On the lookout for an active ETF? Active strategies had a banner year in 2023, picking up major flows relative to their smaller AUM totals. Now, the best strategies among them look to deliver on that excitement in 2024. The active blue chip ETF TCHP is leading the way for active strategies and its investors.
See more: PwC Survey: Active ETFs to See Significant Demand
The T. Rowe Price Blue Chip Growth ETF (TCHP ) has not just done well—it has been a top-five performer among active ETFs, with more than $500 million in AUM. Strategies with significant liquidity appeal to investors, and TCHP is also nearing four years of operation. Specifically, the active blue chip ETF has returned 56.2$ over the last twelve months through the end of February.
That total outperforms both its ETF Database Category and Factset Segment averages. In fact, its performance more than doubled the 21.9% delivered by the segment average and significantly outperformed the benchmark S&P 500’s 30.5% return. It has done so while charging just 57 basis points (bps). The strategy looks for well-established firms with leading market positions and seasoned management. While it may become overweight to info tech stocks, it has active flexibility with changing market environments.
So, what might draw investors to the strategy for the rest of 2024? The active blue chip ETF, of course, looks for blue chip firms. While the so-called Magnificent Seven as a group is a bit dated, high-quality names can still push portfolios forward this year. If the market moves away from big tech, say, TCHP can look for the leading firms in areas on the upswing.
Taken together, TCHP’s hot performance over the last year makes it a strong option. For investors looking for active ETF leaders, the ETF may appeal, especially with potential rate cuts.
For more news, information, and analysis, visit our Active ETF Channel.
