T. Rowe Price Small-Mid Cap ETF

TMSL

Market cap $2.31B

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

There has been a visible disparity between the performance of U.S. small-caps and U.S. large-caps so far this year. What hasn't been too visible is a lot of investor interest in the action.

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

Concentration risk, geopolitical risk, the return of inflationary pressure amid rising debt — it's been a stressful year for investors already. Indeed, there are more negative stories than positive when it comes to investing.

Small- and midcap ETFs are often touted for their potential, with the former in particular providing a lot of upside. In recent years, the huge AI hyperscalers have produced outsized returns and majorly overshadowed smaller firms in overall stock market performance.

An active small-cap ETF from T. Rowe Price pulled in $30.88 million over the past week, making it the second-largest inflow among the firm's exchange-traded funds, according to ETF Database.

It's early days in 2026, but small-caps have been a winner in recent months. The Russell 2000 Index has returned 10.6% over the last three months according to YCharts.

The ETF ecosystem is growing all the time, and sometimes even more quickly than most investors can appreciate. It can be easy, then, for investors to overlook ETFs that are spiking across various metrics.

Entering 2025, one of the biggest market narratives investors faced was concentration risk. Despite tariffs coming and going with speed and stagflation a looming specter, concentration risk and the need for diversification continue to linger.

As investors consider ways to refresh portfolios in market uncertainty, one segment that may be receiving some new interest is small-caps. Small-cap investing can provide exposure to undervalued names and offset lingering concentration risk.