Following up on an already strong YTD performance among the $100 million-plus active ETFs, TCHP has now earned a top-five place per LOGICLY data. The active growth ETF, the T. Rowe Price Blue Chip Growth ETF (TCHP), has produced the fourth-best returns among larger ETFs. The strategy has returned 20% over the last six months, with an additional 15.9% over the last three months. The new performance metric invites investors to take a closer look at the strategy’s approach.
What’s the case for an active growth ETF like TCHP? The strategy hit its three-year mark just under two weeks ago, charging a reasonable active fee of 57 basis points (bps). TCHP invests in firms with seasoned management and strong fundamentals, and dividend growth. The strategy also looks to firms with leading market positions, too. Taken together, it may produce an overweight towards information tech stocks. Right now, it weights tech services at 36.8% per VettaFi.
The Active Growth ETF TCHP, Among Other Actives
As mentioned above, that has helped the strategy outperform other active strategies. That has helped TCHP outperform strategies like the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ). JEPQ has only returned 16.8% over the last six months, with just a 7.3% return over the last three months.
That standout performance among actives may merit more attention, especially in a year in which active ETFs have done so well. Investors are increasingly planning on upping allocations to actives, while active strategies have also performed well as a whole YTD.
See more: “Active ETFs Outgrew Passives in 1H 2023”
So why take a look at an active growth ETF like TCHP right now? With the Fed apparently getting ever closer to managing a soft landing, a growth rally may be in the cards. That said, not all firms are the same, and an active management approach could help separate the wheat from the chaff. With TCHP a top five ETF returner among plus-$100 million actives, it may stand out in an exciting active field.
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Visualizations and data provided by LOGICLY, which is a wholly-owned subsidiary of VettaFi.