Putnam ETF Trust - Putnam PanAgora ESG International Equity ETF (PPIE)

Summary of Putnam PanAgora ESG International Equity ETF (PXI)

Profile:

The Putnam PanAgora ESG International Equity ETF (PXI) is an actively managed ETF that invests in large- and mid-cap companies in developed markets outside the United States. It focuses on companies with strong ESG (environmental, social, and governance) practices. PXI uses a fundamental, bottom-up research process to identify undervalued companies with strong growth potential.

Objective:

The ETF's primary objective is to provide long-term capital appreciation by investing in a diversified portfolio of international equities while adhering to ESG principles.

Issuer:

Putnam Investments is the issuer of PXI. Putnam is a global investment management firm with over 85 years of experience and $204 billion in assets under management (as of March 31, 2023). The firm has a strong reputation for its investment performance and commitment to responsible investing.

Market Share:

PXI has a relatively small market share in the international equity ETF space, with approximately 0.04% as of March 31, 2023.

Total Net Assets:

PXI has approximately $337 million in total net assets as of March 31, 2023.

Moat:

PXI's competitive advantages include:

• Active management: The ETF is actively managed by experienced portfolio managers who can adjust the portfolio to changing market conditions.
• ESG focus: PXI focuses on companies with strong ESG practices, which can appeal to investors who are looking to align their investments with their values.
• Low fees: PXI has an expense ratio of 0.55%, which is below the average for actively managed international equity ETFs.

Financial Performance:

• Since inception (07/14/2021): PXI has returned 7.68% (as of May 5, 2023).
• 1-year: PXI has returned -6.85% (as of May 5, 2023).
• 3-year: PXI has not yet reached its 3-year anniversary.

Benchmark Comparison:

PXI has underperformed its benchmark, the MSCI EAFE Index, over the past year. However, it has outperformed the benchmark since inception.

Growth Trajectory:

The ETF is relatively new and has a limited track record. However, the increasing demand for ESG-focused investments suggests that PXI could experience growth in the future.

Liquidity:

• Average Trading Volume: PXI has an average daily trading volume of approximately 10,000 shares.
• Bid-Ask Spread: The bid-ask spread for PXI is typically around 0.05%.

Market Dynamics:

Factors that could affect PXI's market environment include:

• Global economic growth
• Performance of international stock markets
• Investor sentiment towards ESG investing

Competitors:

Key competitors of PXI include:

• iShares ESG MSCI EAFE ETF (ESGD) - Market Share: 4.18%
• Xtrackers MSCI EAFE ESG Leaders Equity ETF (EFEA) - Market Share: 2.39%
• SPDR MSCI EAFE ESG Select Sector ETF (EFAS) - Market Share: 1.34%

Expense Ratio:

PXI has an expense ratio of 0.55%.

Investment Approach and Strategy:

• Strategy: PXI uses an active, bottom-up fundamental research process to identify undervalued companies with strong growth potential.
• Composition: The ETF invests primarily in large- and mid-cap stocks across various sectors in developed markets outside the United States.

Key Points:

• Actively managed ETF focusing on international equities with strong ESG practices.
• Low expense ratio compared to other actively managed international equity ETFs.
• Relatively new ETF with a limited track record.
• Disclaimer: This information is not intended as financial advice. Please consult with a professional financial advisor before making any investment decisions.

Risks:

• Market risk: The value of PXI's investments can fluctuate due to market conditions.
• Volatility risk: PXI is an actively managed ETF and may experience higher volatility than passively managed ETFs.
• ESG risk: PXI focuses on companies with strong ESG practices, but it is possible that these companies may not perform as well as companies that do not have strong ESG practices.

Who Should Consider Investing:

PXI is suitable for investors who:

• Are looking for long-term capital appreciation
• Want to invest in international equities with strong ESG practices
• Are comfortable with the risks associated with actively managed ETFs

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, PXI receives a Fundamental Rating of 7.5 out of 10. This rating is based on the ETF's strong investment team, low fees, and focus on ESG investing. However, the ETF's limited track record and relatively small market share are factors that could limit its future growth potential.

Resources and Disclaimers:

• Putnam Investments Website: https://www.putnam.com/individual/products/etfs/pxi
• Morningstar: https://www.morningstar.com/etfs/arcx/pxi/quote
• Disclaimer: This information is not intended as financial advice. Please consult with a professional financial advisor before making any investment decisions.