On the lookout for some new ETFs? Active ETFs had a great year in 2023 and are off to a hot start in 2024. The question, then, is how to choose from a growing list of strategies. One powerful heuristic for assessing ETFs — tech analysis — can help. Looking at which ETFs are sending buy signals can provide helpful data points in an ETF pros/cons list.
See more: T. Rowe Price’s Coyne on Active ETFs in 2024
In this case, tech analysis involves comparing an ETF’s price to its simple moving averages (SMA). When an ETF’s price rises above either its 50- or 200-day SMAs, that means the relevant ETFs are sending buy signals, indicating momentum. As an indicator, it does not provide total or perfect information. However, it can be a helpful marker of which strategies are on somewhat of an upswing.
The T. Rowe Price Dividend Growth ETF (TDVG)
Starting off, one may want to consider TDVG. The active ETF’s price of $36.93 per YCharts sat well above its SMAs as of February 27. The strategy may appeal to investors looking for an ETF that assesses deeper factors than a standard index tracking fund does.
TDVG’s active managers consider dividend yields, for example, as well as other balance sheet and growth type attributes in its approach. For a 50 basis point (bps) fee, TDVG may be one to watch, having returned 18.6% over one year.
TDVG’s tech chart per YCharts.
The T. Rowe Price Equity Income ETF (TEQI)
Looking to add income? Among ETFs sending buy signals, TEQI offers both an active approach and an income focus. With its price hitting $37.69 as of February 27, it too has seen its price rise above its SMAs. The strategy looks for global large-cap firms whose managers believe they are undervalued based on factors like P/E ratio. TEQI has returned 10.8% over the last year as it seeks to offer dividend income for a 54 bps fee.
TEQI’s tech action per YCharts.
The T. Rowe Price Growth Stock ETF (TGRW)
Finally, among ETFs sending buy signals, TGRW offers a very growth-oriented approach. The active ETF’s price hit $33.61 as of February 27. For a 52 bps fee, the fund seeks global firms with growthier traits like earnings growth, capacity to expand during uncertain conditions, and more. With its price above its SMAs, and returning 51.8% over the last year, it can appeal to curious investors.
TGRW’s tech action per YCharts.
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