is well suited for investors who want to adjust their exposure away from a US-centric allocation and who seek alpha returns in global markets through professional stock selection.
It is an actively managed ETF launched by Principal in 2024.
How Does It Invest?
| Item | Details |
|---|---|
| Management Style | Active (Global Quality Equities) |
| Benchmark Index | MSCI World ex-US Index |
| Rebalancing Frequency | As needed (actively managed) |
| Dividend Schedule | Annual dividend |
| Total Expense Ratio | 0.48% |
It conducts bottom-up analysis that holistically considers each company's financial condition, management capabilities, and competitive positioning within its industry. Without being tied to any specific country or sector, it carefully chooses high-quality companies worldwide that demonstrate sustainable growth.
- Leverages Principal Global Investors' extensive research network
- Active asset allocation strategy that responds flexibly to market conditions
Size and Cost
Assets under management (AUM) stand at $1.3B, with a total expense ratio of 0.48% per year.
Compared with smart-beta or passive ETFs such as FNDF, GSIE, and IGF shown in the table, its management fee is somewhat higher, but it aims to deliver differentiated performance through active stock selection.
Performance and Flows
1-Year Price Performance
Dividend & Yield
52-Week Price RangeSince its launch, the ETF has shown a positive trajectory supported by expectations of global rate cuts combined with a recovery in Asia's semiconductor industry, with information-technology companies in Taiwan and Korea in particular serving as a key pillar of overall returns.
Demand for global asset allocation that seeks exposure beyond the US market has continued to flow in, and interest from institutional investors attracted to the strengths of active management has been gradually expanding.
Strengths and Weaknesses
It offers an active approach to quality assets worldwide, but investors should weigh the performance variability that comes with active management as well as the risks inherent to overseas markets.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
FNDF and GSIE shown in the table are efficient alternatives that adjust weightings based on specific factors, and if you want passive exposure to the entire global market ex-US at a representative cost, VXUS or IXUS can serve as standard options. If you want full global market exposure while adjusting emerging-market weightings, these are also worth reviewing alongside the fund.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 FNDF | Schwab Fundamental International Equity ETF | $53.79 | +0.2% | $25.6B | 0.25% | 3.04% | +21.9% |
 IGF | iShares Global Infrastructure ETF | $64.70 | +0.1% | $10.8B | 0.37% | 2.98% | +4.6% |
 GUNR | Northern Trust Morningstar Global Upstream Natural Resources ETF | $53.76 | -0.4% | $7.1B | 0.46% | 2.29% | +22.4% |
 GSIE | Goldman Sachs ActiveBeta International Equity ETF | $46.05 | +0.4% | $5.9B | 0.25% | 2.63% | +10.9% |
 GNR | State Street SPDR S&P Global Natural Resources ETF | $75.79 | -0.0% | $5.3B | 0.40% | 2.4% | +27.5% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| TSM | Taiwan Semiconductor Manufacturing ADR | 0.12% | $424.37 | +1.4% | $2.20T | 27.3 | 0.97% |
| ASML | ASML Holding NV | 0.11% | $1590.90 | +1.2% | $613.2B | 39.2 | 0.65% |
| SU | Suncor Energy Inc | 0.05% | $79.48 | +0.1% | $93.0B | 14.7 | 2.15% |
| HLN | Haleon plc ADR | 0.04% | $10.20 | -0.7% | $44.9B | 21.0 | 2.12% |
| TECK | Teck Resources Ltd | 0.08% | $60.26 | +2.0% | $29.6B | 16.4 | 0.62% |
| BTI | British American Tobacco Plc ADR | 0.04% | $60.10 | +1.0% | $129.2B | 15.4 | 5.61% |
| AZN | Astrazeneca plc | 0.03% | $172.06 | +0.3% | $266.8B | 25.7 | 1.94% |
Investor Checklist
Below is a key checklist to review when investing in the Principal International Equity ETF (PIEQ). Investors should consider both the characteristics of active management and the risks associated with overseas investing.
| Checklist | What to Confirm | Current Status |
|---|---|---|
| 💵 Management Cost | Whether the fee level is appropriate for the active management services provided | On the higher side |
| 📊 Excess Return Capability | Whether consistent performance versus the benchmark index has been achieved | Needs verification |
| 🌏 Regional Weightings | Exposure to key regions such as Asia and Europe | Appropriately diversified |
| 💱 Currency Fluctuations | Impact on returns from changes in the value of currencies held | Currency hedging not applied |
Active management products are highly likely to perform differently from the market average. Investors should always keep in mind that economic conditions in the overseas countries in which the fund invests and currency movements can have a significant impact on short-term returns.
The fund is an appropriate vehicle for investors who want to hold a curated selection of quality overseas companies viewed through an expert lens. It is recommended for those seeking geographical diversification in their portfolio while also pursuing active return opportunities.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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