The fund normally invests
at least 80% of its net assets (plus any borrowings for investment purposes) in stocks of companies with
growth characteristics. For purposes of the fund’s 80% investment policy, the fund considers a company
to have growth characteristics if the company’s securities are represented in an appropriate third-party
growth-oriented index. Any derivatives that provide exposure to the investment focus suggested by the
fund’s name, or to one or more market
risk factors associated with the investment focus suggested by the fund’s name, are counted (as applicable)
toward compliance with the fund’s 80% investment policy. While the fund may invest in companies of
any market capitalization, the fund generally seeks investments in stocks of large-cap companies with
one or more of the following characteristics: strong cash flow and an above-average rate of earnings
growth; the ability to sustain earnings momentum during economic downturns; and occupation of a lucrative
niche in the economy and the ability to expand even during times of slow economic growth. The fund’s
growth-oriented investment approach to stock selection reflects the belief that when a company increases
its earnings faster than both inflation and the overall growth rate of the economy, it may result in
a higher stock price. At times, the fund may have a significant portion of its assets invested in the
same economic sector, such as the information technology sector. The fund is nondiversified, which means it
may invest a greater percentage of its assets in a particular issuer than is permissible for a diversified
fund. The
fund is an actively-managed, exchange-traded fund (ETF) that does not disclose portfolio holdings daily.
In order to provide market participants with information on the fund’s investments, the fund publishes
a “Proxy Portfolio” on its website daily. A Proxy Portfolio is a basket of securities that is designed
to closely track the daily performance of the fund’s portfolio holdings. While the Proxy Portfolio
includes some of the fund’s holdings, it is not the fund’s actual portfolio. The Proxy Portfolio
could be based on a broad-based securities index or the fund’s recently disclosed portfolio holdings.
The fund’s Portfolio Overlap is available on the fund’s website daily. The Portfolio Overlap is the
percentage weight overlap between the holdings of the prior business day’s Proxy Portfolio compared
to the holdings of the fund that formed the basis for the fund’s calculation of net asset value (NAV)
at the end of the prior business day.
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Risk Table - T. Rowe Price Growth Stock ETF
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Risk [Text Block] |
Principal Risks |
Principal Risks As with any fund, there
is no guarantee that the fund will achieve its objective(s). The fund’s share price fluctuates, which
means you could lose money by investing in the fund. The principal risks of investing in this fund, which
may be even greater in bad or uncertain market conditions, are summarized as follows:
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Risk Lose Money [Member] |
The fund’s share price fluctuates, which
means you could lose money by investing in the fund.
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Proxy portfolio structure |
Proxy portfolio structure:
The
fund does not disclose portfolio holdings daily. The fund uses a Proxy Portfolio, which is a basket of
securities that is designed to closely track the daily performance of the fund’s portfolio holdings.
The fund may not always effectively construct a proxy portfolio that closely tracks the daily performance
of the fund’s portfolio holdings. Because the fund uses a Proxy Portfolio, there is a risk that the
fund’s shares may trade at a wider bid-ask spread than shares of ETFs that disclose their portfolio
holdings daily. This risk is heightened during periods of market disruption and volatility, and, therefore,
may cost you more to trade. Although the fund seeks to benefit from keeping its portfolio information
confidential, other traders may attempt to use the Proxy Portfolio and publicly available information,
including intraday net asset value (INAV) to identify the fund’s trading strategy, which, if successful,
could result in such traders engaging in certain predatory trading practices that may have the potential
to
harm the fund and its shareholders. Because the fund’s shares are traded in the secondary market, a
broker may charge a commission to execute a transaction in shares, and you may incur the cost of the
spread between the price at which a dealer will buy shares and the somewhat higher price at which a dealer
will sell shares.
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Premium/Discount |
Premium/Discount: Although the Proxy Portfolio is intended to provide investors
with enough information to allow for an effective arbitrage mechanism that will keep the market price
of the fund at or close to the underlying NAV per share of the fund, there is a risk (which may increase
during periods of market disruption or volatility) that market prices will vary significantly from the
underlying NAV per share of the fund. These price differences may be greater for this fund compared to
ETFs that disclose portfolio holdings daily because it provides different portfolio holdings information
to traders. The adviser will monitor on an ongoing basis how shares trade, including the level of any
market price premium or discount to NAV and the bid-ask spreads on market transactions. Each day, the
website provides the fund’s Tracking Error, which means the standard deviation over the past three
months of the daily proxy spread (i.e., the difference, in percentage terms, between the Proxy Portfolio’s
per share NAV and that of the fund at the end of the trading day).
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Trading halt |
Trading halt: It
is possible that an active trading market for the shares will not be maintained, or that trading in the
shares will be halted for reasons such as market-wide trading halts or the shares no longer meeting the
listing requirements of the listing exchange. If securities representing 10% or more of the fund’s
portfolio do not have readily available market quotations, the fund would promptly request the listing
exchange to halt trading on the fund. In addition, to the extent T. Rowe Price determines that a security
held in a fund’s portfolio but not in the Proxy Portfolio does not have readily available market quotations
and such circumstance may affect the reliability of the Proxy Portfolio as an arbitrage vehicle, that
information, along with the identity and weighting of that security in the fund’s portfolio, will be
publicly disclosed on the fund’s website.
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Authorized Participant |
Authorized Participant: The fund’s shares
may have a limited number of active “Authorized Participants,” which are financial institutions that
are able to transact daily with the fund to purchase and redeem a large specified number of shares of
the fund. To the extent they cannot or otherwise are unwilling to engage in creation and redemption transactions,
and no other Authorized Participant steps in, shares of the fund may trade at a significant discount
or premium to NAV and may face trading halts and delisting from the exchange. During times of market
stress, Authorized Participants may be more likely to step away from an ETF that does not disclose holdings
daily than a traditional ETF.
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ETF shares trading |
ETF shares trading: Shares of the fund are listed for trading
on a national securities exchange and are bought and sold in the secondary market at market prices. The
market prices of shares are expected to fluctuate in response to changes in the fund’s NAV, the value
of the fund’s holdings, and supply and demand for shares. Disruptions to creations and redemptions,
significant market volatility, potential lack of an active trading market for the shares (including through
a trading halt), or other factors may widen bid-ask spreads and result in the shares trading significantly
above (at a premium) or below (at a discount) to NAV or to the value of the fund’s
holdings. If a shareholder purchases shares at a time when the market price is at a premium to the NAV
or sells shares at a time when the market price is at a discount to the NAV, the shareholder may sustain
losses.
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Stock investing |
Stock
investing: Stocks generally fluctuate in value more than bonds and may decline significantly
over short time periods. There is a chance that stock prices overall will decline because stock markets
tend to move in cycles, with periods of rising and falling prices. The value of stocks held by the fund
may decline due to general weakness or volatility in the stock markets in which the fund invests or because
of factors that affect a particular company or industry.
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Growth investing |
Growth investing: The fund’s growth
approach to investing could cause it to underperform other stock funds that employ a different investment
style. Growth stocks tend to be more volatile than certain other types of stocks and their prices may
fluctuate more dramatically than the overall stock market. A stock with growth characteristics can have
sharp price declines due to decreases in current or expected earnings and may lack dividends that can
help cushion its share price in a declining market.
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Market conditions |
Market conditions: The value of the fund’s
investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held
by the fund, particular industries, or the overall securities markets. A variety of factors can increase
the volatility of the fund’s holdings and markets generally, including economic, political, or regulatory
developments, recessions, inflation, rapid interest rate changes, war, military conflict, acts of terrorism,
natural disasters, and outbreaks of infectious illnesses or other widespread public health issues (such
as the coronavirus pandemic) and related governmental and public responses (including sanctions). Certain
events may cause instability across global markets, including reduced liquidity and disruptions in trading
markets, while some events may affect certain geographic regions, countries, sectors, and industries
more significantly than others. Government intervention in markets may impact interest rates, market
volatility, and security pricing. These adverse developments may cause broad declines in market value
due to short-term market movements or for significantly longer periods during more prolonged market downturns.
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Large-cap stocks |
Large-cap
stocks: Securities issued by large-cap companies tend to be less volatile than securities
issued by small- and mid-cap companies. However, large-cap companies may not be able to attain the high
growth rates of successful small- and mid-cap companies, especially during strong economic periods, and
may be unable to respond as quickly to competitive challenges.
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Sector exposure |
Sector exposure:
Issuers in the same economic sector may be similarly affected by economic or market events, making the
fund more vulnerable to unfavorable developments in that economic sector than funds that invest more
broadly.
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Information technology sector |
Information technology sector: Information technology companies face
intense competition, both domestically and internationally, which may have an adverse effect on their
profit margins. Like other technology companies, information technology companies may have limited product
lines, markets, financial resources, or personnel.
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Risk Nondiversified Status [Member] |
Nondiversification:
As a nondiversified fund, the fund has the ability to invest a larger percentage of its assets in the
securities of a smaller number of issuers than a diversified fund. As a result, poor performance by a
single issuer could adversely affect fund performance more than if the fund were invested in a larger
number of issuers. The fund’s share price can be expected to fluctuate more than that of a similar
fund that is more broadly diversified.
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Active management |
Active management: The fund’s overall investment program
and holdings selected by the fund’s investment adviser may underperform the broad markets, relevant
indices, or other funds with similar objectives and investment strategies.
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Cybersecurity breaches |
Cybersecurity breaches:
The fund could be harmed by intentional cyberattacks and other cybersecurity breaches, including unauthorized
access to the fund’s assets, confidential information, or other proprietary information. In addition,
a cybersecurity breach could cause one of the fund’s service providers or financial intermediaries
to suffer unauthorized data access, data corruption, or loss of operational functionality.
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