Digging Into Blue Chip Growth ETF TCHP | ETF Trends

Some market watchers may have come into 2023 expecting value to have its moment, but growth has excelled. According to YCharts, large growth ETFs have returned 16.6% YTD compared to -1.8% YTD for large value ETFs. Whether that will continue depends on factors like the Fed, inflation, and a looming recession. For now, however, investors may want to look at a blue chip growth ETF, with TCHP a notable option.

TCHP, the T. Rowe Price Blue Chip Growth ETF, launched nearly three years ago. As one of the first ETFs from T. Rowe Price, it also has the largest AUM at $345 million. Notably, TCHP has seen robust YTD returns. TCHP has returned 29% YTD. That nearly doubles up on the Factset Segment Average return of 16%. It more than doubles the ETF Database Category Average return of 12.5%.

That has helped TCHP not only outperform other specialized, growth-specific ETFs. Those returns have helped TCHP outperform even the SPDR S&P 500 ETF Trust (SPY) on a YTD and one-year basis. Suffice to say, the Blue Chip Growth ETF has lived up to its name.


A graph of TCHP vs. SPY YTD.

So how does it work? Through the research and security selection of skilled active management. TCHP seeks to hold companies with leading market positions, seasoned management teams, and strong fundamentals. Those types of firms have historically proven to be quite resilient across market cycles.

See more: “Examining the Importance of Dividend Growth

TCHP charges 57 basis points, a low-cost active strategy. The strategy has added $4.8 million over the last month in net inflows. The strategy has seen its AUM grow over the last six months, up $90 million, thanks to both flows and price increases. For those investors looking for a robust strategy amid growth’s resilient performance, TCHP presents an appealing option.

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