Putnam planning 5 new active ESG-focused ETFs

The new exchange-traded funds will serve as the underlying components for Putnam's ESG-focused target-date series, in addition to the company's existing Sustainable Leaders ETF and Sustainable Future ETF.

Putnam Investments is bringing five new exchange-traded funds to the market that all have a focus on environmental, social and governance investing.

Three of Putnam’s ETFs will be fixed-income strategies built upon the capabilities and experience of Putnam’s internal fixed-income team: ESG Core Bond, ESG High Yield and ESG Ultra Short. The other two, ESG International Equity and ESG Emerging Markets Equity, are quantitative equity strategies that will be sub-advised by Putnam affiliate PanAgora Asset Management.

Putnam will be the sponsor and investment adviser on all five ETFs.

In addition to Putnam’s existing Sustainable Leaders ETF and Sustainable Future ETF, the five new active ETFs will serve as the underlying components of the company’s ESG-focused target-date series, the Putnam Sustainable Retirement Funds. This new suite of TDFs will be implemented in the coming months through a repositioning of the firm’s existing RetirementReady Funds series.

“We believe in the value and importance of these strategies in building a long-term investment portfolio,” Robert Reynolds, president and CEO of Putnam Investments, said in a statement. “We have seen growing interest from many corners of the marketplace for ESG investing across a range of asset classes — and are excited to introduce these new fixed income and quantitative equity ETFs to our lineup.”

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