VIDEO: ETF of the Week: TSPA

Core Viewpoint - The T. Rowe Price U.S. Equity Research ETF (TSPA) is highlighted as a strong investment option due to its active management and solid track record, particularly in the context of the growing popularity of active ETFs [2][3][10]. Fund Performance and Strategy - TSPA has demonstrated a strong performance with close to $800 million in net new inflows in 2025, indicating its appeal among investors [3]. - The fund is designed as a "best ideas" portfolio from T. Rowe Price's experienced team of stock analysts, focusing on stocks they favor while underweighting those they do not [4][5]. - TSPA holds approximately 300 stocks, primarily from the S&P 500, allowing for a concentrated approach rather than a full replication of the index [6]. Holdings and Market Position - The top holdings of TSPA include major companies such as Nvidia, Apple, Microsoft, Amazon, Alphabet, Meta, and Tesla, which are part of the "Mag Seven" stocks [7][8]. - The fund serves as a core replacement or complement to traditional index funds, providing active management benefits while maintaining significant overlap with large-cap stocks [8][10]. Management and Fees - The ETF is managed by a team of analysts rather than a single portfolio manager, reducing individual manager risk and ensuring continuity in stock selection [19][20]. - The expense ratio for TSPA is 0.34, which is higher than typical S&P 500 index funds but competitive for actively managed ETFs [13][14]. Long-term Investment Potential - TSPA is positioned as a long-term core holding, appealing to investors seeking active management without excessive risk, particularly in large-cap equities [18][20].