In a testament to the success of active ETFs in 2023, T. Rowe Price’s active ETF suite has now hit $2 billion in AUM. Active investing has picked up significant investor and allocator interest in 2023, partly thanks to this year’s up-and-down narrative. Markets have turned to strategies for adjusting on the fly to events, new market signals, or even for their bottom-up, fundamental investing approach. Those and other factors have also boosted interest in T. Rowe Price’s suite.
The Data Behind T. Rowe Price's Active ETF Suite Growth
Not only have active ETFs picked up significant flows for their comparatively smaller AUM totals, but they have also contributed significantly to ETFs’ record launch pace this year. It’s clear that interest has risen in active strategies.
How, then, has T. Rowe Price’s active ETF suite benefitted? Going down the list of the firm’s ETFs produces some intriguing takeaways. The firm’s relatively new T. Rowe Price Capital Appreciation Equity ETF (TCAF ), which just launched this year, has added the most flows YTD by far.
The all-equity TCAF is managed by two-time manager of the year David Giroux—who also manages the popular multi-asset T. Rowe Price Capital Appreciation Fund (PRWCX) mutual fund. Only launched in June, TCAF has already picked up over $400 million. One can also add the AUM growth for the T. Rowe Price Blue Chip Growth ETF (TCHP ), which also hit $400 million this month. Taken together, it’s clear T. Rowe Price’s active ETF suite has been at the forefront of the big year for active.
“Advisors have been embracing actively managed ETFs in 2023, given the market volatility. Many are seeking out the security selection expertise of established managers like T Rowe Price,” said VettaFi’s head of research, Todd Rosenbluth.
“The firm has successfully expanded its lineup, bringing some of its best ideas to meet ETF-mind advisors. The future remains very bright,” he added.
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