PAssive index ETFs help investors keep up with the markets, but they lack the ability to adjust their holdings according to changing market environments. How do you balance the need for exposure to core stocks without being left to the vagaries of the market?
In the next webcast, Strong Earnings, Strong Markets – Why Now is the Time to Be Active, Ken Uematsu, Associate Portfolio Manager, T. Rowe Price, will discuss how active management can beat passive management (without taking unnecessary risk).
T. Rowe Price offers four actively managed ETF strategies, including the T. Rowe Price Blue Chip Growth ETF (TCHP), T. Rowe Price Dividend Growth ETF (TDVG), T. Rowe Price Equity Income ETF (TEQI), T. Rowe Price Growth Equity ETF (TGRW) and the recently launched T. Rowe Price US Equity Research ETF (TSPA).
The T. Rowe Price Blue Chip Growth ETF seeks to provide long-term capital growth by investing in common stocks of high-quality large and medium-sized companies with the potential for above-average earnings growth.
The T. Rowe Price Dividend Growth ETF seeks dividend income and long-term capital growth by investing most of its assets in the common stocks of dividend-paying companies that are expected to increase their dividends over time.
The T. Rowe Price Equity Income ETF seeks high dividend income and long-term capital growth by investing most of its assets in common stocks, with an emphasis on large-cap stocks that have a strong track record. payment of dividends or which are deemed to be undervalued.
Finally, the T. Rowe Price Growth Stock ETF seeks long-term capital growth and invests in companies that exhibit one or more of the following: superior growth in earnings and cash flow, the ability to maintain momentum in profits even in times of economic downturn, the occupation of a lucrative niche in the economy and the ability to expand even in times of low economic growth.
Constructed in the same way as the flagship investment strategies that have served T. Rowe Price clients well for decades, active ETFs use the same portfolio managers as their corresponding mutual funds and employ the investment approach. The company’s long-standing strategic investment, characterized by rigorous research, risk awareness, and independent decision-making.
T. Rowe Price Active ETFs complement the company’s traditional mutual fund offerings and offer the key features associated with existing ETFs that some investors may prefer, including ongoing daily trading, real-time market-determined prices, and tax efficiency. Over time, T. Rowe Price plans to offer a solid portfolio of ETF products covering investments in various asset classes.
The T. Rowe Price US Equity Research ETF’s strategy maintains similar style and sector exposures to the S&P 500, but uses an active approach to stock selection, seeking to add value from the “best ideas” of research. on the shares of T. Rowe Price. analysts. The US Equity Research ETF is similar to T. Rowe Price’s US Equity Research Fund (PRCOX), with which it shares the same experienced portfolio management team comprising the company’s equity research directors for North America. .
T. Rowe Price Active ETFs also have a proprietary portfolio disclosure process that ensures market makers have enough information to quote prices with a high degree of confidence while simultaneously protecting the intellectual property of professionals. the company’s investment and the interests of its mutual fund shareholders. The proprietary and non-transparent actively managed ETF wrapper can also attract more fund managers to the ETF space, giving active managers a way to reap the benefits of the ETF’s investment structure while protecting their secret sauce. potential favorites.
Financial advisors who want to learn more about an active approach to investing can register for the Thursday, September 16 webcast here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.