T. Rowe Price’s TVAL uses research to pick large-cap value

The T. Rowe Price Value ETF (TVAL) applies company-by-company fundamental research to construct a large-cap value portfolio. Portfolio managers Gabriel Solomon, Donald Peters and Jodi Love screen businesses for signs of undervaluation, temporary weakness or underappreciated assets. The strategy includes active tax monitoring intended to improve after-tax returns, according to T. Rowe Price.

As of March 31, the fund’s top holding was Alphabet Inc. at 4.8%, followed by Micron Technology at 2.5% and Advanced Micro Devices at 2.4%; Intel appears among the top 15 holdings. Sector exposure was led by financials at 19.4%, industrial and business services at 13.2%, and information technology at 13.0%. The fund reported $723.8 million in assets, net flows of $39.35 million over the prior month and $118.7 million year-to-date, an expense ratio of 0.33% and a year-to-date return of 14.9%, per the fund factsheet and public filings.

TVAL’s active approach contrasts with passive value ETFs that follow predefined index rules. Index-based value funds use metrics such as price-to-book and earnings-to-price to determine inclusion. Different index constructions can produce distinct portfolios while delivering similar long-term returns; some indexes draw a hard line between value and growth, while others reclassify names more quickly, prompting turnover in top holdings as qualification rules change. For example, certain passive value indexes listed Microsoft and Meta among top holdings in 2023 but had shifted to include Apple, Costco and Tesla in top positions by early 2026 as index criteria altered the line-up.

T. Rowe Price’s managers pursue stocks that rule-based screens might miss, including large-cap technology and semiconductor companies that can be excluded or moved between value and growth categories by short-term metric changes. Micron and Intel are among the larger positions that reflect that research-driven selection.

Investors comparing value offerings should consider construction methods, fees, turnover and tax management. TVAL’s 0.33% expense ratio is within the competitive range for active ETFs, and the fund’s tax monitoring is presented as a factor that can affect net returns for taxable accounts. Reported asset flows and year-to-date performance indicate ongoing investor activity in the fund.