Dec. 31, 2024 |
| T. Rowe Price Growth Stock ETF
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| Growth
Stock ETF
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Investment Objective(s)
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The fund seeks to provide
long-term capital growth.
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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 49.8% 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 stocks of companies with
growth characteristics. For purposes of the fund’s 80% investment policy, 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. While the fund may invest in companies of
any market capitalization, the fund generally seeks investments in stocks of large-cap companies with
one or more of the following characteristics: strong cash flow and an above-average rate of earnings
growth; the ability to sustain earnings momentum during economic downturns; and occupation of a lucrative
niche in the economy and the ability to expand even during times of slow economic growth. The fund’s
growth-oriented investment approach to stock selection reflects the belief that when a company increases
its earnings faster than both inflation and the overall growth rate of the economy, it may result in
a higher stock price. 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 is nondiversified,
which means it may invest a greater percentage of its assets in a particular issuer than is permissible
for a diversified fund. 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.
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| Principal Risks
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Risk Table - T. Rowe Price Growth Stock 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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| 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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| 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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| Large-cap stocks |
Large-cap
stocks: Securities issued by large-cap companies tend to be less volatile than securities
issued by small- and mid-cap companies. However, large-cap companies may not be able to attain the high
growth rates of successful small- and mid-cap companies, especially during strong economic periods, and
may be unable to respond as quickly to competitive challenges.
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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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| 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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| 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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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 | 16.97% | | Worst Quarter | 6/30/22 | -25.59% | |
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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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