With the election mostly settled, many investors may now be looking to make moves in their portfolios. Should the ostensible President-elect follow through on his policy initiatives, investors may want to be prepared with strategies to adapt. Moreover, this year, potential further rate cuts could position markets to start strong in 2025. That’s where a blue chip ETF like TCHP comes in, with an appealing active approach.
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The T. Rowe Price Blue Chip Growth ETF (TCHP ) actively invests in firms with the potential for above-average growth. The fund looks for firms with strong financial fundamentals, seasoned management, leading market positions, and more. The strategy considers industries in which its managers see a positive outlook. Charging only 57 basis points (bps), the active blue chip ETF has returned 46% over one year, per T. Rowe Price data. That has beaten its benchmark by 9.9% in that time.
That approach, leaning on T. Rowe Price’s fundamental research capabilities, could particularly appeal through the rest of the year and as we move into 2025. Investors may want to look to active managers to parse the coming administration’s policies and their impacts. At the same time, not all portfolios may be adequately prepared for not only those policy shifts but also further rate cuts. The election has dominated market narratives for the last few weeks, putting blinders on many; more rate cuts this year could benefit key sectors. The ability to adapt is a key element of an active strategy like TCHP which passive index strategies simply don’t have.
An active blue chip ETF like TCHP, then, may intrigue. On top of its strong performance, it is also seeing some intriguing tech chart action. Its price of $41.13 sits above both its 50 and 200-day Simple Moving Averages (SMAs) per YCharts data. Those two numbers have also risen since the start of the year, showing overall forward movement. For those looking for a leading blue chip fund, TCHP could stand out as an option.
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