The active ETF landscape has become a key part of the overall fund space in recent years. Active ETFs have pulled in outsize flows relative to their AUMs, with active driving much of the ETF launches in recent years. In an uncertain, potentially volatile economic landscape, active ETFs have a strong case to perform and play a big role this year. One such fund offers both a deep research focus and a key milestone within the next month.
Key Takeaways:
- Milestones can help investors identify funds poised for big moments, and TSPA has multiple ahead.
- As active ETFs have grown significantly in popularity, funds like TSPA have increasingly performed.
- Combining a flows spike and tech chart momentum, too, it could be a strong core plus offering right now.
The T. Rowe Price U.S. Equity Research ETF (TSPA ) will celebrate a big milestone this year, and it has seen a recent flows spike. TSPA, which charges a 34 basis point (bps) fee, has added more than a quarter billion in flows in just the last week. That makes up more than half of its total YTD flows.
The strategy leans heavily on T. Rowe Price’s fundamental research capabilities. TSPA launched in June 2021, making June 8 this year its fifth anniversary. What’s more, according to YCharts data, the fund is poised to cross $3 billion in AUM for the first time.
That momentum is also reflected in the fund’s tech chart data. The strategy’s price has risen above both its 50- and 200-day simple moving averages. That offers a traditional indicator of a fund’s overall momentum.
Together, it has returned 9.5% YTD and 32% over the last year, according to ETF Database data. What’s more, that has outperformed TSPA’s ETF Database Large Cap Blend Equities Category average in those time frames. The average came in at 7.85% YTD and 25.36% over one year.
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According to its prospectus, the strategy looks to create a portfolio broadly similar to the S&P 500 while over- or underweighting individual stocks to outperform. Together, it has taken that approach and outperformed the S&P 500 YTD, and over the last three years, per YCharts. For those looking for an active ETF that may be poised for a big summer, TSPA could be one to watch.
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