Putnam Launches 5 ESG ETFs

Putnam Investments has launched five new, transparent, actively managed ETFs that started trading on the New York Stock Exchange today. The new ETFs incorporate a focus on environmental, social and governance (ESG) criteria.

The firm launched three fixed-income ETF portfolios managed by its own team and two non-U.S. equity strategies sub-advised by Putnam affiliate PanAgora Asset Management Inc., which brings quantitative equities expertise.

Putnam is the sponsor/investment advisor 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,” Putnam Investments president and CEO Robert L. Reynolds said.

“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.

“We are enthused about extending our ETF product shelf into the actively managed fixed income and non-U.S. equity spaces,” Carlo Forcione, product and strategy head at Putnam, said.

“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.”

The five new Putnam ETFs 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 U.S., investment-grade government and private company bonds with intermediate- to long-term maturities. Portfolio managers: Michael Salm, Andrew Benson, Albert Chan and Sri Mahanti. Expense ratio: 0.35%
• 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 below investment-grade quality 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. The fund focuses on companies or issuers that meet Putnam’s relevant ESG criteria on a sector-specific basis. Portfolio managers: Rob Salvin and Norm Boucher. Expense ratio: 0.55%
• Putnam ESG Ultra Short ETF (NYSE Arca: PULT): Seeks as high a rate of current income 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 meeting relevant ESG criteria on a sector-specific basis. Portfolio managers: Joanne Driscoll, Andrew Benson and Michael Lima. Expense ratio: 0.25%
• Putnam PanAgora ESG International Equity ETF (NYSE Arca: PPIE): Seeks long-term capital appreciation by investing mainly in common stocks of companies of any size outside the U.S. with a focus on securities that PanAgora believes offer attractive benchmark-relative returns and exhibit positive ESG metrics, based on a framework using quantitative models. Portfolio managers: George Mussalli and Richard Tan. Expense ratio: 0.49%
• Putnam PanAgora ESG Emerging Markets Equity ETF (NYSE Arca: PPEM): Seeks long-term capital appreciation by investing mainly in common stocks 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. Portfolio managers: George Mussalli and Richard Tan. Expense ratio: 0.60%

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.