T. Rowe Price has added yet another fund to its growing suite of active ETFs. The firm launched its new innovation-focused ETF, TNXT, on the NASDAQ exchange today. TNXT, the T. Rowe Price Innovation Leaders ETF, brings the firm’s suite to a total of 31 active ETFs, with 21 in equities and 10 in fixed income. The company managed some $1.78 trillion in client assets as of December 31, according to a press release.
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TNXT aims to offer diversified exposure to innovators not only in so-called “tech” sectors, but also healthcare, financials and other sectors poised to benefit from disruptive innovation. Leaning on the firm’s research capabilities, the active innovation-focused ETF marries bottom-up stock analysis and top-down trends analysis. The fund anticipates between 150 and 250 holdings for its regular operations, while adjusting dynamically to markets and trends.
Innovation-Focused ETF TNXT's Focus
The fund’s management team will include portfolio managers from the shop’s multi asset division. T. Rowe Priced Hedged Equity ETF (THEQ ) manager Sean McWilliams and T. Rowe Price Head of Global Investment Solutions Som Priestly will co-manage the fund. Together they bring nearly 40 years of experience to the fund’s operations. TNXT will charge 49 basis points (bps) for its approach.
“The Innovation Leaders ETF provides investors with access to some of the most disruptive companies shaping the future across technology, healthcare, financials, and more,” said T. Rowe Price Global Head of ETFs Tim Coyne. “Powered by T. Rowe Price’s deep multi-sector research and forward-looking active management, we’re able to uncover differentiated investment ideas for clients seeking to capture long-term innovation themes in a rapidly evolving market landscape.”
What role might the Innovation Leaders ETF play in a portfolio? Its dedicated focus on innovation and its active investment approach could make it a strong option in a satellite position. For those looking to get exposure to advancements not only in tech but across multiple businesses, TNXT could be one to watch.
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