T. ROWE PRICE | |
TGRW | Growth Stock ETF |
For more insights from T. Rowe Price investment professionals, go to troweprice.com. |
■ | The Growth Stock ETF generated a negative absolute return in the six-month period ended June 30, 2022. The fund underperformed its benchmark, the S&P 500 Index, and lagged the style-specific Russell 1000 Growth Index. The fund also trailed its peer group, the Lipper Large-Cap Growth Funds Index. |
■ | Markets suffered their worst first half in decades as inflation fears drove equities downward with a high degree of correlation, which is an unfavorable environment for us as stock pickers. Many of our high-conviction ideas found themselves down significantly at the midway point of the year as bearish sentiment and indiscriminate selling caused a disconnect, in some cases, between share prices and fundamentals. |
■ | The fund’s top sector allocations are in information technology, consumer discretionary, and communication services—areas that we believe offer the most fertile ground for innovation and growth. |
■ | Amid macroeconomic uncertainty, we take comfort knowing that we own high-quality businesses—some that should provide defense if markets continue to skid and others that have significant potential to outperform once inflation concerns are in the rear view. |
Percent
of Net Assets | |
6/30/22 | |
Microsoft | 12.7% |
Amazon.com | 10.1 |
Alphabet | 9.2 |
Apple | 8.6 |
UnitedHealth Group | 3.7 |
Rivian Automotive | 2.6 |
Visa | 2.5 |
Intuit | 2.2 |
Tesla | 2.2 |
MasterCard | 2.1 |
NVIDIA | 2.1 |
ServiceNow | 1.8 |
Salesforce.com | 1.7 |
ASML Holding | 1.7 |
Eli Lilly and Co. | 1.6 |
Ross Stores | 1.4 |
Intuitive Surgical | 1.4 |
Advanced Micro Devices | 1.2 |
Chipotle Mexican Grill | 1.2 |
Teledyne Technologies | 1.2 |
Fiserv | 1.1 |
Stryker | 1.0 |
Ferrari | 1.0 |
FedEx | 1.0 |
Meta Platforms | 1.0 |
Total | 76.3% |
Periods Ended 6/30/22 | One Year | Since Inception 8/4/20 |
Growth Stock ETF (Based on Net Asset Value) | -33.23% | -7.11% |
Growth Stock ETF (At Market Price) | -33.23 | -7.07 |
Growth Stock ETF | 0.52% |
Beginning Account Value 1/1/22 |
Ending Account Value 6/30/22 |
Expenses
Paid During Period* 1/1/22 to 6/30/22 | |
Actual | $1,000.00 | $647.20 | $2.12 |
Hypothetical (assumes 5% return before expenses) | 1,000.00 | 1,022.22 | 2.61 |
* | Expenses are equal to the fund’s annualized expense ratio for the 6-month period (0.52%), multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (181), and divided by the days in the year (365) to reflect the half-year period. |
6
Months Ended |
Year Ended |
8/4/20(1) Through | |
6/30/22 | 12/31/21 | 12/31/20 | |
NET ASSET VALUE | |||
Beginning of period | $ 33.39 | $ 29.17 | $ 25.00 |
Investment activities | |||
Net investment loss(2) (3) | (0.02) | (0.06) | (0.01) |
Net realized and unrealized gain/loss | (11.76) | 4.41 | 4.21 |
Total from investment activities | (11.78) | 4.35 | 4.20 |
Distributions | |||
Net realized gain | - | (0.13) | (0.03) |
NET ASSET VALUE | |||
End of period | $ 21.61 | $ 33.39 | $ 29.17 |
Ratios/Supplemental Data | |||
Total return, based on NAV(3) (4) | (35.28)% | 14.94% | 16.81% |
Ratios
to average net assets:(3) |
|||
Gross
expenses before waivers/payments by Price Associates |
0.52%(5) | 0.52% | 0.52%(5) |
Net
expenses after waivers/payments by Price Associates |
0.52%(5) | 0.52% | 0.52%(5) |
Net investment loss | (0.16)%(5) | (0.20)% | (0.09)%(5) |
Portfolio turnover rate(6) | 22.0% | 37.9% | 15.8% |
Net
assets, end of period (in thousands) |
$ 36,958 | $ 50,256 | $ 26,547 |
(1) | Inception date |
(2) | Per share amounts calculated using average shares outstanding method. |
(3) | See Note 5 for details to expense-related arrangements with Price Associates. |
(4) | Total return reflects the rate that an investor would have earned on an investment in the fund during each period, assuming reinvestment of all distributions. Total return is not annualized for periods less than one year. |
(5) | Annualized |
(6) | Portfolio turnover excludes securities received or delivered through in-kind share transactions. |
PORTFOLIO OF INVESTMENTS‡ | Shares | $ Value |
(Cost and value in $000s) | ||
COMMON STOCKS 98.7% | ||
COMMUNICATION SERVICES 14.1% | ||
Entertainment 2.8% | ||
Activision Blizzard | 2,707 | 211 |
Netflix (1) | 1,271 | 222 |
ROBLOX, Class A (1) | 523 | 17 |
Sea, ADR (1) | 5,197 | 348 |
Spotify Technology (1) | 2,390 | 224 |
1,022 | ||
Interactive Media & Services 11.3% | ||
Alphabet, Class A (1) | 790 | 1,722 |
Alphabet, Class C (1) | 765 | 1,673 |
Match Group (1) | 3,141 | 219 |
Meta Platforms, Class A (1) | 2,211 | 357 |
Snap, Class A (1) | 17,478 | 229 |
4,200 | ||
Total Communication Services | 5,222 | |
CONSUMER DISCRETIONARY 22.6% | ||
Automobiles 5.8% | ||
Ferrari NV | 2,009 | 368 |
Rivian Automotive, Class A (1) | 37,528 | 966 |
Tesla (1) | 1,213 | 817 |
2,151 | ||
Hotels Restaurants & Leisure 3.5% | ||
Airbnb, Class A (1) | 121 | 11 |
Booking Holdings (1) | 138 | 241 |
Chipotle Mexican Grill (1) | 331 | 433 |
Expedia Group (1) | 2,213 | 210 |
Las Vegas Sands (1) | 6,142 | 206 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Wynn Resorts (1) | 3,527 | 201 |
1,302 | ||
Internet & Direct Marketing Retail 11.0% | ||
Amazon.com (1) | 35,301 | 3,749 |
Coupang, Class A (1) | 9,326 | 119 |
DoorDash, Class A (1) | 2,922 | 188 |
4,056 | ||
Leisure Products 0.2% | ||
Peloton Interactive, Class A (1) | 8,164 | 75 |
75 | ||
Specialty Retail 1.5% | ||
Carvana (1) | 1,386 | 31 |
Ross Stores | 7,599 | 534 |
565 | ||
Textiles, Apparel & Luxury Goods 0.6% | ||
Lululemon Athletica (1) | 756 | 206 |
206 | ||
Total Consumer Discretionary | 8,355 | |
FINANCIALS 0.2% | ||
Capital Markets 0.2% | ||
MarketAxess Holdings | 254 | 65 |
Tradeweb Markets, Class A | 151 | 10 |
Total Financials | 75 | |
HEALTH CARE 12.1% | ||
Biotechnology 0.6% | ||
Argenx SE, ADR (1) | 611 | 232 |
232 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Health Care Equipment & Supplies 3.2% | ||
Align Technology (1) | 759 | 180 |
Insulet (1) | 452 | 98 |
Intuitive Surgical (1) | 2,541 | 510 |
Stryker | 1,901 | 378 |
1,166 | ||
Health Care Providers & Services 5.8% | ||
Cigna | 1,067 | 281 |
HCA Healthcare | 887 | 149 |
Humana | 717 | 335 |
UnitedHealth Group | 2,651 | 1,362 |
2,127 | ||
Life Sciences Tools & Services 0.6% | ||
Avantor (1) | 6,809 | 212 |
212 | ||
Pharmaceuticals 1.9% | ||
AstraZeneca, ADR | 1,987 | 131 |
Eli Lilly | 1,806 | 586 |
717 | ||
Total Health Care | 4,454 | |
INDUSTRIALS & BUSINESS SERVICES 4.5% | ||
Aerospace & Defense 0.8% | ||
Boeing (1) | 2,057 | 281 |
281 | ||
Air Freight & Logistics 1.0% | ||
FedEx | 1,607 | 364 |
364 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Commercial Services & Supplies 0.3% | ||
Cintas | 319 | 119 |
119 | ||
Electrical Equipment 0.6% | ||
Generac Holdings (1) | 1,106 | 233 |
233 | ||
Industrial Conglomerates 0.9% | ||
Roper Technologies | 855 | 338 |
338 | ||
Professional Services 0.9% | ||
TransUnion | 3,023 | 242 |
Verisk Analytics | 550 | 95 |
337 | ||
Total Industrials & Business Services | 1,672 | |
INFORMATION TECHNOLOGY 44.5% | ||
Electronic Equipment, Instruments & Components 1.1% | ||
Teledyne Technologies (1) | 1,135 | 426 |
426 | ||
IT Services 7.9% | ||
Block, Class A (1) | 3,101 | 191 |
Fiserv (1) | 4,773 | 425 |
Global Payments | 1,866 | 206 |
Mastercard, Class A | 2,513 | 793 |
MongoDB (1) | 757 | 196 |
PayPal Holdings (1) | 128 | 9 |
Snowflake (1) | 1,083 | 151 |
Toast, Class A (1) | 217 | 3 |
Twilio, Class A (1) | 626 | 52 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Visa, Class A | 4,618 | 909 |
2,935 | ||
Semiconductors & Semiconductor Equipment 5.0% | ||
Advanced Micro Devices (1) | 5,752 | 439 |
ASML Holding NV | 1,333 | 634 |
NVIDIA | 5,068 | 768 |
Taiwan Semiconductor Manufacturing, ADR | 157 | 13 |
1,854 | ||
Software 21.9% | ||
Atlassian, Class A (1) | 1,209 | 227 |
Bill.Com Holdings (1) | 815 | 90 |
Black Knight (1) | 4,887 | 319 |
Ceridian HCM Holding (1) | 1,928 | 91 |
Datadog, Class A (1) | 1,523 | 145 |
HashiCorp, Class A (1) | 418 | 12 |
Intuit | 2,158 | 832 |
Microsoft | 18,304 | 4,701 |
Monday.com (1) | 421 | 43 |
Salesforce.com (1) | 3,917 | 646 |
SentinelOne, Class A (1) | 5,814 | 136 |
ServiceNow (1) | 1,363 | 648 |
Trade Desk, Class A (1) | 3,675 | 154 |
UiPath, Class A (1) | 764 | 14 |
Workday (1) | 55 | 8 |
Zoom Video Communications, Class A (1) | 139 | 15 |
8,081 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Technology Hardware, Storage & Peripherals 8.6% | ||
Apple | 23,127 | 3,162 |
3,162 | ||
Total Information Technology | 16,458 | |
Total Miscellaneous Common Stocks 0.7% (2) | 244 | |
Total Common Stocks (Cost $44,245) | 36,480 | |
SHORT-TERM INVESTMENTS 1.3% | ||
Money Market Funds 1.3% | ||
State Street Institutional U.S. Government Money Market Fund, 1.43% (3) | 475,603 | 476 |
Total Short-Term Investments (Cost $476) | 476 | |
Total
Investments in Securities 100.0% of Net Assets (Cost $44,721) |
$36,956 |
‡ | Shares are denominated in U.S. dollars unless otherwise noted. |
(1) | Non-income producing. |
(2) | The identity of certain securities has been concealed to protect the fund while it completes a purchase or selling program for the securities. |
(3) | Seven-day yield |
ADR | American Depositary Receipts |
Assets | |
Investments in securities, at value (cost $44,721) | $36,956 |
Receivable for investment securities sold | 49 |
Interest and dividends receivable | 6 |
Total assets | 37,011 |
Liabilities | |
Payable for investment securities purchased | 37 |
Investment management and administrative fees payable | 16 |
Total liabilities | 53 |
NET ASSETS | $36,958 |
Net assets consists of: | |
Total distributable earnings (loss) | $(10,677) |
Paid-in
capital applicable to 1,710,000 shares of $0.0001 par value capital stock outstanding; 4,000,000,000 shares authorized |
47,635 |
NET ASSETS | $36,958 |
NET ASSET VALUE PER SHARE | $21.61 |
6
Months Ended 6/30/22 | |
Investment Income (Loss) | |
Dividend income (net of foreign taxes of $1) | $77 |
Investment management and administrative expense | 110 |
Net investment loss | (33) |
Realized and Unrealized Gain / Loss | |
Net realized gain (loss) | |
Securities | (3,053) |
In-kind redemptions | 620 |
Net realized loss | (2,433) |
Change in net unrealized gain / loss on securities | (16,273) |
Net realized and unrealized gain / loss | (18,706) |
DECREASE IN NET ASSETS FROM OPERATIONS | $(18,739) |
6
Months Ended 6/30/22 |
Year Ended 12/31/21 | ||
Increase (decrease) in Net Assets | |||
Operations | |||
Net investment loss | $(33) | $(78) | |
Net realized loss | (2,433) | (274) | |
Change in net unrealized gain / loss | (16,273) | 5,399 | |
Increase (decrease) in net assets from operations | (18,739) | 5,047 | |
Distributions to shareholders | |||
Net earnings | — | (195) | |
Capital share transactions* | |||
Shares sold | 10,646 | 18,857 | |
Shares redeemed | (5,205) | — | |
Increase in net assets from capital share transactions | 5,441 | 18,857 | |
Net Assets | |||
Increase (decrease) during period | (13,298) | 23,709 | |
Beginning of period | 50,256 | 26,547 | |
End of period | $36,958 | $50,256 | |
*Share information | |||
Shares sold | 415 | 595 | |
Shares redeemed | (210) | — | |
Increase in shares outstanding | 205 | 595 |