Heard a lot about active investing and ETFs, but not sure where to begin? Three active growth ETFs are sending out key buy signals amid spiking returns. Those funds could offer a place to start, whether via tax-loss harvesting proceeds or as part of a broader portfolio reshuffle. With active on the rise and a soft landing potentially on the horizon, active growth could offer some potent value.
See more: It’s Tax-Loss Harvesting Season. Here’s How Active ETFs Can Help
Why look to active growth ETFs in the first place? Active investing offers investors more flexibility than passive funds can. Should market-leading mega-cap names shift, active adaptability could prove a potent tool. What’s more, many active strategies lean on fundamental research to take a bottom-up approach to stock selection.
That said, the following three active growth ETFs are sending buy signals per their tech charts. Technical charts send buy signals when the price of a given security rises above either its 50- or 200-day Simple Moving Average (SMA).
Active Growth ETFs to Watch
The T. Rowe Price Blue Chip Growth ETF (TCHP ), for example, has stood out over the last month. TCHP returned almost 9% at that time, per ETF Database data. Over the last year, the fund has returned 46% per T. Rowe Price data, beating its benchmark’s 36% return.
Charging just a 57 basis point (bps) fee, the fund recently hit its fifth anniversary. It looks for established firms with seasoned management, dividend growth, and strong financial fundamentals. The ETF’s price of $40.08 as of Oct. 9 sat well above both its 50 and 200-day SMAs per YCharts. Those averages sat at $38.29 and $35.99, respectively.
Elsewhere, the T. Rowe Price Growth Stock ETF (TGRW ) is also sending a buy signal. Charging a smaller 52 bps fee, it actively invests in firms with growth characteristics like earnings momentum stability. The fund also seeks out companies with the capacity to expand during unfavorable economic conditions. It has returned 7.5% over the last month, also beating its averages. The fund’s $37.83 price sat above both its SMAs as of Oct. 9, according to YCharts data, at $36.49 (50) and $34.77 (200). The strategy has returned 39.4% over one year, beating its benchmark.
Finally, the T. Rowe Price Growth ETF (TGRT ) presents one more strategy among active growth ETFs, sending a buy signal. TGRT charges only 38 bps for its active approach, applying fundamental, bottom-up active stock selection to large caps. The fund has returned 8% over the last month per ETF Database. According to T. Rowe Price data, it has returned 44.1% over the last year, beating its benchmark. The fund’s price of $36.17 as of Oct. 9 on YCharts sat above its $34.77 50-day SMA and its $32.78 200-day SMA.
Together, the three active growth ETFs offer investors different price and entry points for a potential soft landing. With potent momentum, they could offer an option to add some active growth oomph to portfolios.
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