Press release
T. ROWE PRICE LAUNCHES FLOATING RATE EXCHANGE-TRADED FUND
The new fixed income ETF began trading today on NYSE Arca, Inc., and expands the firm's ETF line-up to ten active ETFs BALTIMORE, Nov. 17, 2022 /PRNewswire/
About this update from T. Rowe Price Group, Inc.
[{"type":"text","content":"The new fixed income ETF began trading today on NYSE Arca, Inc., and expands the firm's ETF line-up to ten active ETFs \nBALTIMORE, Nov. 17, 2022 /PRNewswire/ --\nNEWS\n T. Rowe Price (NASDAQ-GS: TROW), a global investment management firm and a leader in retirement services, announced today the addition of a fifth actively managed fixed income exchange-traded fund (ETF), T. Rowe Price Floating Rate ETF (Ticker: TFLR), which is available to the public beginning today on NYSE Arca, Inc. The new ETF follows last month's launch of T. Rowe Price U.S. High Yield ETF (Ticker: THYF) and brings the firm's total roster of active ETFs to ten.\nThe Floating Rate strategy is constructed similarly to the mutual fund, T. Rowe Price Floating Rate Fund (Ticker: PRFRX), investing primarily in floating-rate loans and other floating rate debt securities. The strategy uses a disciplined approach to credit selection, featuring rigorous proprietary research and strict risk control. It is managed by Paul Massaro, head of the Global High Yield team and portfolio manager of the Floating Rate strategy since its 2008 inception. He has 22 years of investment industry experience, including 19 years at T. Rowe Price.\nT. Rowe Price Floating Rate ETF (Ticker: TFLR)Seeks high current income and, secondly, capital appreciation. The portfolio manager aims to achieve these objectives by investing primarily in BB and B rated loans, which he believes is likely to keep volatility at below-market rates over time. Broadly diversified across 200-300 issuers.Net expense ratio is 0.61%.The T. Rowe Price active ETF roster now consists of five equity ETFs1 and five fixed income ETFs. The firm's newest ETFs are based on active fixed income strategies that represent some of the largest and fast-growing ETF categories. They offer the alpha generation potential of the firm's time-tested fixed income strategies with the tax-efficient, convenient, and cost-effective benefits of the ETF vehicle. \nQUOTESPaul Massaro, CFA, Head of Global High Yield, Portfolio Manager\"Floating rate bank loans hold a unique position across the broad fixed income landscape given their combination of a floating rate coupon and elevated placement in a company's capital structure – an important risk management attribute. Historically, bank loans have provided a partial hedge against rising rates as well...