Putnam Investments has launched a new ETF providing high-conviction exposure to stocks from emerging market countries, excluding China.

Robert L. Reynolds, President and Chief Executive Officer, Putnam Investments.

The Putnam Emerging Markets ex-China ETF (PEMX US) has been listed on NYSE Arca with an expense ratio of 0.85%.

The fund is designed for alpha-seeking investors who wish to exert greater control over the level of China exposure they have in their emerging markets equity portfolios – China represents a third of the flagship MSCI Emerging Markets Index and is by far the benchmark’s largest single-country exposure.

An emerging markets ex-China strategy can help mitigate both country-specific and idiosyncratic risk factors, while also placing greater emphasis on a broader number of emerging market opportunities often overlooked in core emerging market portfolios.

The ETF is managed by Brian S. Freiwald who has 19 years of investment industry experience including 13 years at Putnam Investments.

The strategy targets just 30 to 60 companies that Putnam believes to have durable competitive advantages, strong balance sheets, and the potential for above-average profitability. It overweights high-quality names where Putnam has a differentiated view on earnings.

Robert L. Reynolds, President and Chief Executive Officer, Putnam Investments, commented: “We are excited to launch the Putnam Emerging Markets ex-China ETF to help advisors and their clients gain important international investing exposure in their portfolios. In developing our slate of ETF offerings for the marketplace, we have strived to take a strategic and innovative approach in addressing investor needs.”

Carlo Forcione, Head of Product and Strategy at Putnam Investments, added: “Putnam has had meaningful positive momentum in its equities business in recent years, and we are delighted to continue to add to our growing roster of fundamentally oriented, actively managed equity ETFs. This new offering provides our clients and the broader marketplace with important choice and flexibility in emerging markets equity investing, without the typical heavy weighting of China.”