Will Market Leadership Broaden? Why Active Can Lead the Way

Core Insights - The "Magnificent Seven" companies continue to dominate market performance, but recent turbulence raises questions about their ability to deliver [1] - T. Rowe Price's analysis suggests that market leadership may broaden beyond these tech giants, indicating potential opportunities for active investing strategies [2][3] Market Leadership - The spread of earnings growth between the Tech+ and extech sectors of the S&P 500 Index is at its narrowest since Q1 2023, suggesting a potential shift in market dynamics [3] - Active investing strategies could allow investors to capitalize on companies positioned for growth across various sectors, not just technology [3] Investment Strategies - The T. Rowe Price U.S. Equity Research ETF (TSPA) exemplifies an active ETF that utilizes fundamental research to guide investment decisions, charging a competitive fee of 34 basis points [4] - Active ETFs may provide a viable option for investors looking to prepare for a broader set of market opportunities [4]