Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

How Active ETF TACN Captures Global Stock Growth

BY | ETF Database
5:18 am ET 05/27/26 | 5 VIEWS
T. Rowe Price is making the case for international equities. The Magnificent Seven now account for 32% of the S&P 500’s market value, more than double their 14% share in 2019, according to a new report from the firm.Key Takeaways: The Magnificent Seven now make up 32% of the S&P 500, more than double their 14% share in 2019. Developed international stocks traded at a 23% forward P/E discount to the S&P 500, as of March 31. TACN launched in December 2025 with a 0% expense ratio and has returned 8.48% year to date. For investors weighted toward U.S. stocks, T. Rowe Price argues that international equities deserve a closer look. The firm points to improving earnings, lower valuations, and broader exposure that could strengthen long-term returns. That concentration carries risk. A handful of mega-cap names drive so much of the S&P 500’s performance that investors may hold more single-sector exposure than they realize, the report notes. International fundamentals are improving, with earnings per share growth in developed markets reaching 5.2% annually after the pandemic. That is up from 1.7% before it, according to T. Rowe Price analysis using data from FactSet. Yet international stocks remain cheaper than their U.S. counterparts. As of March 31, international developed markets traded at a 23% forward price-to-earnings discount to the S&P 500. That means investors pay less for each dollar of expected earnings, according to the report.Where International Opportunity Is GrowingThe global opportunity set has also expanded, with listed non-U.S. companies growing 38% since 1999. Over that same period, listed U.S. companies contracted 44%, according to the World Bank Group. Meanwhile, Japan’s corporate governance reforms are opening new doors for investors. Europe’s rising defense and infrastructure spending is creating similar openings. A manufacturing build-out across parts of Asia adds another dimension, according to T. Rowe Price. Artificial intelligence (AI) is also going global. What began in U.S. cloud and software infrastructure is now spreading to industrial automation in Europe and semiconductor production in Asia. Digital platforms in emerging markets are also capturing AI opportunities, the report noted. Those trends strengthen the case for active management. T. Rowe Price offers one avenue through the T. Rowe Price Active Core International Equity ETF (TACN). The fund launched in December 2025 and uses quantitative models and fundamental research. Its portfolio holds 400 to 500 large- and mid-cap non-U.S. stocks, according to T. Rowe Price. TACN carries a 0% expense ratio from a fee waiver in effect from January 30, 2027, and only 0.14% thereafter. TACN has already returned 8.48% year to date, according to ETF Database. Its largest holding is ASML Holding (ASML) at 3.06% of assets. AstraZeneca (AZN) follows at 1.69%, with Shell (SHEL) at 1.44%. For more news, information, and analysis, visit our Active ETF Content Hub.

More Commentary

Add Quality to Your International Equities Exposure With QINT
BY | ETF Database
4:22 am ET 05/27/26 | 10 VIEWS
The Case for Active Management in the Private Credit Market
BY | ETF Database
05/26/2026 | 21 VIEWS
130 Years of the Dow: Why It Still Matters for Advisors
BY | ETF Database
05/26/2026 | 20 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.