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Explorer ○○

T. Rowe Price finally issued 4 ETF

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Frequent Contributor

Re: T. Rowe Price finally issued 4 ETF

 

Thanks for info, Bondman

This looks promising...except for the expense ratio is quite high for these ETFs.

For instance, Vanguard's Dividend Growth ETF has an ER of 0.08%...compared to 0.50 ER for Price.  This is a huge difference.

Consider it this way.  VIGs dividend yield is maybe 2.7+%; subtracting .08 from such dividends is a much smaller hit than subtracting .5 ER. 

With Price you are now giving up about 20% of your fund received dividends!

R48

 

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Frequent Contributor

Re: T. Rowe Price finally issued 4 ETF


@Bond100 wrote:

 

Finally T. Rowe Price issued 4 ETFs:

https://www.troweprice.com/personal-investing/tools/fund-research/etf#content-nav

 

 


@Bond100  thanks for the info. I will keep a watch list on these. Years ago I had a TRP Account and know they have good funds. Hopefully in time the expense ratios will come down. I will probably wait for that and to see if volume increases and spreads are thin. I've been watching the Fidelity active management ETFs and so far I am still not sold on them. Thanks again.

Capital
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Contributor ○

Re: T. Rowe Price finally issued 4 ETF

Any reason not to replace t row blue chip fund by its etf.  I save 0.12% in expense ratio.

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Explorer ○○

Re: T. Rowe Price finally issued 4 ETF

 

"Any reason not to replace t row blue chip fund by its etf.  I save 0.12% in expense ratio."

 

The 0.12% diffrence is an important factor. There are other factors to consider too.

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Participant ○○

Re: T. Rowe Price finally issued 4 ETF

 

Taxable event for ya?

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Contributor ○

Re: T. Rowe Price finally issued 4 ETF

No. It is in retirement account. But that is a very good point.

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Participant ○

Re: T. Rowe Price finally issued 4 ETF

I got excited, until I saw this:

This ETF is different from traditional ETFs.

Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks  for your investment. For example: 

  • You may have to pay more money to trade the ETF’s shares. This ETF will provide less information to traders, who tend to charge more for trades when they have less information. 

  • The price you pay to buy ETF shares on an exchange may not match the value of the ETF’s portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders.

  • These additional risks may be even greater in bad or uncertain market conditions.

  • The ETF will publish on its website each day a “Proxy Portfolio” designed to help trading in shares of the ETF. While the Proxy Portfolio includes some of the ETF’s holdings, it is not the ETF’s actual portfolio.

The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF secret, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF’s performance. If other traders are able to copy or predict the ETF’s investment strategy, however, this may hurt the ETF’s performance.

For additional information regarding the unique attributes and risks of the ETF, see the fund's prospectus.

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Contributor ○○○

Re: T. Rowe Price finally issued 4 ETF

 

T. Rowe Price is concerned that traders will try to emulate the ETF's holdings which can be detrimental to fund performance. Many firms are reluctant to publish real-time holdings for active equity ETFs. It will be interesting to watch the bid/ask spread for these new "semi-transparent" T. Rowe Price ETFs.

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