The technology sector sell-off during the month of January was evident in the Nasdaq 100’s 9% drop. Nonetheless, buying the dip opportunities exist, but investors don’t have to do all the work themselves.
This is where an active management style can help investors use an almost set-it-and-forget-it mentality with their portfolios. Enter the T. Rowe Price Growth Stock ETF (TGRW ), which uses active management to locate growth opportunities in the current market landscape.
Adding growth to a portfolio doesn’t have to be a complicated task. With TGRW, investors can get exposure to household names in the tech sector as well as other growth opportunities while mitigating risk.
In a time where inflation is running rampant, getting active management is a must. The technology sector, in particular, will require deft management in order to pick the best stocks to weather the storm.
“The Nasdaq 100 market index, which features many of the largest technology companies in the world, is currently down 13% for the year,” a Motley Fool article says. “It’s only February, so the magnitude of that decline has some investors concerned, especially since many individual tech stocks have been plunged into bear market territory, losing 20% (or more) of their value.”
Playing the Long Game With TGRW
Investors must keep in mind that growth stocks are also about seeing the forest for the trees. Playing the long game with growth is necessary despite the recent weakness in the tech sector.
In its attempt to provide long-term capital growth, TGRW invests in growth stocks with one or more of the following characteristics: strong cash flow and above-average earnings growth, the ability to sustain earnings momentum in economic downturns, occupation of a niche in the economy, and the ability to expand during times of slow economic growth. Additionally, TGRW is able to deliver this actively managed strategy with an expense ratio of only 0.52%.
“But history highlights the benefits of taking a long-term approach for the best investment results,” the Motley Fool article adds. “After all, over the last 10 years, the Nasdaq 100 has returned 4,515%. In other words, a $10,000 investment in February 2012 would be worth $451,500 today.”
For more news, information, and strategy, visit the Active ETF Channel.