T. Rowe Price (NASDAQ:TROW) ETFs listed on NYSE Arca

T. Rowe Price (NASDAQ:TROW) ETFs listed on NYSE Arca

T. Rowe Price (NASDAQ:TROW) announced the debut of four active exchange-traded funds (ETFs). All four funds are available to the public beginning today. The ETFs, which will be actively managed by T. Rowe Price portfolio managers, include the Blue Chip Growth ETF, the Dividend Growth ETF, the Equity Income ETF, and the Growth Stock ETF. All four are listed on the New York Stock Exchange (NYSE) Arca, Inc.

Constructed similarly to flagship investment strategies that have served T. Rowe Price clients well for decades, the active ETFs use the same portfolio managers as their corresponding mutual funds and employ the firm’s long-standing strategic investing approach, characterized by rigorous research, risk awareness, and independent decision making.

T. Rowe Price active ETFs complement the firm’s traditional mutual fund offerings and deliver the key features associated with existing ETFs that some investors may prefer, including continuous daily trading, real-time market determined pricing, and tax efficiency. Over time, T. Rowe Price plans to deliver a robust ETF product lineup covering investments in various asset classes.

THE T. ROWE PRICE ACTIVE ETFs

T. Rowe Price Blue Chip Growth ETF (Ticker: TCHP)

  • Seeks to provide long-term capital growth by investing in common stocks of large and medium-sized blue chip companies that have the potential for above-average earnings growth and are well established.
  • Managed by Larry Puglia, who maintains a 26-year tenure as portfolio manager of the T. Rowe Price Blue Chip Growth Fund. Mr. Puglia has 30 years of total investment experience, 29 of which have been with T. Rowe Price.
  • Net expense ratio is 0.57%.

T. Rowe Price Dividend Growth ETF (Ticker: TDVG)

  • Seeks dividend income and long-term capital growth by investing the majority of its assets in the common stocks of dividend-paying companies expected to increase their dividends over time.
  • Managed by Thomas Huber, who has 25 years of experience at T. Rowe Price and has been portfolio manager of T. Rowe Price Dividend Growth Fund since 2000.  
  • Net expense ratio is 0.50%.

T. Rowe Price Equity Income ETF (Ticker: TEQI)

  • Seeks high level of dividend income and long-term capital growth by investing most of its assets in common stocks, with an emphasis on large-capitalization stocks that have a strong track record of paying dividends or that are believed to be undervalued.
  • Managed by John Linehan, who has served as portfolio manager of T. Rowe Price Equity Income Fund for four years. Mr. Linehan has 30 years of investment experience, 21 at T. Rowe Price, and is the former head of the firm’s U.S. Equity division.
  • Net expense ratio is 0.54%.

T. Rowe Price Growth Stock ETF (Ticker: TGRW)

  • Seeks long-term capital growth and invests in companies that have one or more of the following: superior growth in earnings and cash flow, ability to sustain earnings momentum even during economic slowdowns, occupation of a lucrative niche in the economy, and ability to expand even during times of slow economic growth.
  • Managed by Joseph Fath, who has 19 years of investment experience, 17 at T. Rowe Price. Mr. Fath has been portfolio manager of T. Rowe Price Growth Stock Fund for six years.
  • Net expense ratio is 0.52%.

All T. Rowe Price active ETFs feature a proprietary portfolio disclosure process that ensures market makers have enough information to quote prices with a high degree of confidence, while it also protects the intellectual property of the firm’s investment professionals and the interests of its mutual fund shareholders.

Quote
Tim Coyne, Head of Exchange-Traded Funds
“Today, for the first time, T. Rowe Price is extending its time-tested strategic investing expertise to the ETF industry. With new offerings managed by our skilled and experienced portfolio management team, we believe we are entering the ETF marketplace from a position of strength. We are excited to be able to serve investors and financial advisors who are interested in tapping into the firm’s investing capabilities through this innovative active ETF model.”

ABOUT T. ROWE PRICE
Founded in 1937, Baltimore-based T. Rowe Price is a global investment management organization with $1.22 trillion in assets under management as of June 30, 2020. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The organization also offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. For more information, visit troweprice.com, Twitter, YouTube, LinkedIn, Instagram, or Facebook.

Consider the investment objectives, risks, and charges and expenses carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information visit troweprice.com.

This ETF is different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. For example:

  • You may have to pay more money to trade the ETF’s shares. This ETF will provide less information to traders, who tend to charge more for trades when they have less information.
  • The price you pay to buy ETF shares on an exchange may not match the value of the ETF’s portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders.
  • These additional risks may be even greater in bad or uncertain market conditions.
  • The ETF will publish on its website each day a “Proxy Portfolio” designed to help trading in shares of the ETF. While the Proxy Portfolio includes some of the ETF’s holdings, it is not the ETF’s actual portfolio.

The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF secret, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF’s performance. If other traders are able to copy or predict the ETF’s investment strategy, however, this may hurt the ETF’s performance.

ETFs are bought and sold at market prices, not NAV. Investors generally incur the cost of the spread between the prices at which shares are bought and sold. Buying and selling shares may result in brokerage commissions which will reduce returns.

This ETF publishes a daily Proxy Portfolio, a basket of securities designed to closely track the daily performance of the actual portfolio holdings. While the Proxy Portfolio includes some of the ETFs holdings, it is not the actual portfolio. Daily portfolio statistics will be provided as an indication of the similarities and differences between the Proxy Portfolio and the actual holdings. The Proxy Portfolio and other metrics, including Portfolio Overlap, are intended to provide investors and traders with enough information encourage transactions that help keep the ETF’s market price close to its NAV. There is a risk that market prices will differ from the NAV, ETFs trading on the basis of a Proxy Portfolio may trade at a wider bid/ask spread than shares of ETFs that publish their portfolios on a daily basis, especially during periods of market disruption or volatility and, therefore, may cost investors more to trade. The ETF’s daily Proxy Portfolio, Portfolio Overlap and other tracking data are available at troweprice.com.

Although the ETF seeks to benefit from keeping its portfolio information confidential, others may attempt to use publicly available information to identify the ETF’s investment and trading strategy. If successful, these trading practices may have the potential to reduce the efficiency and performance of the ETF.

T. Rowe Price Investment Services, Inc.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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