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T. Rowe Price adds two more ETFs that combine active and passive investing

Management fees are waived for the first 13 months

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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.
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Key Insights

  • Two new retirement-focused investment options: T. Rowe Price has launched two new actively managed stock ETFs designed to provide broad diversification with professional oversight.
  • No management fees for more than a year: The firm is waiving all fees for the first 13 months, lowering costs for early investors.
  • Active management with ETF benefits: The funds aim to combine the growth potential of active investing with the flexibility and tax efficiency of ETFs.

T. Rowe Price, a global investment management firm and specialist in retirement investing, has introduced two new exchange-traded funds (ETFs) that may appeal to seniors and retirees seeking diversified stock exposure with professional management.

The new funds—T. Rowe Price Active Core U.S. Equity ETF (TACU) and T. Rowe Price Active Core International Equity ETF (TACN)—began trading in December on the NYSE Arca. To encourage investors to try the funds, T. Rowe Price is waiving management fees for the first 13 months.

Both ETFs use active management, meaning experienced investment professionals select individual stocks rather than simply tracking a market index. At the same time, the funds are designed to keep costs low and limit how much performance deviates from broad market benchmarks—features more commonly associated with passive index funds.

What the funds invest in

  • TACU focuses on large U.S. companies and holds approximately 550 to 650 stocks. Its goal is to outperform the overall U.S. stock market over time.
  • TACN invests in developed international markets outside the United States, with about 400 to 500 holdings, aiming to outperform global ex-U.S. stock markets.

The ETFs are managed by a seasoned team of professionals, including four CFA charterholders with investment experience ranging from 11 to 26 years. The team approach may appeal to retirees who value stability, discipline, and oversight in their investments.

Why this matters for retirees

For retirees and near-retirees, managing risk and costs is often just as important as seeking growth. ETFs can offer tax efficiency, lower expenses, and the flexibility to buy or sell shares throughout the trading day. By combining these features with active management, T. Rowe Price said it aims to provide a middle ground between traditional index funds and higher-cost actively managed mutual funds.

With these launches, T. Rowe Price now offers 30 active ETFs—20 focused on equities and 10 on fixed income—giving investors vehicles to tailor portfolios to their income needs, risk tolerance, and long-term goals.

For seniors reviewing their retirement portfolios, the new Active Core ETFs may be worth discussing with a financial adviser—especially during the fee-free introductory period—when evaluating options for long-term growth and diversification.