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T. Rowe Price Expands Active ETF Lineup

T. Rowe Price, a renowned global investment management firm, recently launched two new active transparent equity exchange-traded funds (ETFs), significantly enhancing its roster of investment options. The T. Rowe Price Capital Appreciation Premium Income ETF (ticker TCAL) and the T. Rowe Price Hedged Equity ETF (ticker THEQ) began trading on the NYSE Arca, marking a pivotal moment in the firm’s strategic initiatives to cater to investors seeking innovative financial products.

Overview of the New ETFs

Both ETFs are designed to meet diverse investment objectives while tapping into the firm's rich history of active management expertise. With these additions, T. Rowe Price's lineup now includes 19 active ETFs, consisting of 13 equity-focused and six fixed-income offerings.

T. Rowe Price Hedged Equity ETF (THEQ)

The Hedged Equity ETF primarily targets long-term capital growth, channeling at least 80% of its net assets into equities. A distinctive feature of this fund is its integration of the U.S. Structured Research Equity Strategy, complemented by a derivatives-based approach aimed at mitigating portfolio volatility. This becomes particularly crucial during market downturns, providing a layer of safety for investors. The ETF is managed by seasoned professional Sean McWilliams, who has over 15 years of investment experience and manages both the Hedged Equity mutual fund and this ETF. The expense ratio for THEQ stands at 0.46%.

T. Rowe Price Capital Appreciation Premium Income ETF (TCAL)

On the income-generating side, the Capital Appreciation Premium Income ETF offers a carefully curated portfolio of high-quality stocks paired with covered calls. This strategy is optimized to maximize income while protecting principal and minimizing potential losses. TCAL is steeped in the proven methodologies of the Capital Appreciation Fund, merging fundamental analyses with quantitative techniques. The expense ratio for TCAL is set at a competitive 0.34%.

The fund is co-managed by six investment professionals from T. Rowe Price Investment Management, including David Giroux, a highly regarded portfolio manager known for delivering consistent results that have outperformed peer averages for 17 years. Co-managers bring a wealth of diverse expertise, combining insights from quantitative analysis and traditional fundamental evaluation.

Industry Impact

Since its inception of active ETFs in August 2020, T. Rowe Price has seen significant momentum in their ETF segment, responding to the growing demand among investors for products that offer tax efficiency, competitive expense ratios, and trading flexibility throughout the day. According to Tim Coyne, the Global Head of Exchange-Traded Funds at T. Rowe Price, these new ETFs are designed to fulfill distinctive roles within an investor's portfolio, emphasizing performance potential and value.

T. Rowe Price's Commitment to Excellence

Established in 1937, T. Rowe Price has built a reputation based on integrity, client-focused service, and a commitment to excellence in investment management. As of February 28, 2025, the firm manages assets worth $1.63 trillion, making a significant impact in the financial sector. With its extensive range of products that include equity, fixed income, and multi-asset investment capabilities, T. Rowe Price has become a trusted name for retirement expertise and active management strategies.

In conclusion, the launch of the Capital Appreciation Premium Income ETF and the Hedged Equity ETF signifies T. Rowe Price's ongoing determination to innovate and adapt in a rapidly changing financial landscape. Investors looking for diversified strategies to achieve their long-term goals will find these new offerings to be worthwhile additions to their portfolios.

For more tailored investment strategies and insight into these new funds, individuals are encouraged to visit T. Rowe Price's official website.