Market strategies

Seeking income & optimizing yield

Attractive yields present an appealing opportunity for income investors

Attractive yields in asset classes such as high yield, emerging market debt (EMD), preferred securities, and even dividend-paying equities may help investors build a strategy that no longer relies on the Federal Reserve (the Fed). Today’s market presents an especially appealing opportunity to boost yield exposure and build a long-term income stream.

Optimizing yield through risk assets

Elevated yields coupled with robust fundamentals are creating an entry point for risk assets like high yield bonds and emerging market debt (EMD). Allocating to these areas of the market may improve the likelihood that investors meet their current income needs.

Principal Active High Yield ETF (YLD)

Principal Finisterre Emerging Markets Total Return Bond Fund (PFUMX)

Seeking an income stream with future growth potential

Securities with adjustable rates—such as preferred securities—and stocks that can maintain and potentially increase dividends offer two key benefits: current income and future income growth. This dual approach to income generation can potentially help investors protect purchasing power and defend against stubborn inflation by providing immediate cash flow and the possibility of higher payments over time.

Principal Spectrum Preferred Securities Active ETF (PREF)

Principal Equity Income Fund (PEIIX)

Principal Small-MidCap Dividend Income Fund (PMDIX)

Investment strategies

Explore our latest ideas on finding income

Discover expert insights on managing portfolios, fighting stubborn inflation, and building sustainable income in today’s dynamic market environment.

Explore solutions

Fixed income insights

Selective opportunity amidst uncertainty

As the Fed moves through its rate-cutting cycle, elevated yields and strong credit fundamentals still present compelling opportunities in fixed income despite shifting policy dynamics.

Read timely insights on fixed income markets

Headshot of Seema Shah

Seema Shah

Chief global strategist

CIO insights: Fixed Income Perspectives

Michael Goosay, CIO and Global Head of Fixed Income, addresses timely topics shaping fixed income markets, including the impact of inflation on portfolios.

View our latest quarterly perspectives

Headshot of Michael Goosay

Michael Goosay

Chief investment officer,
Global fixed income

Solutions

Actively-managed mutual funds & ETFs

High yields across fixed income and equities attempt to offer investors meaningful ways to find income. Explore our solutions below.

Why Principal Asset Management?

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Trusted heritage of Principal

140+ years For more than a century, Principal has helped individuals confidently reach their goals. Established in 1994, Principal Asset Management is the investment management business for Principal Financial Group®.

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Over 680 Investment professionals providing a depth of knowledge, averaging 17 years of industry experience.2

Scale and scope

28th largest Manager of worldwide institutional assets3, Principal Asset Management is a fiduciary with disciplined process and specialized expertise across asset classes, managing $555.8 billion in assets.2

Strong foundation

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MARKET STRATEGIES

Actionable insights

Access timely insights that may uncover opportunities, identify risks, and provide unique perspectives. Our teams of specialized experts offer a clear point of view—allowing you to make investment decisions with confidence.

1 On July 1, Edward Temple founds The Bankers Life Association in Des Moines, Iowa, to provide inexpensive and dependable life insurance protection for bankers and their employees.

3 As of 03/31/2025.

3 411 managers profiled by total worldwide institutional assets as of 31 December 2023 “Largest Money Manager,” PENSIONS & INVESTMENTS, June 2024.

4 As of 12/31/2023. See our most recent 10-K or 10-Q report for additional information and forward-looking disclosures. For other updates, visit www.principal.com.

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Risk considerations

Investing involves risk, including possible loss of principal. Past Performance does not guarantee future results. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.  

Carefully consider a fund’s objectives, risks, charges, and expenses. Contact your financial professional, visit www.PrincipalAM.com, or call sales support at 800-787-1621 for a prospectus, or summary prospectus if available, containing this and other information. Please read it carefully before investing.

Asset allocation and diversification do not ensure a profit or protect against a loss.

Fixed income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Neither the principal bond investment options nor their yields are guaranteed by the U.S. government. Lower-rated securities are subject to additional credit and default risk.

Equity investments involve greater risk, including heightened volatility, than fixed income investments. Small and mid-cap stocks may have additional risks, including greater price volatility.

International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards.

Investing in derivates entails specific risks relating to liquidity, leverage and credit, which may reduce returns and/or increase volatility.

Risks of preferred securities differ from risks inherent in other investments. In particular, in a bankruptcy preferred securities are senior to common stock but subordinate to other corporate debt.

Emerging market debt may be subject to heightened default and liquidity risk.

Investing in ETFs involves risk, including possible loss of principal. ETFs are subject to risk similar to those of stocks, including those regarding short-selling and margin account maintenance. Investor shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Ordinary brokerage commissions apply.

Unlike typical ETFs, there are indices that the Principal Active High Yield ETF or Principal Spectrum Preferred Securities Active ETF attempt to track or replicate. Thus, the ability of the Funds to achieve their objectives will depend on the effectiveness of the portfolio managers.

Important information

This material covers general information only and does not take account of any investor’s investment objectives or financial situation and should not be construed as specific investment advice, a recommendation, or be relied on in any way as a guarantee, promise, forecast or prediction of future events regarding an investment or the markets in general. Information presented has been derived from sources believed to be accurate; however, we do not independently verify or guarantee its accuracy or validity. Any reference to a specific investment or security does not constitute a recommendation to buy, sell, or hold such investment or security, nor an indication that the investment manager or its affiliates has recommended a specific security for any client account. Subject to any contrary provisions of applicable law, the investment manager and its affiliates, and their officers, directors, employees, agents, disclaim any express or implied warranty of reliability or accuracy and any responsibility arising in any way (including by reason of negligence) for errors or omissions in the information or data provided.

This material may contain `forward‐looking’ information that is not purely historical in nature and may include, among other things, projections, and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.

Principal Asset Management is the global investment management business for Principal Financial Group® and includes the asset management operations of the following: Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Principal Real Estate Europe Limited and its affiliates; Spectrum Asset Management, Inc.; Post Advisory Group, LLC; Principal Asset Management Ltda; Principal Global Investors (Europe) Limited; Principal Global Investors (Ireland) Limited, Principal Global Investors (Singapore) Limited.; Principal Global Investors (Australia) Ltd.; Principal Global Investors (Japan) Ltd.; Principal Asset Management Company (Asia) Ltd., Principal Asset Management Berhad, Principal Islamic Asset Management SDN BHD, Principal Fondos de Inversion, S.A. DE C.V., Principal Mexico Servicios, S.A. DE C.V., Principal Adminstradora General de Fondos S.A., and includes assets where we provide model portfolios.

Principal Funds are distributed by Principal Funds Distributor, Inc. ALPS Distributors, Inc. is the distributor of the Principal ETFs. ALPS Distributors, Inc. and the Principal Funds are not affiliated.

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