T. Rowe Price Dividend Growth ETF

TDVG

Market cap $1.09B

T. Rowe Price Dividend Growth ETF is an active nontransparent ETF focused on the dividend growth factor. Heavy in IT and financials, TDVG offers attractive dividend growth characteristics, but its yield is clearly too compressed at 1.02%. TDVG's performance has been hardly ideal, as it has lagged IVV, VIG, and DGRO since its inception in August 2020.

It's not often that an ETF rises to more than $1 billion in AUM, but that's just what happened for the active dividend ETF TDVG in the last month. The fund currently sits at about $1.06 billion in AUM per ETF Database data, rising from just under $900 million last month.

Consider these ETFs for a change of pace.

Markets have recovered from a tariff-driven Spring drop, but where will growthier stocks go next? In a year in which active ETFs have taken on even more responsibility in portfolios, active growth ETF investing has performed well.

TDVG offers exposure to high-quality dividend payers with strong growth potential, but its 1% starting yield is lower than many peer ETFs. The ETF's strategy balances growth and income, favoring companies with strong management, healthy cash flows, and a history of dividend increases. TDVG has underperformed both peer dividend ETFs and broad index funds like SPY and QQQ, making it less attractive for most long-term investors.

Fears of an impending recession may be fading, but economists are still expecting tepid GDP growth for the year. The rhetorical tariff tug-of-war isn't helping sentiment or certainty.

When market and economic uncertainty strikes, dividend strategies become a popular choice amongst advisors and investors. Investors now enjoy a wide array of choices when it comes to investing in dividend-paying companies via ETF.

Market volatility continues ahead of the summer months on fomenting investor concerns regarding tariff impacts and slowing U.S. growth. Income investors seeking the potential stability of dividend stocks would do well to consider the actively managed T.

Dividend income has always been popular with stock market investors, especially older investors seeking yield. The recent correction in the technology-led market, and new forms of bond risk rising from President Trump's economic policy, may place even more focus on yield from dividend stocks.

Tim Coyne, T Rowe Price head of ETFs, and Todd Sohn, Strategas head of ETFs, sit down with CNBC's Bob Pisani to discuss the latest trends in ETFs amid the market turbulence, the appeal of dividend ETFs, the strategy behind actively managed bond ETFs and more.