Putnam Investments expects to launch its first exchange-traded funds, including two offerings focused on environmental, social and governance investing, the company announced yesterday.
The investment strategies for its four initial ETF products will be similar to existing mutual funds with well-established track records, both in the ESG and large-cap equity areas. The fund roster comprises the following:
• Putnam Sustainable Leaders ETF — invests in U.S. companies of any size that exhibit a commitment to sustainable business practices.
• Putnam Sustainable Future ETF — focuses on companies whose products and services are deemed to directly contribute to sustainable social, environmental and economic development.
• Putnam Focused Large Cap Growth ETF — the nameplate says it all.
• Putnam Focused Large Cap Value ETF — the emphasis is on value stocks that offer the potential for capital growth, current income or both.
The first of these semi-transparent, actively managed ETFs is expected to begin trading this spring. Putnam currently offers investors retail mutual funds, separately managed accounts, collective investment trusts, private funds and non-U.S. funds.
“As a long-time active manager, Putnam is enthused to enter the active ETF marketplace, which we expect will gain meaningful traction in the years ahead,” Robert L. Reynolds, president and CEO of Putnam Investments, said in a statement.
All four Putnam ETFs will utilize the Fidelity tracking basket methodology for active equity ETFs, which enables the semi-transparent structure by providing market makers with enough information to make effective markets in shares of the ETFs, while also maintaining the confidentiality of portfolio holdings.