T. Rowe Price launched a new securitized credit ETF on Thursday. The T. Rowe Price Securitized Income ETF (TSCZ) began trading on NYSE Arca with a competitive 0.20% expense ratio, according to a company announcement. The actively managed ETF targets income from securitized credit, a corner of the bond market beyond typical government and corporate debt.
- T. Rowe Price added a securitized credit fund to its active ETF lineup this week.
- TSCZ charges a 0.20% expense ratio and trades on NYSE Arca.
- The fund focuses on investment-grade debt, but can also hold lower-rated CLO debt when the potential return looks attractive.
The launch brings T. Rowe Price’s ETF lineup to 35 funds. That roster spans fixed income, equities, multi-asset, digital assets and thematic strategies, the announcement said.
TSCZ invests at least 80% of its assets in securitized assets, according to the fund’s prospectus. Those are bonds built from pools of loans, such as mortgages or corporate debt.
The strategy covers asset-backed securities, residential and commercial mortgage-backed securities, and collateralized loan obligations, or CLOs. CLOs bundle floating-rate bank loans into slices with different levels of risk.
Jean-Marc Breaux and Ramon de Castro co-manage the new fund, the release noted. Breaux leads securitized products within T. Rowe Price’s fixed income division and has over 20 years of investment experience.
De Castro, a sector portfolio manager, has more than 30 years in the industry, the release said. He also manages the T. Rowe Price GNMA Fund (PRGMX) and oversees mortgage-related holdings across several other portfolios.
TSCZ leans mainly on investment-grade holdings rated BBB– or higher, per the prospectus. It can also hold lower-rated CLO debt when the return looks attractive against the risk. The managers also use interest rate swaps to help manage duration and interest rate risk. They use currency forwards separately to hedge against swings in foreign exchange rates, the prospectus said.
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Tim Coyne, T. Rowe Price’s global head of ETFs, said TSCZ offers “active exposure to securitized credit sectors,” according to the announcement. The fund pairs income potential with diversification inside a transparent structure, he added.
TSCZ pays income distributions on a monthly schedule, according to the prospectus. That structure targets investors looking for regular income from the fund’s mix of mortgage, asset-backed and structured credit holdings.
T. Rowe Price managed $1.87 trillion in client assets as of July 31, 2026, according to the company. About two-thirds of that total is tied to retirement accounts. Separately, the firm has a pending deal to acquire F/m Investments LLC, a fixed income and ETF specialist. That acquisition, expected to close in early 2027, would more than double T. Rowe Price’s fixed income ETF assets.
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