Putnam Short Duration Bond Fund to Convert Into ETF

Putnam announced plans to convert the Putnam Short Duration Bond Fund from a mutual fund into an exchange-traded fund through a merger with a newly created ETF in the Putnam ETF Trust. The transaction, expected to close in the first quarter of 2027, does not require shareholder approval and is intended to qualify as a tax-free reorganization. The new ETF will retain the fund’s existing investment objective, portfolio management team, and substantially similar investment strategy. Shareholders with brokerage accounts capable of holding ETFs will receive ETF shares equal in value to their mutual fund holdings, while certain investors may need to establish eligible brokerage accounts before the conversion.