T. Rowe Price & David Giroux: New Dynamic Allocation ETF

T. Rowe Price has been a notable player in the active ETF landscape for many years, innovating on the strategies available in the wrapper. Now, the shop has added another active ETF to its suite: the T. Rowe Price Capital Appreciation Market Opportunities ETF (TPUT). The fund is the latest from a team led by David Giroux, with the strategy offering an intriguing combination of of income with a dynamic equity allocation via a put-write strategy.

Key Takeaways:

• T. Rowe Price’s active ETF suite is growing more and more, with the latest one from manager David Giroux.
• The fund uses a put-write strategy to offer some helpful income to investors in addition to systematic equity allocations.
• For investors looking to add active exposure, the strategy could make for a strong opportunity.

The new active equity income ETF charges a 25 basis point fee. According to a release from the firm, the strategy looks to provide income over money markets while targeting equities at favorable times. The overall portfolio manager team includes Giroux and six other managers. 

TPUT joins two other capital appreciation funds the shop offers, including the T. Rowe Price Capital Appreciation Equity ETF (TCAF) and the T. Rowe Price Capital Appreciation Premium Income ETF (TCAL). These are among the firm’s total lineup of 23 equity ETFs and 10 fixed income ETFs, bringing total AUM for its active ETFs to over $25 billion. 

“Through TPUT, we’re able to offer clients access to another solution that harnesses our team’s distinct capabilities and deep expertise – this time by leveraging our dynamic asset allocation model in a put-write strategy,” said Giroux. 

“In today’s market, as many investors consider how to best manage sideline cash, this innovative ETF affords a compelling way to make cash work smarter—providing disciplined risk management, enhanced yield and the potential for long-term capital growth at moments of opportunity,” he added. 

“Today’s addition of the T. Rowe Price Capital Appreciation Market Opportunities ETF furthers the momentum and strength of our active ETF lineup,” said T. Rowe Price Global Head of ETFs Tim Coyne. “Building on the proven strengths of the Capital Appreciation strategy, TPUT introduces another forward-thinking solution designed to help meet our clients’ diverse portfolio needs.”

See more: Get This Year’s Ultrashort Bond Sweet Spot in TBUX

Looking ahead, the fund’s put-write strategies could make it a dynamic equity and income ETF to watch. Managed by David Giroux, like some of the firm’s other ETFs, it could help offer both income and upside in a complicated market. 

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