T. Rowe Price Capital Appreciation Equity ETF

TCAF

Market cap $6.42B

TCAF is an actively managed large/mid-cap ETF led by David Giroux. Its expense ratio is 0.31% and the fund has $6.4B in assets under management since its launch in mid-2023. Using a bottom-up stock selection strategy, TCAF aims to outperform the S&P 500 Index with less risk. However, it's trailed SPY by nearly 12%, with volatility being only marginally lower. The ~2.5-year measurement period is short, and my returns distribution analysis indicates this period is highly unusual. A greater frequency of down months could help TCAF gain some ground.

T. Rowe Price Investment Management saw its active ETF asset base nearly double over the past year, as investors poured money into funds focused on stock and bond selection rather than passive index tracking, according to Todd Rosenbluth, head of research at VettaFi.

Markets entered 2025 facing significant concentration risk. Indeed, 2024 saw almost half of its performance owe the Magnificent Seven.

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.

T. Rowe Price added two new ETFs to its suite this week that innovate on the firm's existing ETF roster. The T. Rowe  Price Active Core U.S. Equity ETF (TACU) and the T.

December is here, and markets look set for a hopeful but uncertain end to 2025. Key equity holdings, including leading megacap tech names like Nvidia (NVDA), have seen some volatility in recent weeks.

Star managers are making the move to ETFs.

The T. Rowe Price Capital Appreciation Equity ETF offers a balanced, style-neutral approach, blending tech growth with defensive healthcare and utilities exposure. TCAF's methodology emphasizes fundamentals, bottom-up stock selection, and agility, focusing on risk-adjusted returns and moat-like advantages over macro trends. The ETF mirrors S&P 500 tech exposure while overweighting defensives, positioning TCAF to cushion losses in uncertain or risk-off market environments.

The world of ETFs has seen major growth in recent years, with more than five years since the ETF rule supercharged ETF launches and availability. Myriad firms have joined the ETF space and looked to make their mark managing assets in the wrapper.

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.