ETF of the Week: T. Rowe Price Value ETF (TVAL)

T. Rowe Price Value ETF (TVAL) is managed by T. Rowe Price and listed on U.S. exchanges. The fund provides exposure to stocks selected for their value characteristics and trades intra-day like other ETFs.

The manager builds the portfolio by selecting companies that trade at lower valuations relative to fundamentals. The process emphasizes measures such as price-to-earnings ratios, cash flow and balance-sheet strength when identifying potential holdings.

Investors can buy and sell TVAL during market hours. The ETF can be held in taxable accounts and in retirement accounts and offers consolidated exposure to multiple stocks through a single ticker.

Prospective buyers should review the fund’s prospectus and recent holdings to check sector weights, top positions, stock selection criteria and the expense ratio. Trading liquidity and how the ETF fits an investor’s risk tolerance and time horizon are other factors to consider.

T. Rowe Price operates mutual funds and separately managed accounts and has expanded its ETF lineup. The firm applies its research and security-selection process to ETF wrappers to make active strategies available in ETF form.

Value strategies target stocks that appear cheaper on common valuation measures than their peers. Growth strategies, by contrast, emphasize companies with higher expected earnings growth.

Exchange-traded funds offer intra-day trading and let investors hold a diversified basket of securities through a single security. Major asset managers have added ETF versions of both active and passive strategies to meet demand for the ETF structure.