T. Rowe Price Capital Appreciation Equity ETF

TCAF

Market cap $7.24B

In a notable milestone, T. Rowe Price now holds ten ETFs with $1 billion in AUM.

According to FactSet data, 42.3% of ETFs are less than three years old. This means nearly half the ETF universe is technically too young to earn a Morningstar rating or appear in many traditional advisor screening systems.

The active ETF landscape has exploded in popularity over the recent years. The arrival of the 2019 ETF Rule has streamlined the launch process, enabling asset managers to bring innovative new strategies to market more efficiently.

In my former life as a mutual fund analyst, T. Rowe Price was always a staple of my research.

T Rowe Price Capital Appreciation Equity ETF is managed actively, with its goal being "to provide long-term capital growth." I believe TCAF will likely trail IVV this year owing to mostly weaker growth and GARP characteristics of its portfolio, as well as larger exposure to low beta names. TCAF's past performance is unconvincing. Over July 2023–March 2026, it underperformed IVV by 3.18% in annualized return as it captured only 86.79% of its upside.

Active ETFs have made waves in recent years, already outpacing passive ETFs in several key metrics this year. With rapid launches and notable flows, active ETFs have become a bigger and bigger part of investors' portfolios.

Key Takeaways Active ETFs again set global AUM record seeing huge jumps Active ETFs have produced net inflows for a remarkable 71 consecutive months Total active ETF AUM up 11.6% YTD Active ETFs have taken on a new level of significance in the ETF landscape, once again setting a record.

Financial advisors are turning to active ETFs as a solution to navigating concentrated markets. Recent survey data reveals that fundamental research and strong performance top their priority lists.

Don't miss out on these winners.

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.