Putnam PanAgora ESG International Equity ETF (PPIE)

Overview

The fund is an investment entity with a clear focus on investing primarily in common stocks of companies located outside the United States. It targets entities across a broad size spectrum with an emphasis on those demonstrating either growth potential or value investment qualities. The fund is distinctive for integrating Environmental, Social, and Governance (ESG) criteria into its investment selection process, aiming for attractive returns relative to benchmarks while supporting positive ESG practices. Managed by a subadviser who is keen on identifying companies with superior ESG metrics, the fund aims to offer investors not only financial returns but also the opportunity to contribute towards responsible corporate behaviors globally.

Products and Services

• Common Stocks - The primary investment vehicles of the fund, including stocks from growth-oriented and value-driven companies of any size located outside the United States. These are selected based on their potential to offer appealing returns relative to benchmarks while demonstrating positive ESG metrics.
• Preferred Stocks - These are selected under the same criteria as common stocks but offer investors a different set of financial characteristics and typically come with fixed dividends, adding a layer of diversification to the investment portfolio.
• Convertible Securities - Investments in convertible bonds or preferred stocks that can be converted into a predetermined number of common shares, usually at the option of the holder. This offers the fund flexibility and potential upside in stock performance while providing income.
• Warrants - The fund may invest in warrants, which are securities that give the holder the right to purchase company stock at a specific price until the expiry date. This can potentially enhance the fund’s returns if the underlying stocks perform well.
• American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) - These are types of depositary receipts that represent shares in foreign companies, allowing the fund to invest in non-U.S. companies with ease. ADRs are typically traded on U.S. exchanges, while GDRs are traded on international markets. Both instruments provide a way to diversify globally and gain exposure to foreign equity markets.