The active ETF space continues to grow for curious investors. Whether that’s via mutual funds converting to active ETFs or outright new launches, the number of options is growing. At the same time, investor interest is also in play. With many investors and advisors looking to tax-loss harvest, actively managed funds can appeal. In that increasingly important space, this particular ETF is standing out, firing on all cylinders as 2024 rolls to a close.
See more: T. Rowe Price Launches New Active Tech ETF TTEQ
The T. Rowe Price Blue Chip Growth ETF (TCHP )is heating up at the right time. According to YCharts data, the active ETF has beaten the S&P 500 Total Return Index over the last year. It has returned 47.4% in that time compared to 38% for the S&P 500 Total Return Index.
At the same time, the fund’s tech chart momentum has particularly intrigued. Its $40.36 price, as of Friday, November 1st, stood above both its 50- and 200-day Simple Moving Averages (SMAs), which sit at $39.33 and $36.8, respectively. The ETF’s Relative Strength Index (RSI) may offer a particular appeal. Despite that buy signal sent in early September, the fund’s RSI has not entered “overbought” territory. That may portend some additional space for growth.
TCHP charges only 57 basis point (bps) for the fundamental research-driven portfolio. The active ETF, which launched in 2020, looks for firms with above-average growth. More specifically, the fund looks for firms with dividend growth, leading market positions, and strong financial fundamentals. Since its launch, TCHP has taken and run with that approach, gathering more than $800 million in AUM.
An active ETF approach could really stand out entering the new year. A soft landing appears more likely, but it is not guaranteed. At the same time, further rate cuts could buoy those major names TCHP likes. Taken together, the fund’s momentum makes it one to watch
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