Dec. 31, 2024 |
| T. Rowe Price Blue Chip Growth ETF
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| Blue Chip
Growth ETF
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Investment Objective(s)
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The fund seeks to provide
long-term capital growth. Income is a secondary objective.
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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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| 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. During the most
recent fiscal year, the fund’s portfolio turnover rate was 18.4% 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 securities of blue chip
companies with growth characteristics. For purposes of the fund’s 80% investment policy, the fund considers
a company to be a blue chip company if the company’s securities are represented in the S&P 500
Index and the fund considers a company to have growth characteristics if the company’s securities are
represented in an appropriate
third-party
growth-oriented index. 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.
Blue
chip growth companies are firms that, in the investment adviser’s view, are well established in their
industries and have the potential for above-average earnings growth. The fund focuses on companies with
leading market positions, seasoned management, and strong financial fundamentals. The fund’s investment
approach reflects the belief that solid company fundamentals (with emphasis on the potential for above-average
growth) combined with a positive industry outlook may result in a higher stock price. Some of the companies
the adviser targets for the fund should have good prospects for dividend growth. At times, the fund may
have a significant portion of its assets invested in the same economic sector, such as the information
technology sector. The fund primarily invests in common stocks, but may also invest in exchange-traded
securities that trade synchronously with the fund’s shares, cash, and cash equivalents. The fund may
also invest in American Depositary Receipts (ADRs) and common stocks listed on a foreign exchange that
trade on such exchange synchronously with the fund’s shares (i.e., during the U.S. listing exchange’s
trading hours). The fund is an actively-managed, exchange-traded fund (ETF) that does not disclose
portfolio holdings daily. In order to provide market participants with information on the fund’s investments,
the fund publishes a “Proxy Portfolio” on its website daily. A Proxy Portfolio is a basket of securities
that is designed to closely track the daily performance of the fund’s portfolio holdings. While the
Proxy Portfolio includes some of the fund’s holdings, it is not the fund’s actual portfolio. The
Proxy Portfolio could be based on a broad-based securities index or the fund’s recently disclosed portfolio
holdings. The fund’s Portfolio Overlap is available on the fund’s website daily. The Portfolio Overlap
is the percentage weight overlap between the holdings of the prior business day’s Proxy Portfolio compared
to the holdings of the fund that formed the basis for the fund’s calculation of net asset value (NAV)
at the end of the prior business day. The fund is nondiversified, which means it may invest a greater
percentage of its assets in a particular issuer than is permissible for a diversified fund.
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| Principal
Risks
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Risk Table - T. Rowe Price Blue Chip Growth 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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| Proxy portfolio structure |
Proxy
portfolio structure: The fund does not disclose portfolio holdings daily. The fund uses a Proxy Portfolio,
which is a basket of securities that is designed to closely track the daily performance of the fund’s
portfolio holdings. The fund may not always effectively construct a proxy portfolio that closely tracks
the daily performance of the fund’s portfolio holdings. Because the fund uses a Proxy Portfolio, there
is a risk that the fund’s shares may trade at a wider bid-ask spread
than shares of ETFs that disclose their portfolio holdings daily. This risk is heightened during periods
of market disruption and volatility, and, therefore, may cost you more to trade. Although the fund seeks
to benefit from keeping its portfolio information confidential, other traders may attempt to use the
Proxy Portfolio and publicly available information, including intraday net asset value (INAV) to identify
the fund’s trading strategy, which, if successful, could result in such traders engaging in certain
predatory trading practices that may have the potential to harm the fund and its shareholders. Because
the fund’s shares are traded in the secondary market, a broker may charge a commission to execute a
transaction in shares, and you may incur the cost of the spread between the price at which a dealer will
buy shares and the somewhat higher price at which a dealer will sell shares.
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| Premium/Discount |
Premium/Discount: Although
the Proxy Portfolio is intended to provide investors with enough information to allow for an effective
arbitrage mechanism that will keep the market price of the fund at or close to the underlying NAV per
share of the fund, there is a risk (which may increase during periods of market disruption or volatility)
that market prices will vary significantly from the underlying NAV per share of the fund. These price
differences may be greater for this fund compared to ETFs that disclose portfolio holdings daily because
it provides different portfolio holdings information to traders. The adviser will monitor on an ongoing
basis how shares trade, including the level of any market price premium or discount to NAV and the bid-ask
spreads on market transactions. Each day, the website provides the fund’s Tracking Error, which means
the standard deviation over the past three months of the daily proxy spread (i.e., the difference, in
percentage terms, between the Proxy Portfolio’s per share NAV and that of the fund at the end of the
trading day).
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| Trading halt |
Trading halt: It is possible that an active trading market for the shares
will not be maintained, or that trading in the shares will be halted for reasons such as market-wide
trading halts or the shares no longer meeting the listing requirements of the listing exchange. If securities
representing 10% or more of the fund’s portfolio do not have readily available market quotations, the
fund would promptly request the listing exchange to halt trading on the fund. In addition, to the extent
T. Rowe Price determines that a security held in a fund’s portfolio but not in the Proxy Portfolio
does not have readily available market quotations and such circumstance may affect the reliability of
the Proxy Portfolio as an arbitrage vehicle, that information, along with the identity and weighting
of that security in the fund’s portfolio, will be publicly disclosed on the fund’s website.
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| Authorized Participant |
Authorized
Participant: The fund’s shares may have a limited number of active “Authorized Participants,”
which are financial institutions that are able to transact daily with the fund to purchase and redeem
a large specified number of shares of the fund. To the extent they cannot or otherwise are unwilling
to engage in creation and redemption transactions, and no other Authorized Participant steps in, shares
of the fund may trade at a significant discount or premium to NAV and may face trading halts and delisting
from the exchange. During times of market stress, Authorized Participants may be more likely to step
away from an ETF that does not disclose holdings daily than a traditional ETF.
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| ETF shares trading |
ETF
shares trading: Shares of the fund are listed for trading on a national securities exchange and
are bought and sold in the secondary market at market prices. The market prices of shares are expected
to fluctuate in response to changes in the fund’s NAV, the value of the fund’s holdings, and supply
and demand for shares. Disruptions to creations and redemptions, significant market volatility, potential
lack of an active trading market for the shares (including through a trading halt), or other factors
may widen bid-ask spreads and result in the shares trading significantly above (at a premium) or below
(at a discount) to NAV or to the value of the fund’s holdings. If a shareholder purchases shares at
a time when the market price is at a premium to the NAV or sells shares at a time when the market price
is at a discount to the NAV, the shareholder may sustain losses.
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| Stock investing |
Stock investing:
Stocks generally fluctuate in value more than bonds and may decline significantly over short time periods.
There is a chance that stock prices overall will decline because stock markets tend to move in cycles,
with periods of rising and falling prices. The value of stocks held by the fund may decline due to general
weakness or volatility in the stock markets in which the fund invests or because of factors that affect
a particular company or industry.
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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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| Growth investing |
Growth investing:
The fund’s growth approach to investing could cause it to underperform other stock funds that employ
a different investment style. Growth stocks tend to be more volatile than certain other types of stocks
and their prices may fluctuate more dramatically than the overall stock market. A stock with growth characteristics
can have sharp price declines due to decreases in current or expected earnings and may lack dividends
that can help cushion its share price in a declining market.
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| Large- and mid-cap stocks |
Large- and mid-cap stocks: Securities issued by
large- and mid-cap companies tend to be less volatile than securities issued by small-cap companies.
However, large-cap companies may not be able to attain the high growth rates of successful small-cap
companies, especially during strong economic periods, and may be unable to respond as quickly to competitive
challenges. The fund’s share price could fluctuate more than the share price of
a fund
that invests only in large-cap companies as stocks of mid-cap companies entail greater risk and are usually
more volatile than stocks of large-cap companies.
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| Dividend-paying stocks |
Dividend-paying
stocks: The fund’s emphasis on dividend-paying stocks could cause the fund to underperform
similar funds that invest without consideration of a company’s track record of paying dividends. Stocks
of companies with a history of paying dividends may not participate in a broad market advance to the
same degree as most other stocks, and a sharp rise in interest rates or economic downturn could cause
a company to unexpectedly reduce or eliminate its dividend.
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| Sector exposure |
Sector exposure: Issuers in the same
economic sector may be similarly affected by economic or market events, making the fund more vulnerable
to unfavorable developments in that economic sector than funds that invest more broadly.
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| Information technology sector |
Information
technology sector: Information technology companies face intense competition, both domestically
and internationally, which may have an adverse effect on their profit margins. Like other technology
companies, information technology companies may have limited product lines, markets, financial resources,
or personnel.
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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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| Risk Nondiversified Status [Member] |
Nondiversification:
As a nondiversified fund, the fund has the ability to invest a larger percentage of its assets in the
securities of a smaller number of issuers than a diversified fund. As a result, poor performance by a
single issuer could adversely affect fund performance more than if the fund were invested in a larger
number of issuers. The fund’s share price can be expected to fluctuate more than that of a similar
fund that is more broadly diversified.
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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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The
following performance information provides some indication of the risks of investing in the fund. The
fund’s performance information represents only past performance (before and after taxes) and is not
necessarily an indication of future results. The following bar chart illustrates how much returns can differ
from year to year by showing calendar year returns and the best and worst calendar quarter returns during
those years for the fund.
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| Calendar Year Returns
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| | | | | | | | | | | | | Quarter Ended | Total Return | | | Quarter Ended | Total Return | | | | Best
Quarter | 3/31/23 | 16.50% | | Worst Quarter | 6/30/22 | -24.92% | |
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| Average Annual Total Returns Periods
ended December 31, 2024
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The following table shows
the average annual total returns for the fund. The fund’s performance information included in the table
is compared with a regulatory required index that represents an overall securities market (Regulatory
Benchmark). In addition, the table may also include one or more indexes that more closely aligns to the
fund’s investment strategy (Strategy Benchmark(s)). In addition, the table shows hypothetical
after-tax returns to demonstrate how taxes paid by a shareholder may influence returns. After-tax returns
are calculated using the historical highest individual federal marginal income tax rates and do not reflect
the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation
and may differ from those shown. After-tax returns shown are not relevant to investors who hold their
fund shares through tax-deferred arrangements, such as a 401(k) account or an IRA.
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| Updated performance information
is available through troweprice.com.
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