Risk Table - Templeton International Insights ETF
|
Risk [Text Block] |
| Principal Risks |
Principal Risks You
could lose money by investing in the Fund. ETF shares are not deposits or obligations of, or guaranteed
or endorsed by, any bank, and are not insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board, or any other agency of the U.S. government. The Fund is subject to the principal risks
noted below, any of which may adversely affect the Fund’s net asset value (NAV), trading price, yield,
total return and ability to meet its investment goal. Unlike many ETFs, the Fund is not an index-based
ETF.
|
| Risk Lose Money [Member] |
You
could lose money by investing in the Fund.
|
| Market |
Market:
The
market values of securities or other investments owned by the Fund will go up or down, sometimes rapidly
or unpredictably. The market value of a security or other investment may be reduced by market activity
or other results of supply and demand unrelated to the issuer. This is a basic risk associated with all
investments. When there are more sellers than buyers, prices tend to fall. Likewise, when there are more
buyers than sellers, prices tend to rise. In addition, the value of the Fund’s investments may go up
or down due to general market or other conditions that are not specifically related to a particular issuer,
such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults
in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made
world events, such as diseases or disasters; financial, political or social disruptions, including terrorism
and war; and U.S. trade disputes or other disputes with specific countries that could result in additional
tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any
of these conditions can adversely affect the economic prospects of many companies, sectors, nations,
regions and the market in general, in ways that cannot necessarily be foreseen. Stock prices tend to go
up and down more dramatically than those of debt securities. A slower-growth or recessionary economic
environment could have an adverse effect on the prices of the various stocks held by the Fund.
|
| Foreign Securities (non-U.S.) |
Foreign
Securities (non-U.S.): Investing in foreign securities typically involves different risks than investing
in U.S. securities, and includes risks associated with: (i) internal and external political and economic
developments – e.g., the political, economic and social policies and structures of some foreign countries
may be less stable and more volatile than those in the U.S. or some foreign countries may be subject
to trading restrictions or economic sanctions; diplomatic and political developments could affect the
economies, industries, and securities and currency markets of the countries in which the Fund is invested,
which can include rapid and adverse political changes; social instability; regional conflicts; sanctions
imposed by the United States, other nations or other governmental entities, including supranational entities;
terrorism; and war; (ii) trading practices – e.g., government supervision and regulation of foreign
securities and currency markets, trading systems
and brokers may be less than in the U.S.; (iii) availability of information – e.g., foreign issuers
may not be subject to the same disclosure, accounting and financial reporting standards and practices
as U.S. issuers; (iv) limited markets – e.g., the securities of certain foreign issuers may be less
liquid (harder to sell) and more volatile; and (v) currency exchange rate fluctuations and policies –
e.g., fluctuations may negatively affect investments denominated in foreign currencies and any income
received or expenses paid by the Fund in that foreign currency. The risks of foreign investments may
be greater in developing or emerging market countries.
|
| Regional |
Regional: To the extent that
the Fund invests a significant portion of its assets in a specific geographic region or a particular
country, the Fund will generally have more exposure to the specific regional or country risks. In the
event of economic or political turmoil or a deterioration of diplomatic relations in a region or country
where a substantial portion of the Fund’s assets are invested, the Fund may experience substantial
illiquidity or reduction in the value of the Fund’s investments. Adverse conditions in a certain region
or country can adversely affect securities of issuers in other countries whose economies appear to be
unrelated. Current uncertainty concerning the economic consequences of Russia’s military invasion of
Ukraine in February 2022 has increased market volatility.
|
| Developing Market Countries |
Developing Market Countries:
The Fund’s investments in securities of issuers in developing market countries are subject to all
of the risks of foreign investing generally, and have additional heightened risks due to a lack of established
legal, political, business and social frameworks to support securities markets, including: delays in
settling portfolio securities transactions; currency and capital controls; greater sensitivity to interest
rate changes; pervasiveness of corruption and crime; currency exchange rate volatility; and inflation,
deflation or currency devaluation.
|
| Depositary Receipts |
Depositary Receipts: Depositary receipts
are subject to many of the risks of the underlying security. For some depositary receipts, the custodian
or similar financial institution that holds the issuer's shares in a trust account is located in the
issuer's home country. The Fund could be exposed to the credit risk of the custodian or financial institution,
and in cases where the issuer’s home country does not have developed financial markets, greater market
risk. In addition, the depository institution may not have physical custody of the underlying securities
at all times and may charge fees for various services, including forwarding dividends and interest and
corporate actions. The Fund would be expected to pay a share of the additional fees, which it would not
pay if investing directly in the foreign securities. The Fund may experience delays in receiving its
dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility
of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt
program. Accordingly, there may be less information available regarding issuers of securities underlying
unsponsored programs and there may not
be a correlation between this information and the market value of the depositary receipts.
|
| Focus |
Focus:
To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of
investments from time to time, the Fund may be subject to greater risks of adverse developments in such
areas of focus than a fund that invests in a wider variety of countries, regions, industries, sectors
or investments.
|
| Small and Mid Capitalization Companies |
Small and Mid Capitalization Companies: Securities issued
by small and mid capitalization companies may be more volatile in price than those of larger companies
and may involve substantial risks. Such risks may include greater sensitivity to economic conditions,
less certain growth prospects, lack of depth of management and funds for growth and development, and
limited or less developed product lines and markets. In addition, small and mid capitalization companies
may be particularly affected by interest rate increases, as they may find it more difficult to borrow
money to continue or expand operations, or may have difficulty in repaying any loans. The markets for
securities issued by small and mid capitalization companies also tend to be less liquid than the markets
for securities issued by larger companies.
|
| Non-Diversification |
Non-Diversification: Because the Fund is
non-diversified, it may be more sensitive to economic, business, political or other changes affecting
individual issuers or investments than a diversified fund, which may negatively impact the Fund's performance
and result in greater fluctuation in the value of the Fund’s shares.
|
| Management |
Management:
The Fund is subject to management risk because it is an actively managed ETF. The Fund's investment
manager applies investment techniques and risk analyses in making investment decisions for the Fund,
but there can be no guarantee that these decisions will produce the desired results.
|
| Cybersecurity |
Cybersecurity:
Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain
access to Fund assets, Fund or customer data (including private shareholder information), or proprietary
information, cause the Fund, the investment manager, authorized participants, or index providers (as
applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund
accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data
breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing,
redeeming shares or receiving distributions. The investment manager has limited ability to prevent or
mitigate cybersecurity incidents affecting third party service providers, and such third party service
providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity
incidents may result in financial losses to the Fund and its shareholders, and substantial costs may
be incurred
in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the
Fund invests are also subject to cybersecurity risks, and the value of these securities could decline
if the issuers experience cybersecurity incidents. Because technology is frequently changing, new ways to carry
out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified
or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability
to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment
manager, and their service providers are subject to the risk of cyber incidents occurring from time to
time.
|
| Market Trading |
Market
Trading: The Fund faces numerous market trading risks, including the potential lack of
an active market for Fund shares, losses from trading in secondary markets, periods of high volatility
and disruption in the creation/redemption process of the Fund. Any of these factors, among others, may
lead to the Fund’s shares trading at a premium or discount to NAV. Thus, you may pay more (or less)
than NAV when you buy shares of the Fund in the secondary market, and you may receive less (or more)
than NAV when you sell those shares in the secondary market. The investment manager cannot predict whether
shares will trade above (premium), below (discount) or at NAV. To the extent that the
underlying securities held by the Fund trade on an exchange that is closed when the securities exchange
on which the Fund shares list and trade is open, there may be market uncertainty about the stale security
pricing (i.e., the last quote from its closed foreign market) resulting in premiums or discounts to NAV
that may be greater than those experienced by other ETFs.
|
| Authorized Participant Concentration |
Authorized Participant Concentration:
Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund.
"Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly
with the Fund and who have entered into agreements with the Fund’s distributor. The Fund has a limited
number of institutions that act as Authorized Participants. To the extent that these institutions exit
the business or are unable to proceed with creation and/or redemption orders with respect to the Fund
and no other Authorized Participant is able to step forward to create or redeem Creation Units (as defined
below), Fund shares may trade at a discount to NAV and possibly face trading halts and/or delisting.
This risk may be more pronounced in volatile markets, potentially where there are significant redemptions
in ETFs generally.
|
| New Fund |
New Fund: The Fund is newly or recently established
and has no performance history as of the date of this Prospectus. There can be no assurance that the
Fund will grow to or maintain an economically viable size, which could result in the Fund
being
liquidated at any time without shareholder approval and at a time that may not be favorable for all shareholders.
|
| Large Shareholder |
Large
Shareholder: Certain large shareholders, including other funds or accounts advised by the
investment manager or an affiliate of the investment manager, may from time to time own a substantial
amount of the Fund’s shares. In addition, a third-party investor, the investment manager or an affiliate
of the investment manager, an authorized participant, a lead market maker, or another entity may invest
in the Fund and hold its investment for a limited period of time solely to facilitate commencement of
the Fund or to facilitate the Fund’s achieving a specified size or scale. There can be no assurance
that any large shareholder would not redeem its investment, that the size of the Fund would be maintained
at such levels or that the Fund would continue to meet applicable listing requirements. Redemptions by
large shareholders could have a significant negative impact on the Fund. In addition, transactions by
large shareholders may account for a large percentage of the trading volume on the listing exchange and
may, therefore, have a material upward or downward effect on the market price of the shares.
|
|
Risk Table - Putnam International Stock ETF
|
Risk [Text Block] |
| Principal Risks |
Principal Risks You
could lose money by investing in the Fund. ETF shares are not deposits or obligations of, or guaranteed
or endorsed by, any bank, and are not insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board, or any other agency of the U.S. government. The Fund is subject to the principal risks
noted below, any of which may adversely affect the Fund’s net asset value (NAV), trading price, yield,
total return and ability to meet its investment goal. Unlike many ETFs, the Fund is not an index-based
ETF.
|
| Risk Lose Money [Member] |
You
could lose money by investing in the Fund.
|
| Market |
Market:
The
market values of securities or other investments owned by the Fund will go up or down, sometimes rapidly
or unpredictably. The market value of a security or other investment may be reduced by market activity
or other results of supply and demand unrelated to the issuer. This is a basic risk associated with all
investments. When there are more sellers than buyers, prices tend to fall. Likewise, when there are more
buyers than sellers, prices tend to rise. In addition, the value of the Fund’s investments may go up
or down due to general market or other conditions that are not specifically related to a particular issuer,
such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults
in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made
world events, such as diseases or disasters; financial, political or social disruptions, including terrorism
and war; and U.S. trade disputes or other disputes with specific countries that could result in additional
tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any
of these conditions can adversely affect the economic prospects of many companies, sectors, nations,
regions and the market in general, in ways that cannot necessarily be foreseen. Stock prices tend to go
up and down more dramatically than those of debt securities. A slower-growth or recessionary economic
environment could have an adverse effect on the prices of the various stocks held by the Fund.
|
| Foreign Securities (non-U.S.) |
Foreign
Securities (non-U.S.): Investing in foreign securities typically involves different risks than investing
in U.S. securities, and includes risks associated with: (i) internal and external political and economic
developments – e.g., the political, economic and social policies and structures of some foreign countries
may be less stable and more volatile than those in the U.S. or some foreign countries may be subject
to trading restrictions or economic sanctions; diplomatic and political developments could affect the
economies, industries, and securities and currency markets of the countries in which the Fund is invested,
which can include rapid and adverse political changes; social instability; regional conflicts; sanctions
imposed by the United States, other nations or other governmental entities, including supranational entities;
terrorism; and war; (ii) trading practices – e.g., government supervision and regulation of foreign
securities and currency markets, trading systems
and brokers may be less than in the U.S.; (iii) availability of information – e.g., foreign issuers
may not be subject to the same disclosure, accounting and financial reporting standards and practices
as U.S. issuers; (iv) limited markets – e.g., the securities of certain foreign issuers may be less
liquid (harder to sell) and more volatile; and (v) currency exchange rate fluctuations and policies –
e.g., fluctuations may negatively affect investments denominated in foreign currencies and any income
received or expenses paid by the Fund in that foreign currency. The risks of foreign investments may
be greater in developing or emerging market countries.
|
| Developing Market Countries |
Developing Market Countries:
The Fund’s investments in securities of issuers in developing market countries are subject to all
of the risks of foreign investing generally, and have additional heightened risks due to a lack of established
legal, political, business and social frameworks to support securities markets, including: delays in
settling portfolio securities transactions; currency and capital controls; greater sensitivity to interest
rate changes; pervasiveness of corruption and crime; currency exchange rate volatility; and inflation,
deflation or currency devaluation.
|
| Focus |
Focus: To the extent that the Fund focuses on
particular countries, regions, industries, sectors or types of investments from time to time, the Fund
may be subject to greater risks of adverse developments in such areas of focus than a fund that invests
in a wider variety of countries, regions, industries, sectors or investments.
|
| Mid Capitalization Companies |
Mid Capitalization
Companies: Securities issued by mid capitalization companies may be more volatile in price
than those of larger companies and may involve substantial risks. Such risks may include greater sensitivity
to economic conditions, less certain growth prospects, lack of depth of management and funds for growth
and development, and limited or less developed product lines and markets. In addition, mid capitalization
companies may be particularly affected by interest rate increases, as they may find it more difficult
to borrow money to continue or expand operations, or may have difficulty in repaying any loans. The markets
for securities issued by mid capitalization companies also tend to be less liquid than the markets for
securities issued by larger companies.
|
| Large Capitalization Companies |
Large Capitalization Companies: Large capitalization
companies may fall out of favor with investors based on market and economic conditions. Large capitalization
companies may underperform relative to small and mid capitalization companies because they may be unable
to respond quickly to new competitive challenges, such as changes in technology and consumer tastes,
and may not be able to attain the high growth rate of successful smaller companies, especially during
extended periods of economic expansion.
|
| Investment Company Securities |
Investment Company Securities: The 1940 Act imposes
limitations on investments in the securities of investment companies, including ETFs. These restrictions
may limit the Fund's ability to invest in other investment companies to the extent desired. To the extent
that the Fund invests in another investment company, because other investment companies pay advisory,
administrative and service fees that are borne indirectly by investors, such as the Fund, there may be
duplication of investment management and other fees.
|
| Derivative Instruments |
Derivative Instruments:
The performance of derivative instruments depends largely on the performance of an underlying instrument,
such as a currency, security, interest rate or index, and such instruments often have risks similar to
their underlying instrument, in addition to other risks. Derivative instruments involve costs and can
create economic leverage in the Fund's portfolio which may result in significant volatility and cause
the Fund to participate in losses (as well as gains) in an amount that exceeds the Fund's initial investment.
Other risks include illiquidity, mispricing or improper valuation of the derivative instrument, and imperfect
correlation between the value of the derivative and the underlying instrument so that the Fund may not
realize the intended benefits. When a derivative is used for hedging, the change in value of the derivative
may also not correlate specifically with the currency, security, interest rate, index or other risk being
hedged. With over-the-counter derivatives, there is the risk that the other party to the transaction
will fail to perform.
|
| Depositary Receipts |
Depositary Receipts: Depositary receipts are subject to many
of the risks of the underlying security. For some depositary receipts, the custodian or similar financial
institution that holds the issuer's shares in a trust account is located in the issuer's home country.
The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases
where the issuer’s home country does not have developed financial markets, greater market risk. In
addition, the depository institution may not have physical custody of the underlying securities at all
times and may charge fees for various services, including forwarding dividends and interest and corporate
actions. The Fund would be expected to pay a share of the additional fees, which it would not pay if
investing directly in the foreign securities. The Fund may experience delays in receiving its dividend
and interest payments or exercising rights as a shareholder. There may be an increased possibility of
untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program.
Accordingly, there may be less information available regarding issuers of securities underlying unsponsored
programs and there may not be a correlation between this information and the market value of the depositary
receipts.
|
| Equity-Linked Notes (ELNs) |
Equity-Linked Notes (ELNs): Investments in ELNs
often have risks similar to their underlying securities or index, which could include management risk,
market risk and, as applicable, foreign securities and currency risks. In addition, since ELNs are in
note form, ELNs are also subject to certain debt securities risks, such as interest rate and credit risks.
Should the prices of the underlying securities or index
move in an unexpected manner, the Fund may not achieve the anticipated benefits of an investment in an
ELN, and may realize losses, which could be significant and could include the Fund’s entire principal
investment. An investment in an ELN is also subject to counterparty risk, which is the risk that the
issuer of the ELN will default or become bankrupt and the Fund will have difficulty being repaid, or
fail to be repaid, the principal amount of, or income from, its investment. Investments in ELNs are also
subject to liquidity risk, which may make ELNs difficult to sell and value. In addition, ELNs may exhibit
price behavior that does not correlate with their underlying securities, index or a fixed-income investment.
|
| Non-Diversification |
Non-Diversification:
Because the Fund is non-diversified, it may be more sensitive to economic, business, political or other
changes affecting individual issuers or investments than a diversified fund, which may negatively impact
the Fund's performance and result in greater fluctuation in the value of the Fund’s shares.
|
| Management |
Management:
The Fund is subject to management risk because it is an actively managed ETF. The Fund's investment
manager applies investment techniques and risk analyses in making investment decisions for the Fund,
but there can be no guarantee that these decisions will produce the desired results.
|
| Cybersecurity |
Cybersecurity:
Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain
access to Fund assets, Fund or customer data (including private shareholder information), or proprietary
information, cause the Fund, the investment manager, authorized participants, or index providers (as
applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund
accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data
breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing,
redeeming shares or receiving distributions. The investment manager has limited ability to prevent or
mitigate cybersecurity incidents affecting third party service providers, and such third party service
providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity
incidents may result in financial losses to the Fund and its shareholders, and substantial costs may
be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities
in which the Fund invests are also subject to cybersecurity risks, and the value of these securities
could decline if the issuers experience cybersecurity incidents. Because technology is
frequently changing, new ways to carry out cyber attacks are always developing. Therefore, there is a
chance that some risks have not been identified or prepared for, or that an attack may not be detected,
which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds
and business enterprises, the Fund, the investment manager, and their service
providers are subject to the risk of cyber incidents occurring from time to time.
|
| Market Trading |
Market
Trading: The Fund faces numerous market trading risks, including the potential lack of
an active market for Fund shares, losses from trading in secondary markets, periods of high volatility
and disruption in the creation/redemption process of the Fund. Any of these factors, among others, may
lead to the Fund’s shares trading at a premium or discount to NAV. Thus, you may pay more (or less)
than NAV when you buy shares of the Fund in the secondary market, and you may receive less (or more)
than NAV when you sell those shares in the secondary market. The investment manager cannot predict whether
shares will trade above (premium), below (discount) or at NAV. To the extent that the
underlying securities held by the Fund trade on an exchange that is closed when the securities exchange
on which the Fund shares list and trade is open, there may be market uncertainty about the stale security
pricing (i.e., the last quote from its closed foreign market) resulting in premiums or discounts to NAV
that may be greater than those experienced by other ETFs.
|
| Authorized Participant Concentration |
Authorized Participant Concentration:
Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund.
"Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly
with the Fund and who have entered into agreements with the Fund’s distributor. The Fund has a limited
number of institutions that act as Authorized Participants. To the extent that these institutions exit
the business or are unable to proceed with creation and/or redemption orders with respect to the Fund
and no other Authorized Participant is able to step forward to create or redeem Creation Units (as defined
below), Fund shares may trade at a discount to NAV and possibly face trading halts and/or delisting.
This risk may be more pronounced in volatile markets, potentially where there are significant redemptions
in ETFs generally.
|
| New Fund |
New Fund: The Fund is newly or recently established
and has no performance history as of the date of this Prospectus. There can be no assurance that the
Fund will grow to or maintain an economically viable size, which could result in the Fund being liquidated
at any time without shareholder approval and at a time that may not be favorable for all shareholders.
|
| Large Shareholder |
Large
Shareholder: Certain large shareholders, including other funds or accounts advised by the
investment manager or an affiliate of the investment manager, may from time to time own a substantial
amount of the Fund’s shares. In addition, a third-party investor, the investment manager or an affiliate
of the investment manager, an authorized participant, a lead market maker, or another entity may invest
in the Fund and hold its investment for a limited period of time solely to facilitate commencement of
the Fund or to facilitate the Fund’s achieving a specified size or scale. There can be no assurance
that any large shareholder would
not redeem its investment, that the size of the Fund would be maintained at such levels or that the Fund
would continue to meet applicable listing requirements. Redemptions by large shareholders could have
a significant negative impact on the Fund. In addition, transactions by large shareholders may account
for a large percentage of the trading volume on the listing exchange and may, therefore, have a material
upward or downward effect on the market price of the shares.
|
|