TTEQ v SPY

On LinkedIn, T. Rowe Price (TRP), one of my fave and recommended fund managers, posts:

Our tech experts share their perspectives on global technology opportunities, the importance of active management in ETF investing, and the role our new Technology ETF (TTEQ) could play in your clients' portfolios. https://lnkd.in/dJCNdpCT

(boldface added by me). 

Ok, we finally have a symbol (after a number of these touts without a symbol). So let's take a look and see how this relatively new fund (first trade date 11/24/2024) stands up to the tried and true.

Due to the short life of this fund we will compare all the short term periods measured by Barchart.com. TTEQ clearly beats SPY and IWM.

TTEQ is a tech ETF while QQQ is the king of tech ETFs. TTEQ beats QQQ short-term: that is, for the last 5 days, 10 days (by 30%), 20 days (similarly) and one month. For longer periods, before the tariff tantrum was announced, not so much. TTEQ is slightly worse than QQQ in all the longer periods.

For a fund this young, these results can't really answer the question "Which is better QQQ or TTEQ? Only years of performance will tell. Can T. Rowe Price's active managers really beat the QQQ tech stock index? QQQ cannot sell and cannot go short. QQQ will fully recover from every market break - large and small. As much as I like TRP, its the test of every active manager to avoid at least SOME of the market breaks and, if you are really an optimist, catch market breaks short. 

Historically? Fund managers cannot do this. But TRP is one of the greatest and fairest fund managers. Let's hope they can do it.