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How TCAF’s Research-Based Active ETF Approach Stands Out

BY | ETF Database
10/16/2026 | 42 VIEWS
The active ETF ecosystem has exploded in recent years. In fact, active ETFs have contributed over 80% of the new launches this year alone, and are picking up major flows relative to their AUM. It suggests that investor interest is piqued, but which active ETFs are best poised to boost portfolios? T. Rowe Price’s research-based active ETF approach can help funds like the T. Rowe Price Capital Appreciation Equity ETF (TCAF B+) deliver in that role.Key Takeaways: Active ETFs are proliferating, with more than 80% of new launches this year. Seasoned, research-driven active ETFs like TCAF can stand out in a broadening market. By emphasizing fundamental analysis, the fund can play a strong core equity role in the long term. TCAF, managed by seasoned fund operator David Giroux, recently hit its three-year ETF milestone this past June. The research-based active ETF charges a 31 basis point fee to actively invest in high-quality U.S. large caps. Using T. Rowe Price’s global research capabilities, TCAF applies fundamental analysis to assess individual firms for market position, attractive valuations, risk-adjusted returns, among other factors. The fund usually holds about 100 names or so, and moves across a blend of growth and value approaches as needed to deliver on its goals. The strategy has helped TCAF deliver some meaningful returns for investors. According to ETF Database data, it has returned 14% YTD and averaged 19.9% annually. The real case for the strategy comes with its emphasis on high-conviction investing. Where some new active ETFs are active in name only, TCAF truly leans on the fundamentals-driven, research-based active ETF approach. While that may lead to some of the biggest names now, this bottom-up approach can also capture the next group of large-cap leaders to drive portfolios. See more: T. Rowe Price Ultra Short-Term Bond ETF TBUX Up Almost $1 Billion YTD Taken together, TCAF represents a leading candidate in the active ETF space that warrants investor attention. Backed by experienced management, the ETF offers a strong long-term active core equity holding to complement passive index exposure. Its high-conviction, flexible strategy helps investors stay invested through volatility while positioning for long-term growth. For more news, information, and analysis, visit our Active ETF Content Hub.

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