Investors have a growing number of active ETF options to choose from as the category continues to rise in prominence. As that category plays a bigger and bigger role in investor portfolios, choosing the right fund from that category matters. One active ETF, TCAF, is a contender for that upper tier, recently sending a key buy signal.
See more: How Active Natural Resources ETF TURF Sets Itself Apart
The T. Rowe Price Capital Appreciation Equity ETF (TCAF ) launched in 2023 under the leadership of award-winning manager David Giroux. The fund charges a 31 basis point fee to actively invest based on fundamentals-driven, bottom-up research. It looks for higher-quality stocks from large-cap firms based on those factors.
Specifically, the active ETF looks for firms with experienced management and high potential for risk-adjusted returns. What’s more, the strategy looks for firms with a track record of attractive valuations.
Together, that approach has helped the fund return 17.27% over the last one-year period. That outperformed both its ETF Database Category and FactSet Segment averages in that time. Those metrics came in at 5.95% and 10.65%, respectively.
Overall, that has helped the strategy send a key buy signal, according to YCharts. The fund’s price sits above both its 50- and 200-day simple moving averages. Those come in at $35.64 and $33.83, respectively.
Managed by David Giroux, the strategy has arrived amid rising prominence for active investing strategies. He recently shared his and his team’s thoughts on AI investing, for example. Giroux and co-portfolio managers Michael Signore and Brian Solomon assessed which software incumbents and disruptors are best poised for the AI revolution. That kind of analysis as well as fundamental research helps guide TCAF’s approach.
Looking ahead, then, the fund could be poised for an intriguing role for investors. With demand for active rising, the leading active ETF could be one to invigorate portfolios.
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