T. Rowe Price Capital Appreciation Equity ETF

TCAF

Valor de mercado US$ 9 bi

The active ETF ecosystem has exploded in recent years. In fact, active ETFs have contributed over 80% of the new launches this year alone, and are picking up major flows relative to their AUM.

T. Rowe Price Capital Appreciation Equity ETF retains a 'hold' rating due to elevated valuations versus growth and lack of clear outperformance versus SPY. TCAF's active management shifted 40 positions in eight months, but sector reallocations and portfolio changes have not improved its relative valuation metrics against SPY. Despite a contrarian GARP approach and sector tilts—overweight Health Care and utilities—TCAF's factor mix and performance remain closely correlated to SPY.

A crypto fund and a technology fund posted the best September returns among T. Rowe Price ETFs.

This week, I appeared on Schwab TV for the New York Stock Exchange. Here's a brief recap.

Anthropic's preliminary second-quarter results reignited enthusiasm across the artificial intelligence sector, lifting semiconductor stocks 1% on Monday despite broader tech sector declines. Q2 revenue topped $11.5 billion — a 14x surge year-over-year and more than 2x last quarter's figures.

Investors seeking income are moving into active stock funds. The category gathered $36 billion in July, according to State Street Investment Management.

The T. Rowe Price Capital Appreciation Equity ETF (TCAF) has stood out in recent years, and recently saw a major milestone. The active ETF hit its three-year ETF milestone last month, rising approximately $1 billion in AUM since that date.

T Rowe Price Capital Appreciation Equity ETF is an actively managed vehicle seeking "long-term capital growth." Portfolio recalibrations made since April have boosted TCAF's growth and GARP characteristics, making its overall factor profile more competitive compared to IVV. However, I see a few quality issues, plus its exposure to the low volatility factor is likely to restrain upside capture, hindering it from beating IVV.

The arrival of June usually signals a seasonal slowdown for many people, but our ETF industry clearly missed the memo. Instead of heading to the beach or stopping to watch the World Cup, the ETF ecosystem had a wave of milestones, structural changing-of-the-guards, and high-profile index provider consolidation.

T Rowe Price has long been viewed as a leading active manager known for its fundamental research. Six years ago they entered the ETF market and have continued to successfully grow their lineup.