T. Rowe Price Capital Appreciation Equity ETF (TCAF US) – Portfolio Construction Methodology

The investment process underpinning the actively managed T. Rowe Price Capital Appreciation Equity ETF seeks long-term capital growth through a concentrated, nondiversified core equity portfolio that typically focuses on large U.S. companies. The fund normally invests at least 80% of net assets in equity securities and builds the portfolio bottom up, emphasizing companies with experienced management, strong risk-adjusted return potential, durable or improving competitive positions, and valuations it considers attractive versus peers or the issuer’s own history. Sector allocations largely reflect security selection, so the portfolio can carry meaningful active weights in favored industries subject to ongoing risk monitoring and liquidity constraints. Position sizes reflect conviction, business quality, and downside risk, with trims or sales driven by deteriorating fundamentals, less compelling risk/reward, or portfolio balance considerations rather than short-term trading.

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