Exchange-Traded Funds
Active ETFs Designed to Outperform
Key Insights
- T. Rowe Price Active ETFs benefit from the same investment management expertise that our actively managed funds do, as well as the advantages that an ETF structure provides.
- Unlike passive strategies, active management has the ability to adapt to changing market environments.
- We offer strategies specifically designed as ETFs and others that are based on some of our existing mutual fund strategies.
T. Rowe Price active strategies have a compelling long-term track record. Regardless of the market environment, we seek to deliver strong performance through our commitment to fundamental research and in-depth insight. T. Rowe Price Active ETFs offer investors the benefits of exchange-traded funds (ETFs), while also offering the potential for outperformance.
The Popular Benefits of ETFs:
Convenience
ETFs give investors the flexibility to buy or sell intraday without trading frequency limitations or minimum investment amounts.
Cost Effectiveness
ETFs expenses are streamlined with fewer operational costs.
Tax Efficiency
The ETF structure has the potential to reduce capital gain distributions by minimizing the impact of shareholder purchase and redemption activity.
ETFs Designed to Outperform
With passive investment strategies, investors are at the whim of the market. Whether a passive investment is tied to a specific sector or broad market index by definition, there is no objective to outperform. And, in market downturns, passively managed ETFs have no discretion to make adjustments.
On the other hand, actively managed investment strategies are able to adapt to changing market environments in pursuit of more attractive risk-adjusted returns. T. Rowe Price Active ETFs seek to outperform benchmark indexes through the added value of our investment management expertise and global research capabilities. Our global team of investment professionals go beyond the numbers every day to evaluate markets and study opportunities. This depth of understanding helps inform better decision-making and prudent risk management for our clients. Regardless of market conditions, our experienced investment professionals have the flexibility to adjust their actively managed portfolios in pursuit of the most advantageous positions. None of this is possible with the limitations of passively managed ETFs.
We have long believed that we could deliver the benefits of our core investment approach in the form of an ETF. Managed through rigorous fundamental research and a forward-looking strategic perspective, T. Rowe Price Active ETFs are the latest vehicle that enables us to package this expertise for clients who may prefer the ETF structure.
Our Commitment
For clients seeking returns that go beyond the limitations of an index, T. Rowe Price is committed to offering a different kind of ETF: one that combines the features and benefits of the ETF’s structure with the additional edge our strategic investing approach can deliver. We will continue to pursue innovative investment solutions and strategies to help clients feel confident in reaching their investing goals.
Consider the investment objectives, risks, and charges and expenses carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, call 1-877-561-7670 or select the prospectus link above. Read it carefully.
ETFs are bought and sold at market prices, not NAV. Investors generally incur the cost of the spread between the prices at which shares are bought and sold. Buying and selling shares may result in brokerage commissions, which will reduce returns.
This material is provided for general and educational purposes only. This material does not provide recommendations concerning investments, investment strategies, or account types. It is not individualized to the needs of any specific investor and not intended to suggest any particular investment action is appropriate for you nor is it intended to serve as the primary basis for investment decision-making. T. Rowe Price Investment Services, Inc., its affiliates, and its associates do not provide legal or tax advice. Any tax-related discussion contained in this material is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or tax professional regarding any legal or tax issues raised in this material.
Risk Considerations: All investments are subject to market risk, including the possible loss of principal. Active investing may have higher costs than passive investing and may underperform the broad market or passive peers with similar objectives. Passive investing may lag the performance of actively managed peers as holdings are not reallocated based on changes in market conditions or outlooks on specific securities.
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