Active ETFs have continued to grow in stature, and in AUM and the T. Rowe Price Capital Appreciation Equity ETF (TCAF ) is no exception. The rising active ETF, which already reached half a billion in YTD flows in April, has seen its inflows accelerate even more. With active ETFs seeing increasing attention, investors may want to take a closer look at TCAF and why it has picked up such attention.
See more: T. Rowe Price’s Active ETF Roster Surpasses $5 Billion AUM
Active strategies have made big steps forward since the ETF rule in 2019 eased the process of launching ETFs. The ETFs have done well to gain the attention of many new investors across the asset management world. That owes in large part to the ETF wrapper’s trading convenience and tax efficiency. For the large swathe of investors with any level of experience or phase of their life, those attributes can really appeal.
TCAF: A Rising Active ETF to Watch
What about TCAF, specifically? The rising active ETF launched just over a year ago but is already approaching $2 billion in AUM. The all equity TCAF can point to its manager, David Giroux, as one part of its draw. The manager also operates the T. Rowe Price Capital Appreciation Fund (PRWCX), which has a long, award-winning track record as a multi-asset mutual fund.
TCAF uses fundamental analysis to measure individual stocks for factors like potential for risk-adjusted returns as well as market position. Holding around 100 names, it has returned 21.2% since its inception. The strategy charges only 31 basis points (bps) to do so.
As a long-term option, the rising active ETF may stand out as a leading candidate. Active’s ability to adjust and take a deeper look at individual firms, combined with the benefits of the ETF wrapper and TCAF’s capital appreciation focus, could help explain its rapid ascent up the active ETF AUM ladder.
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