Core Insights - The Principal Active High Yield ETF aims to generate income and total return by primarily investing in below-investment-grade fixed-income securities across global corporate bond and loan markets [1] - The fund typically allocates at least 80% of its net assets plus borrowings in high yield bonds and bank loans, while also holding positions in US Treasury securities and investment-grade floating-rate loans for liquidity and interest-rate risk management [1] Investment Strategy - The portfolio construction follows a top-down framework that incorporates macroeconomic views, relative valuations, and technical conditions for sector and quality positioning [1] - Security selection is based on bottom-up credit analysis, focusing on issuer cash flow, capital structure, covenant protection, and recovery prospects [1] Risk Management - The team manages portfolio duration around a broad USD high yield benchmark and employs derivatives such as credit default swaps, credit index futures, and currency swaps to efficiently hedge or adjust exposures [1]