HomeMarketsT. Rowe Price’s zero-fee TACN ETF targets cheaper foreign stocks

T. Rowe Price’s zero-fee TACN ETF targets cheaper foreign stocks

Posted: 27 May 2026, 12:20 CET 2 min read

T. Rowe Price launched TACN, a zero-fee international equity ETF, offering exposure to developed non-U.S. stocks trading at a 23% forward P/E discount to the S&P 500.

T. Rowe Price launched the Active Core International Equity ETF (TACN) in December 2025. The fund uses quantitative models and fundamental research to build a portfolio of roughly 400 to 500 large- and mid-cap non-U.S. companies. A fee waiver makes the ETF’s expense ratio 0% as of Jan. 30, 2027; the firm’s listed ongoing expense ratio after the waiver is 0.14%.

TACN provides exposure to developed international stocks that traded at a 23% forward price-to-earnings discount to the S&P 500 as of March 31, according to the firm. The ETF offers access to non-U.S. equities while the seven largest U.S. tech-related companies account for about 32% of the S&P 500’s market value, up from roughly 14% in 2019.

T. Rowe Price’s analysis of FactSet data shows developed-market earnings per share growth accelerated to an annual rate of 5.2% after the pandemic, compared with 1.7% before it. World Bank data indicate the number of listed non-U.S. companies has increased 38% since 1999, while listed U.S. companies have contracted about 44% over the same period.

The firm’s report cites regional developments such as corporate governance reforms in Japan, rising defense and infrastructure spending in parts of Europe, and manufacturing expansion in parts of Asia. The report notes artificial intelligence applications have spread beyond U.S. cloud and software to industrial automation in Europe, semiconductor production in Asia, and digital platforms in emerging markets.

TACN’s largest holdings include ASML Holding at about 3.06% of assets, AstraZeneca at about 1.69% and Shell at about 1.44%, per T. Rowe Price. The fund has returned 8.48% year to date, based on available ETF performance data.

T. Rowe Price presents TACN as an actively managed fund that selects a broad set of non-U.S. large- and mid-cap names rather than tracking a single benchmark. The firm’s research notes risks tied to heavy concentration in a small number of U.S. mega-cap stocks, which can affect overall portfolio exposure.