Should active investing repeat its strong 2023 in 2024, active growth ETF strategies may play a key role. Yes, markets may slow somewhat to start the year, but rate cuts could give a robust economy an even greater boost. That would present a big opportunity for investing in a growth-minded strategy, especially one that does so with an active remit. The T. Rowe Price Growth ETF (TGRT), could be just the strategy to consider.
See more: “Rate Cuts or No, Active Blue Chip ETF TCHP Appeals“
The active growth ETF has outperformed its ETF Database Category and FactSet Segment averages over the last month, per VettaFi. TGRT has returned 5.5% over the last month compared to 0.4% and 3.6%, respectively, for the aforementioned averages. Perhaps more impressively, the strategy has returned 21.4% over the last three months compared to 9% and 19.1%, respectively.
That has happened despite TGRT’s relatively short track record, after launching in June. It’s seen its AUM grow by more than $50 million in just six months as well, per VettaFi. So, how does TGRT invest, and why might it stand out in 2024? While much of last year’s economic coverage focused on potential downsides, this year could see market watchers underrate potential upside.
Consider a scenario in which the Fed, satisfied by inflation data but looking to boost either the jobs or housing market, cuts rates for a steadily humming economy. An already robust fourth-quarter growth rate of 3.3% could then continue through 2024.
Rate cuts, particularly, could boost certain segments of the market more than others. Growthier firms might be poised to benefit more than others. Through fundamental analysis and stock selection, TGRT aims to outperform index-based passive growth strategies. As such, an active growth ETF like TGRT could be a solid play.
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