The fund normally invests in equities, such as common stocks, and implements a
covered call options strategy to achieve its investment objective. Specifically, the fund seeks to provide
regular distributions that may consist of dividends and cash from the covered call option premiums. The
adviser searches for attractive risk/reward values. When selecting stocks, the adviser generally focuses
on finding companies whose stocks are expected to provide an attractive return relative to the company’s
associated risk. The fund may invest in stocks of companies of any market capitalization. The fund’s
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. Additionally, the fund implements a covered
call option writing strategy to generate cash flows in addition to the dividends received through the
fund’s investment in equities. The covered call option writing strategy seeks to generate cash flow
by selling call option contracts on the common stocks held in the fund’s portfolio with targeted expiration
dates of approximately one to two months into the future. The amount of cash flow generated by the covered
call option writing strategy will be dependent on market prices and the volatility of the underlying
common stocks at the time of each sale.
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Risk Table - T. Rowe Price Capital Appreciation Premium 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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| 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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| Derivatives |
Derivatives: The use of derivatives exposes the fund
to additional volatility and potential losses. A derivative involves risks different from, and possibly
greater than, the risks associated with investing directly in the assets on which the derivative is based,
including liquidity risk, valuation risk, correlation risk, market risk, interest rate risk, leverage
risk, counterparty and credit risk, operational risk, management risk, legal risk, and regulatory risk.
Derivatives can be highly volatile, illiquid, and difficult to value, and changes in the value of a derivative
may not properly correlate with changes in the value of the underlying asset, reference rate, or index.
The fund could be exposed to significant losses if it is unable to close a derivatives position due to
the lack of
a liquid secondary trading market. The prices of derivatives may move in unexpected ways, especially
in abnormal market conditions. Certain derivatives are also subject to counterparty risk, which is the
risk that the derivative counterparty will not fulfill its contractual obligations. The use of derivatives
includes the risk of potential operational issues, such as settlement issues. Derivatives are exposed
to legal risks, such as the legality or enforceability of a contract. The adviser may not be able to
accurately predict the direction of prices, economic factors, or other associated risks which could cause
loss in value or impair the fund’s efforts to reduce overall volatility. New regulations may make derivatives
more costly, limit availability, or otherwise affect their value or performance.
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| Call Option |
Call Option:
The fund will write calls on instruments the fund owns or otherwise has exposure to (covered calls)
in return for a premium. Under a call writing strategy, the fund typically would expect to receive cash
(or a premium) for having written (sold) a call, which enables a purchaser of the call to buy the asset
on which the option is written at a certain price within a specified time frame. Writing call options
will limit the fund’s opportunity to profit from an increase in the market value and other returns
of the underlying asset to the exercise price (plus the premium received). The fund’s maximum potential
loss on a written covered call is the purchase price paid for the underlying asset minus the premium
received for writing the option. While the fund intends to write covered calls only, the fund may hold
calls on instruments to which the fund has no exposure (naked or uncovered calls) for a temporary period
from time to time. The fund’s maximum potential loss on a written uncovered call is theoretically limitless
as the value of the underlying asset rises. Therefore, written calls can result in overall losses and
detract from the fund’s total returns even though the call options produce premiums and may initially
produce income and cash flow to the fund (and distributions by the fund) for having written the call
options.
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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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