T. Rowe Price SMID ETF TMSL Marks Three-Year Anniversary

T. Rowe Price’s Small-Mid Cap ETF (TMSL) reached its three-year anniversary after returning 71.7% since its June 14, 2023 launch, compared with a 64.2% total return for the Russell 2500 over the same period. The fund carries an annual fee of 55 basis points.

The ETF is managed by portfolio manager Jodi Love at T. Rowe Price. It is an actively managed vehicle that invests in small- and mid-cap U.S. companies.

TMSL’s investment process is bottom-up and based on fundamental research. Fund managers evaluate company-level metrics such as book value, cash flow and sales. They also assess earnings quality, earnings stability and relative valuation when selecting holdings.

Top holdings include companies outside the largest technology and AI platform names. One example listed in the fund’s top positions is SanDisk Corporation (SNDK), which posted a strong one-month gain recently.

Market participants have cited concentration in mega-cap stocks as a reason some investors seek additional exposure to smaller companies. Active SMID strategies provide selective exposure across small and mid capitalization ranges and can be used within diversified portfolios.

The three-year record gives investors a standard period to review performance, risk and fees. The Russell 2500 is commonly used as a benchmark for small- and mid-cap strategies; TMSL’s three-year outperformance against that index is a primary performance data point for advisers and investors to consider.