In yet another indication of active investing’s growing role in the ETF landscape, T. Rowe Price’s ETF roster recently surpassed $5 billion in AUM. The active ETF roster, led by the T. Rowe Price Capital Appreciation Equity ETF (TCAF ) at $1.7 billion, has gathered more than $2 billion in flows over the last one-year period, per ETF Database data.
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The firm’s roster of 15 active strategies also includes ETFs like the T. Rowe Price U.S. Equity Research ETF (TSPA ){. The active ETF has returned 34.2% over the last one year, while TCAF has returned 21.2% since inception, per T. Rowe Price data. TCAF leans on the experience of its key manager, David Giroux, while TSPA’s approach relies on work by a team of analysts leaning into the firm’s fundamental research approach.
“We continue to see growing adoption of active ETFs throughout the industry,” said Tim Coyne, T. Rowe Price’s head of ETFs. “As one of the most recognized and trusted firms in active management, we’re pleased to see investors turning to T. Rowe Price’s expertise across our full range of equity and fixed income solutions.”
Overall, the AUM growth speaks to the growing popularity of active ETF investing across the ETF industry. Active ETFs provide greater flexibility than passive ETFs can. Active strategies can adjust to changing macro factors while also adjusting holding weights based on fundamental analysis.
Given the risks and headwinds facing investors right now, that flexibility could prove to be an important option for investors. Concentration risk in the S&P 500 poses its own risks, given how tech-heavy the leading firms are. What’s more, a higher-for-longer rate regime continues to pose challenges. T. Rowe Price’s growing active ETF roster offers a variety of options for investors, including the likes of TCAF and TSPA.
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