Financial advisors are turning to active ETFs as a solution to navigating concentrated markets. Recent survey data reveals that fundamental research and strong performance top their priority lists.
A Tuesday VettaFi webinar survey of 228 advisors found that 48% prioritize strong results when selecting investments, while 42% seek a fundamental-based, bottom-up investment process, according to the event data. The findings come as 48% of advisors cite high valuations and 42% point to excessive mega-cap concentration as their biggest challenges.
The survey results highlight funds like the T. Rowe Price Capital Appreciation Equity ETF (TCAF) and the T. Rowe Price Blue Chip Growth ETF (TCHP), which use bottom-up research processes to select high-quality companies. TCAF returned 12.7% over the past year, while TCHP gained 14.7%, according to ETF Database.
Both funds focus on companies with strong fundamentals, though they take different approaches. TCAF seeks to provide long-term capital growth with lower risk relative to the S&P 500 Index by selecting roughly 100 companies with strong balance sheets, according to the factsheet. TCHP focuses on established “blue chip” companies with leading market positions and seasoned management teams.
The approach resonates with advisor priorities. The survey showed that 30% of advisors value risk management in active ETFs, while 26% prioritize valuation discipline, according to the webinar data.
Advisors Embrace Research-Driven Funds
The survey found that 56% of advisors currently use active strategies, while another 26% expressed openness to adding them, according to the webinar data. Only 19% said they were not open to active approaches at this time.
T. Rowe Price’s 2026 Global Market Outlook notes that the narrative around artificial intelligence is shifting from “what’s possible?” to “what’s profitable?” according to the report. As leading firms increasingly tap debt markets for capital expenditures, pressure is mounting to carve out clear paths to monetization, according to the outlook.
TCHP’s portfolio reflects this shift toward what T. Rowe Price calls “physical AI,” or the infrastructure powering the next wave of innovation. Top holdings included Nvidia Corp. (NVDA), Microsoft Corp. (MSFT), and Apple Inc. (AAPL), according to the factsheet. The fund’s focus on established technology and semiconductor leaders positions it to benefit from AI infrastructure spending while maintaining exposure to companies with proven business models.
TCAF takes a more diversified approach across sectors. While the fund holds technology names, it maintains broader exposure with holdings like Becton, Dickinson & Company (BDX) in healthcare and utilities CenterPoint Energy, Inc. (CNP) and NiSource Inc. (NI), according to the factsheet.
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