Etf review ngày 24 02 2023

This week we sit down with Carlo Forcione at Putnam to discuss the company’s views and support of the active ETF market.

Putnam has a long-standing track record as an active asset manager, having launched its first investment strategies in 1937. The firm entered the ETF market in 2021 with the launch of four active equity ETFs. You recently expanded the lineup to include four additional equity ETFs and three fixed income ETFs. What led to the decision to enter the market?

Putnam’s core mission has always been, and always will be, serving the needs of its clients. As the marketplace continues to evolve, investors’ needs change, and it was clear to us that clients were seeking Putnam’s strong existing capabilities, as well as new innovative strategies, in an ETF wrapper. Rule 6c-11 and the SEC’s issuance of exemptive orders for several semi-transparent ETF methodologies meaningfully lowered our barriers to entry. With a clear path to market and growing demand, our choice was clear: it was time to enter the ETF realm in a meaningful way.

As a global asset manager, what benefits and/or nuances come with operating an active ETF product line-up compared to other investment wrappers (i.e., mutual funds, CITs, etc.)?

From a purely logistical standpoint, our goal is to make it just as easy for our investment, operations, and technology teams to support ETFs as it is to manage mutual funds, CITs, SMAs, or any other vehicle. There are certainly nuances, but the day-to-day work is largely similar. From a commercial perspective, entering the ETF space has changed our business in numerous ways, but the most crucial shift has been in our ability to engage clients who principally invest through ETFs. This shift has helped us build more of the long-lasting relationships that are the foundation of our business.

Putnam is unique in offering active ETFs with various levels of transparency. Why offer both transparent active ETFs and an ETF utilizing a proxy structure? Any early observations on adoption?

Whenever we bring a new product to market, we carefully consider the best vehicle(s) through which to offer it, and the transparency framework is just another element of that evaluation. When determining the appropriate transparency framework, we consider the product’s asset class coverage and similarity to existing products, among other things. We think we are in good company with other issuers that offer their ETFs both transparently and semi-transparently based on what is best for shareholders, and we continue to monitor industry developments relating to transparency. When we talk to advisors about our ETFs, there is much greater interest in our portfolio managers and their investment processes than the specific disclosure model being used. Where both our transparent and semi-transparent active ETFs are available, adoption depends far more on strategy-specific considerations than on the transparency approach.

What are the key considerations that investors should contemplate when considering actively managed ETFs?

Every investor’s situation is unique, but Putnam frames the benefits of active ETFs very simply: they offer the benefits of active management with the potential cost, liquidity, and tax benefits of the ETF. For investors who see the value in that framework, their key considerations will naturally relate to the portfolio management team, historical risk-adjusted performance, and other strategy-specific items.

Lastly, what guidance would you provide sponsors as they consider expanding their product offerings to include actively managed ETFs?

Our best advice for potential new issuers is to find partners you trust across all areas of the ETF ecosystem. Your choice of custodian, distributor, counsel, liquidity providers, and, of course, primary listing exchange will all strongly impact your long-term success. We would not have the thriving, smoothly functioning ETF business we have today without the help of our partners. The NYSE has been among our most important partners since we first began our ETF journey. The NYSE team educated us, connected us to other important partners, and provided support well beyond what we expected from an exchange. Building an ETF business is challenging, but choosing the right partners makes it much easier – and provides a smoother path to success.

Active ETF Stat Pack

Firms# of Issuers218# of New Issuers 20238ProductsAssets# of ETFs1010AUM ($B)$367.21# of New Launches 2023443 Yr AUM CAGR56%Avg. ER0.44%5 Yr AUM CAGR50%Cash FlowTradingYTD Cash Flow ($B)$22.13YTD ADV (Shares)143,679,5673 Yr Cash Flow$250.13YTD ADV ($)$4.69 B5 Yr Cash Flow$310.96YTD Avg. Spread (bps)*31.19

Source: Factset & NYSE Internal Database and Consolidated Tape Statistics as of 3/17/2023

*Simple average

Active, Semi-Transparent Update

EQOP 09/17/2020 Natixis U.S. Equity Opportunities ETF $8,580,540 -$41,315 14.50 70 NYSE AMS Citadel 0.85% VNSE 09/17/2020 Natixis Vaughan Nelson Select ETF $14,901,529 $2,603,237 11.70 3,685 NYSE AMS Citadel 0.80% VNMC 09/17/2020 Natixis Vaughan Nelson Mid Cap ETF $6,864,040 $0 13.65 198 NYSE AMS Citadel 0.85% ESGA 07/15/2020 American Century Sustainable Equity ETF $112,370,028 $1,453,089 12.03 4,172 NYSE AMS Citadel 0.39% MID 07/15/2020 American Century Mid Cap Growth Impact ETF $34,146,881 $4,999,201 11.00 3,482 NYSE AMS Citadel 0.45% ESGY 07/01/2021 American Century Sustainable Growth ETF $7,038,960 $340,530 5.87 377 NYSE AMS Citadel 0.39% NDVG 08/05/2021 Nuveen Dividend Growth ETF $7,683,872 $250,321 11.40 375 NYSE AMS Citadel 0.64% NSCS 08/05/2021 Nuveen Small Cap Select ETF $5,355,298 $0 24.25 39 NYSE AMS Citadel 0.85% NWLG 08/05/2021 Nuveen Winslow Large-Cap Growth ESG ETF $4,838,625 $188,861 14.29 297 NYSE AMS Citadel 0.64% NUGO 09/28/2021 Nuveen Growth Opportunities ETF $2,334,832,164 $84,418,259 12.76 164,485 NYSE AMS Citadel 0.55% SAEF 11/16/2021 Schwab Ariel ESG ETF $13,006,500 $114,600 44.88 1,913 NYSE AMS Flow Traders 0.59% IWLG 06/23/2022 IQ Winslow Large Cap Growth ETF $16,676,760 $2,905,650 27.70 2,650 NYSE AMS Citadel 0.60% IWFG 06/23/2022 IQ Winslow Focused Large Cap Growth ETF $5,787,810 $0 27.78 152 NYSE AMS Citadel 0.65% TSME 10/05/2022 Thrivent Small-Mid Cap ESG ETF $110,342,758 $43,521,921 9.79 30,571 NYSE AMS RBC 0.65% JPSV 03/08/2023 JPMorgan Active Small Cap Value ETF $10,021,150 $719,850 9.20 1,741 NYSE AMS Citadel 0.74% FDG 04/02/2020 American Century Focused Dynamic Growth ETF $126,518,165 -$4,331,512 10.68 7,690 ActiveShares Citadel 0.45% FLV 04/02/2020 American Century Focused Large Cap Value ETF $214,854,548 $5,941,967 10.01 9,837 ActiveShares Citadel 0.42% FBCG 06/04/2020 Fidelity Blue Chip Growth ETF $465,308,256 $20,758,654 33.94 100,890 Fidelity Proxy GTS 0.59% FBCV 06/04/2020 Fidelity Blue Chip Value ETF $131,812,769 $1,388,610 31.85 18,621 Fidelity Proxy GTS 0.59% FMIL 06/04/2020 Fidelity New Millennium ETF $89,353,950 $4,490,022 29.95 13,852 Fidelity Proxy GTS 0.59% FGRO 02/04/2021 Fidelity Growth Opportunities ETF $133,586,793 $68,313,321 15.79 131,130 Fidelity Proxy Citadel 0.59% FMAG 02/04/2021 Fidelity Magellan ETF $42,123,571 -$945,920 12.60 6,790 Fidelity Proxy RBC 0.59% FPRO 02/04/2021 Fidelity Real Estate Investment ETF $15,827,010 -$1,025,699 18.40 3,748 Fidelity Proxy Citadel 0.59% FSMO 02/04/2021 Fidelity Small/Mid-Cap Opportunities ETF $29,969,594 $2,218,239 8.66 6,528 Fidelity Proxy RBC 0.59% FSST 06/17/2021 Fidelity Sustainability U.S. Equity ETF $8,516,057 $960,249 11.22 1,667 Fidelity Proxy RBC 0.59% FDWM 06/17/2021 Fidelity Women's Leadership ETF $4,783,977 $2,106,613 9.61 360 Fidelity Proxy RBC 0.59% TCHP 08/05/2020 T. Rowe Price Blue Chip Growth ETF $299,253,812 $10,978,843 9.78 102,499 T Rowe Proxy Virtu 0.57% TDVG 08/05/2020 T. Rowe Price Dividend Growth ETF $292,796,843 $30,818,304 9.23 43,797 T Rowe Proxy RBC 0.50% TEQI 08/05/2020 T. Rowe Price Equity Income ETF $99,778,424 $8,071,148 9.69 15,469 T Rowe Proxy Virtu 0.54% TGRW 08/05/2020 T. Rowe Price Growth Stock ETF $39,399,545 $540,548 11.24 6,950 T Rowe Proxy RBC 0.52% TSPA 06/08/2021 T. Rowe Price U.S. Equity Research ETF $23,799,128 $1,826 10.86 2,843 T Rowe Proxy RBC 0.52% IVDG 12/22/2020 Invesco Focused Discovery Growth ETF $593,710 -$102,860 10.84 372 Invesco Model Citadel 0.59% IVSG 12/22/2020 Invesco Select Growth ETF $902,530 -$10,160 10.10 1,438 Invesco Model Citadel 0.48% IVLC 12/22/2020 Invesco US Large Cap Core ESG ETF $5,803,572 -$360 15.99 747 Fidelity Proxy Citadel 0.48% IVRA 12/22/2020 Invesco Real Assets ESG ETF $2,992,313 $0 40.48 1,028 Fidelity Proxy Citadel 0.59% LOPP 02/01/2021 Gabelli Love Our Planet & People ETF $12,046,710 $0 39.44 370 ActiveShares GTS 0.90% GGRW 02/16/2021 Gabelli Growth Innovators ETF $2,279,760 $0 26.43 112 ActiveShares GTS 0.90% GAST 01/05/2022 Gabelli Asset ETF $4,432,260 $0 45.34 27 ActiveShares GTS 0.90% GABF 05/11/2022 Gabelli Financial Services Opportunities ETF $5,382,525 $144,465 66.90 130 ActiveShares GTS 0.00% GCAD 01/03/2023 Gabelli Commercial Aerospace & Defense ETF $3,462,745 $1,142,855 38.84 1,253 ActiveShares GTS 0.90% FRTY 03/01/2021 Alger Mid Cap 40 ETF $27,152,625 -$2,007,375 48.55 8,762 ActiveShares Virtu 0.60% ATFV 05/04/2021 Alger 35 ETF $9,146,250 -$181,000 62.04 304 ActiveShares Virtu 0.55% AWEG 03/07/2023 Alger Weatherbie Enduring Growth ETF $2,315,000 $1,405,500 73.35 12,559 ActiveShares Virtu 0.65% REIT 02/26/2021 ALPS Active REIT ETF $17,410,697 $744,050 29.95 3,379 Blue Tractor GTS 0.68% STNC 03/16/2021 Hennessy Stance ESG Large Cap ETF $42,774,576 $539,264 13.37 2,248 Blue Tractor GTS 0.85% PFUT 05/26/2021 Putnam Sustainable Future ETF $151,677,741 $151,530,914 32.31 6,965 Fidelity Proxy Virtu 0.64% PLDR 05/26/2021 Putnam Sustainable Leaders ETF $328,020,019 $338,367,443 10.72 295,176 Fidelity Proxy RBC 0.59% PGRO 05/26/2021 Putnam Focused Large Cap Growth ETF $25,753,418 $15,095,596 10.16 16,552 Fidelity Proxy RBC 0.55% PVAL 05/26/2021 Putnam Focused Large Cap Value ETF $143,230,428 $13,289,123 29.53 22,659 Fidelity Proxy Virtu 0.55% HFGO 11/09/2021 Hartford Large Cap Growth ETF $79,806,913 $0 29.23 1,505 Fidelity Proxy Citadel 0.59% SEMI 03/30/2022 Columbia Seligman Semiconductor and Technology ETF $17,406,593 $1,342,000 35.34 2,873 Fidelity Proxy Virtu 0.75% CAPE 04/05/2022 DoubleLine Shiller CAPE U.S. Equities ETF $233,215,180 $21,181,200 15.86 56,197 ActiveShares Citadel 0.65% FMCX 04/25/2022 FMC Excelsior Focus Equity ETF $69,946,350 -$69,300 20.04 213 ActiveShares GTS 0.70% BYRE 05/19/2022 Principal Real Estate ActiveOpportunities ETF $4,915,724 $0 25.06 378 Fidelity Proxy Virtu 0.65% Total/Average $5,900,796,994 $834,170,772 22.67 1,122,123 0.62%

Source: FactSet & NYSE Internal Database and Consolidated Tape Statistics as of 3/17/2023

*Simple average

Recent Active ETF Launches

Ticker Name Issuer Launch Date Asset Class AUM FEBT AllianzIM U.S. Large Cap Buffer10 Feb ETF Allianz Investment Management 02/01/2023 Equity $31,728,320 FEBW AllianzIM U.S. Large Cap Buffer20 Feb ETF Allianz Investment Management 02/01/2023 Equity $51,262,045 CVSE Calvert US Select Equity ETF Morgan Stanley 02/01/2023 Equity $20,710,864 CVSB Calvert Ultra-Short Investment Grade ETF Morgan Stanley 02/01/2023 Fixed Income $27,557,640 LALT First Trust Multi-Strategy Alternative ETF First Trust 02/01/2023 Alternatives $987,600 RYSE Cboe Vest 10 Year Interest Rate Hedge ETF Cboe Vest 02/03/2023 Alternatives $1,925,400 SROI Calamos Antetokounmpo Global Sustainable Equities ETF Calamos 02/06/2023 Equity $3,610,484 KRUZ Unusual Whales Subversive Republican Trading ETF Subversive 02/07/2023 Equity $4,627,220 NANC Unusual Whales Subversive Democratic Trading ETF Subversive 02/07/2023 Equity $6,607,563 RSBT Return Stacked Bonds & Managed Futures ETF Return Stacked 02/08/2023 Alternatives $9,134,950 SURI Simplify Propel Opportunities ETF Simplify 02/08/2023 Asset Allocation $61,094,613 CAMX Cambiar Aggressive Value ETF Cambiar Funds 02/13/2023 Equity $43,877,890 SUPP Engine No. 1 Transform Supply Chain ETF Engine No. 1 02/15/2023 Equity $9,284,000 NVIR Horizon Kinetics Energy and Remediation ETF Horizon Kinetics 02/22/2023 Equity $2,243,831 BEMB iShares J.P. Morgan Broad USD Emerging Markets Bond ETF iShares 02/24/2023 Fixed Income $40,322,400 LJIM Long Cramer Tracker ETF Tuttle Capital Management 03/02/2023 Equity $951,214 SJIM Inverse Cramer Tracker ETF Tuttle Capital Management 03/02/2023 Equity $4,989,059 MART AllianzIM U.S. Large Cap Buffer10 Mar ETF Allianz Investment Management 03/01/2023 Equity $6,827,700 MARW AllianzIM U.S. Large Cap Buffer20 Mar ETF Allianz Investment Management 03/01/2023 Equity $20,612,790 CAOS Alpha Architect Tail Risk ETF Alpha Architect 03/06/2023 Asset Allocation $123,831,718 JPSV JPMorgan Active Small Cap Value ETF JPMAM 03/08/2023 Equity $10,024,268 AWEG Alger Weatherbie Enduring Growth ETF Alger 03/07/2023 Equity $2,328,838 BSVO EA Bridgeway Omni Small-Cap Value ETF Bridgeway 03/13/2023 Equity $759,339,608 JCHI JPMorgan Active China ETF JPMAM 03/16/2023 Equity $9,730,040 FUSI American Century Multisector Floating Income ETF American Century 03/16/2023 Fixed Income $20,056,000 Total - 25 New ETFs $1,273,666,054