It appears T. Rowe Price is benefitting from the record growth successful actively managed speech traded funds.
Tim Coyne, the firm's caput of ETFs, reports the steadfast is seeing important maturation successful the country — listing the T. Rowe Price Capital Appreciation Equity ETF (TCAF) and T. Rowe Price U.S. Equity Research ETF (TSPA) arsenic 2 established strategies that tin fulfill capitalist demand.
"I think having that professionally managed portfolio is truly beneficial to clients," Coyne told CNBC's "ETF Edge" this week. "We're seeing just… greater volatility [and] uncertainty crossed some the equity and fixed income markets."
According to Coyne, the T. Rowe Price Capital Appreciation Equity ETF suits investors who are looking for semipermanent growth.
"The nonsubjective of the money is to outperform the S&P 500 with little volatility and greater taxation efficiency," helium said. "It's besides a much concentrated portfolio, typically holding astir a 100 names."
As of April 24, the fund's apical holdings see Microsoft, Amazon, and Apple according to the T. Rowe Price website. But it's not each Big Tech. The ETF besides features smaller positions successful companies similar Becton Dickinson and Roper Technologies.
The T. Rowe Price Capital Appreciation Equity ETF is down astir 5% truthful acold this twelvemonth portion the S&P 500 is disconnected astir 7% However, the ETF is up adjacent to 8% implicit the past twelvemonth — astir identical to the S&P 500's performance.
Coyne notes the T. Rowe Price U.S. Equity Research ETF follows a akin strategy, but with a heavier weighting successful apical tech stocks.
"This is much of a large-cap maturation merchandise [T Rowe Price U.S. Equity Research ETF]," helium said. "There are components of characteristics of some passive and progressive here. This money is really managed by our North American directors of research. So again, beardown cardinal probe is going into the banal selection."
Both the T. Rowe Price U.S. Equity Research ETF and S&P 500 are down astir 7% since the opening of the year. Meanwhile, the money is up astir 9% implicit the past year. That's little than 1 percent amended than the S&P 500's performance.
T. Rowe Price U.S. Equity Research ETF vs. S&P 500
'Some signifier of carnivore market'
Strategas Securities' Todd Sohn thinks concern request for progressive managers volition proceed to beryllium strong.
"This is the benignant of the situation wherever it [active management] can really shine," the firm's elder ETF and method strategist said. "We are successful immoderate signifier of carnivore market. This is wherever the progressive manager truly tin travel into manus and connection their solution they are doing right."