What Is TCAF? T. Rowe Price Capital Appreciation Equity ETF
Last updated September 2026
Short answer
TCAF is T. Rowe Price Capital Appreciation Equity ETF, an ETF that tracks Actively managed, no tracked index at a 0.31% expense ratio. TCAF pairs mega-cap technology with holdings almost no growth-oriented fund would carry at that size. Amazon at 5.9%, NVIDIA at 5.2%, Microsoft at 5.1% and Apple at 4.6% sit alongside CenterPoint Energy at 3.1% and Keurig Dr Pepper at 2.7%. The sector table shows the same logic: technology at 31%, then healthcare at 18% and utilities at 10%, which is a far larger utility weight than a broad US index carries. T. Rowe Price launched the fund in 2023, it holds $7.4B, charges 0.31% and yields 0.47%.
TCAF is issued by T. Rowe Price and tracks Actively managed, no tracked index. It charges a 0.31% expense ratio, holds approximately $7.4B in assets under management, yields about 0.47%, and launched in 2023.
Ballast in the top ten
Most funds that hold NVIDIA and Amazon near the top fill the rest of the list with more of the same. TCAF does not. A regulated utility at 3.1% and a beverage company at 2.7% are sized like conviction positions, not like index residue, and utilities at 10% of the portfolio is several times the weight the sector carries in a broad US index.
The intent this expresses is a portfolio built to participate in the growth companies while holding assets whose earnings do not depend on the same conditions. Utility revenue is set by regulators and demand for electricity; packaged beverage sales are steady through most economic conditions. Neither moves with the capital spending cycle that drives semiconductor demand.
Healthcare at 18% belongs to the same idea. It is a large weight for a fund classified as large blend, and healthcare has historically been less sensitive to economic conditions than consumer or industrial sectors. The result is a fund with a recognisable growth engine and a deliberately different set of holdings underneath it.
Active management with an ETF price tag
At 0.31%, TCAF is priced well below traditional active US equity management and well above an index fund. That positioning is common among the active ETFs launched since 2020, and it reflects a bet by asset managers that investors will pay something, but not the historic fee, for security selection.
The strategy involves genuine choices about which companies to hold and at what size, and there is no benchmark obliging the manager to track anything. That means periods of divergence from the index in both directions, driven by decisions such as the utilities weight. Nobody can tell you in advance whether that divergence will help.
The 0.47% yield sits between a growth fund and an income fund. It is higher than a pure technology-led portfolio would produce, because utilities and consumer staples pay meaningful dividends, and far too low to serve an income requirement.
What to check before using it as a core holding
The category label says large blend, which invites people to slot it in as a core US position. The sector profile complicates that. Utilities at 10% and healthcare at 18% are both well above index weights, so this fund will behave differently from a broad US tracker, and anyone using it as their sole US equity exposure is accepting those tilts as their default allocation.
The 2023 inception is short. The strategy has not run through a full cycle in this wrapper, and a portfolio built to be steadier is precisely the kind whose value is only demonstrated in the conditions it has not yet faced.
Overlap is worth checking too. Amazon, NVIDIA, Microsoft, Apple, Alphabet, Meta and Broadcom are the same companies that lead any broad US index fund, and together they are more than 32% of this portfolio. Held beside an S&P 500 position, the effect is to increase exposure to those names while the utilities and healthcare weights do their work on a smaller base than the sector table implies.
It is the wrong fund for someone who wants index-matching behaviour, for someone who wants maximum exposure to the largest growth companies without offsetting positions, and for anyone seeking income at a 0.47% yield.
TCAF holdings: top 10
Approximate weights as of August 2026. Each ticker links to its individual stock guide in Walnut.
How do I invest in TCAF?
There are three common ways to get TCAF exposure. Buy shares (or fractional shares) of TCAF directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so TCAF sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. TCAF trades like a stock during market hours, so you buy it the same way you would any listed share.
New to buying funds? See how to buy an ETF, step by step.
Is TCAF a good buy?
Whether TCAF is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks Actively managed, no tracked index, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is TCAF a buy?
The bottom line on TCAF
TCAF gives you Actively managed, no tracked index exposure in one ticker at a 0.31% expense ratio. Most investors use it as a core holding and layer more concentrated thematic portfolios on top.
More on TCAF
Whether TCAF is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is TCAF a buy?
TCAF yields 0.47% as of August 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see TCAF dividend: yield and schedule.
New to funds like TCAF? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.
Wondering how TCAF fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in TCAF with AI
Connect the broker you already use and ask Walnut's AI how TCAF fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
Is TCAF actively managed?
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Yes. There is no index it is obliged to replicate. T. Rowe Price selects holdings and sets weights, which is how a large blend fund ends up with CenterPoint Energy at 3.1% and Keurig Dr Pepper at 2.7% sitting beside Amazon and NVIDIA. Those positions are decisions rather than the by-product of a market-value weighting rule.
Why does a large blend fund hold utilities at 10%?
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Utilities carry a much smaller weight in a broad US index. Holding them at 10% is a deliberate choice to include earnings streams that are set largely by regulation and electricity demand rather than by the economic and capital spending cycles driving the technology holdings. It is a way of adding stability inside an equity fund without adding bonds.
How concentrated is TCAF?
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The ten largest positions come to roughly 41% of the fund, running from Amazon at 5.9% down to Advanced Micro Devices at 2.5%. That is more concentrated than a broad index fund and less so than a focused strategy holding twenty or thirty names. The concentration is spread across different types of business rather than piled into one theme.
Is 0.31% reasonable for an active fund?
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It is far below what actively managed US equity mutual funds have historically charged and roughly eight times a cheap index tracker. Whether it is reasonable depends on the alternative you would otherwise hold. Against an index fund the manager has to add more than 0.31% a year to justify it, which is a claim about the future rather than something the fund page can confirm.
Why is the yield only 0.47%?
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Because the largest positions are technology and internet companies that distribute little. The utilities and staples holdings pay meaningfully more, which lifts the fund above a pure growth portfolio, but not enough to make it an income vehicle. Anyone needing regular cash from a US equity holding would look at dividend-focused funds paying several times this.
Does the 2023 launch date matter?
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It limits what can be inferred. A fund designed to combine growth exposure with steadier holdings demonstrates its value most clearly in difficult markets, and it has not yet operated through a full cycle in this form. T. Rowe Price has run related equity strategies for longer, but performance from other vehicles is not this fund's record.
Can TCAF work as a single US equity holding?
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It can, provided the tilts are accepted deliberately. Utilities at 10% and healthcare at 18% are well above index weights, so the fund will diverge from a broad US tracker in both directions. Used as the only US position, those become your default allocation, which is fine if intended and a surprise if the large blend label was taken at face value.
Who is TCAF a poor fit for?
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Anyone who wants their US equity holding to move with the headline index, since the sector tilts guarantee it will not. Anyone seeking undiluted exposure to the largest growth companies, given roughly a quarter of the fund sits in healthcare and utilities. And anyone needing income, at a 0.47% yield.
What is TCAF's expense ratio?
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TCAF has an expense ratio of 0.31% per year as of August 2026, charged by T. Rowe Price and deducted from the fund's value rather than billed to you separately. On a $10,000 position that is roughly $31 a year. Fees compound over time, so on a long-term holding the expense ratio is one of the few return drivers you control. It is worth comparing against other funds that track Actively managed, no tracked index before you choose.
How do I compare TCAF to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. TCAF's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to August 2026; verify current figures against T. Rowe Price's fund page or your broker before investing.