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How Active Tech ETF TTEQ Smashed Its Benchmark

Active ETFs have exploded in popularity in recent years, driving more and more ETF launches overall. Despite their comparatively smaller overall AUM among ETFs, they’ve gathered an outsized amount of flows. Within that space, some funds have started to really stand out, like the T. Rowe Price Technology ETF (TTEQ ). The active tech ETF has spiked in the last 12 months, smashing its benchmark and beating rivals in that time.Key Takeaways:TTEQ has returned 37.2% YTD according to ETF Database data, beating its benchmark, the MSCI ACWI. That performance has also beaten rival active tech ETFs like BAI, with TTEQ leveraging T. Rowe Price’s research. The fund’s ability to invest across sector boundaries may make it a savvy investment as the AI revolution spreads across categories. TTEQ charges a competitive 63 basis point fee to actively invest in broad technology exposure across sub-categories. Where many passive tech strategies struggle to get tech exposure because of sector limitations, separating big names into communication and tech, for example, TTEQ’s active remit empowers it to invest with more freedom. The fund, managed by T. Rowe Price’s Dom Rizzo, can invest in a mix of established and innovative companies around the world and across those categories. Specifically, TTEQ actively invests in companies poised to transform their industries. The strategy engages in fundamental research, assessing individual firm’s prospects, valuation, and share price appreciation potential. Leaning on T. Rowe Price’s global research platform, it combines well-established large-caps with smaller, innovative firms. It has even made a private investment in OpenAI. See more: T. Rowe Price Leaders Talk TTEQ OpenAI Pickup The active tech ETF has returned 37.2% YTD, according to ETF Database data. It has also returned 38.4% over the last 12 months. TTEQ uses the MSCI All Country World Index Net Index as its benchmark, which has returned 14.7% YTD, by comparison, according to MSCI data. Compared to some rival active tech ETFs as well, the fund has performed. TTEQ’s 38.4% one-year return outperformed the iShares A.I. Innovation and Tech Active ETF (BAI ), which returned 36.4% in that time, per ETF Database data. Looking ahead, TTEQ’s continued flexibility and pursuit of innovation could make it a strong play to watch for those looking to add active. With the tech space offering great upside, but also more variety and more expensive options than ever, the competitive pricing and strong performance of TTEQ may appeal. For more news, information, and analysis, visit our Active ETF Content Hub.

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