Two T. Rowe Price ETFs have emerged as early leaders within the firm’s exchange-traded product lineup, with one fund posting the strongest performance and another drawing the most investor money among the company’s offerings, according to ETF Database.
The T. Rowe Price Natural Resources ETF (TURF) has returned 16.1% year-to-date as of February 10 to lead T. Rowe Price ETFs in performance. Meanwhile, the T. Rowe Price QM U.S. Bond ETF (TAGG) pulled in $233.08 million in net inflows to top the firm’s flows through the first weeks of the year, the data shows.
The success of these two T. Rowe Price ETFs reflects distinct investment themes gaining traction this year: a rally in commodities and a shift toward smarter fixed income strategies that move beyond passive indexing.
TURF focuses on upstream natural resource companies that explore, extract, and develop commodities across energy, agriculture, metals, and minerals. The fund’s portfolio managers, led by Rick de los Reyes, shift allocations based on where they identify the best supply and demand dynamics, according to T. Rowe Price.
The strategy aims to capitalize on commodity cycles by focusing on upstream companies, according to the firm. By concentrating on companies that actually own and develop resources rather than tracking commodity futures, TURF maintains flexibility to rotate based on supply and demand dynamics across different natural resource sectors.
The $19.2 million fund launched in June 2025 and carries a 0.44% expense ratio, ETF Database data shows.
Active Approach Draws Bond Investors
TAGG took a different path to lead T. Rowe Price ETF flows, attracting investors seeking alternatives to traditional bond indexing. The $1.77 billion fund uses what T. Rowe Price calls a “core plus” approach, attempting to beat the Bloomberg U.S. Aggregate Bond Index through quantitative models combined with fundamental credit research.
The strategy emphasizes subsectors that have historically generated stronger risk-adjusted returns, according to T. Rowe Price. That means overweighting shorter-maturity corporate bonds and securitized credit while underweighting long-term corporates.
The fund uses a dual-engine approach that combines quantitative models to match the benchmark’s risk profile with fundamental credit research to select individual bonds, according to the firm. Credit analysts work to identify bonds that appear undervalued and screen out potential credit problems.
TAGG incepted in September 2021 and the active strategy has a very competitive 0.08% expense ratio which is below some passive index strategies. Its one-year return reached 7.2%, according to ETF Database.
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