Active ETFs have made waves in recent years, already outpacing passive ETFs in several key metrics this year. With rapid launches and notable flows, active ETFs have become a bigger and bigger part of investors’ portfolios. Among the successful launches of the last three years, a few standout funds have risen to the top by pulling in significant inflows. One leading active ETF, TCAF, managed by David Giroux, is currently on track for a major buy opportunity this Summer.
Key Takeaways:
- Active ETFs have been a big player in the ETF ecosystem in recent years, driving major flows and an accelerating pace of new launches.
- Finding the right active ETF can boost portfolios, with experienced management serving as a key factor in long-term success.
- Major ETF milestones often present strategic buying opportunities, as seen with TCAF this summer.
(TCAF ) the T. Rowe Price Capital Appreciation Equity ETF, charges a 31 basis point fee to actively invest in large-cap equities. The strategy has pulled in more than $5.5 billion in net inflows since its launch and currently sits at $6.5 billion in AUM, according to ETF Database.
The fund actively invests in firms believed to offer high-quality stocks, according to its managers. The strategy utilizes fundamental analysis to target leading companies with characteristics like risk-adjusted returns, competitive market position, strong management, and a track record of appealing valuations.
Impressive Momentum & Upcoming Milestone
Combined, these factors have helped the strategy return 51.46% since inception, according to YCharts data. The data also noted that TCAF’s price recently rose above both its 50- and 200-day Simple Moving Averages (SMAs). Rising momentum is often a strong signal that a security is entering a favorable buying window.
Perhaps most intriguing, is the milestone the fund reaches this summer: on June 14, TCAF will celebrate its third anniversary. This three-year window is a critical benchmark in the ETF world, as it establishes the full performance track record that many market participants use as a key data point to consider before committing capital.
See more: Analysis: Active ETFs Lapped Passive ETF Inflows in March
In the meantime, the fund’s long term active ETF approach and emphasis on fundamentals have it well positioned to navigate a geopolitics-driven downturn. For those considering an active equity ETF that can play a core or core-plus role, TCAF may be one to watch as it celebrates its three-year milestone this summer.
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