Actively Managed ETFs Reach $1 Trillion Amid Market Volatility, T. Rowe Price Discusses Strategy

Rise of Actively Managed ETFs

• 📈 Actively managed ETFs have surpassed $1 trillion in assets, now representing 10% of all ETF assets.
• 💡 This growth is driven by two main factors: changing market conditions with increased volatility and uncertainty, and questions surrounding interest rates.

T. Rowe Price Capital Appreciation ETF (TCAF)

• 🎯 The Capital Appreciation ETF (TCAF) aims to outperform the S&P 500 while delivering less volatility and greater tax efficiency.
• 🧠 Managed by David Daru and his team, the fund focuses on a strategy of investing in big-cap tech stocks like Microsoft, Amazon, Nvidia, and Apple, alongside smaller companies such as Beckton Dickinson and Roper.

Dividend Growth ETF Strategy

• 💰 The Dividend Growth ETF focuses on companies with a track record of increasing dividends, including Apple, Visa, JP Morgan, Chub, and GE.
• 🌱 This fund, launched in 2020, is based on a long-standing mutual fund strategy and has performed well this year, capitalizing on the macro theme of income.

Actively Managed Bond ETF (TAG)

• 📊 The TAG ETF is designed to outperform the Bloomberg US Aggregate Bond Market Index.
• 🔗 It holds a wide variety of bond types, including treasuries and corporate bonds, catering to the demand for actively managed fixed income products.