At a glance
PQDI charges 0.6% a year. It has $70.0M in assets; it paid 5.87% of its price in distributions over the past 12 months, monthly. Over the past year it returned −0.1% with distributions reinvested; over three years it returned +8.5% a year. At its worst it fell 12.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 19 months after the low. Its ten largest positions make up 27.1% of the fund, out of 97 in all.
The short version
Principal Spectrum Tax-Advantaged Dividend Active ETF (PQDI) is an actively managed fund that holds preferred securities and other bank capital securities, including contingent convertible bonds (CoCos). Most come from large banks in the US, Canada and Europe. It pays income monthly, with a trailing 12-month yield of 5.87% as of October 27, 2026. It favors securities eligible for lower-taxed qualified dividends and charges 0.60% a year.
Price history
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PQDI -0.1% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| PQDI official prospectus, to Dec 31, 2025 | — | +8.87% | — | +3.46% | — | +4.92% |
| Bloomberg Global Aggregate Index (reflects no deductions for fees, expenses, or taxes) index, same period | — | +8.17% | — | -2.15% | — | -0.88% |
| ICE Bof A 7% Constrained DRD Eligible Preferred Securities Index (reflects no deductions for fees, expenses, or taxes) index, same period | — | +5.68% | — | +1.47% | — | +3.02% |
| PQDI price data to Oct 27, 2026 | -0.9% | -0.1% | +8.5% | +2.6% | — | +2.8% |
- Over the year to Oct 27, 2026, PQDI returned -0.1%.
- Its 5-year annualized return was +2.6%.
- Its worst full calendar year was 2022 (-9.6%); its best was 2024 (+10.1%).
- The deepest fall in its price history was 17.3% (Sep 23, 2021 to Mar 20, 2023), recovered by Jun 13, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -0.9% | — |
| 2025 | +8.4% | +8.87% |
| 2024 | +10.1% | +10.22% |
| 2023 | +6.2% | +6.24% |
| 2022 | -9.6% | -9.59% |
| 2021 | — | +2.86% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 12.4% over that stretch · deepest drop along the way 12.4%, back to its old high 18.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.8300 | |
| 2025 | $0.9800 | +3.2% |
| 2024 | $0.9500 | -2.1% |
| 2023 | $0.9700 | -4.0% |
| 2022 | $1.0100 |
What's inside
As of Jun 30, 2026, the fund held 97 securities; the ten largest made up 27.07% of assets.
| Holding | Weight | |
|---|---|---|
| ING GROEP NV Bonds and notes | 3.48% | |
| CITIGROUP INC Bonds and notes | 3.43% | |
| STATE STREET CORP Bonds and notes | 3.40% | |
| NORDEA BANK ABP Bonds and notes | 2.74% | |
| BANK OF MONTREAL Bonds and notes | 2.39% | |
| BANK OF AMERICA CORP Bonds and notes | 2.36% | |
| CREDIT AGRICOLE SA Bonds and notes | 2.36% | |
| PNC FINANCIAL SERVICES Bonds and notes | 2.32% | |
| GOLDMAN SACHS GROUP INC Bonds and notes | 2.32% | |
| TRUIST FINANCIAL CORP Bonds and notes | 2.27% | |
| JPMORGAN CHASE & CO Bonds and notes | 2.16% | |
| BANK OF NOVA SCOTIA Bonds and notes | 2.13% | |
| HSBC HOLDINGS PLC Bonds and notes | 2.12% | |
| NATWEST GROUP PLC Bonds and notes | 2.08% | |
| TORONTO-DOMINION BANK Bonds and notes | 1.85% |
By country
United States 44.88%Canada 16.25%United Kingdom 11.54%France 6.62%Spain 3.95%By issuer
Companies 97.16%US government-sponsored enterprises 1.08%The bonds mature in 15.8 years on average (weighted by size), with an average coupon of 6.97%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $1.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.35%, +0.22%, +0.54%.
How it works
PQDI does not track an index. Principal's investment team picks the holdings, with the goal of providing current income. At least 80% of net assets go into preferred securities and other income-producing securities. Preferred securities rank behind a company's senior debt but ahead of its common stock for payouts. The fund also buys contingent convertible bonds (CoCos), mostly from non-US banks. A CoCo can be written down or converted into stock if the bank's capital falls below a set level.
The managers mix investment-grade and below-investment-grade ("junk") securities and don't aim for any particular maturity. More than 25% of the fund is concentrated in financial services. The managers favor securities whose payouts can qualify for lower-taxed "qualified dividend income" treatment, but some holdings don't qualify. As of June 30, 2026, the fund held 97 securities: 84% bonds and notes and 14% preferred stock. The largest positions were ING Groep (3.5%), Citigroup (3.4%) and State Street (3.4%), and the top ten made up 27%. Average time to maturity was 15.8 years, which makes prices more sensitive to interest rates.
Because the fund is actively managed, there is no index rebalancing schedule. The team trades when it sees fit, and portfolio turnover was 41.1%. The prospectus allows futures and options for hedging and to generate income. The June 30, 2026 holdings report showed no derivative positions.
What it really costs
- PQDI charges 0.6% a year.
- Using the prospectus's standard example, $10,000 invested would cost about $61 in the first year and $750 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| PQDI | $61 | $192 | $335 | $750 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
PQDI pays monthly from a portfolio of bank preferreds and capital securities, so it fits an income sleeve better than the center of a portfolio.
PQDI pays monthly. Its trailing 12-month yield was 5.87% ($1.09 per share) as of October 27, 2026. It costs 0.60% a year, or $61 in the first year on $10,000 in the SEC's standard example. Its price history starts in February 2021, so it has no record for the 2008 or 2020 crashes. In the 2022 bear market it fell 12.4%, and it took about 18.8 months after the October 2022 low to recover. Its worst calendar year was 2022, at -9.6%. Its deepest drop was 17.3%, from September 2021 to March 2023, and it didn't fully recover until June 2024. Anyone who had to sell shares during that stretch would have locked in losses. Because the fund leans heavily on bank securities, trouble in the banking sector could hit both its price and its income. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income-focused investors who want monthly payouts; the trailing yield was 5.87% as of October 27, 2026.
- Taxable-account investors who value income aimed at qualified-dividend treatment, accepting that some payouts won't qualify.
- Investors comfortable with concentrated exposure to large banks such as ING, Citigroup and State Street across the US, Canada and Europe.
Look elsewhere if
- Investors seeking a broadly diversified core fund; PQDI holds more than 25% in financial services and charges 0.60% a year.
- Those uneasy with bank-specific risk: CoCos can be written down or turned into stock if a bank's capital falls too low.
- Investors worried about rising rates; holdings averaged 15.8 years to maturity as of June 30, 2026, and the fund lost 9.6% in 2022.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
No close alternatives found.
Questions investors ask
Does PQDI pay monthly dividends?
Yes. PQDI pays income monthly. Over the 12 months ending October 27, 2026, it paid $1.09 per share, a trailing yield of 5.87%. The payout isn't fixed. Much of the income comes from bank preferred securities and capital securities, and issuers can cut or skip payments. A sharp rise in interest rates or a weak economy could reduce what the fund distributes.
Is PQDI good for retirement income?
It may suit retirees who want monthly income and accept bank-sector risk. The trailing yield was 5.87% as of October 27, 2026, and the expense ratio is 0.60%. The drawbacks: it fell 17.3% from September 2021 to March 2023 and didn't recover until June 2024. It also concentrates in financial services and holds some junk-rated securities. It works more naturally as one income piece of a portfolio than as a core holding.
Are PQDI dividends qualified dividends?
Partly. PQDI favors securities that, when issued, were eligible to pay "qualified dividend income," which is taxed at lower rates than ordinary income. The prospectus says the fund also holds securities that aren't eligible. So some of its income may be taxed as ordinary income. As of June 30, 2026, 84% of the portfolio was in bonds and notes and 14% in preferred stock.
What are CoCos in PQDI and are they risky?
CoCos, or contingent convertible securities, are hybrid bonds that are usually issued by non-US banks. They pay a fixed coupon, but if the bank's capital falls below a trigger level, or regulators step in, the bond can be converted into stock or written down, even to zero. That gives them a higher yield than senior bonds and more risk. PQDI's largest holdings as of June 30, 2026 included ING Groep, Nordea and Credit Agricole.
How has PQDI performed compared with its benchmark?
Through December 31, 2025, PQDI beat the ICE BofA 7% Constrained DRD Eligible Preferred Securities Index. Its one-year return was 8.87% against the index's 5.68%. Its five-year average annual return was 3.46% against 1.47%, and since inception it returned 4.92% a year against 3.02%. The index numbers don't deduct fees. The fund's weakest calendar year was 2022, when it fell 9.59%.