ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Active ETF Channel
  2. Active Management ETFs Mix With Fixed Income Strategies
Active ETF Channel
Share

Active Management ETFs Mix With Fixed Income Strategies

Karrie GordonNov 19, 2021
2021-11-19

At the end of last month, T. Rowe Price launched three new additions to their lineup of actively managed funds — the first fixed income ETFs the firm has offered, as laid out in a white paper.

The previous five ETFs were all based in equities following a variety of investment strategies; the introduction of the T. Rowe Price Total Return ETF (TOTR C), the T. Rowe Price QM U.S. Bond ETF (TAGG C+), and the T. Rowe Price Ultra Short-Term Bond ETF (TBUX B) marks the first time that the firm has transitioned their fixed income strategies from mutual funds into an ETF wrapper.

“Fixed income exchange‑traded funds (ETFs) are a natural evolution of T. Rowe Price’s product offerings, providing access to our active fixed income management expertise in a versatile format that provides all of the benefits of ETFs,” wrote the authors of the paper.

The benefits of using an ETF are numerous and include the convenience of trading anytime, the low-cost structure when compared to mutual funds, and their tax efficiency in trading. An ETF’s ability to trade on an exchange at any point during the day while carrying a basket of securities within a security allows for diversification and flexibility and lets investors respond to changing market conditions as they happen.

ETFs tend to cost less than their mutual fund counterparts because they typically have more limited operating expenses, reporting, and client services. The ETFs that T. Rowe Price offer all have a unitary fee structure, which means that they charge a single fee to cover every expense instead of subdividing the fees into the management fee and other expenses. They are also typically able to reduce capital gains incurred during trading activity, thereby making them more tax efficient than mutual funds.

“Our ETFs benefit from the investing expertise of our actively managed strategies in addition to the advantages that the ETF wrapper provides,” said the authors. By combining all of these advantages, investors can now pursue fixed income investments with T. Rowe Price, an area that they view active management to really shine in within a market that is still producing historically low yields.

The three fixed income ETFs are all managed by the same investment teams that use the same strategies for the mutual fund counterparts. The global team of credit analysts from the firm is involved in the security selection of all fixed income portfolios for the firm. The mutual funds and ETFs can carry slight differences, reflecting different performances at times.

“Making our time‑tested fixed income strategies available via actively managed ETFs is one more way that we are delivering on our commitment to provide our investment management capabilities through products and vehicles that best meet the needs of our clients,” the authors wrote.

For more news, information, and strategy, visit the Active ETF Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X