T. ROWE PRICE LAUNCHES ACTIVE CORE ETFs BLENDING BENEFITS OF ACTIVE AND PASSIVE INVESTING; FEES WAIVED THROUGH JANUARY 2027

Rhea-AI Summary

T. Rowe Price (TACN) launched two active equity ETFs on Dec 11, 2025: T. Rowe Price Active Core U.S. Equity ETF (TACU) and T. Rowe Price Active Core International Equity ETF (TACN), trading on NYSE Arca.

Both funds combine active fundamental and quantitative security selection with low tracking error targets. TACU holds approximately 550–650 securities; TACN holds approximately 400–500. Gross expense ratios are 0.14% (TACU) and 0.20% (TACN), with fees fully waived through Jan 30, 2027, making net expense ratios zero during the waiver. Portfolio teams include Jordan Pryor, Andrew Tang, Laurence Taylor, and Joe Wolfe. These launches bring the firm to 30 active ETFs (20 equity, 10 fixed income).

Positive

• Fees fully waived through Jan 30, 2027
• TACU targets 550–650 holdings for diversification
• TACN targets 400–500 international holdings
• Gross expense ratios of 0.14% (TACU) and 0.20% (TACN)
• Adds to 30 active ETFs lineup (20 equity, 10 fixed income)

Negative

• Gross expense ratios >0% if waiver ends after Jan 30, 2027
• No disclosed performance track record for new ETF strategies

Key Figures

TACU gross expense ratio 0.14% Stated fund fee before waiver

TACN gross expense ratio 0.20% Stated fund fee before waiver

Fee waiver duration 13 months Fees waived through January 30, 2027

Net expense ratios during waiver 0% TACU and TACN net expense ratios during waiver period

TACU holdings range 550–650 holdings Target number of securities in U.S. Large Cap portfolio

TACN holdings range 400–500 holdings Target number of securities in international portfolio

Active ETFs total 30 ETFs T. Rowe Price active ETF lineup after these launches

Equity vs fixed income ETFs 20 equity, 10 fixed income Breakdown of active ETF lineup

Market Reality Check

$104.90 Last Close

Volume Volume 1,522 matches the 20-day average, typical for a launch session. normal

Market Pulse Summary

This announcement highlights the launch of TACN as an actively managed international equity ETF with a 0% net expense ratio during a 13-month fee waiver, supported by T. Rowe Price’s fundamental and quantitative research. Investors may focus on the stated holdings range, expense structure after January 30, 2027, and how the ETF’s performance and liquidity evolve versus broad developed ex-U.S. equity benchmarks over time.

Key Terms

exchange-traded funds financial

"announced today the addition of two new active equity exchange-traded funds (ETFs)"

An exchange-traded fund is an investment product that bundles many stocks, bonds, or other assets into a single package that trades on a stock exchange like an individual share; think of it as a ready-made basket you can buy or sell throughout the trading day. For investors it matters because ETFs provide easy access to broad exposure, typically lower costs and built-in diversification, and the ability to adjust positions quickly without buying each asset separately.

tracking error financial

"combine the low tracking error of index portfolios and the firm's hallmark active"

Tracking error measures how much a portfolio's returns differ from its benchmark over time, expressed as the typical size of those differences. It matters to investors because a low tracking error means the portfolio reliably follows the benchmark—important for index and passive strategies—while a high tracking error signals bigger, less predictable departures that can reflect active bets or extra risk; think of it as how closely a car follows a planned route versus drifting off course.

gross expense ratio financial

"* TACU's gross expense ratio is 0.14%; TACN's gross expense ratio 0.20%."

The gross expense ratio is the total annual cost of running an investment fund expressed as a percentage of the fund’s assets, calculated before any temporary fee waivers or reimbursements. It matters because those costs are taken out of returns, so a higher ratio is like a heavier toll on your investment’s growth; knowing it helps investors compare how much each fund’s management and operations will reduce long‑term returns.

net expense ratios financial

"making the funds' net expense ratios zero for the duration of the waiver."

Net expense ratio is the share of a fund’s assets taken each year to pay its ongoing costs after any temporary fee waivers or reimbursements are applied, shown as a percentage of your investment. Investors care because it directly reduces net returns over time — like a yearly maintenance fee on a rental property or a toll on a road you use; a lower net expense ratio means more of the fund’s gains stay with the investor and compound.

AI-generated analysis. Not financial advice.

The T. Rowe Price Active Core U.S. Equity ETF and Active Core International Equity ETF combine the low tracking error of index portfolios and the firm's hallmark active fundamental and quantitative investment research

BALTIMORE, Dec. 11, 2025 /PRNewswire/ -- T. Rowe Price, a global investment management firm and a leader in retirement, announced today the addition of two new active equity exchange-traded funds (ETFs): T. Rowe Price Active Core U.S. Equity ETF (Ticker: TACU) and T. Rowe Price Active Core International Equity ETF (Ticker: TACN). The new funds began trading on NYSE Arca today, and T. Rowe Price is fully waiving fees for the ETFs' first 13 months.*

The two new ETFs apply T. Rowe Price's active management, leveraging targeted security selection through fundamental and quantitative research and a disciplined, risk-controlled approach, while maintaining low fees and low index tracking error, features typically associated with passive investing. 

• T. Rowe Price Active Core U.S. Equity ETF (TACU) is an actively managed core U.S. Large Cap portfolio seeking to outperform the broad U.S. equity market with approximately 550-650 holdings.
• T. Rowe Price Active Core International Equity ETF (TACN) is an actively managed core international equity portfolio that seeks to outperform the broad global ex-U.S. developed equity markets with approximately 400-500 holdings.

Both ETFs are team-managed by Jordan Pryor CFA^®, with 11 years of experience; Andrew Tang CFA^®, who has 12 years of investment experience; Laurence Taylor CFA^®, who has 26 years of experience; and Joe Wolfe CFA^®, who has 24 years of experience.

Today's launches bring T. Rowe Price's roster of active ETFs to 30, including 20 equity ETFs and 10 fixed income offerings. Each ETF delivers key features associated with ETFs such as tax efficiency, more competitive expense ratios, and the flexibility to buy and sell shares throughout the trading day. Portfolio managers follow the firm's regular practice of asking better questions, as they strive to deliver better investment outcomes for clients.

QUOTE

Tim Coyne, Global Head of Exchange-Traded Funds

"Our Active Core ETFs uniquely blend the benefits of passive index portfolios with fully active strategies, adding a compelling new dimension to our ETF lineup. By combining T. Rowe Price's active management expertise with robust quantitative research, these ETFs give investors access to our portfolio managers' best ideas and the potential to outperform benchmarks—while maintaining disciplined risk controls and a cost-efficient structure. In offering a 13-month fee waiver, we're underscoring our commitment to helping investors experience how Active Core strategies can enhance their portfolios."

* TACU's gross expense ratio is 0.14%; TACN's gross expense ratio 0.20%. Fees for both funds will be waived through January 30, 2027, making the funds' net expense ratios zero for the duration of the waiver.

ABOUT T. ROWE PRICE

T. Rowe Price (NASDAQ-GS: TROW) is a leading global asset management firm, entrusted with managing $1.79 trillion in client assets as of November 30, 2025, about two-thirds of which are retirement-related. Renowned for over 85 years of investment excellence, retirement leadership, and independent proprietary research, the firm leverages its longstanding expertise to ask better questions that can drive better investment decisions. Built on a culture of integrity and prioritizing client interests, T. Rowe Price empowers millions of investors worldwide to thrive amidst evolving markets. Visit troweprice.com/newsroom for news and public policy commentary.

Consider the investment objectives, risks, and charges and expenses carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information visit troweprice.com. Read it carefully.

ETFs are bought and sold at market prices, not net asset value (NAV). Investors generally incur the cost of the spread between the prices at which shares are bought and sold. Buying and selling shares may result in brokerage commissions which will reduce returns.

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SOURCE T. Rowe Price Group

FAQ

What ETFs did T. Rowe Price launch on December 11, 2025?

T. Rowe Price launched TACU (Active Core U.S. Equity ETF) and TACN (Active Core International Equity ETF) on NYSE Arca on Dec 11, 2025.

How long are fees waived for T. Rowe Price TACN ETF?

Fees for TACN are fully waived through Jan 30, 2027, making the net expense ratio zero during that period.

What is TACN's gross expense ratio and target holdings range?

TACN has a gross expense ratio of 0.20% and targets approximately 400–500 holdings.

Who manages the Active Core ETFs including TACN?

The ETFs are team-managed by Jordan Pryor, Andrew Tang, Laurence Taylor, and Joe Wolfe.

What investment approach do TACU and TACN use?

They combine active fundamental and quantitative security selection with disciplined risk controls and low tracking error goals.

How do these launches change T. Rowe Price's ETF lineup?

The launches increase the firm's active ETF roster to 30 funds: 20 equity and 10 fixed income.