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 12-month period ended December 31, 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. |
■ | Major U.S. stock indexes fell sharply in 2022, the worst year for equities since the 2008 global financial crisis. Investors moved out of riskier assets in response to deteriorating macroeconomic conditions and the Federal Reserve’s attempt to fight elevated inflation through short-term interest rate increases, driving equities downward with a high degree of correlation. |
■ | The fund’s top sector allocations are in information technology, consumer discretionary, and health care. |
■ | Despite significant macroeconomic headwinds and expectations of further volatility in the coming year, we continue to stay true to our growth mandate. Given growth rallies that have followed positive incremental news around inflation early in the third quarter and again in November, there is reason to believe that once inflation begins to moderate in a sustained manner, many of our high-conviction holdings could be well positioned for outperformance. |
Percent
of Net Assets | |
12/31/22 | |
Microsoft | 13.0 % |
Apple | 9.3 |
Alphabet | 6.5 |
Amazon.com | 5.7 |
UnitedHealth Group | 4.0 |
Visa | 3.3 |
MasterCard | 3.0 |
ASML Holding | 2.6 |
NVIDIA | 2.5 |
Intuit | 2.5 |
Ferrari | 2.4 |
Ross Stores | 2.4 |
Eli Lilly | 2.1 |
ServiceNow | 1.8 |
Rivian Automotive | 1.8 |
Fiserv | 1.7 |
Teledyne Technologies | 1.6 |
Intuitive Surgical | 1.6 |
Advanced Micro Devices | 1.4 |
Roper Technologies | 1.3 |
Salesforce.com | 1.3 |
Netflix | 1.2 |
Humana | 1.1 |
Las Vegas Sands | 1.1 |
Boeing | 1.0 |
Total | 76.2% |
Periods Ended 12/31/22 | One Year | Since
Inception 8/4/20 |
Growth Stock ETF (Based on Net Asset Value) | -38.39% | -7.58% |
Growth Stock ETF (At Market Price) | -38.43 | -7.58 |
Growth Stock ETF | 0.52% |
Beginning
Account Value 7/1/22 |
Ending
Account Value 12/31/22 |
Expenses
Paid During Period* 7/1/22 to 12/31/22 | |
Actual | $1,000.00 | $951.90 | $2.56 |
Hypothetical (assumes 5% return before expenses) | 1,000.00 | 1,022.58 | 2.65 |
* | 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 (184), and divided by the days in the year (365) to reflect the half-year period. |
Year
Ended |
8/4/20
(1) Through | ||
12/31/22 | 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 | (12.80) | 4.41 | 4.21 |
Total from investment activities | (12.82) | 4.35 | 4.20 |
Distributions | |||
Net realized gain | - | (0.13) | (0.03) |
NET ASSET VALUE | |||
End of period | $ 20.57 | $ 33.39 | $ 29.17 |
Ratios/Supplemental Data | |||
Total return, based on NAV(3) (4) | (38.39)% | 14.94% | 16.81% |
Ratios
to average net assets:(3) |
|||
Gross
expenses before waivers/payments by Price Associates |
0.52% | 0.52% | 0.52% (5) |
Net
expenses after waivers/payments by Price Associates |
0.52% | 0.52% | 0.52% (5) |
Net investment loss | (0.10)% | (0.20)% | (0.09)% (5) |
Portfolio turnover rate(6) | 35.9% | 37.9% | 15.8% |
Net
assets, end of period (in thousands) |
$ 34,669 | $ 50,256 | $ 26,547 |
(1) | Inception date |
(2) | Per share amounts calculated using average shares outstanding method. |
(3) | See Note 6 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 95.3% | ||
COMMUNICATION SERVICES 11.0% | ||
Entertainment 2.9% | ||
Activision Blizzard | 2,375 | 182 |
Netflix (1) | 1,462 | 431 |
Sea, ADR (1) | 3,814 | 198 |
Spotify Technology (1) | 2,355 | 186 |
997 | ||
Interactive Media & Services 7.7% | ||
Alphabet, Class A (1) | 16,136 | 1,424 |
Alphabet, Class C (1) | 9,332 | 828 |
Match Group (1) | 3,196 | 133 |
Meta Platforms, Class A (1) | 1,008 | 121 |
Pinterest, Class A (1) | 6,600 | 160 |
2,666 | ||
Media 0.4% | ||
Trade Desk, Class A (1) | 3,423 | 154 |
154 | ||
Total Communication Services | 3,817 | |
CONSUMER DISCRETIONARY 17.6% | ||
Auto Components 0.0% | ||
Mobileye Global, Class A (1) | 526 | 18 |
18 | ||
Automobiles 4.2% | ||
Ferrari NV | 3,844 | 823 |
Rivian Automotive, Class A (1) | 33,320 | 614 |
Tesla (1) | 77 | 10 |
1,447 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Hotels Restaurants & Leisure 4.0% | ||
Booking Holdings (1) | 141 | 284 |
Chipotle Mexican Grill (1) | 198 | 275 |
Expedia Group (1) | 1,872 | 164 |
Las Vegas Sands (1) | 8,143 | 391 |
Wynn Resorts (1) | 3,177 | 262 |
1,376 | ||
Internet & Direct Marketing Retail 6.2% | ||
Amazon.com (1) | 23,575 | 1,980 |
Coupang, Class A (1) | 10,022 | 147 |
DoorDash, Class A (1) | 255 | 13 |
2,140 | ||
Leisure Products 0.2% | ||
Peloton Interactive, Class A (1) | 10,416 | 83 |
83 | ||
Specialty Retail 2.7% | ||
Carvana (1) | 1,133 | 5 |
Floor & Decor Holdings, Class A (1) | 1,701 | 119 |
Ross Stores | 7,079 | 822 |
946 | ||
Textiles, Apparel & Luxury Goods 0.3% | ||
Lululemon Athletica (1) | 331 | 106 |
106 | ||
Total Consumer Discretionary | 6,116 | |
CONSUMER STAPLES 0.6% | ||
Personal Products 0.6% | ||
Estee Lauder, Class A | 890 | 221 |
Total Consumer Staples | 221 |
Shares | $ Value | |
(Cost and value in $000s) | ||
HEALTH CARE 14.0% | ||
Biotechnology 0.7% | ||
Argenx SE, ADR (1) | 601 | 228 |
Moderna (1) | 48 | 8 |
236 | ||
Health Care Equipment & Supplies 2.9% | ||
Align Technology (1) | 472 | 99 |
Insulet (1) | 458 | 135 |
Intuitive Surgical (1) | 2,056 | 546 |
Stryker | 950 | 232 |
1,012 | ||
Health Care Providers & Services 6.8% | ||
Cigna | 952 | 315 |
HCA Healthcare | 1,019 | 245 |
Humana | 778 | 399 |
UnitedHealth Group | 2,630 | 1,394 |
2,353 | ||
Life Sciences Tools & Services 1.1% | ||
Avantor (1) | 6,720 | 142 |
Danaher | 876 | 232 |
374 | ||
Pharmaceuticals 2.5% | ||
AstraZeneca, ADR | 1,962 | 133 |
Eli Lilly | 1,998 | 731 |
864 | ||
Total Health Care | 4,839 |
Shares | $ Value | |
(Cost and value in $000s) | ||
INDUSTRIALS & BUSINESS SERVICES 4.8% | ||
Aerospace & Defense 1.1% | ||
Boeing (1) | 1,923 | 366 |
366 | ||
Air Freight & Logistics 0.6% | ||
FedEx | 1,188 | 206 |
206 | ||
Commercial Services & Supplies 0.4% | ||
Cintas | 274 | 124 |
124 | ||
Electrical Equipment 0.0% | ||
Generac Holdings (1) | 141 | 14 |
14 | ||
Industrial Conglomerates 1.3% | ||
Roper Technologies | 1,026 | 444 |
444 | ||
Professional Services 0.9% | ||
TransUnion | 3,975 | 225 |
Verisk Analytics | 480 | 85 |
310 | ||
Road & Rail 0.5% | ||
Old Dominion Freight Line | 674 | 191 |
191 | ||
Total Industrials & Business Services | 1,655 | |
INFORMATION TECHNOLOGY 47.1% | ||
Electronic Equipment, Instruments & Components 1.6% | ||
Teledyne Technologies (1) | 1,370 | 548 |
548 |
Shares | $ Value | |
(Cost and value in $000s) | ||
IT Services 8.6% | ||
Block, Class A (1) | 175 | 11 |
Fiserv (1) | 5,710 | 577 |
Global Payments | 1,286 | 128 |
Mastercard, Class A | 3,027 | 1,052 |
MongoDB (1) | 430 | 85 |
Visa, Class A | 5,472 | 1,137 |
2,990 | ||
Semiconductors & Semiconductor Equipment 7.2% | ||
Advanced Micro Devices (1) | 7,553 | 489 |
ASML Holding NV | 1,630 | 891 |
Lam Research | 550 | 231 |
NVIDIA | 6,009 | 878 |
2,489 | ||
Software 20.4% | ||
Atlassian, Class A (1) | 1,714 | 220 |
Bill.Com Holdings (1) | 83 | 9 |
Black Knight (1) | 1,907 | 118 |
Ceridian HCM Holding (1) | 2,275 | 146 |
HashiCorp, Class A (1) | 400 | 11 |
Intuit | 2,199 | 856 |
Microsoft | 18,781 | 4,504 |
Monday.com (1) | 416 | 51 |
Salesforce.com (1) | 3,331 | 441 |
SentinelOne, Class A (1) | 5,740 | 84 |
ServiceNow (1) | 1,623 | 630 |
7,070 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Technology Hardware, Storage & Peripherals 9.3% | ||
Apple | 24,756 | 3,217 |
3,217 | ||
Total Information Technology | 16,314 | |
Total Miscellaneous Common Stocks 0.2% (2) | 69 | |
Total Common Stocks (Cost $39,051) | 33,031 | |
SHORT-TERM INVESTMENTS 4.7% | ||
Money Market Funds 4.7% | ||
State Street Institutional U.S. Government Money Market Fund, 4.12% (3) | 1,643,719 | 1,644 |
Total Short-Term Investments (Cost $1,644) | 1,644 | |
Total
Investments in Securities 100.0% of Net Assets (Cost $40,695) |
$ 34,675 |
‡ | 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 $40,695) | $ 34,675 |
Receivable for investment securities sold | 335 |
Dividends receivable | 4 |
Other assets | 1 |
Total assets | 35,015 |
Liabilities | |
Payable for fund shares repurchased | 309 |
Payable for investment securities purchased | 20 |
Investment management and administrative fees payable | 17 |
Total liabilities | 346 |
NET ASSETS | $ 34,669 |
Net assets consists of: | |
Total distributable earnings (loss) | $ (14,176) |
Paid-in
capital applicable to 1,685,000 shares of $0.0001 par value capital stock outstanding; 4,000,000,000 shares authorized |
48,845 |
NET ASSETS | $ 34,669 |
NET ASSET VALUE PER SHARE | $ 20.57 |
Year
Ended | |
12/31/22 | |
Investment Income (Loss) | |
Dividend income (net of foreign taxes of $2) | $ 173 |
Investment management and administrative expense | 213 |
Net investment loss | (40) |
Realized and Unrealized Gain / Loss | |
Net realized gain (loss) | |
Securities | (7,731) |
In-kind redemptions | 1,625 |
Net realized loss | (6,106) |
Change in net unrealized gain / loss on securities | (14,528) |
Net realized and unrealized gain / loss | (20,634) |
DECREASE IN NET ASSETS FROM OPERATIONS | $ (20,674) |
Year
Ended |
|||
12/31/22 | 12/31/21 | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net investment loss | $ (40) | $ (78) | |
Net realized loss | (6,106) | (274) | |
Change in net unrealized gain / loss | (14,528) | 5,399 | |
Increase (Decrease) in net assets from operations | (20,674) | 5,047 | |
Distributions to shareholders | |||
Net earnings | — | (195) | |
Capital share transactions* | |||
Shares sold | 16,143 | 18,857 | |
Shares redeemed | (11,056) | — | |
Increase in net assets from capital share transactions | 5,087 | 18,857 | |
Net Assets | |||
Increase (decrease) during period | (15,587) | 23,709 | |
Beginning of period | 50,256 | 26,547 | |
End of period | $ 34,669 | $ 50,256 | |
*Share information | |||
Shares sold | 650 | 595 | |
Shares redeemed | (470) | — | |
Increase in shares outstanding | 180 | 595 |
($000s) | ||
December 31 | December 31 | |
2022 | 2021 | |
Ordinary income (including short-term capital gains, if any) | $
— |
$ 195 |
($000s) | |
Cost of investments | $ 40,856 |
Unrealized appreciation | $ 1,146 |
Unrealized depreciation | (7,327) |
Net unrealized appreciation (depreciation) | $ (6,181) |
($000s) | |
Net unrealized appreciation (depreciation) | (6,181) |
Loss carryforwards and deferrals | (7,995) |
Total distributable earnings (loss) | $ (14,176) |
Name
(Year of Birth) Year Elected [Number of T. Rowe Price Portfolios Overseen] |
Principal
Occupation(s) and Directorships of Public Companies and Other Investment Companies During the Past Five Years |
Teresa
Bryce Bazemore (1959) 2020 [205] |
President
and Chief Executive Officer, Federal Home Loan Bank of San Francisco (2021 to present); President, Radian Guaranty (2008 to 2017); Chief Executive Officer, Bazemore Consulting LLC (2018 to 2021); Director, Chimera Investment Corporation (2017 to 2021); Director, First Industrial Realty Trust (2020 to present); Director, Federal Home Loan Bank of Pittsburgh (2017 to 2019) |
Ronald
J. Daniels(b) (1959) 2018 [0] |
President,
The Johns Hopkins University and Professor, Political Science Department, The Johns Hopkins University (2009 to present); Director, Lyndhurst Holdings (2015 to present); Director, BridgeBio Pharma, Inc. (2020 to present) |
Bruce
W. Duncan (1951) 2020 [205] |
President,
Chief Executive Officer, and Director, CyrusOne, Inc. (2020 to 2021); Chief Executive Officer and Director (2009 to 2016), Chair of the Board (2016 to 2020), and President (2009 to 2016), First Industrial Realty Trust, owner and operator of industrial properties; Chair of the Board (2005 to 2016) and Director (1999 to 2016), Starwood Hotels & Resorts, a hotel and leisure company; Member, Investment Company Institute Board of Governors (2017 to 2019); Member, Independent Directors Council Governing Board (2017 to 2019); Senior Advisor, KKR (2018 to present); Director, Boston Properties (2016 to present); Director, Marriott International, Inc. (2016 to 2020) |
Robert
J. Gerrard, Jr. (1952) 2020 [205] |
Advisory
Board Member, Pipeline Crisis/Winning Strategies, a collaborative working to improve opportunities for young African Americans (1997 to 2016); Chair of the Board, all funds (July 2018 to present) |
Name
(Year of Birth) Year Elected [Number of T. Rowe Price Portfolios Overseen] |
Principal
Occupation(s) and Directorships of Public Companies and Other Investment Companies During the Past Five Years |
Paul
F. McBride (1956) 2020 [205] |
Advisory
Board Member, Vizzia Technologies (2015 to present); Board Member, Dunbar Armored (2012 to 2018) |
Kellye
L. Walker(c) (1966) 2021 [205] |
Executive
Vice President and Chief Legal Officer, Eastman Chemical Company (April 2020 to present); Executive Vice President and Chief Legal Officer, Huntington Ingalls Industries, Inc. (January 2015 to March 2020); Director, Lincoln Electric Company (October 2020 to present) |
Name
(Year of Birth) Year Elected [Number of T. Rowe Price Portfolios Overseen] |
Principal
Occupation(s) and Directorships of Public Companies and Other Investment Companies During the Past Five Years |
David
Oestreicher (1967) 2020 [205] |
Director,
Vice President, and Secretary, T. Rowe Price, T. Rowe Price Investment Services, Inc., T. Rowe Price Retirement Plan Services, Inc., and T. Rowe Price Services, Inc.; Director and Secretary, T. Rowe Price Investment Management, Inc. (Price Investment Management); Vice President and Secretary, T. Rowe Price international (Price International); Vice President, T. Rowe Price Hong Kong (Price Hong Kong), T. Rowe Price Japan (Price Japan), and T. Rowe Price Singapore (Price Singapore); General Counsel, Vice President, and Secretary, T. Rowe Price Group, Inc.; Chair of the Board, Chief Executive Officer, President, and Secretary, T. Rowe Price Trust Company; Principal Executive Officer and Executive Vice President, all funds |
Name
(Year of Birth) Year Elected [Number of T. Rowe Price Portfolios Overseen] |
Principal
Occupation(s) and Directorships of Public Companies and Other Investment Companies During the Past Five Years |
Robert
W. Sharps, CFA, CPA(b) (1971) 2020 [0] |
Director
and Vice President, T. Rowe Price; Director, Price
Investment Management; Chief Executive Officer and President, T. Rowe Price Group, Inc.; Vice President, T. Rowe Price Trust Company |
Eric
L. Veiel, CFA (1972) 2022 [205] |
Director
and Vice President, T. Rowe Price; Vice President, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company |
Name
(Year of Birth) Position Held With Exchange-Traded Funds, Inc. |
Principal Occupation(s) |
Armando
(Dino) Capasso (1974) Chief Compliance Officer |
Chief Compliance Officer and Vice President, T. Rowe Price and Price Investment Management; Vice President, T. Rowe Price Group, Inc.; formerly, Chief Compliance Officer, PGIM Investments LLC and AST Investment Services, Inc. (ASTIS) (to 2022); Chief Compliance Officer, PGIM Retail Funds complex and Prudential Insurance Funds (to 2022); Vice President and Deputy Chief Compliance Officer, PGIM Investments LLC and ASTIS (to 2019); Senior Vice President and Senior Counsel, Pacific Investment Management Company LLC (to 2017) |
Timothy
Coyne (1967) Executive Vice President |
Vice President, T. Rowe Price and T. Rowe Price Group, Inc. |
Alan
S. Dupski, CPA (1982) Principal Financial Officer, Vice President, and Treasurer |
Vice President, Price Investment Management, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company |
Joseph
B. Fath, CPA (1971) Executive Vice President |
Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company |
Name
(Year of Birth) Position Held With Exchange-Traded Funds, Inc. |
Principal Occupation(s) |
Gary
J. Greb (1961) Vice President |
Vice President, Price Investment Management, T. Rowe Price, Price International, and T. Rowe Price Trust Company |
Paul
Greene II (1978) Executive Vice President |
Vice President, T. Rowe Price and T. Rowe Price Group, Inc. |
Cheryl
Hampton, CPA (1969) Vice President |
Vice President, T. Rowe Price; formerly, Tax Director, Invesco Ltd. (to 2021); Vice President, Oppenheimer Funds, Inc. (to 2019) |
Ann
M. Holcomb, CFA (1972) Executive Vice President |
Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company |
Thomas
J. Huber, CFA (1966) Executive Vice President |
Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company |
Benjamin
Kersse, CPA (1989) Vice President |
Vice President, T. Rowe Price |
Paul
J. Krug, CPA (1964) Vice President |
Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company |
John
D. Linehan, CFA (1965) Executive Vice President |
Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company |
Jason
Nogueira, CFA (1974) Executive Vice President |
Vice President, T. Rowe Price and T. Rowe Price Group, Inc. |
Fran
M. Pollack-Matz (1961) Vice President and Secretary |
Vice President, T. Rowe Price, T. Rowe Price Group, Inc., T. Rowe Price Investment Services, Inc., and T. Rowe Price Services, Inc. |
Jason
Benjamin Polun, CFA (1974) Executive Vice President |
Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company |
Shannon
H. Rauser (1987) Assistant Secretary |
Assistant Vice President, T. Rowe Price |
Megan
Warren (1968) Vice President |
OFAC Sanctions Compliance Officer and Vice President, Price Investment Management; Vice President, T. Rowe Price, T. Rowe Price Group, Inc., T. Rowe Price Retirement Plan Services, Inc., T. Rowe Price Services, Inc., and T. Rowe Price Trust Company |
Thomas
H. Watson (1977) Executive Vice President |
Director and Vice President, T. Rowe Price Trust Company; Vice President, T. Rowe Price and T. Rowe Price Group, Inc. |