Five New ETFs Expand Putnam’s Offerings Across Asset Classes

Putnam Investments announced that it has officially launched five new transparent, actively managed exchange-traded funds (ETFs) that begin trading today on the New York Stock Exchange.

Launching today are three fixed income ETF portfolios that build upon the longtime capabilities and experience of the Putnam Fixed Income team. Additionally, the firm is launching two non-U.S. equity strategies sub-advised by Putnam affiliate PanAgora Asset Management, Inc., which is well regarded in the industry for its quantitative equities expertise. Putnam is the sponsor/investment adviser on the five new ETFs.

“We think it is increasingly important to offer clients a range of investment products across asset classes delivered through a choice of product wrappers, such as ETFs, mutual funds and separately managed accounts,” said Robert L. Reynolds, President and Chief Executive Officer, Putnam Investments. “One of Putnam’s hallmarks has been its commitment to providing investment strategies that align with investors’ evolving needs. With today’s launch, Putnam is bringing a number of significant investment offerings to market in an ETF format,” he noted.

The new ETFs join the firm’s growing and diverse range of actively managed ETF offerings across asset classes and investment styles:

• Putnam BDC Income ETF (NYSE Arca: PBDC)
• Putnam BioRevolution ETF (NYSE Arca: SYNB)
• Putnam ESG Core Bond ETF (NYSE Arca: PCRB) *
• Putnam ESG High Yield ETF (NYSE Arca: PHYD) *
• Putnam ESG Ultra Short ETF (NYSE Arca: PULT) *
• Putnam Focused Large Cap Growth ETF (NYSE Arca: PGRO)

• Putnam Focused Large Cap Value ETF (NYSE Arca: PVAL)
• Putnam PanAgora ESG International Equity ETF (NYSE Arca: PPIE) *
• Putnam PanAgora ESG Emerging Markets Equity ETF (NYSE Arca: PPEM) *
• Putnam Sustainable Future ETF (NYSE Arca: PFUT)
• Putnam Sustainable Leaders ETF (NYSE Arca: PLDR)

*Launched January 20, 2023

“We are enthused about extending our ETF product shelf into the actively managed fixed income and non-U.S. equity spaces,” said Carlo Forcione, Head of Product and Strategy at Putnam. “Today’s newly launched ETFs are powered by strong existing investment capabilities and demonstrate the firm’s continuing focus on providing an array of compelling offerings in asset classes that are important to our clients and the broader marketplace.”

See related article: Putnam Investments Appoints Jackie VanderBrug as Head of Sustainability Strategy

The five new Putnam ETFs, which employ an environmental, social and governance (ESG) focus, are:

Putnam ESG Core Bond ETF(NYSE Arca: PCRB): Seeks high current income consistent with what Putnam believes is prudent risk by investing mainly in a diversified portfolio of investment-grade fixed income securities, with a focus on companies or issuers that Putnam believes meet relevant ESG criteria. The fund invests mainly in bonds of governments and private companies located in the United States that are investment grade in quality with intermediate- to long-term maturities (three years or longer). Portfolio Managers: Michael Salm, Andrew Benson, Albert Chan and Sri Mahanti.

Putnam ESG High Yield ETF(NYSE Arca: PHYD): Seeks high current income, with capital growth as a secondary goal when consistent with achieving high current income. The fund invests mainly in bonds that are below investment grade in quality (sometimes referred to as “junk bonds”) that have one or more of the following characteristics: (1) are obligations of U.S. companies or issuers and (2) have intermediate- to long-term maturities (three years or longer). The fund invests with a focus on companies or issuers that Putnam believes meet relevant ESG criteria on a sector-specific basis. Portfolio Managers: Rob Salvin and Norm Boucher.

Putnam ESG Ultra Short ETF(NYSE Arca: PULT):Seeks as high a rate of current income that Putnam believes is consistent with preservation of capital and maintenance of liquidity. The fund invests in a diversified portfolio of fixed income securities composed of short-duration, investment-grade money market and other fixed income securities, with a focus on companies or issuers that Putnam believes meet relevant ESG criteria on a sector-specific basis. Portfolio Managers: Joanne Driscoll, Andrew Benson and Michael Lima.

Putnam PanAgora ESG International Equity ETF(NYSE Arca: PPIE): Seeks long-term capital appreciation by investing mainly in common stocks (growth or value stocks or both) of companies of any size outside the United States with a focus on securities that PanAgora believes offer attractive benchmark-relative returns and exhibit positive ESG metrics based on a proprietary framework using quantitative models. Portfolio Managers: George Mussalli and Richard Tan.

Putnam PanAgora ESG Emerging Markets Equity ETF(NYSE Arca: PPEM):Seeks long-term capital appreciation by investing mainly in common stocks (growth or value stocks or both) of emerging markets companies of any size with a focus on securities that PanAgora believes offer attractive benchmark-relative returns and exhibit positive ESG metrics based on a proprietary framework using quantitative models. Portfolio Managers: George Mussalli and Richard Tan.

Additionally, the new fixed income and non-U.S. equity ETFs, along with the existing Putnam Sustainable Leaders ETF and Putnam Sustainable Future ETF, will serve as underlying investments for the firm’s planned ESG-focused target-date series, the Putnam Sustainable Retirement Funds. This new suite is expected to be implemented in the coming weeks through a repositioning of the existing Putnam RetirementReady Funds target-date series.