Oct. 31, 2024 |
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| T. Rowe Price Intermediate Municipal Income ETF
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| Intermediate
Municipal Income ETF
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Investment Objective(s)
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The fund seeks the highest
level of income exempt from federal income taxes consistent with moderate price fluctuation.
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| Fees and
Expenses
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This
table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the fund.
You may also incur brokerage commissions and other charges when buying or selling shares of the fund,
which are not reflected in the table or example below.
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| Annual
fund operating expenses (expenses that you pay each
year as a percentage of the value of your investment)
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| Example
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| This example is intended to help you compare the cost of investing in the fund with the cost of investing
in other funds. The example assumes that you invest $10,000 in the fund for the time periods indicated
and then sell all of your shares at the end of those periods, that your investment has a 5% return each
year, and that the fund’s fees and expenses remain the same. Although your actual costs may be higher
or lower, based on these assumptions your costs would be:
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Expense Example
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T. Rowe Price Intermediate Municipal Income ETF
Intermediate Municipal Income ETF
USD ($)
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| 1 Year |
$ 25
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| 3 Years |
77
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| 5 Years |
135
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| 10 Years |
$ 306
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| Portfolio Turnover
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Portfolio Turnover The fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when
the fund’s shares are held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the example, affect the fund’s performance. For the period July 9, 2024 through
October 31, 2024, the fund’s portfolio turnover rate was 91.6% of the average value of its portfolio.
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| Principal Investment Strategies
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The fund normally invests
at least 80% of its net assets, plus any borrowings for investment purposes, in investment-grade municipal
securities or derivatives that are linked to or provides investment exposure to the municipal market.
Investment grade means securities that are rated in one of the four highest rating categories assigned
by a credit rating agency or, if unrated, deemed by the adviser to be of comparable quality. Any derivatives
that provide exposure to the
investment
focus suggested by the fund’s name, or to one or more market risk factors associated with the investment
focus suggested by the fund’s name, are counted (as applicable) toward compliance with the fund’s
80% investment policy. Under normal conditions, the fund’s weighted average effective maturity will
be four to twelve years. There are no maturity limitations on individual securities. The fund primarily invests
in tax-exempt securities. However, a significant portion of the fund’s income could be derived from
securities subject to the alternative minimum tax. The fund may also invest in the securities of issuers
whose revenues are generated from similar types of projects or operate in similar business sectors, including
healthcare, transportation, utilities, or private activity bonds. The fund may have significant exposure
to specific states under some circumstances. The fund may invest in below investment-grade instruments,
such holdings are commonly referred to as “junk”. Investment decisions generally reflect the
portfolio manager’s outlook for interest rates and the economy, as well as the prices, yields, and
credit quality of various securities in which the fund may invest.
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| Principal Risks
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Risk Table - T. Rowe Price Intermediate Municipal Income ETF
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Risk [Text Block] |
| Risk Lose Money [Member] |
The fund’s share price fluctuates, which
means you could lose money by investing in the fund.
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| Municipal securities |
Municipal securities:
The
fund may be highly impacted by events tied to the overall municipal securities markets, which can be
very volatile and significantly affected by unfavorable legislative or political developments and adverse
changes in the financial conditions of municipal securities issuers and the global, national, and/or
local economies. Income from municipal securities held by the fund could become taxable because of changes
in tax laws or interpretations by taxing authorities, or noncompliant conduct of a state or municipality.
Other changes in tax laws, including changes to individual or corporate tax rates, could alter the attractiveness
and overall demand for municipal bonds. Certain sectors of the municipal bond market have special
risks and could be affected by certain developments more significantly than the market as a whole. For
example: health care can be negatively impacted by rising expenses and dependency on third party reimbursements;
transportation can be negatively impacted by declining revenues or unexpectedly high construction or
fuel costs; utilities are subject to governmental rate regulation; and private activity bonds (including
industrial development bonds) rely on project revenues and the creditworthiness of the corporate user
as opposed to governmental support. Investing significantly in municipal obligations backed by revenues
of similar types of industries or projects may make the fund more susceptible to developments affecting
those industries and projects. If the fund invests a substantial amount of its assets in issuers located
in a single region, state, or city, there is an increased risk that environmental, economic, political,
and social conditions in those regions will have a significant impact on the fund’s investment performance.
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| Alternative minimum tax |
Alternative
minimum tax: Although the fund seeks to distribute tax-exempt income, a portion of the fund’s
otherwise tax-exempt dividends may be taxable to those shareholders subject to the federal alternative
minimum tax.
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| Market conditions |
Market conditions: The value of the fund’s investments may decrease, sometimes
rapidly or unexpectedly, due to factors affecting an issuer held by the fund, particular industries,
or the overall securities markets. A variety of factors can increase the volatility of the fund’s holdings
and markets generally, including economic, political, or regulatory developments, recessions, inflation,
rapid interest rate changes, war, military conflict, acts of terrorism, natural disasters, and outbreaks
of infectious illnesses or other widespread public health issues (such as the coronavirus pandemic) and
related governmental and public responses (including sanctions). Certain events may cause instability
across global markets, including reduced liquidity and disruptions in trading markets, while some events
may affect certain geographic regions, countries, sectors, and industries more significantly than others.
Government intervention in markets may impact interest rates, market volatility, and security pricing.
These adverse developments may cause broad declines in market value due to short-term market movements
or for significantly longer periods during more prolonged market downturns.
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| Credit quality |
Credit quality:
An issuer of a debt instrument could suffer an adverse change in financial condition that results in
a payment default (failure to make scheduled interest or principal payments), rating downgrade, or inability
to meet a financial obligation. Securities that are rated below investment grade carry greater risk of
default and should be considered speculative. Economic downturns often result in reduced levels of taxes
collected and revenues earned by municipalities and insufficient funding to meet pension or health care
obligations, which could lessen the overall financial strength of a municipality and increase the credit
risk of the securities it issues. The fund’s credit risk is increased to the extent it invests in securities
that are not backed by the taxing power of the municipal issuer.
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| Junk investing |
Junk investing: Investments
in bonds that are rated below investment grade, commonly referred to as junk bonds, expose the fund to
greater volatility and credit risk than investments in bonds that are rated investment grade.
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| Interest rates |
Interest
rates: A rise in interest rates typically causes the price of a fixed rate debt instrument
to fall and its yield to rise. Conversely, a decline in interest rates typically causes the price of
a fixed rate debt instrument to rise and the yield to fall. The prices and yields of inflation-linked
bonds are directly impacted by the rate of inflation as well as changes in interest rates. Generally,
funds with longer weighted average maturities and durations carry greater interest rate risk. Changes
in monetary policy made by central banks and/or governments are likely to affect the interest rates or
yields of the securities in which the fund invests.
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| Callable bonds |
Callable bonds: While a rise in interest
rates is the principal source of interest rate risk for bond funds, falling rates bring the possibility
that a bond may be “called,” or redeemed before maturity, and that the proceeds may need to be reinvested
in lower-yielding securities.
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| Liquidity |
Liquidity: The fund may not be able to sell a holding
in a timely manner at a desired price. Reduced liquidity in the bond markets can result from a number
of events, such as limited trading activity,
reductions in bond inventory, and rapid or unexpected changes in interest rates. The secondary market
for certain municipal bonds tends to be less developed and less liquid than many other bond markets.
Less liquid markets could lead to greater price volatility and limit the fund’s ability to sell a holding
at a suitable price.
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| Authorized Participant |
Authorized Participant: Only an Authorized Participant may engage
in creation or redemption transactions directly with the fund. The fund has a limited number of intermediaries
that act as Authorized Participants, and none of these Authorized Participants are or will be obligated
to engage in creation or redemption transactions. To the extent that Authorized Participants exit the
business or are unable to proceed with creation or redemption orders with respect to the fund and no
other Authorized Participant is able to step forward to create or redeem, (i) the market price of the
fund’s shares may trade at a premium or discount to its net asset value (NAV), (ii) an active trading
market for the fund may not develop or be maintained, and (iii) there is no assurance that the requirements
of the exchange necessary to maintain the listing of the fund will continue to be met or remain unchanged.
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| New fund |
New
fund: Because the fund is new, it has a relatively small number of shareholders and
assets under management. As a result, the portfolio manager may experience difficulties in fully implementing
the fund’s investment program and may be less able to respond to increases in shareholder transaction
activity. The fund’s limited operating history could make it more difficult to evaluate the performance
of the portfolio manager and the fund’s investment strategies. In addition, there can be no assurance
that the fund will ultimately grow to an economically viable size, which could lead to the fund eventually
ceasing its operations.
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| Active management |
Active management: The fund’s overall investment program and holdings selected
by the fund’s investment adviser may underperform the broad markets, relevant indices, or other funds
with similar objectives and investment strategies.
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| Cybersecurity breaches |
Cybersecurity breaches: The fund could be
harmed by intentional cyberattacks and other cybersecurity breaches, including unauthorized access to
the fund’s assets, confidential information, or other proprietary information. In addition, a cybersecurity
breach could cause one of the fund’s service providers or financial intermediaries to suffer unauthorized
data access, data corruption, or loss of operational functionality.
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| Performance
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Because
the fund commenced operations in 2024, there is no historical performance information shown here. Performance
history will be presented after the fund has been in operation for one full calendar year.
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| Current
performance information is available through troweprice.com.
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