T. Rowe Price Launches Its First-Ever Active Exchange-Traded Funds
Constructed similarly to flagship investment strategies that have served
THE T. ROWE PRICE ACTIVE ETFs
T. Rowe Price Blue Chip Growth ETF (Ticker: TCHP)
- Seeks to provide long-term capital growth by investing in common stocks of large and medium-sized blue chip companies that have the potential for above-average earnings growth and are well established.
- Managed by
Larry Puglia, who maintains a 26-year tenure as portfolio manager of the T. Rowe Price Blue Chip Growth Fund. Mr. Pugliahas 30 years of total investment experience, 29 of which have been with T. Rowe Price.
- Net expense ratio is 0.57%.
T. Rowe Price Dividend Growth ETF (Ticker: TDVG)
- Seeks dividend income and long-term capital growth by investing the majority of its assets in the common stocks of dividend-paying companies expected to increase their dividends over time.
- Managed by
Thomas Huber, who has 25 years of experience at T. Rowe Priceand has been portfolio manager of T. Rowe Price Dividend Growth Fundsince 2000.
- Net expense ratio is 0.50%.
T. Rowe Price Equity Income ETF (Ticker: TEQI)
- Seeks high level of dividend income and long-term capital growth by investing most of its assets in common stocks, with an emphasis on large-capitalization stocks that have a strong track record of paying dividends or that are believed to be undervalued.
- Managed by
John Linehan, who has served as portfolio manager of T. Rowe Price Equity Income Fundfor four years. Mr. Linehanhas 30 years of investment experience, 21 at T. Rowe Price, and is the former head of the firm's U.S.Equity division.
- Net expense ratio is 0.54%.
T. Rowe Price Growth Stock ETF (Ticker: TGRW)
- Seeks long-term capital growth and invests in companies that have one or more of the following: superior growth in earnings and cash flow, ability to sustain earnings momentum even during economic slowdowns, occupation of a lucrative niche in the economy, and ability to expand even during times of slow economic growth.
- Managed by
Joseph Fath, who has 19 years of investment experience, 17 at T. Rowe Price. Mr. Fathhas been portfolio manager of T. Rowe Price Growth Stock Fundfor six years.
- Net expense ratio is 0.52%.
"Today, for the first time,
Founded in 1937,
Consider the investment objectives, risks, and charges and expenses carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information visit troweprice.com.
This ETF is different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. For example:
- You may have to pay more money to trade the ETF's shares. This ETF will provide less information to traders, who tend to charge more for trades when they have less information.
- The price you pay to buy ETF shares on an exchange may not match the value of the ETF's portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders.
- These additional risks may be even greater in bad or uncertain market conditions.
- The ETF will publish on its website each day a "Proxy Portfolio" designed to help trading in shares of the ETF. While the Proxy Portfolio includes some of the ETF's holdings, it is not the ETF's actual portfolio.
The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF secret, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF's performance. If other traders are able to copy or predict the ETF's investment strategy, however, this may hurt the ETF's performance.
ETFs are bought and sold at market prices, not NAV. Investors generally incur the cost of the spread between the prices at which shares are bought and sold. Buying and selling shares may result in brokerage commissions which will reduce returns.
This ETF publishes a daily Proxy Portfolio, a basket of securities designed to closely track the daily performance of the actual portfolio holdings. While the Proxy Portfolio includes some of the ETFs holdings, it is not the actual portfolio. Daily portfolio statistics will be provided as an indication of the similarities and differences between the Proxy Portfolio and the actual holdings. The Proxy Portfolio and other metrics, including Portfolio Overlap, are intended to provide investors and traders with enough information encourage transactions that help keep the ETF's market price close to its NAV. There is a risk that market prices will differ from the NAV, ETFs trading on the basis of a Proxy Portfolio may trade at a wider bid/ask spread than shares of ETFs that publish their portfolios on a daily basis, especially during periods of market disruption or volatility and, therefore, may cost investors more to trade. The ETF's daily Proxy Portfolio, Portfolio Overlap and other tracking data are available at troweprice.com.
Although the ETF seeks to benefit from keeping its portfolio information confidential, others may attempt to use publicly available information to identify the ETF's investment and trading strategy. If successful, these trading practices may have the potential to reduce the efficiency and performance of the ETF.
contact t. rowe price, public relations, Bill Benintende, 443-248-2424, email@example.com, Kim Francois, 443-687-0249, firstname.lastname@example.org, Ed Giltenan, 917-744-6140, email@example.com, Lara Naylor, 410-215-7998, firstname.lastname@example.org, Bill Weeks, 443-422-7297, email@example.com