Active investing has provided a lot of excitement to start 2024 following a banner year for active in 2023. Asset managers are issuing all kinds of new active ETFs, while active strategies consolidate the major flows in 2023. As such, investors may be looking for options, with three specific ETFs sending a strong buy signal per YCharts with a quarter of 2024 just about done.
See more: T. Rowe Price’s Coyne on Active ETFs in 2024
First, the T. Rowe Price Small-Mid Cap ETF (TMSL ) can appeal. The strategy has stood out due to its strong stock selections and perhaps partly thanks to its potential to benefit from rate cuts. Its active approach, looking for smaller firms that already stand out, could also find firms that could benefit from easier borrowing. TMSL has returned 10.5% YTD for a 55 basis point (bps) fee. Its $31 price sits above its 50-day simple moving average (SMA), indicating a buy signal per YCharts.
Active ETFs Sending Buy Signals
Next among active ETFs is the T. Rowe Price Growth ETF (TGRT ). The fund charges 38 bps to look for large-cap growth stocks. It uses fundamental research and takes an active, bottom-up approach to examining potential investments. In doing so, it has returned 14.3% on a YTD basis. Its price of $32.34 sits above its 50-day SMA of $31.12, suggesting some potent momentum.
Finally, the T. Rowe Price U.S. Equity Research ETF (TSPA ) may appeal. The ETF has returned 38.4% over the last one year, charging 34 bps. Set to hit its three-year ETF milestone this June, its goal is to outperform the S&P 500 while providing similar economic exposures. It aims to be sector-neutral, weighting industries like the S&P 500, but actively selects and weights individual stocks to represent those industries per its intensive research. Since it’s inception, TSPA has delivered on its goal by outpacing the S&P 500.
Its price of $32.66 is above its 50- and 200-day SMAs of $31.3 and $28.39, respectively. Taken together, the three active ETFs offer strong momentum and may be worth considering as active takes a step forward in 2024.
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