The post-coronavirus market rally has heightened index
concentration on mega technology companies and widened the disparity between
other segments of the market, elevating risks to traditional indexes that are
now heavily weighted with big tech names.
In the upcoming webcast, Have Indexes Gained Too Much
Weight? Get Active in 2021, Larry J. Puglia, Portfolio Manager, T. Rowe Price;
and Christopher Dillon, Investment Specialist, Multi-Asset, T. Rowe Price, will
discuss the investment outlook for 2021 and highlight how active strategies may
be better positioned to manage market concentration risks and capture
opportunities in other areas of the market.
T. Rowe Price offers four actively managed ETF strategies,
including the T. Rowe Price Blue Chip Growth ETF (TCHP), T. Rowe Price Dividend
Growth ETF (TDVG), T. Rowe Price Equity Income ETF (TEQI), and T. Rowe Price
Growth Stock ETF (TGRW).
The T. Rowe Price Blue Chip Growth ETF seeks to provide
long-term capital growth by investing in common stocks of large and
medium-sized blue-chip companies that have the potential for above-average
earnings growth.
The T. Rowe Price Dividend Growth ETF seeks dividend income
and long-term capital growth by investing the majority of its assets in the
common stocks of dividend-paying companies expected to increase their dividends
over time.
The T. Rowe Price Equity Income ETF seeks a high level of
dividend income and long-term capital growth by investing most of its assets in
common stocks, with an emphasis on large-capitalization stocks that have a
strong track record of paying dividends, or that are believed to be
undervalued.
Lastly, the T. Rowe Price Growth Stock ETF seeks long-term
capital growth and invests in companies that have one or more of the following:
superior growth in earnings and cash flow, the ability to sustain earnings momentum
even during economic slowdowns, occupation of a lucrative niche in the economy,
and the ability to expand even during times of slow economic growth.
Constructed similarly to flagship investment strategies that
have served T. Rowe Price clients well for decades, the active ETFs use the
same portfolio managers as their corresponding mutual funds, and employ the
firm’s long-standing strategic investing approach, characterized by rigorous
research, risk awareness, and independent decision making.
T. Rowe Price active ETFs complement the firm’s traditional
mutual fund offerings and deliver the key features associated with existing
ETFs that some investors may prefer, including continuous daily trading,
real-time market determined pricing, and tax efficiency. Over time, T. Rowe
Price plans to deliver a robust ETF product lineup covering investments in
various asset classes.
All four of T. Rowe Price active ETFs also feature a
proprietary portfolio disclosure process that ensures market makers have enough
information to quote prices with a high degree of confidence, while
simultaneously protecting the intellectual property of the firm’s investment
professionals and the interests of its mutual fund shareholders. The
proprietary non-transparent actively managed ETF wrapper may also attract more
money managers into the ETF space, providing active managers with a way to
capture the benefits of the ETF investment structure while protecting their
secret sauce from potential frontrunners.
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