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| SECURITIES AND EXCHANGE COMMISSION |
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| CERTIFIED SHAREHOLDER REPORT OF REGISTERED |
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| MANAGEMENT INVESTMENT COMPANIES |
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| Investment Company Act file number: | (811-23643) |
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| Exact name of registrant as specified in charter: | Putnam ETF Trust |
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| Address of principal executive offices: | 100 Federal Street, Boston, Massachusetts 02110 |
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| Name and address of agent for service: | Stephen Tate, Vice President |
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| | Boston, Massachusetts 02110 |
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| Copy to: | Bryan Chegwidden, Esq. |
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| | 1211 Avenue of the Americas |
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| | Boston, Massachusetts 02199 |
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| Registrant’s telephone number, including area code: | (617) 292-1000 |
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| Date of fiscal year end: | April 30, 2025 |
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| Date of reporting period: | May 1, 2024 – October 31, 2024 |
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| Item 1. Report to Stockholders: |
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| The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940: |
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Putnam PanAgora ESG International Equity ETF | |
PPIE | NYSE Arca, Inc.NYSE |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Putnam PanAgora ESG International Equity ETF for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Putnam PanAgora ESG International Equity ETF | $26 | 0.49% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $202,030,593 |
Total Number of Portfolio Holdings* | 91 |
Portfolio Turnover Rate | 35% |
| * | Includes derivatives, if applicable. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition (% of Total Net Assets)
| Cash and Equivalents, if any, represent the market value weights of cash, derivatives, short-term securities, and other unclassified assets in the portfolio. Holdings and allocations may vary over time. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Putnam PanAgora ESG International Equity ETF | PAGE 1 | 39494-STSR-1224 |
24.113.812.18.48.07.94.44.13.52.52.12.01.61.10.93.00.5
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| Item 3. Audit Committee Financial Expert: |
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| Item 4. Principal Accountant Fees and Services: |
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| Item 5. Audit Committee of Listed Registrants |
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| The registrant’s schedule of investments in unaffiliated issuers is included in the Financial Statements and Other Important Information in Item 7 below. |
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| Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies. |
Putnam
PanAgora ESG International Equity ETF
Financial Statements and Other Important Information
Semiannual | October 31, 2024
Table of Contents
| | Financial Statements and Other Important Information—Semiannual | franklintempleton.com |
| The fund’s portfolio 10/31/24 (Unaudited) |
| | COMMON STOCKS (99.5%)* | Shares | Value |
| | Air freight and logistics (1.7%) | | |
| | DHL Group (Germany) | 85,130 | $3,419,723 |
| | | | 3,419,723 |
| | Automobile components (2.0%) | | |
| | Bridgestone Corp. (Japan) | 66,400 | 2,397,899 |
| | CIE Generale Des Etablissements Michelin SCA (France) | 50,464 | 1,704,403 |
| | | | 4,102,302 |
| | Automobiles (0.4%) | | |
| | Isuzu Motors, Ltd. (Japan) | 54,700 | 718,761 |
| | | | 718,761 |
| | Banks (11.4%) | | |
| | Barclays PLC ADR (United Kingdom) | 255,837 | 3,174,937 |
| | BOC Hong Kong Holdings, Ltd. (Hong Kong) | 239,908 | 783,842 |
| | Erste Group Bank AG (Czech Republic) | 57,925 | 3,260,029 |
| | Intesa Sanpaolo SpA (Italy) | 1,339,202 | 5,735,094 |
| | Mitsubishi UFJ Financial Group, Inc. (Japan) | 203,200 | 2,177,907 |
| | Skandinaviska Enskilda Banken AB (Sweden) | 94,479 | 1,334,112 |
| | Sumitomo Mitsui Financial Group, Inc. (Japan) | 276,700 | 5,960,505 |
| | Toronto-Dominion Bank (Canada) | 9,781 | 540,700 |
| | | | 22,967,126 |
| | Beverages (1.4%) | | |
| | Asahi Group Holdings, Ltd. (Japan) | 190,206 | 2,302,777 |
| | Kirin Holdings Co., Ltd. (Japan) | 36,400 | 538,549 |
| | | | 2,841,326 |
| | Biotechnology (1.8%) | | |
| | CSL, Ltd. (Australia) | 15,690 | 2,962,928 |
| | Genmab A/S (Denmark) † | 3,259 | 729,239 |
| | | | 3,692,167 |
| | Building products (1.5%) | | |
| | Cie de Saint-Gobain SA (France) | 34,372 | 3,102,468 |
| | | | 3,102,468 |
| | Capital markets (2.9%) | | |
| | 3i Group PLC (United Kingdom) | 140,681 | 5,754,047 |
| | | | 5,754,047 |
| | Chemicals (1.4%) | | |
| | Symrise AG (Germany) | 14,040 | 1,689,084 |
| | Yara International ASA (Norway) | 39,368 | 1,183,882 |
| | | | 2,872,966 |
| | Commercial services and supplies (1.0%) | | |
| | Brambles, Ltd. (Australia) | 173,493 | 2,096,267 |
| | | | 2,096,267 |
| | Communications equipment (0.7%) | | |
| | Nokia Oyj ADR (Finland) | 307,861 | 1,450,025 |
| | | | 1,450,025 |
| | Construction and engineering (2.6%) | | |
| | Vinci SA (France) | 46,261 | 5,167,905 |
| | | | 5,167,905 |
| | Consumer staples distribution and retail (2.9%) | | |
| | Kesko Oyj Class B (Finland) | 51,711 | 1,106,129 |
| | Koninklijke Ahold Delhaize NV (Netherlands) | 47,429 | 1,563,720 |
| | Tesco PLC (United Kingdom) | 731,172 | 3,226,297 |
| | | | 5,896,146 |
| | Diversified telecommunication services (1.4%) | | |
| | Koninklijke KPN NV (Netherlands) | 313,625 | 1,225,736 |
| | Telstra Group, Ltd. (Australia) | 632,373 | 1,589,749 |
| | | | 2,815,485 |
| | Electric utilities (2.1%) | | |
| | Energias de Portugal (EDP) SA (Portugal) | 255,791 | 1,004,991 |
| | Fortum OYJ (Finland) | 112,071 | 1,649,378 |
| | SSE PLC (United Kingdom) | 73,925 | 1,678,632 |
| | | | 4,333,001 |
| | | | |
| PanAgora ESG International Equity ETF |
| 1 |
| | COMMON STOCKS (99.5%)* cont. | Shares | Value |
| | Electrical equipment (2.6%) | | |
| | Legrand SA (France) | 11,305 | $1,273,970 |
| | Schneider Electric SE (France) | 15,039 | 3,880,277 |
| | | | 5,154,247 |
| | Food products (2.5%) | | |
| | Associated British Foods PLC (United Kingdom) | 55,048 | 1,576,503 |
| | Danone SA (France) | 39,257 | 2,805,508 |
| | Orkla ASA (Norway) (Norway) | 65,659 | 607,036 |
| | | | 4,989,047 |
| | Health care equipment and supplies (3.7%) | | |
| | Alcon, Inc. (Switzerland) | 40,836 | 3,763,220 |
| | Hoya Corp. (Japan) | 26,400 | 3,601,027 |
| | | | 7,364,247 |
| | Health care providers and services (1.0%) | | |
| | Fresenius SE & Co. KGaA (Germany) † | 53,963 | 1,967,565 |
| | | | 1,967,565 |
| | Hotels, restaurants, and leisure (1.4%) | | |
| | Amadeus IT Holding SA (Spain) | 29,880 | 2,164,631 |
| | Sodexo SA (France) | 7,774 | 674,802 |
| | | | 2,839,433 |
| | Household durables (3.9%) | | |
| | Sekisui House, Ltd. (Japan) | 29,500 | 721,482 |
| | Sony Group Corp. (Japan) | 337,000 | 6,040,671 |
| | Taylor Wimpey PLC (United Kingdom) | 582,592 | 1,099,040 |
| | | | 7,861,193 |
| | Household products (1.5%) | | |
| | Essity AB Class B (Sweden) | 65,809 | 1,857,924 |
| | Henkel AG & Co. KGaA Vorzug (Germany) | 15,149 | 1,181,496 |
| | | | 3,039,420 |
| | Industrial REITs (0.4%) | | |
| | CapitaLand Ascendas REIT (Singapore) R | 347,800 | 708,506 |
| | | | 708,506 |
| | Insurance (7.2%) | | |
| | Aegon, Ltd. (Netherlands) | 153,577 | 969,912 |
| | Aviva PLC (United Kingdom) | 157,602 | 920,790 |
| | Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Germany) | 10,212 | 5,223,029 |
| | QBE Insurance Group, Ltd. (Australia) | 169,104 | 1,915,255 |
| | Swiss Re AG (Switzerland) | 42,508 | 5,446,714 |
| | | | 14,475,700 |
| | Interactive media and services (0.4%) | | |
| | Auto Trader Group PLC (United Kingdom) | 82,861 | 896,645 |
| | | | 896,645 |
| | IT Services (3.1%) | | |
| | Capgemini SE (France) | 6,874 | 1,190,369 |
| | NEC Corp. (Japan) | 52,600 | 4,581,815 |
| | Sopra Steria Group SACA (France) | 2,550 | 487,627 |
| | | | 6,259,811 |
| | Machinery (3.8%) | | |
| | FANUC Corp. (Japan) | 138,200 | 3,744,698 |
| | GEA Group AG (Germany) | 13,239 | 652,065 |
| | Mitsubishi Heavy Industries, Ltd. (Japan) | 230,090 | 3,320,965 |
| | | | 7,717,728 |
| | Media (1.2%) | | |
| | Informa PLC (United Kingdom) | 133,438 | 1,391,291 |
| | Publicis Groupe SA (France) | 9,217 | 979,720 |
| | | | 2,371,011 |
| | Metals and mining (4.3%) | | |
| | BHP Group, Ltd. (ASE Exchange) (Australia) | 114,875 | 3,223,551 |
| | Boliden AB (Sweden) | 60,844 | 1,889,070 |
| | Northern Star Resources, Inc. (Australia) | 251,202 | 2,931,053 |
| | Teck Resources, Ltd. Class B (Canada) | 13,436 | 624,640 |
| | | | 8,668,314 |
| | | | |
| 2 |
| PanAgora ESG International Equity ETF |
| | COMMON STOCKS (99.5%)* cont. | Shares | Value |
| | Multi-utilities (0.7%) | | |
| | National Grid PLC (United Kingdom) | 118,209 | $1,487,970 |
| | | | 1,487,970 |
| | Oil, gas, and consumable fuels (2.7%) | | |
| | Shell PLC (London Exchange) (United Kingdom) | 67,370 | 2,239,951 |
| | TotalEnergies SE (France) | 29,142 | 1,819,534 |
| | Woodside Energy Group, Ltd. (Australia) | 90,131 | 1,410,516 |
| | | | 5,470,001 |
| | Pharmaceuticals (8.1%) | | |
| | Hikma Pharmaceuticals PLC (United Kingdom) | 21,832 | 522,206 |
| | Novartis AG (Switzerland) | 71,372 | 7,752,526 |
| | Novo Nordisk A/S Class B (Denmark) | 62,262 | 6,928,239 |
| | Takeda Pharmaceutical Co., Ltd. (Japan) | 40,500 | 1,136,580 |
| | | | 16,339,551 |
| | Professional services (1.9%) | | |
| | RELX PLC (United Kingdom) | 83,694 | 3,841,927 |
| | | | 3,841,927 |
| | Real estate management and development (0.6%) | | |
| | Daito Trust Construction Co., Ltd. (Japan) | 11,100 | 1,233,171 |
| | | | 1,233,171 |
| | Retail REITs (0.7%) | | |
| | CapitaLand Integrated Commercial Trust (CITC) (Singapore) R | 541,808 | 828,816 |
| | Klepierre SA (France) R | 18,812 | 600,786 |
| | | | 1,429,602 |
| | Semiconductors and semiconductor equipment (5.0%) | | |
| | Advantest Corp. (Japan) | 48,900 | 2,944,170 |
| | ASML Holding NV (NY Reg Shares) (Netherlands) | 6,643 | 4,467,750 |
| | Infineon Technologies AG (Germany) | 26,180 | 826,553 |
| | Renesas Electronics Corp. (Japan) | 137,300 | 1,906,693 |
| | | | 10,145,166 |
| | Software (0.8%) | | |
| | NICE, Ltd. ADR (Israel) † | 9,229 | 1,603,077 |
| | | | 1,603,077 |
| | Specialty retail (1.4%) | | |
| | Industria de Diseno Textil SA (Spain) | 34,284 | 1,950,393 |
| | Zalando SE (Germany) † | 32,435 | 974,466 |
| | | | 2,924,859 |
| | Textiles, apparel, and luxury goods (1.2%) | | |
| | Pandora A/S (Denmark) | 8,064 | 1,215,876 |
| | PRADA SpA (Italy) | 170,400 | 1,305,273 |
| | | | 2,521,149 |
| | Trading companies and distributors (3.2%) | | |
| | AerCap Holdings NV (Ireland) | 24,514 | 2,293,285 |
| | ITOCHU Corp. (Japan) | 82,300 | 4,145,333 |
| | | | 6,438,618 |
| | Transportation infrastructure (0.3%) | | |
| | Getlink SE (France) | 40,597 | 688,224 |
| | | | 688,224 |
| | Wireless telecommunication services (0.7%) | | |
| | KDDI Corp. (Japan) | 43,225 | 1,359,282 |
| | | | 1,359,282 |
| | Total common stocks (cost $184,200,490) | $201,025,179 |
| | SHORT-TERM INVESTMENTS (—%)* | Shares | Value |
| | Putnam Government Money Market Fund Class P 4.62% L | 62,621 | $62,621 |
| | Total short-term investments (cost $62,621) | $62,621 |
| | TOTAL INVESTMENTS |
| | Total investments (cost $184,263,111) | $201,087,800 |
| PanAgora ESG International Equity ETF |
| 3 |
| | Key to holding’s abbreviations |
| | ADR | American Depository Receipts: Represents ownership of foreign securities on deposit with a custodian bank. |
| | Notes to the fund’s portfolio |
| | Unless noted otherwise, the notes to the fund’s portfolio are for the close of the fund’s reporting period, which ran from May 1, 2024 through October 31, 2024 (the reporting period). Within the following notes to the portfolio, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund’s investment manager, an indirect wholly-owned subsidiary of Franklin Resources, Inc., and references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures. |
| * | Percentages indicated are based on net assets of $202,030,593. |
| † | This security is non-income-producing. |
| L | Affiliated company (Note 5). The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. |
| R | Real Estate Investment Trust. |
| | DIVERSIFICATION BY COUNTRY |
| | Distribution of investments by country of risk at the close of the reporting period, excluding collateral received, if any (as a percentage of Portfolio Value): |
| | Japan | 24.3% | | Spain | 2.1% |
| | United Kingdom | 13.8 | | Czech Republic | 1.6 |
| | France | 12.1 | | Ireland | 1.2 |
| | Switzerland | 8.4 | | Norway | 0.9 |
| | Australia | 8.0 | | Israel | 0.8 |
| | Germany | 7.9 | | Singapore | 0.8 |
| | Denmark | 4.4 | | Canada | 0.6 |
| | Netherlands | 4.1 | | Portugal | 0.5 |
| | Italy | 3.5 | | Other | 0.4 |
| | Sweden | 2.5 | | Total | 100.0% |
| | Finland | 2.1 | | | |
| | ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defined as follows: |
| | Level 1: Valuations based on quoted prices for identical securities in active markets. |
| | Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. |
| | Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement. |
| | The following is a summary of the inputs used to value the fund’s net assets as of the close of the reporting period: |
| | | Valuation inputs |
| | Investments in securities: | Level 1 | Level 2 | Level 3 |
| | Common stocks*: | | | |
| | Communication services | $7,442,423 | $— | $— |
| | Consumer discretionary | 20,967,697 | — | — |
| | Consumer staples | 16,765,939 | — | — |
| | Energy | 5,470,001 | — | — |
| | Financials | 43,196,873 | — | — |
| | Health care | 29,363,530 | — | — |
| | Industrials | 37,627,107 | — | — |
| | Information technology | 19,458,079 | — | — |
| | Materials | 11,541,280 | — | — |
| | Real estate | 3,371,279 | — | — |
| | Utilities | 5,820,971 | — | — |
| | Total common stocks | 201,025,179 | — | — |
| | Short-term investments | 62,621 | — | — |
| | Totals by level | $201,087,800 | $— | $— |
| * | Common stock classifications are presented at the sector level, which may differ from the fund’s portfolio presentation. |
The accompanying notes are an integral part of these financial statements.
| 4 |
| PanAgora ESG International Equity ETF |
Financial Statements
Statement of assets and liabilities
10/31/24 (Unaudited)
| ASSETS | |
| Investment in securities, at value (Note 1): | |
| Unaffiliated issuers (identified cost $184,200,490) | $201,025,179 |
| Affiliated issuers (identified cost $62,621) (Note 5) | 62,621 |
| Foreign currency (cost $88,272) (Note 1) | 87,921 |
| Foreign tax reclaim | 454,294 |
| Dividends, interest and other receivables | 485,894 |
| Total assets | 202,115,909 |
| | |
| LIABILITIES | |
| Payable for compensation of Manager (Note 2) | 85,316 |
| Total liabilities | 85,316 |
| Net assets | $202,030,593 |
| | |
| Represented by | |
| Paid-in capital (Unlimited shares authorized) (Notes 1 and 4) | $177,666,243 |
| Total distributable earnings (Note 1) | 24,364,350 |
| Total — Representing net assets applicable to capital shares outstanding | $202,030,593 |
| | |
| COMPUTATION OF NET ASSET VALUE | |
| Net asset value per share ($202,030,593 divided by 8,525,000 shares) | $23.70 |
The accompanying notes are an integral part of these financial statements.
| PanAgora ESG International Equity ETF | 5 |
Statement of operations
Six months ended 10/31/24 (Unaudited)
| Investment income | |
| Dividends (net of foreign tax of $299,433) | $2,511,134 |
| Interest (including interest income of $16,507 from investments in affiliated issuers) (Note 5) | 16,820 |
| Total investment income | 2,527,954 |
| | |
| EXPENSES | |
| Compensation of Manager (Note 2) | 464,198 |
| Fees waived and reimbursed by Manager (Note 2) | (777) |
| Total expenses | 463,421 |
| Net investment income | 2,064,533 |
| | |
| REALIZED AND UNREALIZED GAIN (LOSS) | |
| Net realized gain (loss) on: | |
| Securities from unaffiliated issuers (Notes 1 and 3) | 4,438,535 |
| Foreign currency transactions (Note 1) | (6,645) |
| Total net realized gain | 4,431,890 |
| Change in net unrealized appreciation (depreciation) on: | |
| Securities from unaffiliated issuers | 3,902,816 |
| Assets and liabilities in foreign currencies | 9,474 |
| Total change in net unrealized appreciation | 3,912,290 |
| Net gain on investments | 8,344,180 |
| Net increase in net assets resulting from operations | $10,408,713 |
The accompanying notes are an integral part of these financial statements.
| 6 | PanAgora ESG International Equity ETF |
Statement of changes in net assets
| | Six months ended 10/31/24* | Year ended 4/30/24 |
| Increase in net assets | | |
| Operations | | |
| Net investment income | $2,064,533 | $3,357,129 |
| Net realized gain on investments and foreign currency transactions | 4,431,890 | 822,732 |
| Change in net unrealized appreciation of investments and assets and liabilities in foreign currencies | 3,912,290 | 9,837,565 |
| Net increase in net assets resulting from operations | 10,408,713 | 14,017,426 |
| Distributions to shareholders (Note 1): | | |
| From ordinary income | | |
| Net investment income | — | (4,613,700) |
| Proceeds from shares sold (Note 4) | 29,320,224 | 24,183,564 |
| Decrease from shares redeemed (Note 4) | — | — |
| Other capital (Note 4) | 14,389 | 12,268 |
| Total increase in net assets | 39,743,326 | 33,599,558 |
| Net assets | | |
| Beginning of period | 162,287,267 | 128,687,709 |
| End of period | $202,030,593 | $162,287,267 |
| Number of fund shares | | |
| Shares outstanding at beginning of period | 7,300,000 | 6,175,000 |
| Shares sold (Note 4) | 1,225,000 | 1,125,000 |
| Shares redeemed (Note 4) | — | — |
| Shares outstanding at end of period | 8,525,000 | 7,300,000 |
| *Unaudited. |
The accompanying notes are an integral part of these financial statements.
| PanAgora ESG International Equity ETF | 7 |
Financial highlights
(For a common share outstanding throughout the period)
| PER-SHARE OPERATING PERFORMANCE | | | |
| | Six months ended 10/31/24** | Year ended 4/30/24 | For the period 1/19/23 (commencement of operations) to 4/30/23 |
| Net asset value, beginning of period | $22.23 | $20.84 | $20.00 |
| Investment operations: | | | |
| Net investment income (loss)a | .26 | .52 | .35 |
| Net realized and unrealized gain (loss) on investments | 1.21 | 1.58 | .47 |
| Total from investment operations | 1.47 | 2.10 | .82 |
| Less distributions: | | | |
| From net investment income | — | (.71) | — |
| Total distributions | — | (.71) | — |
| Other capital | —f | —f | .02 |
| Net asset value, end of period | $23.70 | $22.23 | $20.84 |
| Total return at net asset value (%)b | 6.61* | 10.22 | 4.20* |
| RATIOS AND SUPPLEMENTAL DATA | | | |
| Net assets, end of period (in thousands) | $202,031 | $162,287 | $128,688 |
| Ratio of expenses to average net assets (%)c,d | .25* | .49 | .14* |
| Ratio of net investment income (loss) to average net assets (%)d | 1.10* | 2.44 | 1.73* |
| Portfolio turnover (%)e | 35* | 111 | 42* |
| a | Per share net investment income (loss) has been determined on the basis of the weighted average number of shares outstanding during the period. |
| b | Total return assumes dividend reinvestment. |
| c | Excludes acquired fund fees and expenses, if any. |
| d | Reflects waivers of certain fund expenses in connection with investments in Putnam Government Money Market Fund during the period. As a result of such waivers, the expenses of the fund reflect a reduction of the following amounts (Notes 2 and 5): |
| | Percentage of average netassets |
| October 31, 2024 | <0.01% |
| April 30, 2024 | <0.01 |
| April 30, 2023 | <0.01 |
| e | Portfolio turnover excludes securities received or delivered in-kind, if any. |
| f | Amount represents less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
| 8 |
| PanAgora ESG International Equity ETF |
Notes to financial statements 10/31/24 (Unaudited)
Unless otherwise noted, the “reporting period” represents the period from May 1, 2024 through October 31, 2024. The following table defines commonly used references within the Notes to financial statements:
| References to | Represent |
| 1940 Act | Investment Company Act of 1940, as amended |
| ESG | Environmental, social and/or corporate governance |
| ETF | Exchange-traded fund |
| Franklin Advisers | Franklin Advisers, Inc., a direct wholly-owned subsidiary of Franklin Templeton |
| Franklin Templeton | Franklin Resources, Inc. |
| Franklin Templeton Services | Franklin Templeton Services, LLC, a wholly-owned subsidiary of Franklin Templeton |
| JPMorgan | JPMorgan Chase Bank, N.A. |
| OTC | Over-the-counter |
| PanAgora | PanAgora Asset Management, Inc., an affiliate of Putnam Management |
| Putnam Management | Putnam Investment Management, LLC, the fund’s investment manager, an indirect wholly-owned subsidiary of Franklin Templeton |
| SEC | Securities and Exchange Commission |
| State Street | State Street Bank and Trust Company |
Putnam PanAgora ESG International Equity ETF (the fund) is a diversified, open-end series of Putnam ETF Trust (the Trust), a Delaware statutory trust organized under the 1940 Act. The fund is an actively managed ETF. The fund’s investment objective is to seek long term capital appreciation. The fund invests mainly in common stocks (growth or value stocks or both) of companies of any size outside the United States with a focus on companies that the fund’s subadviser, PanAgora, believes offer attractive benchmark-relative returns and exhibit positive ESG metrics. In evaluating and selecting investments for the fund, PanAgora employs a proprietary framework using quantitative models that identify companies that offer above-market return potential based on their ESG metrics, together with other proprietary factors measuring a company’s financial and operational health, and then construct a portfolio that integrates return potential and ESG metrics.
PanAgora uses advanced statistical and machine learning techniques, together with third-party and proprietary data sources, in evaluating companies’ ESG metrics and return potential. Metrics designed to evaluate companies’ environmental practices may include third-party or proprietary data sources, including those regarding a company’s environmental footprint or its environmental efficiencies. Metrics designed to evaluate companies’ social practices may include third-party or proprietary data sources, including those regarding board diversity levels at a company. Metrics designed to evaluate companies’ governance practices may include third-party or proprietary data sources, including those regarding a company’s shareholder structure. Additionally, PanAgora’s quantitative model may also use third-party and/or proprietary data sources to identify companies exhibiting improved ESG profiles or those investing in ESG initiatives. The ESG metrics and information used in the portfolio construction process may change over time and may not be relevant to all companies that are eligible for investment by the fund.
In addition, the fund will not invest in securities of companies that PanAgora, based on third-party data, determines at the time of investment to have a severe ESG risk rating (which measures a company’s exposure to industry-specific material ESG risks and how well a company is managing those risks), to have a category 5 controversy rating (an assessment of a company’s involvement in incidents with negative ESG implications), to be classified as non-compliant under the United Nations Global Compact principles, or to be substantially engaged in Arctic drilling or in the thermal coal, palm oil, controversial weapons or tobacco industries (each, a “Restricted Company”). In addition, at the time of any periodic rebalancing of the fund’s portfolio, the fund will dispose of its position in any security that, at that time, PanAgora determines to be a Restricted Company.
Under normal circumstances, the fund invests at least 80% of its net assets in equity securities of companies that meet PanAgora’s ESG criteria, as described above. PanAgora will assign each company an ESG rating using proprietary ESG scores. In order to meet PanAgora’s ESG criteria, a company must have an ESG score above 0, reflecting more positive characteristics, and, on or after June 12, 2023, must also not be a Restricted Company. A negative ESG score indicates a lower (or worse) rating. PanAgora assigns companies an ESG score that ranges from –2 to +2, although the range of scores may change over time. This policy is non-fundamental and may be changed only after 60 days’ notice to shareholders. PanAgora may not apply ESG criteria to investments that are not subject to the fund’s 80% policy, and such investments may not meet PanAgora’s ESG criteria.
The fund’s equity investments may include common stocks, preferred stocks, convertible securities, warrants, American Depository Receipts (“ADRs”) and Global Depository Receipts (“GDRs”). The fund invests mainly in developed countries but may also invest in emerging markets.
PanAgora may consider, among other factors, a company’s valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows and dividends when deciding whether to buy or sell investments. While PanAgora may consider independent third-party data as a part of its analytical process (and currently uses third-party data in applying certain of the fund’s investment policies), the portfolio management team performs its own independent analysis of issuers, through its quantitative model and proprietary scoring system, and does not rely solely on third-party screens.
From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors. The fund may also invest a significant portion of its assets in one or more related geographic regions, such as European and Asian countries.
In the normal course of business, the fund enters into contracts that may include agreements to indemnify another party under given circumstances. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against the fund. However, the fund’s management team expects the risk of material loss to be remote.
The fund has entered into contractual arrangements with an investment adviser, administrator, distributor, transfer agent and custodian, who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.
Under the Trust’s Agreement and Declaration of Trust, any claims asserted by a shareholder against or on behalf of the Trust (or its series), including claims against Trustees and Officers, must be brought in courts of the State of Delaware.
Note 1: Significant accounting policies
The fund follows the accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (ASC 946) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The following is a summary of significant accounting policies consistently followed by the fund in the preparation of its financial statements. The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations. Actual results could differ from those estimates. Subsequent events after the Statement of assets and liabilities date through the date that the financial statements were issued have been evaluated in the preparation of the financial statements.
Security valuation Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees (Trustees). The Trustees have formed a Pricing Committee to oversee the implementation of these procedures. Under compliance policies and procedures approved by the Trustees, the Trustees have designated the fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC). The VC is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Trustees.
Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets, and are classified as Level 1 securities under Accounting Standards Codification 820 Fair Value Measurements and Disclosures (ASC 820). If no sales are reported, as in the case of some securities that are traded OTC, a security is valued at the average of the last reported bid and ask prices, the “mid
| PanAgora ESG International Equity ETF |
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price” (prior to July 22, 2024, the most recent bid price was used), and is generally categorized as a Level 2 security.
Investments in open-end investment companies (excluding exchange-traded funds), if any, which can be classified as Level 1 or Level 2 securities, are valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares.
Many securities markets and exchanges outside the U.S. close prior to the scheduled close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the scheduled close of the New York Stock Exchange. When reliable prices are not readily available for equity securities, such as when the value of a security has been affected by events after the close of the exchange or market on which the security is principally traded, but before the fund calculates its net asset value, on certain days the fund will fair value these securities as determined in accordance with procedures approved by the Trustees. This may include using an independent third-party pricing service to adjust the value of such securities to the latest indications of fair value at 4:00 p.m. (Eastern Time). The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. These securities, which would generally be classified as level 1 securities, will be transferred to Level 2 on the fair value hierarchy when they are valued at fair value. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate. Short-term securities with remaining maturities of 60 days or less are valued using an independent pricing service approved by the Trustees, and are classified as Level 2 securities.
To the extent a pricing service or dealer is unable to value a security or provides a valuation that the fund’s investment manager does not believe accurately reflects the security’s fair value, the security will be valued at fair value by the fund’s investment manager, which has been designated as valuation designee pursuant to Rule 2a–5 under the 1940 Act, in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.
To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.
Security transactions and related investment income Security transactions are recorded on the trade date (the date the order to buy or sell is executed). Gains or losses on securities sold are determined on the identified cost basis.
Interest income, net of any applicable withholding taxes, if any, is recorded on the accrual basis. Amortization and accretion of premiums and discounts on debt securities, if any, is recorded on the accrual basis.
Dividend income, net of any applicable withholding taxes, is recognized on the ex-dividend date except that certain dividends from foreign securities, if any, are recognized as soon as the fund is informed of the ex-dividend date. Non-cash dividends, if any, are recorded at the fair value of the securities received. Dividends representing a return of capital or capital gains, if any, are reflected as a reduction of cost and/or as a realized gain.
Foreign currency translation The accounting records of the fund are maintained in U.S. dollars. The fair value of foreign securities, currency holdings, and other assets and liabilities is recorded in the books and records of the fund after translation to U.S. dollars based on the exchange rates on that day. The cost of each security is determined using historical exchange rates. Income and withholding taxes are translated at prevailing exchange rates when earned or incurred. The fund does not isolate that portion of realized or unrealized gains or losses resulting from changes in the foreign exchange rate on investments from fluctuations arising from changes in the market prices of the securities. Such gains and losses are included with the net realized and unrealized gain or loss on investments. Net realized gains and losses on foreign currency transactions represent net realized exchange gains or losses on disposition of foreign currencies, currency gains and losses realized between the trade and settlement dates on securities transactions and the difference between the amount of investment income and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized appreciation and depreciation of assets and liabilities in foreign currencies arise from changes in the value of assets and liabilities other than investments at the period end, resulting from changes in the exchange rate.
Lines of credit The fund participates, along with other Putnam funds, in a $320 million syndicated unsecured committed line of credit, provided by State Street ($160 million) and JPMorgan ($160 million), and a $235.5 million unsecured uncommitted line of credit, provided by State Street. Borrowings may be made for temporary or emergency purposes, including the funding of shareholder redemption requests and trade settlements. Interest is charged to the fund based on the fund’s borrowing at a rate equal to 1.25% plus the higher of (1) the Federal Funds rate and (2) the Overnight Bank Funding Rate for the committed line of credit and 1.30% plus the higher of (1) the Federal Funds rate and (2) the Overnight Bank Funding Rate for the uncommitted line of credit. A closing fee equal to 0.04% of the committed line of credit and 0.04% of the uncommitted line of credit has been paid by the participating funds and a $75,000 fee has been paid by the participating funds to State Street as agent of the syndicated committed line of credit. In addition, a commitment fee of 0.21% per annum on any unutilized portion of the committed line of credit is allocated to the participating funds based on their relative net assets and paid quarterly. During the reporting period, the fund had no borrowings against these arrangements.
Federal taxes It is the policy of the fund to distribute all of its taxable income within the prescribed time period and otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended (the Code), applicable to regulated investment companies. It is also the intention of the fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
The fund is subject to the provisions of Accounting Standards Codification 740 Income Taxes (ASC 740). ASC 740 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The fund did not have a liability to record for any unrecognized tax benefits in the accompanying financial statements. No provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held nor for excise tax on income and capital gains. Each of the fund’s federal tax returns for the prior periods remains subject to examination by the Internal Revenue Service.
The fund may also be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned. In some cases, the fund may be entitled to reclaim all or a portion of such taxes, and such reclaim amounts, if any, are reflected as an asset and other income on the fund’s books. In many cases, however, the fund may not receive such amounts for an extended period of time, depending on the country of investment.
Tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be final tax cost basis adjustments, but closely approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. The aggregate identified cost on a tax basis is $186,600,651, resulting in gross unrealized appreciation and depreciation of $19,989,578 and $5,502,429, respectively, or net unrealized appreciation of $14,487,149.
Distributions to shareholders Distributions to shareholders from net investment income, if any, are recorded by the fund on the ex-dividend date. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid at least annually. The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal year. Reclassifications are made to the fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations.
Expenses of the Trust Expenses directly charged or attributable to any fund will be paid from the assets of that fund. Generally, expenses of the Trust will be allocated among and charged to the assets of each fund on a basis that the Trustees deem fair and equitable, which may be based on the relative assets of each fund or the nature of the services performed and relative applicability to each fund.
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| PanAgora ESG International Equity ETF |
Note 2: Management fee, administrative services and other transactions
The fund pays its investment manager an annual all-inclusive management fee of 0.49% based on the fund’s average daily net assets computed and paid monthly. The management fee covers investment management services and all of the fund’s organizational and other operating expenses with certain exceptions, including but not limited to: payments under distribution plans, interest, taxes, brokerage commissions and other transaction costs, fund proxy expenses, litigation expenses, extraordinary expenses and acquired fund fees and expenses.
For the reporting period, the management fee represented an effective rate (excluding the impact from any expense waivers in effect) of 0.247% of the fund’s average net assets.
The fund invests in Putnam Government Money Market Fund, an open-end management investment company managed by Franklin Advisers. Management fees paid by the fund are reduced by an amount equal to the management fees paid by Putnam Government Money Market Fund with respect to assets invested by the fund in Putnam Government Money Market Fund. During the reporting period, management fees paid were reduced by $777 relating to the fund’s investment in Putnam Government Money Market Fund.
PanAgora is authorized by the Trustees to make investment decisions for the assets of the fund as determined by Putnam Management. Putnam Management (and not the fund) pays a quarterly sub-advisory fee to PanAgora for its services at an annual rate of 0.17% of the average net assets of the fund.
Effective June 1, 2024, Franklin Templeton Services provides certain administrative services to the fund. The fee for those services is paid by the fund’s investment manager based on the costs incurred by Franklin Templeton Services and is not an additional expense of the fund.
The fund has adopted a distribution and service plan pursuant to Rule 12b–1 under the 1940 Act that authorizes the fund to pay distribution fees in connection with the sale and distribution of its shares and service fees in connection with the provision of ongoing shareholder support services. No Rule 12b–1 fees are currently paid by the fund.
Note 3: Purchases and sales of securities
During the reporting period, the cost of purchases and the proceeds from sales, excluding short-term investments and in-kind transactions, were as follows:
| | Cost of purchases | Proceeds from sales |
| Investments in securities (Long-term) | $92,237,504 | $65,864,546 |
| U.S. government securities (Long-term) | — | — |
| Total | $92,237,504 | $65,864,546 |
Portfolio securities received or delivered through in-kind transactions were $5,338,650 and no monies, respectively.
The fund may purchase or sell investments from or to other Putnam funds in the ordinary course of business, which can reduce the fund’s transaction costs, at prices determined in accordance with SEC requirements and policies approved by the Trustees. During the reporting period, purchases or sales of long-term securities from or to other Putnam funds, if any, did not represent more than 5% of the fund’s total cost of purchases and/or total proceeds from sales.
Note 4: Capital shares
Shares of the fund are listed and traded on NYSE Arca, Inc., and individual fund shares may only be bought and sold in the secondary market through a broker or dealer at market price. These transactions, which do not involve the fund, are made at market prices that may vary throughout the day, rather than at net asset value (NAV). Shares of the fund may trade at a price greater than the fund’s NAV (premium) or less than the fund’s NAV (discount). An investor may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase shares (bid) and the lowest price a seller is willing to accept for shares (ask) when buying or selling fund shares in the secondary market (the “bid-ask spread”). The fund will issue and redeem shares in large blocks of 25,000 shares called “Creation Units” on a continuous basis, at NAV, with authorized participants who have entered into agreements with the fund’s distributor. The fund will generally issue and redeem Creation Units in return for a designated portfolio of securities (and an amount of cash) that the fund specifies each day. The fund generally imposes a transaction fee on investors purchasing or redeeming Creation Units. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the fund for certain transaction costs and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in Other capital in the Statement of changes in net assets.
At the close of the reporting period, the Putnam Sustainable Retirement Funds owned 97.1% of the outstanding shares of the fund.
Note 5: Affiliated transactions
Transactions during the reporting period with any company which is under common ownership or control were as follows:
| Name of affiliate | Fair value as of 4/30/24 | Purchase cost | Sale proceeds | Investment income | Shares outstanding and fair value as of 10/31/24 |
| Short-term investments | | | | | |
| Putnam Government Money Market Fund Class P † | $47,901 | $20,527,754 | $20,513,034 | $16,507 | $62,621 |
| Total Short-term investments | $47,901 | $20,527,754 | $20,513,034 | $16,507 | $62,621 |
| † Management fees paid by the fund are reduced by an amount equal to the management fees paid by Putnam Government Money Market Fund with respect to assets invested by the fund in Putnam Government Money Market Fund (Note 2). There were no realized or unrealized gains or losses during the period. |
Note 6: Market, credit and other risks
In the normal course of business, the fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the contracting party to the transaction to perform (credit risk). The fund may be exposed to additional credit risk that an institution or other entity with which the fund has unsettled or open transactions will default. Investments in foreign securities involve certain risks, including those related to economic instability, unfavorable political developments, and currency fluctuations.
Investing in companies or issuers that exhibit a commitment to ESG factors may result in the fund investing in certain types of companies or issuers that underperform the market as a whole. In evaluating an investment opportunity, Putnam Management may make investment decisions based on information and data that is incomplete or inaccurate. Due to changes in the products or services of the companies and issuers in which the fund invests, the fund may temporarily hold securities that are inconsistent with its ESG investment criteria.
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Changes in and disagreements with accountants
Not applicable
Results of any shareholder votes
Not applicable
Remuneration paid to directors, officers, and others
Not applicable. Remuneration paid to directors, officers, and others is included as part of the all-inclusive management fee and not paid directly by the fund.
Board approval of management and subadvisory agreements
Not applicable
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| © 2024 Franklin Templeton. All rights reserved. | 39494-SFSOI 12/24 |
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| Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies. |
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| Included in Item 7 above. |
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| Item 9. Proxy Disclosure for Open-End Management Investment Companies. |
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| Included in Item 7 above. |
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| Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. |
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| Included in Item 7 above. |
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| Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract. |
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| Included in Item 7 above. |
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| Item 12. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies: |
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| Item 13. Portfolio Managers of Closed-End Investment Companies |
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| Item 14. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers: |
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| Item 15. Submission of Matters to a Vote of Security Holders: |
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| Item 16. Controls and Procedures: |
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| (a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms. |
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| (b) Changes in internal control over financial reporting: Not applicable |
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| Item 17. Disclosures of Securities Lending Activities for Closed-End Investment Companies: |
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| Item 18. Recovery of Erroneously Awarded Compensation. |
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| Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
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| By (Signature and Title): |
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| Jeffrey White
Principal Accounting Officer |
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| Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. |
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| By (Signature and Title): |
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| Jonathan S. Horwitz
Principal Executive Officer |
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| By (Signature and Title): |
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| Jeffrey White
Principal Financial Officer |
