Active ETF TCAF Nearing Half a Billion in AUM

Having just launched this year, the active ETF TCAF is showing no signs of slowing down. The T. Rowe Price Capital Appreciation Equity ETF (TCAF) was launched just this past June but is rapidly approaching half a billion in AUM. Right at the cusp of crossing $500 million in ETF AUM, the fund has added a robust $153 million inflows over the last month. Its AUM has grown by a bit more, $187 million. Taken together, it’s been in the top 10 active ETFs based on one-month flows in that time period, per VettaFi.

The Active ETF World of TCAF

In a year that has seen active strategies pick up major flows relative to smaller AUM, TCAF’s success stands out. The strategy shares much of its approach with that of the T. Rowe Price Capital Appreciation Fund (PRWCX), though it is not a clone. PRWCX and TCAF both claim the experienced management of David Giroux, who has run the former strategy for the last 16 years.

See more: “Active ETFs Driving ETF Launches Toward Record

So, how does TCAF invest, and what part of the active ETF is drawing such flows? The strategy charges a 31 basis point fee to invest in higher-quality stocks of U.S. large-cap firms. It looks for those firms with a greater likelihood of capital growth, using fundamental analysis to look for experienced management, market position, and high potential for risk-adjusted returns.

It does have that long-term goal of capital appreciation. But there have also been some near-term returns: TCAF has returned 9.9% over the last month, per VettaFi. That adds to its fund flows already showing notable recent momentum. With so many investors looking at active strategies, TCAF may be one that stands out, given its strong start to life as an ETF.

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