T. Rowe Price debuts TPUT, an active put-write ETF

T. Rowe Price has launched the T. Rowe Price Capital Appreciation Market Opportunities ETF (TPUT), an active put-write equity ETF led by David Giroux and managed alongside six additional portfolio managers. The fund uses option-writing within a rules-based framework to pursue income and opportunistic equity exposure.

TPUT sells put options to collect premiums and applies a dynamic asset allocation model to decide when to increase or decrease equity exposure. The firm says the strategy aims to deliver income above money-market returns and to add equity exposure systematically when conditions appear favorable.

The fund operates as a put-write wrapper around the Capital Appreciation approach. The rules-based process determines the fund’s equity allocation and the extent of option-writing at each decision point, with the portfolio shifting between more defensive stances and greater equity exposure based on model signals.

TPUT joins two other Capital Appreciation ETFs at T. Rowe Price: the Capital Appreciation Equity ETF (TCAF) and the Capital Appreciation Premium Income ETF (TCAL). The new launch is part of T. Rowe Price’s active ETF lineup, which includes 23 equity ETFs and 10 fixed-income ETFs and totals more than $25 billion in assets under management. The fund’s expense ratio is 25 basis points.

David Giroux, who leads the fund team, said, “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.”

Put-write strategies generate income by selling put options, which can lower the cost basis on shares purchased if options are assigned. They also expose the fund to downside risk if markets fall sharply. TPUT combines that income mechanism with a systematic allocation process intended to shift the portfolio between defensive and more equity-oriented positions as the model signals.

Tim Coyne, T. Rowe Price’s global head of ETFs, commented that the addition builds on the Capital Appreciation strategy and expands the firm’s active ETF offerings.