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Top Active ETF TCAF Spikes After Milestone en Route to $10 Billion

The T. Rowe Price Capital Appreciation Equity ETF (TCAF B+) has stood out in recent years, and recently saw a major milestone. The active ETF hit its three-year ETF milestone last month, rising approximately $1 billion in AUM since that date. The ETF may be close to $10 billion by the end of the year, so what role can it play in portfolios?Key Takeaways: Leading active ETF TCAF has hit $8 billion in AUM, rising about $1 billion since its three-year ETF milestone. The active ETF has performed well, returning 13.2% over the last 12 months, according to ETF Database data. The strategy charges 31 basis points (bps) for its approach, and has recently sent a buy signal according to YCharts data. TCAF charges a 31-bps fee to actively invest in stocks based on management capability, potential for risk-adjusted returns, and a track record of attractive valuations. Led by star manager David Giroux, TCAF primarily invests in large-cap companies, but it may invest in companies of other capitalization. It moves from growth and value approaches as needed, too. Together, that has helped the ETF make those big moves in AUM. The active ETF has gained $2 billion in flows over the last 12 months, according to ETF Database data. In terms of performance, it has also done well in its role as a long term capital appreciation ETF. TCAF has returned 8.6% YTD and 13.2% over the last 12 months. That recent milestone is not the only moment drawing attention to the ETF. TCAF recently saw its price rise above both its 50- and 200-day simple moving averages. That traditionally indicates healthy momentum for a given fund, and a buy opportunity. The active ETF’s deep, fundamental focus could make it especially attractive amid high valuations and uncertainty. TCAF currently weights heavily towards those leading names, but its focus on fundamentals means it will find strong opportunities if market leadership shifts. Overall, TCAF could hit $10 billion before the end of the year if it retains this pace. T. Rowe Price also recently launched a new ETF within its broader Capital Appreciation suite, managed by David Giroux and the Capital Appreciation team. Overall, then, it may be worth watching for those wanting a leading active ETF strategy. For more news, information, and analysis, visit our Active ETF Content Hub.

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