T. Rowe Price has introduced its first ETFs via a series of four nontransparent active equity funds.
They are the Blue Chip Growth ETF (TCHP, with a net expense ratio of 0.57%); Dividend Growth ETF (TDVG, 0.50%); Equity Income ETF (TEQI, 0.54%); and Growth Stock ETF (TGRW, 0.52%), all listed on the New York Stock Exchange Arca.
The ETFs use the same investment strategies and portfolio managers that manage their corresponding mutual funds, but their expense ratios are slightly lower.
State Street said it was appointed to serve as service provider for the four active ETFs.
“Active ETFs are an important strategic initiative for T. Rowe Price, serving as a potential avenue for growth and a complement to our existing offerings, including mutual funds, separately managed accounts and collective investment trusts,” Scott Livingston, head of Global ETF Product for the asset manager, told ThinkAdvisor.
T. Rowe Price hadn’t introduced active ETFs until now, because it “could not do so in a way that would protect the intellectual property of our investing approach and the interest of our investors,” according to Livingston.
“That changed recently when the SEC gave approval to our proprietary process that allows us to package our active investments strategies in an ETF wrapper while protecting our investment intellectual property,” he added.
WisdomTree ETF News
Several enhancements have been made to the WisdomTree Modern Tech Platforms Fund, which has been renamed the WisdomTree Growth Leaders Fund to “better reflect its positioning.”
One of those enhancements is a lower price. The ETF’s net expense ratio has been reduced to 20 basis points from 45, but its ticker on the NYSE Arca remains PLAT.
“Platform companies are transforming business and the enhancements we’ve made to PLAT better position the fund in the important growth category,” according to Jeremy Schwartz, global head of research at WisdomTree.
“PLAT will continue to seek to provide exposure to high growth, mid and large market capitalization companies – more than the typical FAANG stocks – and now includes a growth screen criteria to emphasize the growth leaders aspect of it, in addition to providing lower fees,” he said in the announcement.
Franklin Templeton’s Latest Green Bond Fund
Franklin Templeton has launched the Franklin Municipal Green Bond Fund, which is listed on the Nasdaq (FGBKX, with a net expense ratio of 0.46%).
The new fund seeks to maximize income exempt from federal income taxes by investing in green bonds, including climate bonds, sustainability bonds and environmental impact bonds, the company said.
The fund will invest at least 80% of its net assets in muni green bonds, it noted. U.S. muni green bond issuers include states, cities, municipal water and sewer enterprises, transportation systems, universities and hospitals.
“The muni green bond universe is expanding, and for investors, green bonds provide an opportunity to dedicate capital to projects and programs that have a defined environmental purpose,” according to Ben Barber, director of municipal bonds for Franklin Templeton Fixed Income.
The fund also may have up to 100% of its assets in securities that pay interest subject to the federal alternative minimum tax, Franklin noted. Its managers will “leverage the same fundamental, bottom-up research analysis employed throughout the team’s range of municipal bond strategies,” the company added.
TrueMark Lists Second Structured Outcome ETF
TrueMark Investments has introduced the TrueShares Structured Outcome (August) ETF (AUGZ on the Cboe, 0.79% net expense ratio).