In a sign that investors are becoming increasingly drawn to the actively managed exchange traded fund wrapper, T. Rowe Price crossed the $1 billion threshold in U.S.-listed ETF assets under management this week. T. Rowe Price reached this milestone less than three years after launching its first active ETFs.
The firm debuted its first active equity ETFs in August 2020. It launched its first fixed income ETFs in September of the following year.
Data from VettaFi show that the T. Rowe Price Dividend Growth ETF (TDVG) and the T. Rowe Price Blue Chip Growth ETF (TCHP) led the way in year-to-date inflows, as those funds brought in $46 million and $23 million, respectively, as of April 26.
T. Rowe Price has been in the investing business for over 80 years and conducts field research firsthand with companies, utilizing risk management and employing a team of experienced portfolio managers carrying an average of 22 years of experience.
“T. Rowe Price has a long heritage of active management and supporting asset allocation needs. However, it is great to see ETF-oriented advisors continue to tap into the expertise and benefit from the liquidity and tax efficiency that makes the offerings different from similarly run mutual funds,” said VettaFi’s head of research, Todd Rosenbluth.
See more: “Demand for Active ETFs Expected to Grow”
Demand for active ETFs has been growing steadily, with fund managers expecting adoption among investors to keep gaining momentum.
“Active ETFs are really starting to grow and become a more prominent part of the market,” said Tim Coyne, head of ETFs at T. Rowe Price. “There’s a lot of demand for quality active strategies, but there wasn’t necessarily the supply of active strategies that were delivered through ETFs.”
Coyne told attendees at Exchange 2023 that active management has “historically played a major part in an advisor’s portfolio and will continue to do so,” but that “active ETFs have not been around” until recently.
“There’s a lot of categories that were not covered over the past several years,” he added. “So, you’re seeing a lot of asset managers coming to the market.”
In addition to TDVG and TCHP, T. Rowe Price offers a suite of actively managed equity ETFs within its lineup of active ETFs that also includes the T. Rowe Price Equity Income ETF (TEQI), the T. Rowe Price Growth Stock ETF (TGRW), and the T. Rowe Price US Equity Research ETF (TSPA).
The firm also offers active fixed income ETFs, including the T. Rowe Price QM U.S. Bond ETF (TAGG), the T. Rowe Price Total Return ETF (TOTR), the T. Rowe Price Ultra Short-Term Bond ETF (TBUX), the T. Rowe Price U.S. High Yield ETF (THYF), and the T. Rowe Price Floating Rate ETF (TFLR).
For more news, information, and analysis, visit the Active ETF Channel.