T. Rowe Price U.S. Equity Research ETF Adopts Nondiversified Structure

T. Rowe Price's U.S. Equity Research ETF will become a nondiversified fund effective July 1, 2026, following shareholder approval on June 25. The change allows the actively managed ETF to invest a larger percentage of its assets in a smaller number of issuers, increasing portfolio concentration. While the shift provides greater flexibility to make higher-conviction investments, it also raises the risk that poor performance from a single holding could have a more significant impact on the fund's returns than in a diversified portfolio.