Seven new ETF and two new ETN offerings was launched for the week, each with a distinct value proposition for investors. Detailed below are the respective launches from each asset manager.
T. Rowe Price launched five actively managed solutions. These five ETFs are the firm’s first fully transparent active equity offerings, each representing building-block strategies that focus on several major elements of the equity market. Each new ETF leverages the firm’s world-class fundamental global research platform, providing an investment experience that is separate and distinct from existing T. Rowe Price investment solutions. The new T. Rowe Price active equity ETFs are:
T. Rowe Price Capital Appreciation Equity ETF, which invests in a diversified portfolio of large US companies of both growth and value styles. The ETF holds securities of companies displaying favorable traits, such as experienced and capable management, strong risk-adjusted return potential, leading or improving market position or proprietary advantages, and/or attractive relative market valuations.
T. Rowe Price Growth ETF, which invests in primarily large-cap stocks with an above-average rate of earnings, cash flow growth, and a lucrative niche in the economy that gives them the ability to sustain earnings momentum even during times of slow economic growth.
T. Rowe Price International Equity ETF, which invests in a broadly diversified equity portfolio of companies across the market cap spectrum, with the majority of its exposure from developed non-US regions and countries; may select stocks with growth or value characteristics while remaining mindful of the global economic backdrop.
T. Rowe Price Small-Mid Cap ETF, which invests in a broadly diversified portfolio of small- and mid-cap US stocks; may select stocks with growth or value characteristics.
T. Rowe Price Value ETF, which invests in a diversified portfolio of large-cap stocks that appear to be undervalued by various measures, and may be temporarily out of favour, but have good prospects for capital appreciation.
The Future Fund LLC launched the Future Fund Long/ Short ETF. This fund is a high-conviction, risk-managed long/short strategy that provides the potential to capitalise on key megatrends driving the economy. The managers of the fund will use e a deep fundamental research process to select concentrated investments that may profit from emerging technological or social trends and developments. For investors, this solution provides a unique opportunity to invest in a hedged portfolio of leading secular growth companies ideal for today’s choppier economic environment.
Global X ETFs launched the Global X 1-3 Month T-Bill ETF. The fund provides investors with exposure to short-term Treasuries and seeks to provide investment results that correspond to the Solactive 1-3 Month U.S. T-Bill Index.
BMO Capital Markets Corp. launched two exchange traded notes. The MAX Airlines 3x Leveraged ETNs and MAX Airlines -3x Inverse Leveraged ETNs are linked to the Prime Airlines Index, with the former being three times (3x) leveraged participation in the daily performance of the index, while the latter is three times (3x) inverse leveraged participation in the index’s daily performance.
Launched in 2023, MAX is the leveraged and inverse leveraged ETN brand of BMO Capital Markets. MAX ETNs provide investors with tactical leveraged exposure to market sectors to manage risk and potentially enhance returns.
