Putnam Investments, well known for its actively managed mutual funds and institutional strategies recently launched its first actively managed ETFs. The four inaugural ETFs include: The Putnam Sustainable Leaders ETF (PLDR), Putnam Sustainable Future ETF (PFUT), Putnam Focused Large Cap Growth ETF (PGRO), and Putnam Focused Large Cap Value ETF (PVAL).
The Putnam ETFs are characterized by extensive research and advanced risk management. The ETFs offer the advantage of active management under an ETF wrapper, thus delivering investors access to top active managers with the added benefits of intraday liquidity, tax efficiency, and a competitive fee structure with no investment minimum. Putnam’s ETFs will use Fidelity’s tracking basket methodology for active equity ETFs, which is designed to provide market makers with enough information to make effective markets in shares of the ETFs, while maintaining confidentiality of portfolio holdings.
Whereas traditional ETFs tell the public what assets they hold each day, Putnam’s ETFs do not. Additional risks arise because of this, like paying more to trade the ETF’s shares or to buy ETF shares on an exchange, but the confidentiality of the ETF means that the ETF will face less risk that other traders can predict or copy its investment strategy, which can improve the ETF’s performance.
Putnam Sustainable Leaders ETF (PLDR) invests in companies that are established leaders in material sustainability issues relevant to their business context. Putnam Sustainable Future ETF (PFUT) invests in solutions-oriented companies that address key sustainability issues. Putnam Focused Large Cap Growth ETF (PGRO) seeks capital appreciation through a durable growth focus, which highlights businesses that exhibit a high-level of growth and duration of growth. Lastly, Putnam Focused Large Cap Value ETF (PVAL), seeking capital growth and current income, focuses on large companies that have stocks priced below long-term potential and are able to generate dividends for investors.
Putnam Investments was founded in 1937 by George Putnam, who established one of the first balanced mutual funds. In the eighty-four years since its founding, Putnam Investments has amassed $197 billion in AUM, and the firm has offices in Boston, London, Frankfurt, Tokyo, Singapore, and Sydney. Putnam Investments is an investment management firm that offers actively-managed mutual funds and institutional strategies across equities, fixed income, absolute return, and alternatives.
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