Ivory Gao's questions to T Rowe Price Group Inc (TROW) leadership • Q2 2025
Question
Ivory Gao, on behalf of Craig Siegenthaler from Bank of America Securities, questioned the source of T. Rowe Price's strong ETF growth, asking if it was primarily cannibalizing existing mutual funds or attracting new clients from channels like RIAs.
Answer
CFO Jennifer Dardis said it's a combination of both, noting industry data suggests about 25% is recaptured assets, but it's hard to track directly. Head of Global Investments & CIO Eric Veiel announced the filing of eight new ETFs, including lower-priced core equity products aimed at incremental new business. President, CEO & Chair Robert Sharps added that much of the growth appears to be new business, as ETFs are gaining placement on platforms where their mutual funds are not available, reaching new RIA and broker-dealer clients.