The T. Rowe Price QM U.S. Bond ETF (TAGG) is an actively managed equity ETF with $1.85 billion in assets under management. Launched in 2021, TAGG seeks to exceed the performance of the U.S. investment-grade bond market through quantitative modeling. With an expense ratio of 0.08%, TAGG offers a relatively low-cost option for investors seeking exposure to a diversified portfolio of U.S. equities selected using a proprietary quantitative methodology.
T. Rowe Price QM U.S. Bond ETF (TAGG) ETF — Price, Holdings & Analysis
The T. Rowe Price QM U.S. Bond ETF (TAGG) is an actively managed equity ETF with $1.85 billion in assets under management. Launched in 2021, TAGG seeks to exceed the performance of the U.S. investment-grade bond market through quantitative modeling. With an expense ratio of 0.08%, TAGG offers a relatively low-cost option for investors seeking exposure to a diversified portfolio of U.S. equities selected using a proprietary quantitative methodology.
ETF Overview
The fund seeks to provide a total return that exceeds the performance of the U.S. investment-grade bond market.
The T. Rowe Price QM U.S. Bond ETF (TAGG) aims to outperform the U.S. investment-grade bond market by employing a quantitative approach to security selection. This involves using mathematical models and algorithms to identify bonds with the potential for above-average returns. TAGG's portfolio consists of approximately 650 holdings, providing broad diversification within the equity market. The fund's sector allocation is heavily weighted towards Technology (52.7%), followed by Communication Services (15.2%) and Consumer Cyclical (14.3%). The fund also has exposure to Consumer Defensive (5.5%), Healthcare (5.0%), and other sectors. A significant portion of the fund's assets are invested in the United States (59.1%), with additional exposure to other countries (35.5%), Canada (1.3%), the United Kingdom (0.7%), and Spain (0.4%). This ETF may appeal to investors seeking active management and a data-driven approach to equity investing.
Risk Metrics
TAGG's significant allocation to the Technology sector (52.7%) introduces concentration risk, as the fund's performance is highly dependent on the performance of this sector. A downturn in the technology industry could disproportionately impact TAGG's returns. The fund's beta of 0.99 indicates that it has similar volatility to the overall market. With 650 holdings, TAGG offers reasonable diversification, mitigating some company-specific risk. The expense ratio of 0.08% is relatively low, minimizing the cost drag on performance. their may be worth researching risk tolerance and investment objectives before investing in TAGG, particularly given its sector concentration.
<a href="/etf/tacu">T. Rowe Price Active Core U.S. Equity ETF (TACU)</a> — 0.14% expense ratio
Risk Metrics
Beta: 0.99
Questions & Answers
What is TAGG and what does it track?
TAGG is the T. Rowe Price QM U.S. Bond ETF. It aims to provide a total return that exceeds the performance of the U.S. investment-grade bond market. The fund employs a quantitative approach, using mathematical models to identify securities with the potential for above-average returns. TAGG's portfolio consists of approximately 650 holdings, providing broad diversification within the equity market. As of 2026-03-15, TAGG has $1.85 billion in assets under management.
What is the expense ratio for TAGG?
The expense ratio for TAGG is 0.08%. This means that for every $10,000 invested in the fund, investors will pay $8 in annual fees. This is lower than the category average, making TAGG a cost-effective option for investors seeking exposure to U.S. equities. The expense ratio covers the fund's operating expenses, including management fees, administrative costs, and other expenses.
What are the top holdings in TAGG?
While specific bond holdings are not available, TAGG's sector allocation reveals its investment focus. As of 2026-03-15, the top sector allocations are Technology (52.7%), Communication Services (15.2%), and Consumer Cyclical (14.3%). These sectors represent a significant portion of the fund's portfolio, indicating that TAGG's performance is closely tied to the performance of these industries. these may be worth researching sector allocations when evaluating TAGG's suitability for their portfolio.
Is TAGG a good long-term investment?
Whether TAGG is a suitable long-term investment depends on an individual's investment goals, risk tolerance, and time horizon. TAGG's objective is to outperform the U.S. investment-grade bond market, which may appeal to investors seeking above-average returns. However, past performance does not guarantee future results. TAGG may be worth researching's expense ratio of 0.08%, its sector allocation, and its beta of 0.99 when making their investment decision. It is important to conduct thorough research and consult with a financial advisor before investing.
How does TAGG compare to similar ETFs?
TAGG differentiates itself through its quantitative investment approach and focus on exceeding the U.S. investment-grade bond market performance. Its expense ratio of 0.08% is competitive compared to other actively managed equity ETFs. With $1.85 billion in AUM, TAGG is a sizable ETF, indicating investor confidence. Other ETFs may track different indices or employ different investment strategies, so investors should compare TAGG's approach and holdings to those of its peers to determine the best fit for their portfolio.
Does TAGG pay dividends?
As of 2026-03-15, TAGG's dividend yield is 0.00%. This indicates that the fund does not currently distribute dividends to its shareholders. Investors seeking income-generating investments may want to consider other ETFs with higher dividend yields. However, TAGG's focus is on capital appreciation through quantitative bond selection, rather than income generation.