Dec. 31, 2024 |
| T. Rowe Price Value ETF
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| Value 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 22.2% 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 companies
with value characteristics. For purposes of the fund’s 80% investment policy, the fund considers a
company to have value characteristics if the company’s securities are represented in an appropriate
third-party value-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. The fund invests primarily in U.S. equity
securities. The fund uses a value style of investing. In taking a value approach to investment selection,
the adviser seeks to identify companies that appear to be undervalued by various measures, and may be
temporarily out of favor, but have good prospects for capital appreciation. Some of the principal measures
used to identify such stocks are: price/earnings ratio, price/book value ratio, price/sales ratio, dividend
yield, price/cash flow, undervalued assets, and restructuring opportunities. The fund may purchase the
stocks of companies of any size, but typically focuses on larger companies. The portfolio is typically
constructed in a “bottom up” manner, an approach that focuses more on evaluations of individual stocks
than on analysis of overall economic trends and market cycles. Sector allocations are largely the result
of the fund’s focus on stock selection. At times, the fund may have a significant portion of its assets
invested in the same economic sector.
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| Principal Risks
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Risk Table - T. Rowe Price Value 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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| Value investing |
Value investing:
The fund’s value approach to investing could cause it to underperform other stock funds that employ
a different investment style. The intrinsic value of a stock with value characteristics may not be fully
recognized by the market for a long time (or at all) or a stock judged to be undervalued may actually
be appropriately priced at a low level. Value stocks may fail to appreciate for long periods and may
never reach what the adviser believes are their full market values.
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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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| 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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| 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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| 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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| 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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| 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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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 | 3/31/24 | 10.29% | | Worst Quarter | 12/31/24 | -2.46% | |
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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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