Core Insights - Active investing is gaining traction as investors seek diversification beyond major technology stocks, with strategies that combine data-driven models and managerial judgment becoming more popular than passive approaches [1][2] - Smart beta ETFs attracted approximately $37 billion in 2025, indicating a shift towards rules-based active strategies that allow for managerial flexibility in response to market conditions [1][6] Investment Strategies - Rules-based active strategies utilize analytical frameworks similar to smart beta funds but provide portfolio managers the ability to adjust holdings based on market dynamics rather than fixed schedules [2][3] - T. Rowe Price has launched two active ETFs, TACU and TACN, which hold significantly more positions than typical active funds, with TACU containing 550-650 holdings and TACN holding 400-500 positions [4][5] Fund Management Approach - The new active ETFs from T. Rowe Price combine quantitative research with fundamental analysis, allowing for low tracking error against benchmarks while enabling active management when opportunities arise [5] - This dual approach differentiates these funds from purely quantitative strategies and traditional fundamental approaches, as they leverage both data models and analyst insights [5] Market Trends - Predictions indicate that inflows into smart beta and quantitative strategies will continue to rise in 2026, with the distinction between smart beta and quantitative active management becoming increasingly blurred [6]

Group 1 - The stock market is expected to be flat to slightly down in 2026, indicating a shift towards active investing rather than passive strategies [1] - Significant changes in underlying category leadership within the market are anticipated for the year [1] Group 2 - Gary Alexander has extensive experience in technology, having worked on Wall Street and in Silicon Valley, and advises seed-round startups [2] - His contributions have been featured on Seeking Alpha since 2017 and are syndicated to popular trading apps like Robinhood [2]

In a world full of get-rich-quick schemers, Tae Kim is a breath of fresh air. His “Financial Tortoise” videos preach patience over brash gambles and overcomplicated portfolios, and like many smart investors, Kim promotes wealth-building techniques that are safe, slow and steady. Common sense dictates that people that earn more money have access to better knowledge, opportunities and resources, and as a result, have more success investing their money. However, Kim believes the opposite. In fact, he believ ...

Core Insights - The approaching end of the year signals the start of tax loss harvesting season, which can significantly benefit portfolios in a complex year like 2025 [1][2] - Tax loss harvesting allows investors to sell underperforming assets to lower their overall tax bill, provided they avoid the wash sale rule by reinvesting in substantially different assets [2][3] Group 1: Tax Loss Harvesting - Tax loss harvesting is a strategy that can help investors manage their tax liabilities by selling assets at a loss [2] - The wash sale rule necessitates that investors reinvest in different assets to avoid tax complications, creating opportunities for active investment strategies [2][3] Group 2: Active ETFs - Active ETFs are gaining popularity as they offer a tax-efficient wrapper and the flexibility of active management, making them suitable for tax loss harvesting [3][4] - The creation and redemption mechanism of ETFs results in fewer taxable events compared to mutual funds, enhancing their appeal for investors [4] Group 3: Example Fund - The T. Rowe Price Capital Appreciation Equity ETF (TCAF) is highlighted as a potential option for investors looking to refresh their portfolios, managed by David Giroux with a focus on fundamental research [5]

Core Insights - The T. Rowe Price Intermediate Municipal Income ETF (TAXE) offers an active investment approach in the tax-exempt ETF category, leveraging T. Rowe Price's research capabilities to provide income through municipal bonds exempt from federal income taxes [1][2]. Investment Strategy - TAXE charges a competitive fee of 24 basis points and targets intermediate maturity municipal bonds across various credit ratings and categories [2]. - The fund's active managers evaluate multiple factors such as prices, yields, credit quality, interest rates, and economic conditions to assess investment potential, allowing for flexibility to include high-yield municipal bonds [3]. Performance Metrics - Year-to-date, TAXE has returned 3.3%, outperforming the FactSet Segment average of 2% during the same period [4]. - The fund has achieved a yield to maturity of 4.07% as of August 31, according to T. Rowe Price data [4]. Advantages of Active Management - Active management in tax-exempt ETFs addresses limitations faced by passive funds, such as early bond calls that can disrupt allocations [4]. - T. Rowe Price's managers utilize the firm's fundamental research capabilities to gain deeper insights into the municipal bond market, potentially enhancing portfolio performance [4].

Group 1 - The article invites active investors to join a free trial and engage in discussions with sophisticated traders and investors [1] Group 2 - There are no disclosed stock, option, or derivative positions in any of the companies mentioned, nor plans to initiate such positions within the next 72 hours [2] - The article expresses the author's own opinions and is not receiving compensation from any company mentioned [2] Group 3 - Past performance is not indicative of future results, and no specific investment recommendations are provided [3] - The views expressed may not reflect those of Seeking Alpha as a whole, and the analysts may not be licensed or certified [3]

Group 1 - The article invites active investors to join a free trial and engage in discussions with sophisticated traders and investors [1] Group 2 - There are no disclosed stock, option, or derivative positions in any of the companies mentioned, nor plans to initiate such positions within the next 72 hours [2] - The article expresses the author's own opinions and is not receiving compensation from any company mentioned [2] Group 3 - Past performance is not indicative of future results, and no specific investment recommendations are provided [3] - The views expressed may not reflect those of Seeking Alpha as a whole, and the analysts may not be licensed or certified [3]