T. Rowe Price’s TTEQ ETF up 23.6% YTD

T. Rowe Price’s active technology ETF TTEQ, managed by Dom Rizzo, launched in 2024. The fund has returned 23.6% year-to-date, compared with a 9.3% gain for the MSCI All Country World Index over the same period.

TTEQ charges a 63-basis-point fee. The fund uses an active strategy that allows investment in technology-related companies worldwide without being constrained by index sector labels.

Fund managers draw on T. Rowe Price’s fundamental research to evaluate companies using measures such as valuation, business prospects and potential for share-price appreciation. The fund can hold large, established technology companies as well as smaller firms developing new products or business models.

Index sector classifications can assign some technology-driven companies to other sectors, for example by placing certain large internet companies in a communications category rather than technology. TTEQ is not bound by those classifications and can include companies regardless of index labels.

Performance data shows a one-month gain of about 30.25% and roughly 63% over the past 12 months, based on available fund performance data.

The fund’s prospectus states its objective is to provide global exposure to companies the managers identify as technology-related in a single vehicle. Portfolio construction allows the managers to overweight or underweight individual holdings independent of index sector rules.

Investors should note the fund’s 63-basis-point fee is higher than many passive technology ETFs and that active funds rely on manager discretion when selecting holdings. Active ETFs have grown as a segment of the broader ETF market.