T. Rowe Price Value ETF TVAL named ETF of the Week

Todd Rosenbluth, head of research at VettaFi, selected the T. Rowe Price Value ETF (TVAL) as his “ETF of the Week” during a recent podcast appearance. He cited the fund’s three-year record and recent returns as reasons for attention and noted it is slated to receive a Morningstar rating based on that three-year history.

Rosenbluth highlighted that TVAL recorded an unusually strong rolling 12-month return of about 30%, performance that stands out within the large-cap value category. He said that result helped prompt the pick and placed the fund on advisors’ radars.

TVAL is an actively managed large-cap value ETF managed by T. Rowe Price. Rosenbluth pointed to top holdings that include Micron Technology at roughly 2% of the fund, alongside energy and financial sector positions such as Exxon Mobil and Bank of America. He described the portfolio as reflecting active stock selection and sector diversification rather than strict index tracking.

On differences between active and index-based value approaches, Rosenbluth noted index funds can retain larger weightings of high-performing names because they follow fixed rules. He added that active managers have the discretion to trim positions as fundamentals change and urged investors to have confidence in the portfolio team when selecting an active ETF. “If you’re going to choose an active ETF, you have to have confidence in the T. Rowe Price team to assess whether there’s still room for the stock to run,” he said.

Rosenbluth said TVAL fits a middle ground for investors: it offers active value exposure in an ETF structure that generally provides lower costs and tax efficiency compared with some mutual funds. He suggested the fund can complement existing value holdings or serve as an alternative for investors who want active value exposure within an ETF wrapper.

Rosenbluth also reviewed T. Rowe Price’s ETF lineup and growth in ETF assets. He noted the firm expanded beyond ETF versions of mutual funds to include sector, fixed-income and options-based ETFs. According to his remarks, T. Rowe Price’s ETF assets recently passed $25 billion and were approaching $30 billion, while TVAL itself was nearing $1 billion in assets under management.

Rosenbluth advised investors to evaluate TVAL on its own merits, understand the fund’s investment process, and consider how it relates to any existing value exposure in their portfolios.