Active ETFs continue to see significant inflows as more and more investors take to the category’s potential for outperformance. In both equities and fixed income segments, active ETFs can provide flexibility and tax efficiency compared to other popular investment areas. One such rising ETF, TCAF, is backing up its promise with both strong inflows and returns.
See more: Why a Bottom-Up Active Approach Matters in International Equities
The T. Rowe Price Capital Appreciation Equity ETF (TCAF ), managed by the experienced David Giroux, has added more than half a billion over the last week according to ETF Database data. That brings the fund inflows total to over $2.5 billion since the start of the year. Its AUM, of course, has risen in turn, up to $6.2 billion since launching in 2023.
What’s more, the fund has gained those assets while still months away from the much-vaunted three year milestone. That threshold marks the moment when many brokers will add ETFs to their lists, with said funds able to provide three years of performance data for consideration.
The active ETF has seen those significant flows and AUM gains while also outperforming its averages. Specifically, TCAF has outperformed both its ETF Database Category and Factset Segment averages over the last one year period. Specifically, it has returned 14.1% in that time frame compared to 6.1% and 8.9% for its averages, respectively.
How, then, does the fund invest? TCAF charges a competitive 31 basis point (bps) fee for its services. Managed by David Giroux and his team, the strategy targets higher quality U.S. large cap stocks. Leaning on T. Rowe Price’s fundamental research, the fund looks for companies poised for above-average growth. The team emphasizes metrics like capable management, valuation track records, and market position.
Together, the strategy represents one of the top rising active ETFs. In many ways mirroring the growing interest in the category, TCAF could present an intriguing option to refresh equity portfolios with an active bent.
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