Fund Evaluator:
Principal Small-MidCap Dividend Inc R6 (PMDHX)
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Fund Details
Principal Small-MidCap Dividend Inc R6 Overview
Principal Small-MidCap Dividend Inc R6 (PMDHX) is an actively managed U.S. Equity Small Blend fund. Principal Funds launched the fund in 2017.
The investment seeks to provide current income and long-term growth of income and capital. The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in dividend-paying equity securities of companies with small-to-medium market capitalizations. Its investments include the securities of foreign issuers and real estate investment trusts.
About Principal Small-MidCap Dividend Inc R6 (PMDHX)
There are 3 members of the management team with an average tenure of 8.53 years: Sarah Radecki (2018), Lauren Choi (2023), Daniel Coleman (2011). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Russell 2500 Value TR USD index with a weighting of 100% and Russell 3000 TR USD index with a weighting of 100%. Principal Small-MidCap Dividend Inc R6 has 81 securities in its portfolio. The top 10 holdings constitute 25.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Principal Small-MidCap Dividend Inc R6 is part of the Equity global asset class and is within the U.S. Equity fund group. Principal Small-MidCap Dividend Inc R6 has 2.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 96.5%. There is 2.5% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.2% (0.2% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Principal Small-MidCap Dividend Inc R6 has 0.9% of the portfolio in cash.
Assets Under Management
The fund has $656 million in total assets, which is below the $685 million average for the Small Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
PMDHX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Principal Small-MidCap Dividend Inc R6 expense ratio is above average compared to funds in the Small Blend category. Principal Small-MidCap Dividend Inc R6 has an expense ratio of 0.78%, which is 25% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Principal Small-MidCap Dividend Inc R6 has a portfolio turnover rate of 25%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 66% for the Small Blend category.
Recently, in the month of July 2026, Principal Small-MidCap Dividend Inc R6 returned -1.8%, which earned it a grade of B, as the Small Blend category had an average return of -2.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Principal Small-MidCap Dividend Inc R6 has a trailing yield of 1.19%, which is above the 0.42% category average. The fund normally distributes its income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Principal Small-MidCap Dividend Inc R6 Grades
Year to date, the fund has returned 17.0%, 1.1 percentage points worse than the category, which translates into a grade of D. The fund has returned 23.8% over the past year (grade of D), 13.8% over the past three years (grade of C) and 10.0% per year over the past five years (grade of A) and 9.6% per year over the past 10 years (grade of D).
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PMDHX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| PMDHX Return (NAV) | -1.8% | 3.9% | 23.8% | 13.8% | 10.0% | 9.6% |
| PMDHX Grade | B | D | D | C | A | D |
| +/- Category | 1.1% | -1.3% | -4.5% | 0.4% | 2.4% | -0.7% |
| Small Blend Avg | -2.8% | 5.2% | 28.3% | 13.5% | 7.6% | 10.3% |
| PMDHX Tax Cost Ratio | na | na | 1.0% | 1.1% | 1.1% | na |
PMDHX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| PMDHX Return (NAV) | 17.0% | 8.7% | 11.1% | 18.9% | -11.6% | 30.5% | -6.2% | 25.4% | -13.5% | 13.4% | 30.0% |
| PMDHX Grade | D | C | C | B | A | A | F | C | D | C | A |
| +/- Category | -1.1% | 0.8% | -0.4% | 2.4% | 4.9% | 7.3% | -20.6% | -0.1% | -1.6% | -0.7% | 9.8% |
| Small Blend Avg | 18.2% | 7.9% | 11.6% | 16.5% | -16.5% | 23.2% | 14.4% | 25.5% | -11.8% | 14.1% | 20.2% |
| Risk Measures | |
| Standard Deviation: | 16.9% |
| Total Risk Index: | 1.38 - High |
| Category Risk Index: | 0.91 - Low |
| Category Risk Grade: | A (15% Rank) |
| Beta: | 0.96 |
| R-Squared: | 55% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Small-Cap Blend |
| Bond Investment Style: | na |
| Yield: | 1.2% |
| Dividend Distribution: | Quarterly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $1569 Mil |
| Fund Total Assets: | $ 656 Mil |
| Share Class Type: | Retirement |
| Portfolio Turnover: | 26% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 15.2 years | |||
| Average Tenure: 8.5 years | |||
| Managers (Year): Coleman Daniel (2011), Radecki Sarah (2018), Choi Lauren (2023) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 81 |
| % in Top 10 Holdings: | 25.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 2.5% |
Portfolio Allocation |
|
| Domestic Stock: | 96.5% |
| Foreign Stock: | 2.5% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.2% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.9% |
Purchase Information
| Fund Family: | Principal Funds |
| Phone Number: | 800-222-5852 |
| Website: | www.principalfunds.com |
| Status: | Open |
| Inception Date: | January 3, 2017 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.78% ( Rating : Above Avg ) |
| Category Average Expense Ratio (%): | 1.05% |
| Share Class: | Principal Small-MidCap Dividend Inc Inst |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
