On Wednesday, T. Rowe Price (NASDAQ-GS: TROW) announced the newest addition to its lineup of active exchange traded funds (ETFs): the U.S. Equity Research ETF (TSPA). The new fund is available to the public beginning today, and it marks the firm’s fifth strategy in the active ETF vehicle.
The U.S. Equity Research ETF is similar to the corresponding T. Rowe Price’s U.S. Equity Research Fund (PRCOX), with which it shares the same experienced portfolio management team comprising the firm’s directors of equity research for North America. The strategy maintains style and sector exposures similar to the S&P 500, but it uses an active approach to select its stocks, seeking to add value from the “best ideas” input of T. Rowe Price’s equity research analysts.
With a net expense ratio is 0.34%, TSPA is managed by directors of equity research for North America, including Ann Holcomb, CFA; Jason Polun, CFA; and Josh Nelson, who average more than 15 years of investment experience at T. Rowe Price.
“The U.S. Equity Research ETF will be characterized by rigorous and comprehensive research conducted by T. Rowe Price’s extensive team of equity analysts,” Holcomb states. “We will use their best ideas and our strategic, risk-aware investing approach to craft a portfolio that seeks to perform better than the S&P 500 for shareholders. We believe this strategy could be appropriate as a core building block for many equity portfolios, and we look forward to offering it in the active ETF format.”
As stated by Tim Coyne, Head of Exchange Traded Funds for T. Rowe Price, “TSPA is a welcome addition in our long-term plan to build a robust active ETF suite that continues to deliver increased investment choice for clients. This strategy’s pursuit of alpha powered by T. Rowe Price active management offers an additional option in our thoughtfully designed lineup of active ETFs.”
T. Rowe Price launched its first active ETFs in August 2020, which included four funds – the Blue Chip Growth ETF (TCHP), the Dividend Growth ETF (TDVG), the Equity Income ETF (TEQI), and the Growth Stock ETF (TGRW) – each constructed similarly to its corresponding flagship investment strategies. The collective lineup of active ETFs complements the firm’s traditional mutual fund offerings and delivers key features associated with existing ETFs that some investors may prefer, including continuous daily trading, real-time market-determined pricing, and tax efficiency.
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