Active ETF TCAF Surpasses $7 Billion AUM Milestone

Wed May 13 2026

T. Rowe Price Capital Appreciation Equity ETF (TCAF), an actively managed fund, has exceeded $7 billion in assets under management, highlighting the growing trend of active ETFs.

The T. Rowe Price Capital Appreciation Equity ETF (TCAF) has recently achieved a significant milestone, surpassing $7 billion in assets under management (AUM). This achievement, as reported by ETF Database (VettaFi), underscores the continued growth and increasing prominence of actively managed exchange-traded funds in the investment landscape. Led by experienced manager David Giroux, TCAF represents the largest ETF by AUM within T. Rowe Price's current offerings.

What Happened

The TCAF ETF, which employs an active management strategy, has seen substantial asset growth, recently crossing the $7 billion AUM threshold. This development is set against a broader industry trend of surging interest in active ETFs, a phenomenon significantly accelerated by the 2019 ETF Rule. This rule streamlined the process for asset managers to launch and operate actively managed funds within the ETF structure, paving the way for more innovative strategies to reach investors.

Why It Matters for ETF Investors

The success of actively managed ETFs like TCAF demonstrates a shift in investor preference and confidence in strategies that aim to outperform passive indices. For ETF investors, this signifies several key points. Firstly, it highlights the increasing availability of diverse investment approaches within the ETF wrapper, combining the tax efficiency and trading flexibility of ETFs with the potential alpha generation of active management. Secondly, the substantial AUM gathered by funds like TCAF often reflects investor conviction in the fund's strategy and management team. This growth could also lead to improved economies of scale for the fund, potentially benefiting investors over the long term, although expense ratios are already competitive for active strategies.

Affected ETFs

While the news specifically focuses on TCAF, its success has broader implications for the active ETF space. TCAF, as a large-cap U.S. equity ETF, directly impacts investors seeking exposure to this segment through an actively managed vehicle.

Sector / Classification Impact

This development primarily impacts the Active investment strategy classification, demonstrating its increasing traction among investors. The growth of TCAF also has significant implications for the equity asset class, particularly within the Equity: U.S. - Large Cap segment, as it showcases strong investor demand for actively managed funds focused on larger domestic companies.

Bottom Line

The TCAF ETF's ascension beyond the $7 billion AUM mark is a clear indicator of the growing appeal and effectiveness of actively managed ETFs. This milestone not only solidifies TCAF's position as a leading fund but also reinforces the broader trend of investors embracing actively managed strategies for their potential to deliver differentiated returns within the transparent and flexible ETF framework.

Source: ETF Database (VettaFi) — https://etfdb.com/active-etf-content-hub/tcaf-crosses-7-billion-aum/

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Source: https://etfdb.com/active-etf-content-hub/tcaf-crosses-7-billion-aum/