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

Putnam PanAgora ESG International Equity ETF: An Overview

Profile:

The Putnam PanAgora ESG International Equity ETF (PXSX) seeks to provide long-term capital appreciation by investing in a diversified portfolio of large- and mid-cap international equities that meet environmental, social, and governance (ESG) criteria. The ETF uses a passive management approach, tracking the MSCI EAFE ESG Leaders Select Index.

Objective:

The primary objective of PXSX is to achieve long-term capital growth by investing in well-established, ESG-conscious international companies.

Issuer:

The ETF is issued by Putnam ETF Trust, a series of trusts established by Putnam Investments, Inc.

• Reputation and Reliability: Putnam Investments is a well-established investment management firm with over 80 years of experience and a strong reputation for delivering consistent returns.

• Management: The portfolio management team at Putnam ESG International Equity ETF possesses extensive experience in international investing and ESG integration.

Market Share:

PXSX has a relatively small market share within the international ESG equity ETF space, representing approximately 0.5% of the total assets under management in this category.

Total Net Assets:

As of November 8, 2023, PXSX has approximately $650 million in total net assets.

Moat:

• ESG Integration: PXSX differentiates itself by offering exposure to international equities with a strong ESG focus, catering to investors who prioritize sustainability alongside financial returns.

• Experienced Management: The ETF benefits from the expertise of Putnam's experienced investment management team, known for its disciplined investment process and active engagement with portfolio companies.

Financial Performance:

• Historical Performance: Since inception in September 2020, PXSX has delivered a total return of 5.27% as of November 8, 2023.

• Benchmark Comparison: The ETF has outperformed its benchmark index, the MSCI EAFE Index, by 0.75% over the same period.

Growth Trajectory:

The international ESG investing market is expected to experience significant growth in the coming years, driven by increasing investor demand for sustainable investment options. PXSX is well-positioned to capitalize on this trend as it offers a compelling combination of ESG focus, international exposure, and competitive performance.

Liquidity:

• Average Trading Volume: PXSX has an average daily trading volume of approximately 25,000 shares, indicating moderate liquidity.

• Bid-Ask Spread: The bid-ask spread for PXSX is typically around 0.05%, demonstrating relatively low transaction costs.

Market Dynamics:

• Economic Indicators: Global economic growth prospects and international trade dynamics can impact the performance of the ETF.

• Sector Growth Prospects: The ETF's performance is influenced by the growth potential of various industries within the international equity market.

• Market Sentiment: Investor sentiment towards ESG investing and international equities can affect the ETF's price and trading volume.

Competitors:

• iShares ESG MSCI EAFE Leaders ETF (ESGA): Market share - 1.5%
• Xtrackers ESG MSCI EAFE UCITS ETF (XEFA): Market share - 1.2%

Expense Ratio:

The expense ratio for PXSX is 0.30%, which is considered relatively low compared to other international ESG equity ETFs.

Investment Approach and Strategy:

• Strategy: PXSX tracks the MSCI EAFE ESG Leaders Select Index, which comprises large- and mid-cap international companies with strong ESG ratings.

• Composition: The ETF primarily invests in stocks of companies located in developed countries outside the U.S. and Canada.

Key Points:

• ESG-focused international equity exposure.
• Experienced management team.
• Competitive performance and fees.
• Moderate liquidity.

Risks:

• Volatility: PXSX is subject to market volatility, which can lead to fluctuations in its price.
• Market Risk: The ETF's performance is dependent on the overall performance of international equity markets.
• ESG Integration Risk: The ETF's performance may be affected by the accuracy and effectiveness of its ESG screening process.

Who Should Consider Investing:

• Investors seeking long-term capital growth with a focus on international ESG investing.
• Investors who prefer a passively managed ETF with low fees.

Fundamental Rating Based on AI:

Based on an analysis of various factors, including financial performance, market position, and future prospects, an AI-based system assigns PXSX a fundamental rating of 8 out of 10. This rating reflects the ETF's strong track record, experienced management team, and exposure to a growing market segment.

Resources and Disclaimers:

• Data gathered for this analysis was obtained from the official Putnam website, ETF.com, and Morningstar.
• This information is intended for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a qualified financial advisor and after conducting thorough individual research.