T. Rowe Price on Thursday launched the T. Rowe Price Innovation Leaders ETF (NASDAQ:TNXT), an actively managed fund designed to capture companies driving innovation across sectors including technology, healthcare, and financials. The ETF began trading on the Nasdaq today.
At launch, the fund's top holdings include Nvidia Corp (NASDAQ:NVDA), Apple, Inc (NASDAQ:AAPL), Microsoft Corp (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN), and Broadcom Inc (NASDAQ:AVGO), highlighting a core exposure to established innovation heavyweights even as the strategy aims to look beyond traditional sector boundaries.
The ETF has a net expense ratio of 0.49%, placing it in line with other actively managed thematic ETFs.
Blending Mega-Cap Leaders With Broader Innovation Themes
While TNXT starts with familiar names at the top of the portfolio, T. Rowe Price says the fund is built to evolve as innovation leadership shifts. The ETF uses the firm's global research platform to combine top-down analysis of long-term innovation trends with bottom-up stock selection, allowing it to invest across industries and geographies.
The portfolio is expected to hold between 150 and 250 stocks, offering diversification while retaining the flexibility to move into emerging innovation areas outside technology when opportunities arise. The approach is designed to adapt to changing market conditions while maintaining disciplined risk management.
Innovation Exposure Without A Single-Sector Bet
By anchoring the portfolio in dominant innovators such as Nvidia and Microsoft while maintaining the flexibility to expand into other industries, TNXT targets investors seeking long-term exposure to innovation without relying solely on a narrow tech-only framework.
As innovation themes continue to spread across healthcare, financial infrastructure, and industrial applications, T. Rowe Price is positioning TNXT as a more adaptive alternative to traditional innovation benchmarks.
T. Rowe Price manages $1.78 trillion in client assets as of Dec. 31, 2025.
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