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T. Rowe Price committee shifts to an equities overweight, citing earnings
The fund strategist pointed to forward earnings strength across styles and geographies, with valuations described as “surprisingly disciplined,” and noted the TSPA fund’s 34 basis point fee.
ETF Trends says T. Rowe Price’s Asset Allocation Committee has moved to an overweight in equities relative to bonds, strengthening the case for active equities ETF exposure such as the T. Rowe Price U.S. Equity Research ETF (TSPA). The outlet points to a shift described by T. Rowe Price Capital Markets Strategist Tim Murray as the committee rebalanced toward stocks.
According to Murray’s analysis cited by ETF Trends, the appeal of equities rests on strong earnings, broadening growth signals, and stable valuations. He said forward earnings expectations look exceptionally strong across investment styles, market capitalizations, and geographies, with leading areas linked to the ongoing AI infrastructure build-out.
ETF Trends also highlights Murray’s view that the earnings strength is broad rather than limited to AI-heavy themes, with parts of the market expected to generate double digit earnings growth even where AI exposure is lower. Murray further characterized valuations as surprisingly disciplined, adding that the valuation multiples for U.S. large-cap growth and emerging markets have declined modestly.
The article notes TSPA uses an active, research-driven approach and charges a 34 basis point fee. ETF Trends says the ETF has returned 12.8% year to date and describes how an active strategy can adjust position weightings, add names beyond the index, and potentially offer tax advantages compared with some passive structures.