T. Rowe Price added two new ETFs to its suite this week that innovate on the firm’s existing ETF roster. The T. Rowe Price Active Core U.S. Equity ETF (TACU) and the T. Rowe Price Active Core International Equity ETF (TACN) both aim to combine the benefits of passive indexing and T. Rowe Price’s longtime focus on research-driven active ETF investing. Both ETFs will have their fees waived for their first 13 months and are already trading on the NYSE Arca.
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The pair of Active Core strategies invest in U.S. and ex-U.S. stocks, respectively. TACU actively invests in U.S. large caps with approximately 550-650 holdings. TACN, meanwhile, invests in the ex-U.S. space that has delivered so much for investors this year. TCAN looks to craft a portfolio of about 400-500 international stocks.
T. Rowe Price Adds 2 New Funds
“Our Active Core ETFs uniquely blend the benefits of passive index portfolios with fully active strategies, adding a compelling new dimension to our ETF lineup,” said Tim Coyne, T. Rowe Price Global Head of ETFs.
By combining T. Rowe Price’s active management expertise with robust quantitative research, these ETFs give investors access to our portfolio managers’ best ideas and the potential to outperform benchmarks—while maintaining disciplined risk controls and a cost-efficient structure,” he added.
“In offering a 13-month fee waiver, we’re underscoring our commitment to helping investors experience how Active Core strategies can enhance their portfolios,” he said. After the waiver expires on January 30, 2027, the fees will remain highly competitive. TACU and TACN will charge only 0.14% and 0.20%, respectively.
The pair of launches brings T. Rowe Price’s ETF suite to 30 ETFs, with 20 in equities and 10 in fixed income per a company press release. The suite’s top ETF by AUM, the T. Rowe Price Capital Appreciation Equity ETF (TCAF), holds $6.2 billion in AUM as of press time. Seven of the firm’s 30 ETFs have more than $1 billion, including TCAF.
Active ETFs have continued to pick up steam in recent years by combining the benefits of the ETF structure and the flexibility of active management to drive returns. These low-cost, low-tracking-error Active Core portfolios should stay close to their benchmark indexes, but still add a degree of active management for moderate outperformance potential. For those looking to get more out of their core equity holdings, TACU and TACN could make an intriguing opportunity set.
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