Russell Kinnell: What’s my top choice for an actively managed ETF? Let’s explore.
Three of my favorite active ETFs
- T. Rowe Price Capital Increase Stock TCAF
- Harbor International Compounders OSEA
- Capital Group Local Government Revenue CGMU
I personally hold T. Rowe Price Capital Appreciation Equity TCAF because I believe David Giroux is an exceptional investor when it comes to flexible equity strategies. He skillfully navigates the style box, searching for the most appealing stocks, no matter their traditional classification. Honestly, he has a knack for picking winners. This gold-rated fund comes with a manageable fee of just 31 basis points.
Then there’s the Silver-rated Harbor International Compounders OSEA. This fund, with around $500 million in assets, focuses on 30 international growth stocks that show strong compounding potential. The sub-advisor, C Worldwide, has an impressive team dedicated to selecting stable growth candidates and reliable names. There’s a strict sales discipline in place, too; any new stock added to the portfolio must meet sales expectations relative to existing holdings. It’s a compact 30-stock portfolio, making it a tad unpredictable, which might not suit everyone’s core strategy, but it definitely has promise.
I’m also keeping an eye on Capital Group Municipal Income CGMU. This municipal fund is appealing because it operates at a low cost of only 27 basis points, which is quite attractive. The firm is known for its adept management team and a well-defined, research-driven investment approach—a real plus. They’ve been recognized for both their “Excellent People” and “Above Average Processes.”
Solid stock selection combined with strong risk management has led to a commendable track record since the fund launched in 2022. It’s guided by three seasoned managers: Mark Marinella, Courtney Wolfe, and Jerome Solomon. This fund strikes a balance between investment-grade bonds and lower-quality options, aiming to deliver good yields while maintaining relatively low volatility.
So far, the returns from this fund have been impressive. Personally, I think it’s poised for a promising future.
