Exchange 2026: T. Rowe Price on the Active ETF Shift T. Rowe Price is leveraging three decades of private equity experience to give active ETF investors access to companies at the core of artificial intelligence, including OpenAI, Anthropic, and Databricks, according to Christopher Murphy, head of ETF specialists at the firm. In an interview at the Exchange conference in Las Vegas, Murphy said the T. Rowe Price Technology ETF (TTEQ)may be the only ETF holding both Databricks and Anthropic. The firm's abilit ...

T. Rowe Price Debuts Emerging Markets Equity ETFT. Rowe Price launched a new emerging markets equity ETF on Thursday, expanding its active exchange-traded fund lineup into one of the fastest-growing investment categories.The T. Rowe Price Emerging Markets Equity Research ETF (TEMR) began trading on the NYSE Arca with a net expense ratio of 0.40%, according to a press release announcing the fund.The fund seeks long- term capital growth through a portfolio of emerging markets equities, according to the press ...

Neuberger Berman Adds New International Equities ETF NBIEIt's been a huge last 12 months for international equities ETF performance, as U.S. investors flock to ex-U.S. diversification. Asset managers have responded, adding to the space with new funds. Neuberger Berman is the latest to make a move, launching NBIE, the International Core Equity ETF, a potential option for investors to consider as uncertainty continues to loom over a tech-heavy U.S. stock market.See more: Active ETFs for Market Volatility in 2 ...

Core Viewpoint - First Eagle Investments has expanded its active ETF lineup by launching two new funds, the First Eagle Mid Cap Equity ETF (FEMD) and the First Eagle US Equity ETF, following its initial ETF debut in late 2024 [1] Group 1 - The new ETFs are part of First Eagle Investments' strategy to grow its presence in the active ETF market [1] - The addition of FEMD and the US Equity ETF reflects the company's commitment to providing diverse investment options [1]

Core Insights - The Fidelity Magellan Fund (FMAGX) has a long history and has evolved into an ETF format, which is relevant as it approaches its five-year anniversary [1][4]. Fund Overview - FMAG, the Fidelity Magellan ETF, was launched in February 2021 and charges a fee of 57 basis points, similar to its predecessor FMAGX [2]. - The fund employs an active investment strategy, focusing on fundamental analysis and investing in companies worldwide that meet value or growth criteria [2]. Performance Analysis - As of January 15th, FMAG has outperformed the S&P 500 over the last three years, returning 21.2% compared to the index's 20.1% [3]. - The fund's performance has been stable, contributing to long-term growth for its investors [3]. Market Positioning - With its fifth anniversary approaching, FMAG is positioned to benefit from the growing trend of active ETF performance, which has been favorable in recent years [4]. - Active ETFs like FMAG provide adaptability and fundamentals-driven investing, which can be advantageous in uncertain market conditions [4][5]. Strategic Advantages - FMAG offers a similar investment strategy to the original FMAGX but in a more cost-effective ETF format, appealing to investors seeking active ETF exposure [6]. - The reliance on manager expertise and fundamental analysis in active ETFs helps mitigate concentration risk associated with market cap-weighted indexes [5][6].

Core Insights - The active ETF market experienced a split in strategy in 2025, with discretionary equity funds gaining 3.3% market share while systematic equity funds lost 1.1% [1] - Discretionary equity saw significant organic asset growth of 68.8%, contributing to the overall active ETF market reaching $476 billion across 953 launches in 2025 [3] Discretionary Equity Performance - The T. Rowe Price Capital Appreciation Equity ETF (TCAF) attracted $2.59 billion in one-year flows and achieved a 14.3% return, underscoring the appeal of discretionary equity [2] - TCAF focuses on high-quality U.S. large-cap companies with above-average growth potential and has a competitive expense ratio of 0.31%, managing $6.34 billion since its launch in June 2023 [2] Discretionary Fixed Income Performance - Discretionary fixed income led all categories with $136.9 billion in trailing 12-month flows through December 31 [4] - The T. Rowe Price QM U.S. Bond ETF (TAGG) captured $1.42 billion of those flows while delivering a 7.57% return and managing $1.54 billion in assets, with an expense ratio of only 0.08% [4] New ETF Launches - In response to the decline in systematic equity's market share, T. Rowe Price launched two active ETFs in early December that blend discretionary research with systematic implementation [5] - The T. Rowe Price Active Core U.S. Equity ETF (TACU) and the T. Rowe Price Active Core International Equity ETF (TACN) are waiving fees through January 30, 2027, resulting in net expense ratios of zero during this period [5] Investment Strategy - TACU holds 550–650 U.S. large-cap stocks with a 0.14% expense ratio, while TACN holds 400–500 international stocks with a 0.20% expense ratio after the fee waivers expire [6] - Both new equity ETFs aim to maintain low index tracking error while utilizing a blend of fundamental and quantitative research, targeting cost-conscious investors [7]

Core Insights - Foreign equities performed well in 2025, driven by trends outside the U.S. and tariff-related uncertainty, leading U.S. investors to seek ex-U.S. offerings [1] - The same trends are expected to continue into 2026, prompting renewed interest in foreign equities [1] Company Insights - T. Rowe Price has launched the Active Core International Equity ETF (TACN), which charges a zero basis point fee until January 30, 2027, and 0.2% thereafter [2] - TACN combines quantitative research with fundamental analysis, aiming to maintain disciplined risk controls, making it a robust long-term active solution for foreign equities allocations [4] Industry Insights - Active ETFs are gaining popularity among investors for their flexibility and fundamental analysis capabilities [3] - The current market conditions, including a declining dollar and inflation uncertainty, present significant opportunities in ex-U.S. equities, making TACN's active core approach appealing for portfolio refreshment [6]

Core Viewpoint - The article discusses the concentration risk associated with megacap tech firms in the S&P 500 and suggests that investors consider the Goldman Sachs Future Tech Leaders Equity ETF (GTEK) as a potential investment option for 2026, which focuses on innovative companies outside the concentrated group [1]. Group 1: ETF Performance and Signals - GTEK's price recently rose above its 50 and 200-day Simple Moving Averages (SMAs), which is traditionally viewed as a buy signal, with a price of $40.21 as of December 26th [2]. - The fund has shown momentum without entering "Overbought" territory, indicating potential for continued performance [2]. Group 2: Fund Strategy and Characteristics - GTEK charges 75 basis points and employs an active management approach, targeting next-generation disruptors rather than tracking an index [3]. - The ETF excludes companies with market caps over $100 billion and invests in sectors beyond information technology, including healthcare and direct marketing retail, using fundamental metrics to assess quality and growth [4]. Group 3: Historical Returns and Future Outlook - GTEK has returned 24.4% year-to-date, outperforming its ETF Database Category average, and has achieved a 24.7% return over the last three years [5]. - The active focus on innovative firms outside the typical megacap tech companies positions GTEK as a strong candidate for investors looking to enhance their tech allocations in the near future [5].

It's the talk of the market ‑' has the rapid ascent of AI technologies overly inflated stock market valuations? Ask five investors and one may get five different opinions. Still, the answer has significant bearing on how market watchers look at 2026. Recent insight from T. Rowe Price explored the topic – and how investors can chart a course through it. See more: What Do Investors Do With the November Jobs Report? Tim Murray. T. Rowe Price capital markets strategist, penned a research piece asking whether th ...

2025 is drawing to a close, and investors have plenty to look back on. Active ETF performance and proliferation was once again an important theme, and as the category matures, its standout performers ... ...