Tim Coyne, Head of Exchange Traded Funds at T. Rowe Price, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss how active products are changing the ETF market.
T. Rowe Price entered the ETF space in 2020, and now offers 10 equity and 5 fixed-income ETFs. ETFs allow T. Rowe Price to expand relationships with existing clients and open relationships with new advisors who are attracted to the ETF format.
Historically, ETFs were considered to be passive vehicles, but the last three years have seen the launch of a large number of actively managed ETFs. Over time, advisors have been increasingly expressing a preference for investing in ETFs. Managers have been launching ETF versions of their long-standing actively managed strategies to meet this demand.
The key benefits of ETFs are tax efficiency, lower management fees, and the ability to trade intraday. In addition, active ETFs offer frequent, often daily, position transparency.
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