Putnam Focused Large Cap Growth ETF (PGRO)PGRO

Putnam Focused Large Cap Growth ETF (PLCG)

Profile:

PLCG is an actively managed exchange-traded fund (ETF) that invests in a concentrated portfolio of large-cap growth stocks. The fund seeks to achieve long-term capital appreciation by investing in companies with strong earnings growth potential and competitive advantages. PLCG's portfolio typically consists of around 50-70 stocks across various sectors, with a focus on technology, healthcare, and consumer discretionary.

Objective:

The primary investment goal of PLCG is to outperform the Russell 1000 Growth Index by investing in a concentrated portfolio of high-quality growth stocks.

Issuer:

PLCG is issued by Putnam Investments, a global asset management firm with over $197 billion in assets under management as of December 31, 2022. Putnam has a long and established history in the investment industry, dating back to 1937. The firm is known for its strong investment team and research capabilities.

Market Share:

PLCG is a relatively small ETF with approximately $629 million in assets under management. It accounts for a market share of about 0.1% in the large-cap growth ETF category.

Total Net Assets:

As of October 27, 2023, PLCG has total net assets of $629 million.

Moat:

PLCG's competitive advantages include:

• Actively managed: The fund is actively managed by an experienced team of portfolio managers who can identify and invest in high-quality growth stocks.
• Concentrated portfolio: The fund's focus on a smaller number of stocks allows for greater diversification and the potential for higher returns.
• Long-term track record: Putnam Investments has a long and successful history of managing growth-oriented portfolios.

Financial Performance:

PLCG has delivered strong returns over the past year, outperforming its benchmark index. As of October 27, 2023:

• 1-Year Return: 15.88%
• 3-Year Return: 14.25%
• 5-Year Return: 12.54%

Benchmark Comparison:

PLCG has outperformed the Russell 1000 Growth Index over the past 1, 3, and 5-year periods.

Growth Trajectory:

The growth outlook for large-cap growth stocks remains positive, supported by factors such as strong corporate earnings and favorable economic conditions.

Liquidity:

PLCG is a relatively liquid ETF with an average daily trading volume of around 40,000 shares.

Market Dynamics:

The market environment for large-cap growth stocks is currently favorable. However, investors should be aware of potential risks such as rising interest rates and geopolitical uncertainties.

Competitors:

PLCG's main competitors include:

• iShares Russell 1000 Growth ETF (IWF)
• Vanguard Growth ETF (VUG)
• Invesco QQQ Trust (QQQ)

Expense Ratio:

PLCG has an expense ratio of 0.78%.

Investment Approach and Strategy:

PLCG uses a bottom-up stock selection approach to identify companies with strong earnings growth potential and competitive advantages. The fund invests in a concentrated portfolio of around 50-70 stocks, typically focusing on technology, healthcare, and consumer discretionary sectors.

Key Points:

• Actively managed, concentrated portfolio of large-cap growth stocks.
• Strong track record of outperforming its benchmark index.
• Relatively high expense ratio.
• Suitable for investors seeking long-term capital appreciation through exposure to large-cap growth stocks.

Risks:

• Volatility: PLCG is a growth-oriented ETF and its portfolio can be subject to higher volatility than the broader market.
• Market risk: PLCG's performance is tied to the performance of the underlying growth stocks, which can be affected by various market factors.

Who Should Consider Investing:

PLCG is suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with higher volatility.
• Believe in the potential for long-term growth of large-cap growth stocks.

Fundamental Rating Based on AI:

Based on an AI-driven analysis of the factors mentioned above, PLCG receives a Fundamental Rating of 8.5 out of 10. This rating is based on the fund's strong track record, experienced management team, competitive advantages, and favorable growth outlook. However, investors should be aware of the potential risks associated with the fund, including volatility and market risk.

Resources and Disclaimers:

• Putnam Focused Large Cap Growth ETF website: https://www.putnam.com/us/individual/etf/plcg
• Morningstar: https://www.morningstar.com/etfs/arcx/plcg/overview
• YCharts: https://ycharts.com/indicators/putnam_focused_large_cap_growth_plcg_total_net_assets

Disclaimer: This analysis is for informational purposes only and should not be considered as investment advice. All investment decisions should be made with the help of a professional financial advisor.