Active manager T. Rowe Price announced the expansion of its equity ETF offerings with three new sector strategies. The T. Rowe Price Financials ETF (TFNS), the T. Rowe Price Heath Care ETF (TMED), and the T. Rowe Price Natural Resources ETF (TURF) began trading June 12 on the Nasdaq. The transparent ETFs include actively managed exposure to the financials, health care, and natural resources sectors respectively.
“The launches of TMED, TURF, and TFNS reflect our ongoing commitment to deliver an array of active ETFs that meet the evolving needs of our clients,” Tim Coyne, global head of ETFs at T. Rowe, explained in the press release. “We remain focused on growing our active ETF business and look forward to continuing to build it with compelling investing ideas and the best thinking of T. Rowe Price active managers.”
3 Affordable, Active Sector ETFs to Diversify Your Equity Portfolio
All three active sector funds are constructed using fundamental analysis, with portfolios built on bottom-up research. They invest across market caps. Additionally, the manager may use value and growth approaches when selecting securities.
- TFNS invests in companies within or that provide services to the financial services sector. These include banking, consumer finance, insurance, capital markets, REITS, mortgage finance, securities exchanges, and more. The fund’s portfolio will generally include between 50-70 companies.
- TMED provides exposure to health care companies. These companies can include biotechnology, pharmaceutical, life sciences, companies developing new therapies, managed health care, health care equipment and supplies, as well as their providers, and more. The portfolio will be comprised of 100–150 companies driving innovations within health care.
- TURF invests in natural resource companies that extract energy, minerals, and agricultural products upstream. Taking a global focus, the portfolio will contain 60–80 companies. The fund is also co-managed by five investment managers with expertise in commodities, global natural resources, North America energy, metals and mining, and precious metals.
“T. Rowe Price has quickly established a leadership position in the active ETF industry,” said Todd Rosenbluth, head of research at VettaFi. “The firm has tremendous security selection expertise and it is great to see the firm make more of it available for ETF-minded advisors.”
The addition of the new equity sector ETFs brings the firm’s total active ETF suite to 22. The active manager now offers 16 equity ETFs and six fixed income ETFs. The firm maintains their actively managed strategies at competitive price points. All three new ETFs carry an expense ratio of 0.44%.
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