Principal launches new ETFs and hires model portfolio strategist Principal launches new ETFs and hires model portfolio strategist Submitted 02|06|2021 - 9:00am Principal Financial Group is continuing to build out its model portfolio offering, making a strategic hire to lead the development of the product offering and bringing to market three new multi-factor ETFs. Both actions will serve as foundational pillars for Principals planned growth in the model portfolio space while also meeting the increased client demand for adaptive risk ETFs. The Principal Adaptive Multi-Factor ETFs are built to adjust to changes in the investment environment for risk assets. The three ETFs US Large Cap, US Small Cap, and International will use factor combinations to read and adjust risk exposure based upon equity market signals rather than macroeconomic indicators. We remain focused in our pursuit of investment solutions that will help clients optimise returns and mitigate risk. By utilising a rules-based investing process, the Principal Adaptive Multi-Factor ETFs aim to consistently outperform traditional market cap-weighted indexes during periods of low and high market volatility, says Matthew Raynor, managing director of the U.S.