3 of My Favorite Active ETFs: A Deep Dive
Russel Kinnel: What are my favorite actively managed ETFs? Let’s jump in. Here’s a closer look at three top picks that have caught my eye:
T. Rowe Price Capital Appreciation Equity TCAF (https://www.morningstar.com/etfs/arcx/tcaf/quote):
- This ETF is managed by David Giroux, a highly regarded flexible-equity investor. Giroux’s approach is to move around the style box in search of the most compelling stocks, regardless of their style classification. His stock-picking prowess is evident in the fund’s Gold-rated status and a competitive 31 basis point expense ratio.
Harbor International Compounders OSEA (https://www.morningstar.com/etfs/arcx/osea/quote):
- Harbor International Compounders OSEA is a Silver-rated ETF with a $500 million fund size. It focuses on a portfolio of 30 foreign growth stocks with significant compounding potential. The subadvisor, C WorldWide, has a strong team that selects stable growers and high-conviction names. A strict sell discipline ensures that new additions are balanced with existing holdings, maintaining a consistent approach. While the 30-stock portfolio can be somewhat unpredictable, it offers promising returns for investors willing to take on some risk.
Capital Group Municipal Income CGMU (https://www.morningstar.com/etfs/arcx/cgmu/quote):
- Capital Group Municipal Income CGMU is a well-managed municipal bond fund with a low expense ratio of just 27 basis points. It stands out for its seasoned management team and a research-driven investment strategy that has earned it a High People and Above Average Process rating. Since its launch in 2022, the fund has built a solid track record, thanks to strong security selection and effective risk management. Led by Mark Marinella, Courtney Wolf, and Jerome Solomon, the fund combines investment-grade bonds with a significant portion of lower-quality bonds to deliver a nice yield without excessive volatility. The fund’s performance so far has been outstanding, and I believe it is well-positioned for continued success.
For more insights from Russel Kinnel, check out the article 'One of the All-Time Great Investors: How Fidelity’s Will Danoff Proved Active Management Can Still Succeed' (https://www.morningstar.com/funds/one-all-time-great-investors-how-fidelitys-will-danoff-proved-active-management-can-still-succeed).
The author or authors own shares in one or more securities mentioned in this article. For more information on Morningstar’s editorial policies, visit (https://www.morningstar.com/editorial-policy).
