Putnam PanAgora ESG Emerging Markets Equity ETF (PPEM)

Overview

The fund specializes in investing primarily in equity securities of emerging markets companies that adhere to PanAgora’s Environmental, Social, and Governance (ESG) criteria. These investments are designed to capture the growth potential of emerging markets while maintaining a commitment to responsible investing principles. By focusing on ESG factors, the fund aims to identify companies with sustainable business practices that are positioned for long-term success. This approach combines financial returns with a positive contribution to society and the environment.

Products and Services

The fund offers a comprehensive range of investment products focused on emerging markets, each adhering to specific ESG criteria:

• Common Stocks: Shares of ownership in companies that are expected to benefit from the economic growth in emerging markets. These companies are selected based on their adherence to ESG criteria, aiming to include businesses with ethical governance, environmental stewardship, and positive social impact.
• Preferred Stocks: A type of stock which provides a fixed dividend and has precedence over common stock in the event of a company’s liquidation. These are chosen from companies in emerging markets that demonstrate strong ESG practices, providing a potentially stable income with a focus on sustainability.
• Convertible Securities: Bonds or preferred shares that can be converted into a predetermined number of common shares, offering the potential for appreciation. The selection of these securities is based on the issuing companies' commitment to ESG standards, marrying financial versatility with ethical investing.
• Warrants: Securities that grant the holder the right to purchase the company’s stock at a specified price until the expiry date. Warrants are included based on the issuing company's ESG performance, offering an opportunity for speculative investments aligned with sustainable practices.
• American Depositary Receipts (ADRs) & Global Depositary Receipts (GDRs): These allow investors to hold shares in foreign companies, simplifying the process of investing in emerging markets. ADRs and GDRs included in the fund are carefully selected to represent companies that exemplify strong ESG credentials, facilitating international exposure while maintaining a commitment to responsible investing.