The T. Rowe Price Equity Income ETF (TEQI ) has earned a spot on Morningstar’s list of the best active value stock ETFs to buy in 2026, joining 17 other actively managed value ETF strategies recognized by the research firm.
- TEQI made Morningstar’s 2026 list of best active value stock ETFs.
- Strategy focuses on dividend-payers with about 124 holdings for concentrated bets.
- Fund manager John Linehan earned a “High” rating for experience and expertise.
The fund received particular recognition for its experienced leadership under portfolio manager John Linehan, according to Morningstar. Linehan has managed the strategy since November 2015 after joining T. Rowe Price in 1998, bringing deep expertise as a value investor to the $368.8 million fund.
Morningstar’s recognition comes as value stocks gain attention. They offer broader sector diversification than growth-focused strategies, with Morningstar describing TEQI as “a decent option for yield-oriented large-value investors.”
See more: Exchange 2026: T. Rowe Price on the Active ETF Shift
While TEQI’s recent performance has lagged, the fund’s disciplined approach and veteran management position it as an option for investors seeking dividend income combined with long-term capital growth, according to the fund’s factsheet.
TEQI follows a straightforward but rigorous strategy: at least 80% of its assets must be invested in dividend-paying companies, according to the fund’s fact sheet. This mandate provides investors with current income, with the fund currently offering a forward yield of around 1.25%, while the active management team seeks out undervalued stocks with capital appreciation potential.
TEQI's Concentrated Approach
The fund takes a more focused approach than many passive value strategies, holding around 124 stocks compared to more than 800 in the Russell 1000 Value Index. Top holdings include Alphabet Inc. (GOOG), Southern Company (SO), JPMorgan Chase & Co. (JPM), and Qualcomm Inc. (QCOM), according to ETF Database data.
Financials make up the largest sector allocation at 23.2% of the portfolio, followed by healthcare at 13.6% and industrials at 13.1%, according to the fund’s fact sheet as of Dec. 31. The fund has attracted $70.54 million in net inflows year-to-date and charges an expense ratio of 0.54%.
Morningstar analysts awarded TEQI’s management team a “High” rating for its People Pillar, which assesses the experience and quality of the portfolio management team. The rating cited Linehan’s experience and the support of T. Rowe Price’s research infrastructure.
The fund also earned a Bronze Medalist Rating overall from Morningstar, reflecting the firm’s view that the strategy has the potential to outperform category peers over a full market cycle.
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