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Active ETF Specialist T. Rowe Price Adds 2 New Active Funds

As active ETFs continue to grow in prominence, more and more firms are adding to the active strategy roster. New entrants are looking to ride some of that growing interest, but for many investors, it may be worth considering those specialist shops that have made active their focus since the jump. T. Rowe Price., for example, has long leveraged its global research platform to offer fundamentally driven, flexible, active ETFs. The firm has now added two new funds to bolster that suite, bringing its roster to 19 total ETFs.See more: Tired of Waiting for the Fed to Cut Rates? Try This The T. Rowe Price Capital Appreciation Premium Income ETF (TCAL) and the T. Rowe Price Hedged Equity ETF (THEQ) arrive amid notable market volatility. According to a press release from the firm, TCAL charges 34 basis points, and THEQ charges 46 basis points.Active ETF House T. Rowe Price Adds 2 FundsTCAL invests in high-quality stocks and covered calls with the aim of maximizing income while limiting losses and trying to protect the principal. Intriguingly, TCAL leverages the existing Capital Appreciation Fund approach that combines fundamental and quantitative approaches. THEQ, meanwhile, aims for long-term capital growth with downside protection against significant market pullbacks. The active ETF marries the U.S. Structured Research Equity Strategy with lower volatility individual equities. It also leans on a derivatives hedging strategy to reduce volatility, which can help with equity downturns. “T. Rowe Price has established itself as a leading provider of actively managed ETFs with the success of funds like TCAF and TSPA,” said VettaFi’s Head of Research Todd Rosenbluth. “It is great to see them broaden their lineup and leverage their expertise to support the advisor community.” “The momentum of our growing active ETF lineup continues with today’s launch of the Capital Appreciation Premium Income ETF and the Hedged Equity ETF,” said T. Rowe Price global head of exchange-traded funds Tim Coyne. “With the expertise of our seasoned investment teams and our long history of active management expertise, we strive to provide ETFs that can play distinctive roles in an investor’s portfolio and offer compelling value and performance potential.” For more news, information, and analysis, visit our Active ETF Channel.

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