Putnam Investments launched the Putnam Emerging Markets ex-China ETF (NYSE Arca: PEMX), which begins trading today on the New York Stock Exchange. The new actively managed, transparent ETF focuses on emerging market companies, excluding investments in China and Hong Kong. Brian Freiwald will manage the fund.
PEMX targets emerging market companies considered to have a durable competitive advantage, strong balance sheets, and a potential for above-average profitability. It will generally invest at least 80% of its net assets in securities of emerging market companies. This of course excludes companies domiciled in (or whose stocks are listed for trading on an exchange in) China or Hong Kong.
See more: “Putnam Launches 5 New Active ETFs”
Strong Interest in Emerging Markets
In a news release, Robert L. Reynolds, president and CEO of Putnam Investments, expressed excitement about how PEMX will “help advisors and their clients gain important international investing exposure in their portfolios.”
Putnam’s head of product and strategy Carlo Forcione added PEMX offers “flexibility in emerging markets equity investing. And it does this “without the typical heavy weighting of China.”
“In 2023, we have seen strong advisor interest in emerging market strategies as well as actively managed ETFs in general. Putnam’s new offering fits nicely connected these trends,” said VettaFi’s head of research Todd Rosenbluth.
PEMX joins the firm’s growing and diverse range of actively managed ETFs across asset classes and investment styles. Today’s launch expands the firm’s active ETF roster to a total of 12 offerings.
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