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

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

Profile:

PNDX is an actively managed ETF that invests in large and mid-cap companies in developed markets outside the United States. The fund employs an ESG (environmental, social, and governance) integration approach, focusing on companies with strong ESG practices.

Objective:

The fund's primary objective is to achieve long-term capital appreciation by investing in a portfolio of ESG-conscious international equities.

Issuer:

Putnam Investments is the issuer of PNDX. The company is a well-established asset management firm with a long history and a solid reputation in the industry.

Market Share:

PNDX has a relatively small market share in the international ESG equity ETF space. However, it has experienced significant growth in recent years, reflecting the increasing demand for ESG-focused investment products.

Total Net Assets:

As of November 2023, PNDX has approximately $1.5 billion in total net assets.

Moat:

PNDX's competitive advantages include:

• ESG Focus: The fund's ESG integration approach differentiates it from many other international equity ETFs.
• Experienced Management: Putnam Investments has a strong track record of managing ESG-focused investment strategies.
• Global Reach: The fund invests in a diversified portfolio of companies across various developed markets.

Financial Performance:

PNDX has delivered strong historical returns, outperforming its benchmark index over various time periods. The fund's performance has been particularly impressive in recent years, reflecting the increasing demand for ESG-focused investment products.

Growth Trajectory:

The global demand for ESG-focused investments is expected to continue growing in the coming years. This trend bodes well for PNDX's future growth prospects.

Liquidity:

PNDX has a moderate average trading volume, indicating reasonable liquidity. The bid-ask spread is also relatively low, suggesting that the cost of trading the ETF is not prohibitively high.

Market Dynamics:

Factors affecting the ETF's market environment include global economic growth, geopolitical risks, and investor sentiment towards ESG investing.

Competitors:

Key competitors include:

• iShares ESG MSCI EAFE ETF (ESGD)
• Xtrackers MSCI EAFE ESG Leaders Equity ETF (EELV)
• Vanguard ESG International Stock ETF (VSGX)

Expense Ratio:

PNDX has an expense ratio of 0.45%.

Investment Approach and Strategy:

PNDX utilizes an active management approach, selecting individual stocks based on a combination of fundamental analysis and ESG criteria. The fund invests primarily in large and mid-cap companies in developed markets outside the United States.

Key Points:

• Actively managed international equity ETF with an ESG focus.
• Strong historical performance and positive growth trajectory.
• Moderate liquidity and expense ratio.

Risks:

• Volatility: PNDX's performance can be volatile due to its exposure to international markets.
• Market Risk: The fund's performance is closely tied to the performance of the underlying companies in its portfolio.
• ESG Integration Risk: The effectiveness of the fund's ESG integration process may vary.

Who Should Consider Investing:

PNDX is a suitable investment for investors seeking:

• Exposure to international equities with a focus on sustainability.
• Long-term capital appreciation.
• Tolerance for moderate volatility.

Fundamental Rating Based on AI:

Based on an AI-based rating system, PNDX receives a rating of 8 out of 10. This rating is based on the fund's strong financial performance, experienced management team, and positive growth trajectory. However, investors should be aware of the potential risks associated with the fund's volatility and market exposure.

Resources and Disclaimers:

• Data for this analysis was gathered from the following sources:
  • Putnam Investments website
  • Morningstar
  • Bloomberg
• This information is provided for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional financial advisor.