Principal Equity Premium Income ETF (PCOV)

Principal Equity Premium Income ETF (PCOV) is an actively managed exchange-traded fund from Principal Asset Management that seeks to generate income from a portfolio of equities combined with an options strategy.

Funds of this type typically hold a diversified basket of large-cap U.S. stocks and sell call options, either on individual holdings or on an equity index, to collect option premiums that are distributed as income. Writing calls provides additional cash flow but limits the portfolio's participation in sharp market rallies, so returns tend to be smoother than those of the underlying stocks.

The exact construction of the equity portfolio and option overlay is described in the fund's prospectus. Principal Asset Management is the investment arm of Principal Financial Group, based in Des Moines, Iowa.