- From the Field
- Optimize your portfolio with T. Rowe Price’s active equity ETFs
- 2024-10-09 10:57
- Key Insights
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- Active exchange-traded funds (ETFs) can help investors optimize for shifting markets.
- Our suite of fully transparent active equity ETFs seeks to outperform benchmarks.
- Just as a race car’s success relies on the efforts of its entire crew, these investment vehicles are guided using a multilayered, team approach.
- Active exchange-traded funds (ETFs) can help investors optimize for shifting markets.
For over 85 years, T. Rowe Price has navigated the evolving landscape of asset management with a commitment to rigorous research and client-centric strategies. From the early days of individually managed accounts to an expansion into mutual funds and defined contribution plans, our journey mirrors the relentless pursuit of excellence in a finely tuned race car. Our suite of active management solutions has kept pace with client needs, especially with the introduction of our fully transparent, actively managed exchange-traded funds (ETFs).
“...our journey mirrors the relentless pursuit of excellence in a finely tuned race car....”
Combining the benefits of active management and ETFs
(Fig. 1) Our fully transparent exchange‑traded funds are designed to serve both goals
T. Rowe Price’s fully transparent equity ETFs
(Fig. 2)
| Capital Appreciation Equity ETF | Value ETF | Growth ETF | Small-Mid Cap ETF | International Equity ETF | |
| Ticker | TCAF | TVAL | TGRT | TMSL | TOUS |
| Lead Portfolio Manager | David Giroux | Jodi Love | Jodi Love | Jodi Love | Jodi Love |
| Co-portfolio Managers | N/A | Gabe Solomon Don Peters |
Taymour Tamaddon Don Peters |
Vincent DeAugustino Don Peters Peter Stournaras |
Sebastian Schrott Colin McQueen Peter Stournaras |
Peer Category Morningstar Lipper |
Large‑Cap Core |
Large‑Cap Value |
Large‑Cap Growth |
Mid‑Cap Core |
International Large‑Cap Core |
| Benchmark | S&P 500 Index | Russell 1000 Value Index | Russell 1000 Growth Index | Russell 2500 Index | MSCI EAFE Index Net |
| Expense Ratio | 0.31% | 0.33% | 0.38% | 0.55% | 0.50% |
As of June 30, 2024.
Fueling success with transparent, actively managed ETFs
Our five fully transparent, actively managed equity ETFs continue to offer investors innovative strategies tailored to a variety of categories—large-cap, small-mid cap, value, growth, core, and international. These ETF solutions deliver the performance and flexibility our clients expect, while providing cost-effective access to active management.
The team behind the wheel
Success in active management, much like in auto racing, relies on a cohesive and experienced team. Lead portfolio manager Jodi Love manages the Growth, International Equity, Small-Mid Cap, and Value ETFs, while David Giroux steers the Capital Appreciation Equity ETF. These leaders, supported by an intricate team of co-portfolio managers and analysts, ensure that each ETF runs smoothly and efficiently.
“Just as a race car’s success relies on the efforts of its entire crew, these investment vehicles are guided using a multilayered, team approach.”
A proprietary approach driven by research
Much like a race car team relies on precise telemetry and skilled pit crews, T. Rowe Price’s research teams—the equivalent of our pit crew—provide meticulous, fundamental analysis to power our ETFs. With a strong team of 115 equity analysts as of June 30, 2024, we cover all facets of market opportunities. Our analysts gather insights by meeting frequently with management teams, attending industry conferences, and visiting company facilities, ensuring that our investment strategies are informed by the most reliable data.
Engineering ETF excellence
Guiding these ETFs to success is Tim Coyne, global head of ETFs. Tim’s vision and expertise are the engine behind our efforts to expand ETF capabilities across various asset classes. Since joining T. Rowe Price in 2020, Tim has been instrumental in launching our ETF initiatives, continually fine-tuning our offerings for optimal performance.
Empowering investors to navigate market terrain
T. Rowe Price’s actively managed ETFs now offer a diversified suite of investment opportunities, blending the firm’s legacy of innovation and commitment. These ETFs are designed to help investors navigate the complex market landscape with confidence.
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Additional Disclosures
ETFs are bought and sold at market prices, not net asset value. 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.
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Important Information
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, visit troweprice.com.
This material is provided for informational purposes only and is not intended to be investment advice or a recommendation to take any particular investment action. This material is provided for general and educational purposes only and not intended to provide legal, tax, or investment advice.
The views contained herein are those of the authors as of October 2024 and are subject to change without notice; these views may differ from those of other T. Rowe Price associates.
This information is not intended to reflect a current or past recommendation concerning investments, investment strategies, or account types; advice of any kind; or a solicitation of an offer to buy or sell any securities or investment services. The opinions and commentary provided do not take into account the investment objectives or financial situation of any particular investor or class of investor. Please consider your own circumstances before making an investment decision.
Information contained herein is based upon sources we consider to be reliable; we do not, however, guarantee its accuracy.
Investment Risks:
Small and medium‑sized companies often have less experienced management, narrower product lines, more limited financial resources, and less publicly available information than larger companies and may be subject to greater volatility from changes in overall economic conditions, which may cause their securities to be difficult to trade.
The value approach to investing carries the risk that the market will not recognize a security’s intrinsic value for a long time or that a stock judged to be undervalued may actually be appropriately priced. A fund’s value investing style may become out of favor, which may result in periods of underperformance.
Funds that invest in growth stocks are subject to the volatility inherent in common stock investing, and their share price may fluctuate more than that of a fund investing in income‑oriented stocks. International investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates; differences in market structure and liquidity; as well as specific country, regional, and economic developments. To the extent that the fund invests in emerging markets, these risks are generally greater.
Active investing may have higher costs than passive investing and may underperform the broad market or passive peers with similar objectives.
Diversification cannot assure a profit or protect against loss in a declining market.
Past performance is not a reliable indicator of future performance. All investments are subject to market risk, including the possible loss of principal. All charts and tables are shown for illustrative purposes only.
T. Rowe Price Investment Services, Inc.
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