T. ROWE PRICE LAUNCHES NEW U.S. HIGH YIELD FIXED INCOME EXCHANGE-TRADED FUND
Firm expands fixed income ETF line-up with new
- Seeks to provide total return and, secondarily, current income. By investing primarily in
U.S.dollar-denominated high yield corporate bonds and other fixed and floating rate corporate securities, it seeks to generate a total return in excess of that generated by its benchmark.
- Managed by
Kevin Loome, CFA, who has 29 years of investment industry experience, 16 of which are at T. Rowe Price.
- Net expense ratio is 0.56%.
"With the addition of a new fixed income ETF, we continue to grow our capabilities and equip investors with an even greater range of compelling strategies in the ETF format.
Founded in 1937,
Consider the investment objectives, risks, and charges and expenses carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information visit troweprice.com. Read it carefully.
ETFs are bought and sold at market prices, not NAV. Investors generally incur the cost of the spread between the prices at which shares are bought and sold. Buying and selling shares may result in brokerage commissions which will reduce returns.
■You may have to pay more money to trade these ETF's shares. These ETFs will provide less information to traders, who tend to charge more for trades when they have less information.
■ The price you pay to buy ETF shares on an exchange may not match the value of the ETF's portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders.
■ These additional risks may be even greater in bad or uncertain market conditions.
■ These ETFs will publish on its website each day a "Proxy Portfolio" designed to help trading in shares of the ETF. While the Proxy Portfolio includes some of the ETF's holdings, it is not the ETF's actual portfolio.
The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF secret, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF's performance. If other traders are able to copy or predict the ETF's investment strategy, however, this may hurt the ETF's performance.
All investments are subject to risk, including the possible loss of principal. Fixed-income securities are subject to credit risk, liquidity risk, call risk, and interest-rate risk. As interest rates rise, bond prices generally fall. Investments in high-yield bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. Derivatives may be riskier or more volatile than other types of investments because they are generally more sensitive to changes in market or economic conditions; risks include currency risk, leverage risk, liquidity risk, index risk, pricing risk, and counterparty risk. The Fund's investments in bank loans may at times become difficult to value and highly illiquid; they are subject to credit risk such as nonpayment of principal or interest, and risks of bankruptcy and insolvency. Diversification cannot assure a profit or protect against loss in a declining market.
Bill Benintende, 443-248-2424, email@example.com, Kim Francois, 443-687-0249, firstname.lastname@example.org, Lara Naylor, 410-215-7998, email@example.com, Laura Parsons, 443-472-2281, firstname.lastname@example.org, Bill Weeks, 443-422-7297, email@example.com