In a major milestone for active ETFs, active ETF shop T. Rowe Price reached and passed $10 billion in ETF AUM on Monday. Crossing that milestone comes as active ETFs have put together consecutive years of AUM growth and accelerating ETF launches. For T. Rowe Price, specifically, key funds, including the T. Rowe Price Capital Appreciation Equity Fund (TCAF ), have gathered significant AUM in recent years. The firm’s approach, emphasizing fundamental research, may have helped gather that attention.
“T. Rowe Price has long been known for active management and has increasingly been focusing resources on ETFs,” said VettaFi Head of Research, Todd Rosenbluth. “It is great to see the firm cross a key milestone aided by a wide range of products. Advisors are favoring active ETFs to start 2025.”
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Their largest ETF, TCAF, currently sits at approximately $3.5 billion in AUM, per ETF Database data. The strategy has reached that point in just over a year and a half, having launched in mid-2023. That may owe to the fund’s fundamental focus. The fund charges a 34 basis point (bps) fee.
Managed by David Giroux, the strategy has gathered $2.24 billion in net inflows over the last one-year period. TCAF leans on T. Rowe Price’s fundamental research capabilities to assess individual stocks. It measures firms for factors like a record of attractive valuations, experienced management, and high potential for risk-adjusted returns. The strategy analyzes firms based on growth and value views, as applicable.
Research Drives TSPA's Appealing Active Strategy
In a similar vein, the fundamental research-driven TSPA has also significantly to the active ETF growth at T. Rowe Price. The T. Rowe Price U.S. Equity Research ETF (TSPA ) leans on fundamental research to engage in bottom-up portfolio construction. Charging 34 bps, the strategy sits at $1.34 billion per ETF Database data. The fund has gathered $1 billion in net inflows over the last year.
The other active ETFs in the T. Rowe Price lineup have also seen significant flows spread across a range of categories, including fixed income and international. All together, T. Rowe Price’s ongoing focus on active ETFs may continue to help its AUM grow. With uncertainty rising this year and comfort with active management growing, funds like TCAF and TSPA may appeal.
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