PFUT Profile
The Putnam Sustainable Future ETF focuses on investing primarily in common stocks of U.S. companies across various market capitalizations, emphasizing those that are deemed to contribute positively to sustainable development. The fund targets companies—referred to as "Impact Companies"—whose products and services are believed to foster sustainable social, environmental, and economic advancements. By concentrating on these companies, the fund aims to support initiatives that align with broader sustainability goals while providing investors with potential long-term growth opportunities.
Under normal market conditions, the Putnam Sustainable Future ETF commits at least 80% of its net assets to securities that adhere to Putnam Managements sustainability criteria. These criteria are designed to identify and invest in companies that meet specific standards related to environmental stewardship, social responsibility, and corporate governance. Putnam Management employs a proprietary environmental, social, and governance (ESG) rating system, where each company is assessed on a scale from 1 to 4 based on its ESG performance.
The fund's investment approach integrates a thorough evaluation of companies' ESG practices, which includes analyzing their contributions to reducing carbon footprints, enhancing social equity, and maintaining strong governance structures. This process ensures that the investments not only align with sustainability goals but also reflect a commitment to ethical and responsible business practices. By focusing on Impact Companies, the fund seeks to address global challenges such as climate change and social inequality while aiming to achieve favorable financial returns.
As part of its strategy, the Putnam Sustainable Future ETF is actively managed to adapt to changing market conditions and evolving sustainability trends. The funds emphasis on companies with robust sustainability practices offers investors a way to align their portfolios with their values while potentially benefiting from the long-term growth of firms that are well-positioned for future success. This strategic focus supports the funds goal of driving positive change through investments in companies that lead by example in sustainable development.
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