Designed to seek outperformance over their passive benchmarks, active ETFs provide flexible, convenient solutions backed by rigorous research, prudent risk management, and deep experience—all hallmarks of our 85 years of helping clients thrive in the face of change.
Watch and discover the key benefits of active ETFs.
Along with convenience, cost effectiveness, and tax efficiency, our ETFs offer the agility of active management to adapt quickly to changing markets.
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For a long time, ETFs were synonymous with passive products, when in reality, nearly 60% of all new ETFs that have been launched are active strategies. The big difference is that active ETFs provide the ability to outperform the market. People are trusting you with their retirement money. And so every day you come in and give your best in order to come up with the best outcomes. Right now we've been very focused on AI and there's a ton of innovation going on in health care. T. Rowe Price's Active ETF suite allows us to pivot at any given time. It's almost like we're a race car driving team. You have your drivers, which are the portfolio managers, your pit crew, which are the investment analysts. You have your engineers who are your data scientists that are helping construct the portfolio. Success for our team is driving better client outcomes. The value proposition of active management is the ability to navigate various market conditions. The other compelling piece is the benefits that are associated with the ETF structure itself, namely tax efficiency, lower cost and added flexibility for investors to buy or sell shares throughout the day. Research is the lifeblood of T. Rowe Price. Being an active manager is like being a detective. In this case, the mystery is a certain stock or a construct of a portfolio. I love being able to peel back the layers of an onion to discover the final outcome of the mystery that you're trying to solve. You're trying to put all the pieces together to make a really big impact for many, many people around the world. The next meaningful iteration of the ETF industry is active ETFs. What really gets me up in the morning is knowing that we're providing a financial tool that is helping our clients live their best lives that they can.
Bring the potential for outperformance to a range of client goals.
Backed by our global research platform, deep investment expertise, and prudent risk management, our ETFs are managed with the goal of outperforming their passive benchmarks.
These active equity strategies are specifically designed as ETFs to cover a range of investment categories.
A broad-based approach to core U.S. equity exposure
The fund invests primarily in large U.S. companies believed to have above average potential for long-term growth due to favorable traits ranging from capable management and strong risk-adjusted return potential to leading or improving market position or proprietary advantages.
Using a growth style approach to security selection, the fund seeks to invest primarily in a diversified portfolio of U.S. large-cap stocks of companies with above-average earnings, cash flow growth, and a lucrative niche in the economy that gives them the ability to maintain momentum even during times of slow economic growth.
Using a value style approach to security selection, the fund invests primarily in a diversified portfolio of U.S. large-cap stocks of companies that appear to be undervalued or temporarily out of favor but still have good prospects for capital appreciation.
A world of opportunities for international equities
The fund invests primarily in a diversified portfolio of larger global companies from non-U.S. developed markets. With an emphasis on in-depth research and active risk monitoring, the fund seeks companies believed to have above-average potential for long-term capital appreciation across a mix of styles, sectors, and regions.
These active equity ETFs are based on time-tested T. Rowe Price mutual fund strategies, but with the features of an ETF.
A strategy based on strong dividends
The fund invests in stocks that have consistently paid dividends or have an expectation of increasing dividends. This approach is based on the belief that a track record of dividend increases is an excellent indicator of financial health and growth prospects. Dividends can also help reduce the fund’s volatility and potentially offset some drawdowns when stock prices are falling.
In search of opportunities to outperform the S&P 500
To deliver similar characteristics of the S&P 500, the fund invests in stocks based on the industry weightings of the index. A team of industry-focused T. Rowe Price equity analysts is directly responsible for selecting stocks across their respective areas of focus in an attempt to outperform the index.
The fund invests in the common stocks of leading large and medium-sized companies that have the potential for above-average earnings growth and are well established in their respective industries. The fund focuses on companies with leading market positions, seasoned management, and strong financial fundamentals.
A growth strategy designed for economic ups and downs
The fund typically invests in a diversified group of growth stocks. While it may invest in companies of any size, the fund focuses on large-cap companies with one or more of these traits: strong cash flow and above-average earnings growth; the ability to sustain earnings during economic downturns; or a lucrative niche in the economy and the ability to expand even during slow economic growth.
A value-oriented, lower risk approach to equity exposure
Seeking to provide a high level of dividend income and long-term capital growth, the fund typically invests in common stocks of large-cap companies that have a strong track record of paying dividends or are believed to be undervalued.
*This ETF is different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. For example:
You may have to pay more money to trade the ETF's shares. This ETF will provide less information to traders, who tend to charge more for trades when they have less information.
The price you pay to buy ETF shares on an exchange may not match the value of the ETF's portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders.
These additional risks may be even greater in bad or uncertain market conditions.
The ETF will publish on its website each day a "Proxy Portfolio" designed to help trading in shares of the ETF. While the Proxy Portfolio includes some of the ETF's holdings, it is not the ETF's actual portfolio.
The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF secret, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF's performance. If other traders are able to copy or predict the ETF's investment strategy; however, this may hurt the ETF's performance.
For additional information regarding the unique attributes and risks of the ETF, see the prospectus.
These active fixed income ETFs are based on time-tested T. Rowe Price mutual fund strategies, but with the features of an ETF.
A diversified, short-duration strategy for higher income and lower volatility
Seeking higher income than traditional cash investments with minimal share price fluctuation, the fund invests in a diversified portfolio of shorter-term, investment-grade corporate and government securities; asset-backed securities; and bank obligations.
Through sound security analysis and risk modeling, the fund seeks to outperform the U.S. investment-grade bond market, as represented by the Bloomberg U.S. Aggregate Bond Index. It is designed to deliver a similar risk profile as the benchmark while seeking to capitalize on the inefficiencies of passive fixed income benchmarks.
Integrating thoughtful portfolio construction and disciplined risk management, the fund invests in a diversified portfolio of bonds and other debt instruments. Designed to respond to a wide range of market conditions, it has considerable flexibility in seeking strong risk-adjusted returns.
High conviction total return opportunities in high yield bonds
With an emphasis on in-depth proprietary research, the fund identifies opportunities across the high yield universe while remaining mindful of credit risks. The unbiased investment approach emphasizes fundamental credit research to identify opportunities and help protect against potential credit losses.
A high-income strategy with less interest rate sensitivity
Primarily seeking income, the fund invests in institutional floating rate bank loans and other floating rate debt securities with below investment-grade credit ratings. In addition to mitigating interest rate risk, this broadly diversified fund manages additional risks through fundamental analysis and strict exposure limits.
Access cost-effective strategies with streamlined expenses
Trade conveniently throughout the day
Increase opportunities for tax efficiency
Consider the investment objectives, risks, and charges and expenses carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, call 1-877-561-7670 or select the Prospectus link within each individual ETF details page above. Read it carefully.
ETFs are bought and sold at market prices, not NAV. Investors generally incur the cost of the spread between the prices at which shares are bought and sold. Buying and selling shares may result in brokerage commissions which will reduce returns.
*T. Rowe Price equity ETFs based on existing mutual fund strategies publish a daily Proxy Portfolio, a basket of securities designed to closely track the daily performance of the actual portfolio holdings. While the Proxy Portfolio includes some of the ETFs holdings, it is not the actual portfolio. Daily portfolio statistics will be provided as an indication of the similarities and differences between the Proxy Portfolio and the actual holdings. The Proxy Portfolio and other metrics, including Portfolio Overlap, are intended to provide investors and traders with enough information to encourage transactions that help keep the ETF's market price close to its net asset value (NAV). There is a risk that market prices will differ from the NAV, ETFs trading on the basis of a Proxy Portfolio may trade at a wider bid/ask spread than shares of ETFs that publish their portfolios on a daily basis, especially during periods of market disruption or volatility and, therefore, may cost investors more to trade. Although the ETF seeks to benefit from keeping its portfolio information confidential, others may attempt to use publicly available information to identify the ETF's investment and trading strategy. If successful, these trading practices may have the potential to reduce the efficiency and performance of the ETF.
Risk Considerations: All investments are subject to market risk, including the possible loss of principal. Fixed income investing involves risks, including, but not limited to, interest rate risk and credit risk. International investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as specific country, regional, and economic developments. Active investing may have higher costs than passive investing and may underperform the broad market or passive peers with similar objectives.
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This material is provided for general informational purposes only and is not intended to provide legal, tax, or investment advice. This material does not provide recommendations concerning investments, investment strategies, or account types; it is not individualized to the needs of any specific investor and not intended to suggest any particular investment action is appropriate for you, nor is it intended to serve as the primary basis for investment decision-making.