RiverNorth Managed Duration Muni Inc Fd: A Fund with Modest Returns and High Expenses

RiverNorth Managed Duration Muni Inc Fd (RMM) is a fund with modest returns and high expenses. As a finance expert, I would advise passing on this investment option due to its poor performance and high costs. The fund's returns are not competitive, and its fees are high, making it a less attractive choice for investors.

The Principal Focused Blue Chip ETF (BCHP) has recently undergone a significant update to its prospectus, effective as of June 9, 2025. This ETF aims to provide long-term growth of capital by investing in equity securities of large, well-established companies. The fund's objective is to focus on "blue chip" companies, which are typically considered market leaders or among the top three companies in their respective sectors.

Investment Strategies and Risks

Under normal circumstances, the Principal Focused Blue Chip ETF invests at least 80% of its net assets in equity securities of companies with large market capitalizations. These companies are expected to display characteristics of a "blue chip" company, such as large, well-established, and financially sound companies. The fund tends to focus on securities of companies that show potential for growth of capital and an expectation for above-average earnings.

The fund invests in securities of foreign companies and companies in the financials and information technology sectors. It is considered non-diversified, which means it can invest a higher percentage of assets in securities of individual issuers than a diversified fund. This can result in greater fluctuations in the Fund’s share price.

Fees and Expenses

The fund charges an annual management fee of 0.58%, which is paid by the investment advisor, Principal Global Investors, LLC. Other expenses, such as brokerage commissions and other fees connected to the execution of portfolio transactions, interest expense, taxes, and extraordinary expenses, are also covered by the investment advisor.

Portfolio Turnover

During the most recent fiscal year, the fund's portfolio turnover rate was 15.4% of the average value of its portfolio. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account.

Conclusion

The Principal Focused Blue Chip ETF offers a targeted investment strategy focused on large, well-established companies. However, investors should be aware of the fund's high fees and the potential for significant fluctuations in share price due to its non-diversified nature. Before investing, it is essential to carefully consider these factors and consult with a financial advisor to determine if this ETF aligns with your investment objectives and risk tolerance.

References

[1] https://www.streetinsider.com/SEC+Filings/Form+485BPOS+Principal+Exchange-Trade/24913887.html