T. Rowe Price Launches Innovative Active Equity ETFs

T. Rowe Price Introduces New Active Equity ETFs

In an exciting development for investors, T. Rowe Price, a leading investment management firm, has launched two new active transparent equity exchange-traded funds (ETFs): the T. Rowe Price Capital Appreciation Premium Income ETF (Ticker: TCAL) and the T. Rowe Price Hedged Equity ETF (Ticker: THEQ). These ETFs began trading on the NYSE Arca today, expanding the firm’s total active ETF lineup to 19.

Overview of T. Rowe Price Hedged Equity ETF

The T. Rowe Price Hedged Equity ETF (THEQ) is designed to offer long-term capital growth while investing at least 80% of its net assets in equities. This fund distinctly combines structured research and a lower volatility approach with a derivatives hedging strategy aimed at minimizing portfolio volatility, particularly during equity market downturns. Under the experienced management of Sean McWilliams, who brings 15 years of investment expertise, THEQ is positioned to deliver strong performance. The expense ratio for this ETF is set at 0.46%, making it a cost-effective option for investors.

Insight into T. Rowe Price Capital Appreciation Premium Income ETF

Building on its successful strategy, the T. Rowe Price Capital Appreciation Premium Income ETF (TCAL) focuses on creating a low volatility portfolio by utilizing high-quality stocks alongside covered calls. This strategy is crafted to maximize income, preserve capital, and mitigate losses. Co-managed by a team of six seasoned investment professionals from T. Rowe Price Investment Management, TCAL employs a blend of fundamental and quantitative approaches, reflecting the trusted Capital Appreciation Fund process. With an expense ratio of 0.34%, TCAL aims to cater to risk-conscious investors seeking steady growth.

Meet the Management Team

Leading the management of TCAL is David Giroux, a recognized portfolio manager whose funds have consistently outperformed their Morningstar peer group averages, establishing a remarkable streak of 17 consecutive years of superior performance. Complementing Giroux are co-managers Farris Shuggi, Justin Olsen, Vivek Rajeswaran, Mike Signore, and Brian Solomon, all bringing invaluable expertise and insights to the investment strategy.

The Growth of Active ETFs at T. Rowe Price

T. Rowe Price expanded into the active ETF market in 2020, introducing its first offerings with a commitment to providing innovative investment solutions. With the inclusion of TCAL and THEQ, the firm’s range now comprises 13 equity active ETFs and six in fixed income. This strategic move not only enhances its portfolio but also aligns with investor preferences for tax efficiency, competitive expense ratios, and the flexibility of intraday trading.

Expert Insight from Tim Coyne

Tim Coyne, the Global Head of Exchange-Traded Funds at T. Rowe Price, commented on these launches, expressing, "The momentum of our growing active ETF lineup continues with today's launch of the Capital Appreciation Premium Income ETF and the Hedged Equity ETF. With the expertise of our seasoned investment teams and our long history of active management expertise, we strive to provide ETFs that can play distinctive roles in an investor's portfolio and offer compelling value and performance potential. These new products reflect our commitment to providing investors with innovative solutions to meet their long-term investment goals."

About T. Rowe Price

T. Rowe Price, founded in 1937 and publicly traded under the ticker NASDAQ: TROW, is dedicated to helping clients achieve their long-term investment objectives. The firm is renowned for its integrity, commitment to excellence, and comprehensive research capabilities. Currently, T. Rowe Price manages approximately USD 1.63 trillion in assets, serving millions of investors globally with its diverse range of equity, fixed income, alternative, and multi-asset investment solutions. Further updates on their services and outlook can be found on their official social media platforms and corporate website.

Frequently Asked Questions

What are the names of the newly launched ETFs by T. Rowe Price?

The new ETFs are the T. Rowe Price Capital Appreciation Premium Income ETF (TCAL) and the T. Rowe Price Hedged Equity ETF (THEQ).

What investment strategy does the Hedged Equity ETF follow?

The Hedged Equity ETF seeks long-term capital growth by investing at least 80% of its net assets in equities, complemented by a derivatives hedging strategy.

Who manages the Capital Appreciation Premium Income ETF?

The Capital Appreciation Premium Income ETF is co-managed by a team that includes David Giroux, who has a history of strong performance results.

When did T. Rowe Price first introduce active ETFs?

T. Rowe Price launched its first active ETFs in August 2020.

What is the total number of active ETFs offered by T. Rowe Price now?

With the addition of the new ETFs, T. Rowe Price now offers a total of 19 active ETFs.

About The Author

Hi there, As a writer and financial specialist, Henry Turner is passionate about guiding people through the complex world of finance. Having worked in finance for many years, I am an expert at simplifying difficult financial ideas into understandable, useful insights for my blog and articles. My goal is to arm you with the confidence and information you need to make wise financial choices.

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