How much more runway does growth investing have? If further rate cuts arrive, there could be quite a lot left to go next year, especially for active investors. Next week’s Fed meeting could set the tone for much of the start of 2025. That could thoroughly impact the lens through which investors see key events in the new year, like a new administration. Looking at the market itself, with a further rate cut potentially unleashing further equities upside, an active growth fund like TGRW could appeal.
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What kind of rate cut looms at the year’s last Fed meeting? Markets seem to be seeing a 25 basis point (bps) cut in the cards. The Fed has already cut the Fed funds rate by 75 bps since September, per Reuters, which would amount to a full point drop since then. While that steady cutting may dampen expectations of a continued rate cut pace at the January Fed meeting and later, together, it paints a positive picture on the monetary policy front.
The question facing investors then becomes how to play those steady cuts. Of course, standard equity funds continue to play a role, but it may be worth taking a more active approach. For those looking for growth investing opportunities, especially, an active growth ETF can find the strongest opportunities for the Fed meeting’s potential cut.
The T. Rowe Price Growth Stock ETF (TGRW ) presents a potent option therein. TGRW actively invests in U.S. firms with strong cash flow, above-average earnings growth, and, crucially, earnings momentum stability. That could help the fund identify those firms already showing steady progress that are riding further cuts. TGRW charges only 52 bps for that research-driven approach, returning 39.4% over the last year, per T. Rowe Price data. That has beaten its benchmark, the S&P 500 Index, by 3%, as well. Taken together, with a further rate cut potentially in the news next week, TGRW can lead the way into 2025.
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