T. Rowe Price Technology ETF

TTEQ

Market cap $338M

Thousands of drifting light particles resolve into flowing patterns inside a new installation at the Oculus in Lower Manhattan. T. Rowe Price says the 10-foot-tall, 37-foot-wide piece mirrors how its active ETF managers work.

Wall Street's AI trade is expanding beyond the Mag-7. Discover emergent players and the ETFs best positioned to benefit.

AI stocks, those equities either from AI pioneers or firms poised to benefit from that innovation, have driven stock market and portfolio performance for months and months and months. Investors have largely benefitted, but as AI stocks enter a new phase, it could be time to refresh portfolios.

ETFs from iShares, T. Rowe Price, ARK, Alger, and KraneShares have pre-IPO stakes in OpenAI or Anthropic.

Three T. Rowe Price Group, Inc. (TROW) ETFs cleared 8% returns last month, according to ETF Database. Out front was the T.

As though this year wasn't already a huge one in the tech landscape, now a trio of huge technology companies are plotting game changing IPOs. SpaceX, Anthropic, and OpenAI all are reported or rumored to be looking at IPOs this year.

T Rowe Price Technology ETF is an actively managed vehicle focused on global technology names. NVDA-heavy TTEQ has impressively outperformed QQQM, IVV, and a few tech ETFs since its inception and YTD. However, I gravitate towards the neutral stance as I see no convincing GARP characteristics, a 1.7 weighted average beta, and a downside capture ratio of 124.4%.

For many investors, tech ETFs appeal but are often limited by sector rules. Many such ETFs offer exposure to the big names in the AI revolution, for example, but not all.

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

Lance Humphrey, head of portfolio management at Victory Capital, and Dom Rizzo, portfolio manager at T. Rowe Price, joined Nate Geraci on this week's ETF Prime to discuss quality investing and active technology strategies.