US fund management giant T Rowe Price plans to expand its active ETF business into Europe next year.
The Baltimore-based group, which has 1.8trn total assets, told ETF Stream: “Following the success and steady expansion of our ETF offerings in the US, we are now scoping the potential to launch European-listed active ETFs in the middle of 2026.”
Following the launch of two new actively managed exchange traded funds in the US last week, the Nasdaq-listed firm has a range of 30 active ETFs, 20 investing in equities and 10 in fixed income stocks with $20.6bn of assets.
The planned move into Europe follows other groups such as M&G and Goldman Sachs which have launched active ETFs this year.
In the US the group’s new active ETFs are the T Rowe Price Active Core US Equity ETF (TACU), an actively managed core US large-cap portfolio seeking to outperform the broad US equity market with 550-650 holdings.
The second one is the T Rowe Price Active Core International Equity ETF (TACN), an actively managed core international equity portfolio that seeks to outperform the broad global ex-US developed equity markets with 400-500 holdings.
Both ETFs are managed by a team comprising Jordan Pryor, Andrew Tang, Laurence Taylor and Joe Wolfe.
Our view
David Batchelor, senior analyst at QuotedData, said: “We are seeing new entrants to the European active ETF market literally every week, but this announcement from T Rowe Price feels particularly significant. The company is a massive player in the US, with $20.6bn in ETFs, all of which are active. It is also interesting that, from what can be gleaned from their public utterances, the new products in Europe may be fully transparent, rather than using the “semi transparent” model they use stateside – and which is now allowable in Europe following the recent announcements from regulators in both Ireland and Luxembourg. The early signs are that these changes are not leading to as much change in the market as the regulators assumed.”
