With a strong year of active investing approaching an end this month, top active ETF TCAF has hit another flows milestone. The strategy has brought in more than $2 billion in net inflows over the last year, per ETF Database data. That marks yet another step forward for the fund, which launched just over a year ago. Looking ahead to 2025, TCAF could present an appealing option for those looking to get into active investing.
The T. Rowe Price Capital Appreciation Equity ETF (TCAF ) launched in June 2023. Charging only 31 basis points, the active strategy currently sits at $2.8 billion in AUM, per ETF Database data, with $2 billion arriving over the last year. So, what about the strategy’s approach that has gathered that interest?
The top active ETF, managed by David Giroux, uses fundamental analysis to assess individual stocks. The fund invests in large-cap firms seen as having potential for above-average growth. Specifically, the fund looks for firms with a track record of attractive valuations and high potential for risk-adjusted returns.
That approach has helped the fund reach the top tier of traditional active equity ETFs. According to T. Rowe Price data, TCAF has returned 34.4% over one year with that approach.
While 2025 offers reasons for optimism as markets may yet welcome further rate cuts and a successful soft landing, uncertainty still lingers. TCAF can invest in opportunities for upside by leaning on T. Rowe Price’s fundamental research capabilities. At the same time, its active approach can help with flexibility, too. Where passive ETFs can’t adjust to market conditions unless changes are made to the index they track, active funds can adapt if events require.
With the fund picking up significant flows over the last year, it may be poised for further growth in 2025. Sifting through leading large-caps, the top active ETF could appeal as an entry point to active investing in the new year.
For more news, information, and analysis, visit our Active ETF Channel.
