Apple (AAPL) earnings came in positively on Thursday, setting a quarterly record and beating expectations on overall revenue. The firm’s status among the portfolio-leading megacap tech players made the news especially positive for investors. With so much uncertainty surrounding other aspects of the tech space, like A.I. and tariffs impacting supply chains, the Apple earnings news stands out as a bright spot. That may invite investors to add some additional growth-oriented ETFs, like active ETF TTEQ, that can offer that tech exposure.
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The T. Rowe Price Technology ETF (TTEQ) charges a 63 basis point fee for its approach. The active ETF looks for long-term capital growth via investing in global large cap tech names. Leaning on T. Rowe Price’s fundamental research capabilities, TTEQ seeks stocks from firms meeting a few key criteria. The active ETF leans on that fundamental research to analyze firms’ business prospects, valuations, and share price upside.
While the strategy focuses heavily on large-cap tech names like AAPL, it also invests in some up-and-comers. It assesses those opportunities based on fundamental criteria, too, scrutinizing firms offering innovative technologies, including recent IPOs.
Following the exciting news of Apple’s earnings, TTEQ’s balance between key names and smaller, full-time innovators can appeal. Where passive funds must adhere to tight index rules, TTEQ can adapt, leaning into intriguing opportunities. Not constrained by industry labels, the fund can hold companies that are heavily tech-driven or play a key technology role in today’s world. This allows the active strategy to seek a broader opportunity set than passive ETFs constrained by indexes to a sub-set of the technology sector, like semiconductors only. According to YCharts data, its approach has helped it return 7.34% already since its inception in October.
Should the expectation-beating Apple earnings indicate a broader resilience among megacap tech names, TTEQ’s approach may stand out. Amid continued uncertainty and steady tech returns, its focus on key players and upstarts that meet its standards can find strong opportunities.
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