SECT vs TACU

SECTCMain Sector Rotation ETF

TACUAT. Rowe Price Active Core U.S. Equity ETF

In short

SECT Rather than picking stocks, SECT rents whole sectors through sector ETFs, tilting toward the ones its managers judge undervalued. The stated aim: outperform the S&P 500 in rising markets while limiting losses when markets decline.

TACU T. Rowe Price's quant-plus-fundamental take on core large-cap U.S. stock, benchmarked to the Russell 1000. Gross fee 0.14%, fully waived to zero through January 30, 2027.

Stated mandate

SECT The Fund seeks to outperform the S&P 500 during rising markets while limiting losses when markets decline.

TACU The fund seeks long-term capital growth through a primarily U.S. equity portfolio. It combines quantitative models with fundamental, bottom-up analysis and seeks excess returns relative to the Russell 1000 Index.

Why people hold it

• SECT One of the longer-running active sector-rotation ETFs, trading since 2017, with a record that spans the 2020 crash and the 2022 bear market.sec.gov
• 0.69% net of a waiver through March 31, 2027 (0.73% gross), and that cap covers the underlying sector ETFs' fees too, so fund-of-funds costs don't quietly stack on top.sec.gov
• A multi-billion-dollar fund that trades at moderate volume, so entering and exiting is rarely the hard part for retail-size orders. Pays quarterly.

• TACU Fee fully waived: 0.14% gross, zero net through January 30, 2027. That sits below every top-scoring peer in the category, including DFAU at 0.12% with no waiver.troweprice.com
• Quant models feed bottom-up stock picking with tilts to profitability, quality and value, chasing excess return over the Russell 1000 while holding tracking error tight.troweprice.com
• Several hundred large-cap names, so no single position runs the show. One of the stronger profiles in a crowded active U.S. equity field.troweprice.com

Worth knowing

• SECT The fee sits near the typical active US equity fund, but well above index-style peers in the group such as DFAU (0.12%) and AVLC (0.15%).
• Results ride on a short list of sector calls, so the portfolio can look very different from the S&P 500 in either direction.sec.gov
• The prospectus notes higher portfolio turnover can mean higher transaction costs and bigger tax bills for shares held in a taxable account.sec.gov

• TACU Launched in December 2025, so the live record is short and the risk read rests on limited history.
• Still a small fund that trades lightly, which can mean wider spreads than the category's giants.
• Distributions are annual at most, with no declared income target. This is a growth mandate, not a cash-flow one.

Full SECT profile⁠

Full TACU profile⁠