Business · July 6, 2020 0

T. Rowe Price Receives Approval For Active Exchange-Traded Funds

Four equity ETFs to make debut using long-standing strategic investing approach; funds will list on NYSE Arca, Inc., launch date to be determined

BALTIMORE, MD (STL.News) T. Rowe Price (NASDAQ-GS: TROW) announced that the U.S. Securities & Exchange Commission (SEC) has granted the remaining approvals necessary for the firm to bring to market four active exchange-traded funds (ETFs), which will be listed on NYSE Arca, Inc.  These latest milestones clear the path for T. Rowe Price to introduce ETFs in an active management format that has characterized the firm’s investment approach for more than 80 years.

Constructed similarly to investment strategies that have served clients well for decades, the first T. Rowe Price active ETFs will include the Blue Chip Growth ETF, the Dividend Growth ETF, the Equity Income ETF, and the Growth Stock ETF.

The active ETFs will use the same investment strategies and portfolio managers as their corresponding mutual funds.  While many existing ETFs track passive indexes, the T. Rowe Price active ETFs will employ the firm’s established strategic investing approach, characterized by rigorous research and risk awareness, and carried out by more than 600 investment professionals around the globe.

ETFs will diversify and complement T. Rowe Price’s traditional mutual fund offerings for investors who prefer the intraday trading, tax efficiency, and cost structure ETFs provide.  However, the firm believes mutual funds will remain a key vehicle for many investors.

The T. Rowe Price active ETFs will offer the key features associated with existing ETFs, including continuous daily trading, real-time market determined pricing, and tax efficiency, but with the opportunity for investors to pursue returns in excess of market indexes.

T. Rowe Price’s active ETFs will feature a proprietary portfolio disclosure process that will ensure market makers have enough information to quote prices with a high degree of confidence, while it also protects the intellectual property of the firm’s investment professionals and the interests of its funds shareholders.

Over time, T. Rowe Price plans to deliver a robust ETF product lineup covering investments in various asset classes.

Through strategic alliances, T. Rowe Price plans to offer its active ETF model to other asset managers interested in bringing their own active ETFs to market.

T. Rowe Price anticipates launching its active ETFs in 2020.

NOTE: this is NOT the complete release.

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