Roger Hallam, Vanguard global head of rates, sits down with CNBC’s Dominic Chu to discuss the firm’s new active ETFs launching this week, including its Vanguard Government Securities Active ETF. Hallam gets into the strategy behind the fund and why now is the time to go active. Jay Jacobs, BlackRock U.S. Head of Equity ETFs also joins the conversation. ...

Core Viewpoint - T. Rowe Price has launched three new active transparent equity ETFs, expanding its lineup to a total of 22 offerings, aimed at providing long-term capital appreciation through sector-specific investments [1][2][4]. Group 1: New ETF Launches - The newly launched ETFs are T. Rowe Price Financials ETF (TFNS), T. Rowe Price Health Care ETF (TMED), and T. Rowe Price Natural Resources ETF (TURF) [1][2]. - Each ETF has an expense ratio of 0.44% and seeks to invest at least 80% of its net assets in their respective sectors [2][3][4]. Group 2: Investment Strategies - TFNS focuses on the financial services industry, typically maintaining a portfolio of 50-70 companies [2]. - TMED targets health care innovations, with a diversified portfolio of 100 to 150 stocks across biotechnology, pharmaceuticals, and health care services [3]. - TURF invests in natural resource companies, primarily in energy, minerals, and agriculture, holding 60-80 securities globally [4]. Group 3: Company Background - T. Rowe Price, founded in 1937, manages USD $1.62 trillion in assets as of May 31, 2025, and is known for its investment excellence and active management approach [5]. - The firm has a commitment to growing its active ETF business and aims to deliver compelling investment ideas through rigorous global research [5].

Core Insights - Active ETF assets have grown over 600% in the past five years, reaching $631 billion in 2024, indicating a significant expansion in this investment vehicle [1] - The whitepaper titled "Active ETFs: Achieving Escape Velocity" outlines strategic imperatives for asset managers to successfully launch and scale active ETFs [1][2] Industry Trends - In 2024, a record 660 active ETFs were launched, yet they only account for 6% of total active AUM, suggesting substantial growth potential [2] - The top 10 active asset managers control 77% of active ETF assets, highlighting a concentration challenge within the industry [7] Strategic Principles for Asset Managers - **Go with the Flow**: Success relies on strong distribution, particularly through Registered Investment Advisor (RIA) channels, which dominate active ETF assets [3] - **Pick a Lane**: Successful managers leverage unique investment strategies, proprietary distribution channels, and strong brand identity, focusing on their inherent strengths [4] - **Less is More**: Engaging with high-potential advisors who already utilize active ETFs can enhance conversion rates and sales, emphasizing the importance of advisor scoring and segmentation [5] Future Projections - Active ETF assets are projected to grow to $1.2 trillion by 2027, up from $81 billion in 2019, indicating a robust growth trajectory [7] - Only 11% of active ETFs launched in the past three years raised over $100 million in their first year, which is a critical success indicator [7]

Core Viewpoint - Invesco Ltd. has launched three new active ETFs that leverage the expertise of its in-house active managers, aiming to meet investor demand for high-quality active strategies through the ETF vehicle [2][3]. Group 1: New ETF Strategies - The three newly launched ETFs are: Invesco QQQ Hedged Advantage ETF (QQHG), Invesco Comstock Contrarian Equity ETF (CSTK), and Invesco Managed Futures Strategy ETF (IMF) [2][3]. - QQHG aims to track the performance of the Nasdaq 100 Index while implementing an option overlay strategy to manage downside risk [9]. - CSTK focuses on total return through capital growth and income by identifying discrepancies between stock prices and company values [9]. - IMF employs a futures strategy that takes both long and short positions across various global markets, seeking long-term capital appreciation with low correlation to traditional markets [9]. Group 2: Market Position and Strategy Evolution - The launch of these ETFs reflects Invesco's commitment to evolving its ETF lineup to align with investor preferences and demands [3][4]. - The new active ETFs represent a continuation of Invesco's focus on rules-based ETF development, combining human judgment with established rules-based strategies [4]. - Invesco aims to educate investors on how these active ETFs can fit into their portfolios as the market for such products evolves [4]. Group 3: Company Overview - Invesco Ltd. is a global independent investment management firm managing approximately US$1.8 trillion in assets as of March 31, 2024 [5]. - The firm operates in over 20 countries and offers a comprehensive range of active, passive, and alternative investment capabilities [5].