Global money management firm Putnam Investments announced today the launch of the firm’s first actively managed exchange-traded funds, establishing four new ETFs, including two based on the company’s ESG funds, as well as two large cap equity funds.
Robert L. Reynolds, President and Chief Executive Officer, Putnam Investments, said:
“We are excited to enter the ETF marketplace today with the launch of active ETFs that employ Putnam’s time-tested, active management expertise. 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.”
As an active ETF, the new products have underlying investment portfolios similar to existing Putnam mutual fund and separately managed account strategies, and utilize the same portfolio managers and research teams as those related products. Active ETFs also differ from traditional ETFs in that they do not disclose what assets they hold on a daily basis, making them more difficult to replicate.
The two new ESG-focused active ETFs include Putnam Sustainable Leaders ETF (PLDR), and Putnam Sustainable Future ETF (PFUT). PLDR invests in companies that have demonstrated leadership in sustainability issues that are financially material to their business context, while PFUT focuses on companies whose products and services provide solutions to essential sustainability challenges.
“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.”