T. Rowe Price Introduces Two New Transparent Active Equity ETFs: Capital Appreciation Premium Income and Hedged Equity
Baltimore, MD – March 27, 2025
T. Rowe Price (TRP), a leading global investment management firm, is pleased to announce the launch of two new actively managed transparent equity exchange-traded funds (ETFs) on the New York Stock Exchange (NYSE). The new offerings, T. Rowe Price Capital Appreciation Premium Income Fund (BALTIMORE, MD – March 27, 2025) – T. Rowe Price (TRP), a leading global investment management firm, is proud to announce the introduction of two new actively managed transparent equity exchange-traded funds (ETFs): T. Rowe Price Capital Appreciation Premium Income (CAPP) and T. Rowe Price Hedged Equity (HEDG).
About the New ETFs
Both CAPP and HEDG are designed to provide investors with unique equity investment strategies, delivering potential capital appreciation, income, and downside protection, respectively. The funds will be sub-advised by Winslow Capital Management, LLC, a Boston-based investment firm known for its equity income and alternative equity strategies.
Capital Appreciation Premium Income (CAPP)
CAPP is an actively managed equity income ETF that seeks to provide a high level of current income, with a secondary objective of capital appreciation. The fund utilizes a rules-based, quantitative approach to identify high dividend-paying U.S. equities with strong growth potential. The fund’s portfolio is constructed through a combination of fundamental analysis and quantitative modeling, providing investors with a diversified equity income strategy.
Hedged Equity (HEDG)
HEDG is an actively managed equity ETF designed to provide capital appreciation through a long/short equity strategy. The fund seeks to generate returns by investing in a portfolio of U.S. equities and short selling a select group of U.S. equities. HEDG’s investment team employs a disciplined, fundamental research-driven approach to identify both long and short positions, aiming to deliver downside protection and capital appreciation.
Impact on Individual Investors
These new ETFs offer investors unique equity investment strategies tailored to their specific financial objectives. CAPP caters to those seeking a high level of income with the potential for capital appreciation, while HEDG appeals to investors looking for capital appreciation through a long/short equity strategy with downside protection.
Impact on the World
The introduction of these new ETFs signifies T. Rowe Price’s continued commitment to expanding its ETF lineup and catering to the evolving investment needs of its clients. With the increasing popularity of ETFs and the growing demand for transparent active equity strategies, these new offerings are expected to attract a significant following in the global investment community.
Conclusion
T. Rowe Price’s addition of the Capital Appreciation Premium Income and Hedged Equity ETFs marks a significant milestone in the firm’s ongoing efforts to provide innovative investment solutions for its clients. By partnering with Winslow Capital Management, T. Rowe Price is able to offer investors unique equity investment strategies that cater to their specific financial objectives. As the ETF market continues to grow and evolve, these new offerings are poised to make a significant impact on both individual investors and the global investment community.
- T. Rowe Price introduces two new actively managed transparent equity ETFs: Capital Appreciation Premium Income (CAPP) and Hedged Equity (HEDG).
- Both funds are sub-advised by Winslow Capital Management, LLC.
- CAPP is an equity income ETF designed to provide a high level of current income and potential capital appreciation.
- HEDG is a long/short equity ETF designed to provide capital appreciation with downside protection.
- The introduction of these new ETFs signifies T. Rowe Price’s commitment to expanding its ETF lineup and catering to the evolving investment needs of its clients.
