PEMX Profile
The Putnam Emerging Markets Ex-China ETF is an actively managed fund focused on providing exposure to emerging market equities, excluding those from China and Hong Kong. The fund seeks to invest at least 80% of its net assets in securities issued by companies located in emerging markets outside of China. This strategy aims to capitalize on growth opportunities in regions that may benefit from rapid economic development and demographic shifts, while avoiding the volatility associated with the Chinese market.
Putnam Management, the funds advisor, emphasizes investment in small and mid-cap companies within these emerging markets. The approach targets high-quality firms that, in the advisor's view, are undervalued relative to their earnings growth potential. By focusing on companies with substantial room for earnings improvement, the fund aims to achieve returns that exceed those of its benchmark index, leveraging Putnams expertise in identifying attractive investment opportunities.
The fund's investment strategy involves rigorous analysis to identify companies with promising growth prospects that are currently mispriced by the market. This involves assessing various factors such as financial health, market position, and growth potential. The goal is to build a portfolio that not only captures the upside potential of emerging markets but also manages risks associated with investing in less mature economies.
As a non-diversified fund, the Putnam Emerging Markets Ex-China ETF concentrates its investments in selected emerging market regions, excluding China and Hong Kong. This focused approach allows for a targeted investment strategy, which can enhance the potential for higher returns by investing in a more specific subset of emerging markets while avoiding broader market exposures.
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