Principal Asset Management announced the launch of Principal Fit, a new suite of fixed income exchange-traded funds (ETFs) consisting of four newly launched vehicles, as the firm looks to strengthen its capabilities in the asset class and provide investors with more targeted tools to navigate changing market conditions.
The new platform complements the Principal Investment Grade Corporate ETF (IG), giving the firm a lineup of five fixed income ETFs designed to support income generation, portfolio diversification, and positioning across different duration, inflation, and credit risk scenarios.
The launch comes at a time when fixed income markets are facing greater complexity due to interest rate expectations, inflationary pressures, and evolving credit spreads. As a result, institutional investors and financial advisors are increasingly seeking more specialized solutions that enable them to adjust portfolio allocations more efficiently.
“In today’s environment, broad exposure is often less effective than more targeted approaches,” said Michael Goosay, Global Head of Fixed Income and Chief Investment Officer at Principal Asset Management, noting that the new ETF family was designed to help investors make allocation decisions as market conditions evolve.
Exposure to specific segments
The new Principal Fit suite is structured to provide exposure to specific areas of the fixed income universe, allowing investors to combine strategies based on their views on inflation, interest rates, and credit quality.
Among the new products are:
Principal Inflation Protection ETF (RIZE), focused on inflation-sensitive securities and designed to help mitigate the impact of rising price levels.
Principal Securitized Debt ETF (WDE), providing access to the securitized debt and structured credit markets.
Principal Long Duration ETF (DWWN), designed for investors seeking exposure to longer-duration bonds and strategies linked to interest rate movements.
Principal CLO ETF (UUPP), focused on collateralized loan obligations (CLOs), offering exposure to floating-rate instruments through an income-oriented strategy.
The firm noted that the funds can be used individually or combined within a broader portfolio, depending on market conditions and each investor’s positioning needs.
Principal expands its ETF offering
With these launches, Principal Asset Management now offers 16 ETFs, managing approximately $10.4 billion in assets across its ETF platform.
The new funds trade on the Cboe BZX Exchange under the tickers UUPP, DWWN, WDE, and RIZE, while the Principal Investment Grade Corporate ETF continues to trade under the ticker IG.
The expansion of the platform reflects the growing importance of fixed income ETFs among wealth managers and institutional investors, a segment that has gained prominence in recent years as investors seek more liquid, transparent, and flexible vehicles to manage exposure to different market factors.
Against a backdrop of heightened macroeconomic uncertainty and changing global interest rate expectations, specialized fixed income strategies continue to gain traction, driving further innovation across the ETF industry.
