T. Rowe Value Group, Inc. (TROW) reported $2.5 billion in internet flows into its ETF merchandise throughout the second quarter, bringing complete ETF belongings underneath administration to $16.2 billion as of June 30, in keeping with a transcript of the corporate’s earnings name Friday.
The Baltimore-based asset supervisor noticed over $6 billion in inflows to its ETF merchandise throughout the first half of 2025, CEO Rob Sharps stated throughout the firm’s earnings name, in keeping with the company-provided transcript. Eleven of the agency’s ETFs now maintain greater than $500 million in belongings underneath administration.
The ETF development comes as T. Rowe Value builds out its product lineup, with the corporate submitting eight new methods Friday morning, in keeping with Sharps, who stated the agency expects “momentum to proceed to construct because the ETF suite builds monitor document, scales and will get platform placement.”
The filings embrace 4 fairness and 4 fixed-income merchandise, stated Eric Veiel, head of world investments and chief funding officer. The fairness lineup consists of zero-fee lively core U.S. fairness and worldwide fairness ETFs concentrating on cheaper price factors the place the agency beforehand lacked presence, whereas the fixed-income merchandise spherical out the municipal suite and add a multi-sector earnings ETF.
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“Two of the fairness methods that we launched—at zero value lively core US fairness ETF and the zero value lively core worldwide fairness ETF—particularly are available in at cheaper price factors, concentrating on part of the market the place we have now not been lively, which we expect will probably be incremental new enterprise for us,” Veiel stated throughout the earnings name.
Chief Monetary Officer Jen Dardis stated the ETF development represents a mixture of current shoppers switching from mutual funds and new buyers getting into by channels the place conventional mutual funds confronted distribution challenges. Business knowledge recommend roughly 25% of ETF flows come from shoppers shifting over time and being recaptured in ETF format, she famous.
The agency at the moment has 24 ETF choices as of June 30, with many gaining platform placements the place the corporate lacks mutual fund distribution agreements, stated Sharps.
“I additionally know that we have now platform placements of a lot of our ETFs with methods that are not positioned—the place we do not have placement with the mutual funds,” Sharps stated. “So there are particular—whether or not it is dealer sellers or platforms—the place we’re getting ETF placement, the place traditionally, they’ve not distributed our funds.”