With the year more than halfway through, investors may want to take the opportunity to survey the active ETF landscape. In the ever-growing world of ETFs, investors can consider all kinds of strategies, but active strategies are winning significant attention recently. That has also coincided with blue chip firms dominating the stock market. One approach that may stand out to investors looking over the ETF world, active blue chip ETF TCHP, combines those two trends.
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The T. Rowe Price Blue Chip Growth ETF (TCHP ) has seen its price change 23.55% YTD per VettaFi data. That places it in the top 1% of $300 million AUM-plus ETFs based on YTD price increases as measured in ETF Database. The active blue chip ETF has also added more than a quarter billion in AUM over the last six months. So, what about the strategy’s approach is drawing interest?
The ETF, for a 57 basis point (bps) fee, actively invests in firms with leading market positions. TCHP seeks out names with seasoned management and strong financial fundamentals, leveraging T. Rowe Price’s fundamental research capabilities. What’s more, the strategy’s active remit allows its managers to fully select the holdings and weight the portfolio accordingly. So, while it currently holds major names in the S&P 500, it can also identify and lean into other players in the blue chip space.
That approach has contributed to its AUM and performance. According to T. Rowe Price data, TCHP has returned 38.9% over one year. That far outpaces the broad market S&P 500 benchmark return of 24.6%.
Looking ahead, the active blue chip ETF could offer an appealing combination of flexibility and big-name exposure. Especially as rate cuts boost some contenders, it could be an option for sifting through up-and-comers. For those looking for an active complement to a core allocation, TCHP could merit a closer look.
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