In this Quick Hitter video, I dive into a useful application for one of our key daily reports. While the largest ETFs often dominate the “Size and Style” section of our daily flows report, I’ve noticed certain tickers can pop up consistently, signaling a trend worth investigating.
One such name that has appeared in the top five leaders recently is TCAF, the T. Rowe Price Capital Appreciation Equity ETF. Seeing it pull in $260 million in a single day (on a $6.4 billion AUM fund) made me ask, “What’s the story with this ETF, and why is it seeing this activity?”
A Deeper Look at TCAF
To find out, I simply clicked the ticker in the report to jump directly into our research platform (a feature available to all free-account members).
Here’s what I found:
- The Basics: TCAF is an actively managed, large-cap blend ETF. For an active product, it has a relatively low expense ratio and has been steadily gathering assets since its launch in June 2023.
- Portfolio Strategy: I see this fund as more of a “core replacement” than a “core enhancement.” Running an overlap analysis against the Russell 1000 (IWB), it shows about 44% overlap. This tells me it is “distinctively active” but not taking on such large bets that you would expect huge tracking error from the broad benchmark.
- The Flow Story: A look at its AUM chart shows a “steady Eddie” growth rate, which most ETF managers would be jealous of. More importantly, the flow data shows “heartbeat trades”—custom creation and redemption activity. This is a sign of an active manager using the ETF structure to maintain tax efficiency for shareholders.
That recent $260 million inflow spike? I wouldn’t be surprised if that was part of this creation/redemption process, and we may even see TCAF pop up on the outflows report in the next day or two as they complete the cycle.
I just wanted to highlight how I use the daily flows report to spot interesting stories and how easy it is to click in and learn more about a product—all with a free account.
Want to learn more about the TCAF ETF? Here’s a direct link for more research and information.
Disclosures
This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.
This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.
