Nvidia (NVDA) has done it again. The firm beat expectations and forecasts after an already delirious 2023 that had set “sky-high” expectations. NVDA had already risen more than 200% prior to the earnings news, now up 212%. The price itself has reached $456 after starting the year at less than $150. The earnings surprise comes as markets have worried whether blue chip stocks can keep pushing ahead. The NVDA news may remind investors that these big names still have merit through the right ETF.
Yes, some market watchers are suggesting the time could be now for a shift away from frothier stocks towards value, for example. There is some reason to consider that narrative, certainly. The lagging impact of rising rates has not yet fully hit the real economy via credit markets. At the same time, while some firms have put up appealing earnings like NVDA, with Apple (AAPL), for example, disappointing. What’s more, further rate hikes aren’t out of the question even later on this Fall.
That’s where an ETF like the T. Rowe Price Blue Chip Growth ETF (TCHP) comes in. The actively managed blue chip stocks strategy still wants to invest in those big names that have contributed so much to the market this year. However, it sets itself apart by leaning on its active management.
Its managers focus on firms with strong fundamentals, experienced management, and dividend growth. While that may sometimes produce an overweight towards information technology, the ETF doesn’t just invest in blue chip stocks based on their names. It considers each from a fundamentals-based perspective. That’s helped TCHP stand out as one of the top $100 million-plus AUM active ETFs YTD.
Charging 57 basis points (bps), which is competitively priced relative to other actively managed funds, TCHP recently hit its three-year ETF milestone. The blue chip ETF could be an interesting option for investors wanting to trust, but verify, the big, successful names so far this year.
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