This Active ETF Is Beating SPY Over Multiple Time Frames

Looking to get into the growing move toward active ETFs? You wouldn’t be alone; many investors are moving into the active space. Just this summer, new research projected that active ETFs would hit $4 trillion in AUM by 2030. Of course, not all active ETFs are created equal. Only a select group can meet the lofty expectations investors have for active funds. One strategy that could potentially reach that upper echelon may just be the active ETF TSPA.

See more: Rising Active ETF TSPA Surpasses $700 Million in AUM

TSPA, the T. Rowe Price ETF, launched in 2021. Charging only a 34 basis point fee, the active ETF has outperformed SPY over one year and YTD, per YCharts data. The SPDR S&P 500 ETF Trust (SPY) has returned 16.9% on a total return, YTD basis, and 24.1% over one year on those terms. TSPA, meanwhile, has returned 18% on a daily YTD basis and 27.7% on a one-year average annual returns basis, per T. Rowe Price data.

What stands out most, perhaps, may be the fund's performance vs. SPY since launch. TSPA has outperformed SPY on a cumulative total return basis by delivering nearly 41% since launching in June 2021 compared to 36.7% for SPY.

TSPA

TSPA has outperformed SPY on a total return basis since the fund launched, per YCharts data.

The active ETF's AUM has grown significantly and has now crossed the $800 million mark. It has mostly accrued those assets thanks to investor demand, with the strategy gathering nearly $300 million in net inflows in that time alone.