Taking another big step forward, the T. Rowe Price Blue Chip Growth ETF (TCHP) surpassed another AUM threshold over the last week. The active growth ETF saw its AUM rise above $400 million, adding to a strong year for actives in 2023. Should the economy in the U.S. continue to stabilize next year as rate hikes pause, it may present a particularly strong platform.
TCHP grew past $400 million thanks to a mix of fund flows and price influence, though it leaned more on the latter. Over the last five days, the ETF added $23.8 million in net AUM, picking up $2.7 million in net inflows per VettaFi. These new stats further boost TCHP, hitting its three-year mark as a strategy, having launched in August 2020.
See more: “Active ETF TCAF Nearing $300 Million”
The ETF has done well over the last three years, outperforming its Factset Segment average. Much more impressively, through its actively managed approach, TCHP has returned a potent 40% over the last year. That more than doubles-up on the aforementioned Factset average and TCHP’s ETF Database Category average, which returned 16% and 18.2%, respectively.
The Active Growth ETF Approach
TCHP charges a competitive 57 basis points (bps) to actively invest in firms with leading market positions, strong fundamentals and strong management. The ETF’s active growth approach, looking for industries that may produce above-average growth, could appeal next year and over the longer full market cycle time horizon.
Where 2023 saw some challenging moments like the mini-bank crisis, geopolitical challenges, rising rates, and stubborn inflation, 2024 may present a clearer picture. A simplified outlook alone may appeal to investors. However, more promising growth numbers and an ETF that brings an active approach to looking for growth stocks, and TCHP can appeal. The strategy could ride its new AUM to further momentum and may merit a closer look in the months ahead.
For more news, information, and analysis, visit the Active ETF Channel.