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T Rowe Price Capital Appreciation ETF underperforms IVV, holds 'Hold' rating due to quality concerns and low volatility exposure.

Analyst Insights
30 Jul 2026
Seeking Alpha
View Source
Neutral
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The T Rowe Price Capital Appreciation Equity ETF (TCAF) has been actively managed to seek long-term growth but has underperformed the IVV index since early 2024. Despite portfolio adjustments improving its growth and value characteristics, quality issues and its focus on low volatility stocks limit its upside potential. Over the longer term from July 2023 to June 2026, TCAF posted a negative annualized active return of -2.83%. Analyst Vasily Zyryanov maintains a 'Hold' rating on the ETF, signaling cautious investor interest given its recent performance and factor exposure.

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