On Wednesday, Putnam Investments announced the debut of its first actively managed ETFs, which are based on four of its leading equity strategies. The new ETFs – the Putnam Sustainable Leaders ETF (PLDR), the Putnam Sustainable Future ETF (PFUT), the Putnam Focused Large Cap Growth ETF (PGRO), and the Putnam Focused Large Cap Value ETF (PVAL) – begin trading today on the New York Stock Exchange.
The new offerings represent the first ETF products from the company, which currently provides an array of retail mutual funds, separately managed accounts, collective investment trusts, private funds, and non-U.S. funds.
“We are excited to enter the ETF marketplace today with the launch of active ETFs that employ Putnam’s time-tested, active management expertise,” said Robert L. Reynolds, President and Chief Executive Officer, Putnam Investments. “The introduction of these four ETFs delivers on our long-standing commitment to meet the evolving needs of investors by offering a broad range of vehicle options that access our deep, fundamentally-driven investment capabilities.”
The new active ETFs have underlying investment portfolios similar to the existing Putnam mutual funds and separately managed account strategies and utilize the same portfolio managers and research teams as those related products.
The Putnam ETFs employ the firm’s established active investment approach, characterized by rigorous fundamental research and advanced risk management techniques – in the ultimate pursuit of alpha generation for investors. At the same time, they have attractive features that have made ETFs popular, including intra-day liquidity, tax efficiency, and a competitive fee structure.
Explaining Putnam’s first foray into the ETF realm, Reynolds indicated that “we very deliberately chose four of our leading equity strategies, including two ESG-focused portfolios, to provide the marketplace with Putnam’s unique brand of active investing combined with the benefits of an ETF wrapper.”
The four active ETF strategies launched by Putnam today are the:
Putnam Sustainable Leaders ETF (PLDR)
- Leadership Focus: Invests in companies that are established leaders in financially material sustainability issues.
- Managed by Katherine Collins and Stephanie Dobson
- A total expense ratio of 59 basis points
Putnam Sustainable Future ETF (PFUT)
- Solutions Focus: Invests in solutions-oriented companies that offer innovative ways to address key sustainability challenges.
- Managed by Katherine Collins and Stephanie Dobson
- A total expense ratio of 64 basis points
Putnam Focused Large Cap Growth ETF (PGRO)
- Durable Growth Themes: Focuses on businesses that exhibit both a high level of growth and an above-average duration of growth.
- Managed by Richard Bodzy and Gregory McCullough
- A total expense ratio of 55 basis points
Putnam Focused Large Cap Value ETF (PVAL)
- Disciplined Process: Focuses on large companies whose stocks are priced below their long-term potential and where there may be a catalyst for positive change.
- Managed by Darren Jaroch and Lauren DeMore
- A total expense ratio of 55 basis points
Putnam’s suite of ETFs will utilize the Fidelity tracking basket methodology for active equity ETFs. Fidelity’s tracking basket methodology and related features are designed to provide market makers with enough information to make effective markets in shares of the ETFs while also maintaining the confidentiality of portfolio holdings necessary for Putnam to execute these strategies for the benefit of investors.
For more information, visit putnam.com.
This article originally appeared on ETFTrends.com.
