For this week’s episode of ETF 360, ETF Trends CEO Tom Lydon and CIO Dave Nadig caught up with Tim Coyne, Global Head of ETFs at T. Rowe Price, to discuss its jump into the ETF space, its Blue Chip Growth ETF (TCHP), and 2021 innovations.
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Addressing the move into the ETF space first, Coyne explained how T. Rowe Price was the first asset manager to file for a proprietary model to bring active ETFs to market dating back to 2013. That means it’s been a long time coming, but they’ve used it to build out their capabilities and have a strong foundation for both the initial four products they’ve launched, along with an excellent product suite across asset classes over time.
With the current products available, which resemble the older take on active, Nadig posed ‘why now’ should be the time for investors to be interested in what T. Rowe Price is offering. Coyne explained how they have a time-tested approach for actively managed products, and ETFs are the latest generation of product vehicle and how to deliver active management to market.
Following Up An Unprecedented Year
Coyne states, “2020 was an unprecedented year. Looking out into 2021, I think there are still a lot of open questions in terms of what the market will look like coming out of the pandemic. I think being an active manager puts us in a position to really be nimble, evaluate the market, and look at different companies. Really, our long-term goal is to provide alpha in investors’ portfolios.”
Given the uncertainty, Coyne adds, “I feel really good being at an active manager right now, and I feel that we have the right vehicle for investors to access our capabilities.”
The conversation then moved to one of its recently launched ETFs, the T. Rowe Price Blue Chip Growth ETF (TCHP), which has existed in the past as a mutual fund as well. For 2021, Coyne notes how with active management, it is very easy to evaluate the market place continually. With TCHP, while using an ETF wrapper, the fund still gets to the same sort of long-standing attention and research afforded to other T. Rowe Price products, such as their mutual funds, despite being in a whole new space to explore.
Coyne notes, “We’re looking at this in the long-term. Our investment style isn’t quick hits. It’s really doing due diligence — investing in good companies for the long haul.”
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