The active ETF landscape has exploded in popularity over the recent years. The arrival of the 2019 ETF Rule has streamlined the launch process, enabling asset managers to bring innovative new strategies to market more efficiently. That includes TCAF, the largest ETF by AUM in T. Rowe Price’s roster. Led by veteran manager David Giroux, the strategy recently surpassed yet another AUM milestone.
Key Takeaways:
- TCAF recently hit another AUM threshold, speaking to its growing role as a top core plus active fund.
- Its adaptability and fundamental research-backed approach makes it a potentially strong option.
- Managed by David Giroux, TCAF’s historical performance suggests it can serve as a durable core holding.
The T. Rowe Price Capital Appreciation Equity ETF (TCAF ) charges a 31 basis point fee for its approach. The fund recently crossed $7 billion in total AUM. The active ETF specifically targets high-quality stocks from large cap firms. Such firms are perceived to have above average potential for growth.
The strategy leans on T. Rowe Price’s fundamental research capabilities. It utilizes a bottom-up analysis to evaluate individual stocks based on factors like market position, attractive valuation track records, and experienced management.
This quality-focused approach has translated into significant results, as evidenced by the fund’s recent performance data. For instance, the active ETF has returned 23.7% over the last 12 months, according to ETF Database data. Since its inception almost three years ago, the strategy has delivered a total return of 59%, according to YCharts data.
See more: Bull vs. Bear: ETFs for Rising Geopolitical Risk
Looking to its AUM, TCAF has almost doubled its total AUM since this time last year. In May 2025, the fund sat at approximately $4 billion and is now surpassing $7 billion AUM, with a significant $400 million increase since the start of 2026.
So what is TCAF’s outlook for the rest of 2026? The strategy remains to be a strong option as a core plus active equity ETF. The fund’s adaptability, broad remit, and reliance on fundamental research could also make it a durable option for an uncertain year. While the stock market continues to rise, geopolitical volatility and AI doubts persist. By utilizing a proven active strategy like TCAF, investors can better position their portfolios for potential outperformance amid this uncertainty.
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