Putnam Investments has announced that it will launch three actively managed, transparent ETFs in the coming months, pending completion of the regulatory filing process.
The firm writes that the new ETFs will each have a distinct investment focus:
• Putnam BDC Income ETF — Business development companies (BDCs)
• Putnam BioRevolutionTM ETF — Companies operating at the intersection of technology and biology in the “biology revolution”
• Putnam Emerging Markets ex-China ETF — Emerging markets companies, excluding investments in China and Hong Kong
Building on the firm’s launch of its first four active ETFs last year, the new products will leverage existing investment expertise and capabilities within Putnam and, the firm says, are designed to provide the marketplace with access to three compelling strategies within an ETF format.
“Putnam continues to bolster its product line-up by bringing thoughtful, innovative strategies to the marketplace,” says Robert L. Reynolds, President and Chief Executive Officer, Putnam Investments. “We are excited to offer investors and advisors a dynamic set of investment opportunities, which will be meaningful additions to Putnam’s growing ETF roster.”
The ETF strategies expected to be launched by Putnam in the coming months include:
• Putnam BDC Income ETF – Seeks current income by investing mainly in exchange-traded BDCs based in the U.S. and registered with the SEC. BDCs generally invest in, lend capital to or provide services to privately-held U.S. companies or thinly traded U.S. public companies.
• Putnam BioRevolutionTM ETF – Seeks long-term capital appreciation by investing mainly in common stocks of companies of any size with a focus on those that Putnam believes offer the opportunity to capitalise on a convergence of technological developments in the life sciences sector. These include technology-enabling companies that provide the materials, equipment, and knowledge to enable biology innovations, biotechnology, or synthetic biology companies, as well as companies that operate in industries that are likely to be impacted by the biology revolution over time.
• Putnam Emerging Markets ex-China ETF – Seeks long term capital appreciation by investing mainly in common stocks of emerging market companies. Emerging markets include countries in the MSCI Emerging Markets ex China Index or those Putnam considers to be emerging markets based on an evaluation of their level of economic development or the size and experience of their securities markets. The ETF will exclude companies domiciled in, or whose stocks are listed for trading on an exchange in, China or in Hong Kong.
“We are enthused to bring these differentiated strategies to the marketplace, to give investors exposure to several important developing areas,” says Carlo Forcione, Head of Product and Strategy at Putnam Investments.
“The new ETFs are an extension of Putnam’s equity investment capabilities that apply traditional fundamental research, currently employed in an array of products offered by our firm across retail mutual funds, ETFs, separately managed accounts, collective investment trusts, private funds and non-U.S. funds,” Forcione says.
Putnam launched its first four active ETFs in May 2021: Putnam Focused Large Cap Growth ETF; Putnam Focused Large Cap Value ETF; Putnam Sustainable Future ETF; and Putnam Sustainable Leaders ETF.