T. Rowe Price QM US Bond ETF

TAGG

Market cap $1.77B

2026 has kicked off at a breakneck pace for market watchers. Global tensions and financial uncertainty loom over the dollar and its place as the key currency for much of the world's markets.

The active ETF market split along strategy lines in 2025, with discretionary equity funds gaining 3.3% market share while systematic equity funds lost 1.1%, according to Morningstar data shared by Ben Johnson, head of client solutions and asset management at the firm. The divergence shows not all active strategies performed equally, with the T.

What lies in store for bond investors in 2026? To understand the future, it sometimes helps to look back at the big stories that led to the present.

Rates have already come down once this year, but with another Fed meeting on the horizon portending a further potential cut, investors may be looking at their options. That shifting rate environment presents opportunities for investors as well as some potential pitfalls.

The Federal Reserve has cut interest rates once more, bringing the fed funds rate down by another 25 basis points. While markets may have already priced in the move, that Fed rate cut can still provide a boost to investors' portfolios and market outlooks.

On this episode of the “ETF of the Week” podcast, VettaFi's head of research, Todd Rosenbluth, discussed the T. Rowe Price QM U.S. Bond ETF (TAGG) with Chuck Jaffe of Money Life.

VettaFi's Head of Research Todd Rosenbluth discussed the T. Rowe Price QM US Bond ETF (TAGG) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.

The Fed's looming decision to cut rates has many investors looking to their fixed income allocations. Bonds sometimes come across as a bit less exciting than equities, and for good reason, as their role is often used as a stabilizing force for many portfolios.

The Fed may have spent the last several months balking at cutting rates too soon amid stubborn inflation data, but rate cut advocates may finally have gotten the signal they wanted. Fed Chair Jerome Powell signaled a September cut on August 22, boosting market confidence.

In a year in which the bond outlook has been very uncertain, active bond ETFs have picked up major interest. One in particular, the active bond ETF TAGG, has added more than $1 billion in net inflows since January 1st according to ETF Database data.