T. Rowe Price Exchange-Traded Funds Inc.
02/23/2026 | Press release | Distributed by Public on 02/23/2026 10:45
Annual Report by Investment Company (Form N-CSR)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-23494
T. Rowe Price Exchange-Traded Funds, Inc.
(Exact name of registrant as specified in charter)
1307 Point Street, Baltimore, MD 21231
(Address of principal executive offices)
David Oestreicher
1307 Point Street, Baltimore, MD 21231
(Name and address of agent for service)
Registrant's telephone number, including area code: (410) 345-2000
Date of fiscal year end: December 31
Date of reporting period: December 31, 2025
Item 1. Reports to Shareholders
(a) Report pursuant to Rule 30e-1
Annual Shareholder Report
December 31, 2025
U.S. Equity Research ETF (TSPA)
Principal Listing Exchange: NYSE Arca, Inc.
This annual shareholder report contains important information about U.S. Equity Research ETF (the "fund") for the period of January 1, 2025 to December 31, 2025. You can find the fund's prospectus, financial information on Form N-CSR (which includes required tax information for dividends), holdings, proxy voting information, and other information at www.troweprice.com/prospectus. You can also request this information without charge by contacting T. Rowe Price at 1-800-638-5660 or [email protected]or by contacting your intermediary.
What were the fund costs for the last year?(based on a hypothetical $10,000 investment)
|
Fund name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
U.S. Equity Research ETF
|
$37
|
0.34%
|
What drove fund performance during the past 12 months?
-
U.S. equities rose in 2025, driven by favorable corporate earnings, artificial intelligence (AI) tailwinds, a broadly constructive regulatory environment, and the resumption of short-term interest rate cuts late in the year.
-
Versus the S&P 500 Index, stock selection in industrials and business services contributed to relative performance. A non-index position in Vertiv Holdings was beneficial as shares advanced on strong demand for its power and cooling solutions, driven by the rise in AI data center construction. Within financials, security choices were also beneficial, led by an overweight position in Citigroup. Shares rose on encouraging progress in the company's restructuring efforts, positive investor reactions to announced executive leadership changes, and favorable economic conditions.
-
Conversely, the information technology sector detracted from relative performance due to stock selection. An average underweight position in Palantir Technologies hurt relative performance as shares advanced on strong demand for the company's AI software platforms from both commercial customers and government contracts. Within consumer discretionary, a non-index position in lululemon athletica weighed on relative returns. Shares declined early in the period after management issued softer-than-expected first-quarter guidance, citing a slowdown in consumer spending. Concerns about the impact of tariffs and the company's slowing growth pressured the stock.
-
The U.S. Equity Research ETF invests primarily in U.S. stocks and implements an analyst-driven approach to security selection. A team of industry-focused T. Rowe Price analysts is responsible for selecting stocks for the fund, subject to the oversight and discretion of the portfolio managers who work closely with the analysts.
How has the fund performed?
Cumulative Returns of a Hypothetical $10,000 Investment as of December 31, 2025
|
ETF (Based on Net Asset Value)
|
Regulatory Benchmark
|
Strategy Benchmark
|
|
|
6/8/21
|
10,164
|
10,163
|
10,174
|
|
9/30/21
|
10,244
|
10,152
|
10,233
|
|
12/31/21
|
11,351
|
11,094
|
11,361
|
|
3/31/22
|
10,820
|
10,509
|
10,839
|
|
6/30/22
|
9,049
|
8,754
|
9,094
|
|
9/30/22
|
8,631
|
8,363
|
8,650
|
|
12/31/22
|
9,236
|
8,963
|
9,304
|
|
3/31/23
|
9,984
|
9,607
|
10,001
|
|
6/30/23
|
10,975
|
10,413
|
10,876
|
|
9/30/23
|
10,687
|
10,074
|
10,520
|
|
12/31/23
|
11,985
|
11,290
|
11,750
|
|
3/31/24
|
13,364
|
12,421
|
12,990
|
|
6/30/24
|
14,021
|
12,821
|
13,546
|
|
9/30/24
|
14,724
|
13,619
|
14,344
|
|
12/31/24
|
15,145
|
13,978
|
14,689
|
|
3/31/25
|
14,411
|
13,318
|
14,062
|
|
6/30/25
|
15,965
|
14,782
|
15,600
|
|
9/30/25
|
17,184
|
15,990
|
16,868
|
|
12/31/25
|
17,641
|
16,374
|
17,316
|
202505-4541202, 202601-5112531
ETF967-052 02/26
Average Annual Total Returns
|
Fund
|
1 Year
|
Since Inception 6/8/21
|
|
U.S. Equity Research ETF (Based on Net Asset Value)
|
16.48%
|
13.24%
|
|
Russell 3000 Index (Regulatory Benchmark)
|
17.15%
|
11.41%
|
|
S&P 500 Index (Strategy Benchmark)
|
17.88%
|
12.78%
|
The preceding line graph shows the value of a hypothetical $10,000 investment in the fund over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The fund's performance information included in the line graph and table above is compared with a regulatory required index that represents an overall securities market (Regulatory Benchmark). In addition, the line graph and table may also include one or more indexes that more closely aligns to the fund's investment strategy (Strategy Benchmark(s)). The fund's total return figures reflect the reinvestment of dividends and capital gains, if any. Neither the fund's returns nor the index returns reflect the deduction of taxes that a shareholder would pay on fund distributions or redemptions of fund shares. The fund's past performance is not a good predictor of the fund's future performance.Updated performance information can be found at www.troweprice.com.
What are some fund statistics?
Fund Statistics
- Total Net Assets (000s)$2,116,673
- Number of Portfolio Holdings317
- Investment Advisory Fees Paid (000s)$5,799
- Portfolio Turnover Rate43.6%
What did the fund invest in?
Sector Allocation (as a % of Net Assets)
|
Information Technology
|
35.1%
|
|
Financials
|
14.0
|
|
Communication Services
|
10.2
|
|
Consumer Discretionary
|
10.2
|
|
Health Care
|
9.4
|
|
Industrials & Business Services
|
7.3
|
|
Consumer Staples
|
4.6
|
|
Energy
|
2.8
|
|
Utilities
|
2.3
|
|
Other
|
4.1
|
Top Ten Holdings (as a % of Net Assets)
|
NVIDIA
|
8.0%
|
|
Apple
|
6.8
|
|
Microsoft
|
6.3
|
|
Alphabet
|
5.5
|
|
Amazon.com
|
4.0
|
|
Broadcom
|
3.1
|
|
Meta Platforms
|
2.6
|
|
Tesla
|
2.1
|
|
Eli Lilly
|
1.6
|
|
JPMorgan Chase
|
1.4
|
If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.
Frank Russell Company "LSE" and S&P do not accept any liability for any errors or omissions in the indexes or data, and hereby expressly disclaim all warranties of originality, accuracy, completeness, timeliness, merchantability and fitness for a particular purpose. No party may rely on any indexes or data contained in this communication. Visit www.troweprice.com/en/us/market-data-disclosuresfor additional legal notices & disclaimers.
U.S. Equity Research ETF (TSPA)
T. Rowe Price Investment Services, Inc.
1307 Point Street
Baltimore, Maryland 21231
Principal Listing Exchange: NYSE Arca, Inc.
Item 1. (b) Notice pursuant to Rule 30e-3.
Not applicable.
Item 2. Code of Ethics.
The registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR,applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. A copy of this code of ethics is filed as an exhibit to this Form N-CSR.No substantive amendments were approved or waivers were granted to this code of ethics during the period covered by this report.
Item 3. Audit Committee Financial Expert.
The registrant's Board of Directors has determined that Mr. Paul F. McBride qualifies as an audit committee financial expert, as defined in Item 3 of Form N-CSR.Mr. McBride is considered independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a) - (d) Aggregate fees billed for the last two fiscal years for professional services rendered to, or on behalf of, the registrant by the registrant's principal accountant were as follows:
| 2025 | 2024 | |||||||||
|
Audit Fees |
$ | 23,735 | $23,525 | |||||||
|
Audit-Related Fees |
- | - | ||||||||
|
Tax Fees |
125 | - | ||||||||
|
All Other Fees |
- | - | ||||||||
Audit fees include amounts related to the audit of the registrant's annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant's financial statements and specifically include the issuance of a report on internal controls and, if applicable, agreed-upon procedures related to fund acquisitions. Tax fees include amounts related to services for tax compliance, tax planning, and tax advice. The nature of these services specifically includes the review of distribution calculations and the preparation of Federal, state, and excise tax returns. All other fees include the registrant's pro-ratashare of amounts for agreed-upon procedures in conjunction with service contract approvals by the registrant's Board of Directors/Trustees.
(e)(1) The registrant's audit committee has adopted a policy whereby audit and non-auditservices performed by the registrant's principal accountant for the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant require pre-approvalin advance at regularly scheduled audit committee meetings. If such a service is required between regularly scheduled audit committee meetings, pre-approvalmay be authorized by one audit committee member with ratification at the next scheduled audit committee meeting. Waiver of pre-approvalfor audit or non-auditservices requiring fees of a de minimis amount is not permitted.
(2) No services included in (b) - (d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01of Regulation S-X.
(f) Less than 50 percent of the hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.
(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant's principal accountant for non-auditservices rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $1,862,000 and $1,262,000, respectively.
(h) All non-auditservices rendered in (g) above were pre-approvedby the registrant's audit committee. Accordingly, these services were considered by the registrant's audit committee in maintaining the principal accountant's independence.
(i) Not applicable.
(j) Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Not applicable. The complete schedule of investments is included in Item 7 of this Form N-CSR.
(b) Not applicable.
Item 7. Financial Statements and Financial Highlights for Open-EndManagement Investment Companies.
(a - b) Report pursuant to Regulation S-X.
Financial Statements and Other Information
December 31, 2025
| T. ROWE PRICE | |
| TSPA | U.S. Equity Research ETF |
| For more insights from T. Rowe Price investment professionals, go totroweprice.com. |
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
|
Year Ended |
6/8/21(1) Through |
||||
| 12/31/25 | 12/31/24 | 12/31/23 | 12/31/22 | 12/31/21 | |
| NET ASSET VALUE | |||||
| Beginning of period | $ 36.92 | $ 29.36 | $ 22.72 | $ 28.25 | $ 25.00 |
| Investment activities | |||||
| Net investment income(2)(3) | 0.32 | 0.32 | 0.31 | 0.26 | 0.14 |
| Net realized and unrealized gain/loss | 5.77 | 7.42 | 6.45 | (5.53) | 3.23 |
| Total from investment activities | 6.09 | 7.74 | 6.76 | (5.27) | 3.37 |
| Distributions | |||||
| Net investment income | (0.27) | (0.18) | (0.12) | (0.23) | (0.12) |
| Net realized gain | - | - | - | (0.03) | - |
| Total distributions | (0.27) | (0.18) | (0.12) | (0.26) | (0.12) |
| NET ASSET VALUE | |||||
| End of period | $ 42.74 | $ 36.92 | $ 29.36 | $ 22.72 | $ 28.25 |
1
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
|
Year Ended |
6/8/21(1) Through |
||||
| 12/31/25 | 12/31/24 | 12/31/23 | 12/31/22 | 12/31/21 | |
| Ratios/Supplemental Data | |||||
| Total return, based on NAV(3)(4) | 16.48% | 26.37% | 29.77% | (18.64)% | 13.51% |
|
Ratios to average net assets:(3) |
|||||
|
Gross expenses before waivers/payments by Price Associates |
0.34% | 0.34% | 0.34% | 0.34% | 0.34%(5) |
|
Net expenses after waivers/payments by Price Associates |
0.34% | 0.34% | 0.34% | 0.34% | 0.34%(5) |
| Net investment income | 0.81% | 0.90% | 1.18% | 1.05% | 0.92%(5) |
| Portfolio turnover rate(6) | 43.6% | 43.5% | 42.2% | 39.9% | 13.0% |
|
Net assets, end of period (in thousands) |
$ 2,116,673 | $ 1,056,386 | $ 95,116 | $ 23,064 | $ 23,165 |
| (1) | Inception date |
| (2) | Per share amounts calculated using average shares outstanding method. |
| (3) | Includes the impact of expense-related arrangements with Price Associates. |
| (4) | Total return reflects the rate that an investor would have earned on an investment in the fund during each period, assuming reinvestment of all distributions. Total return is not annualized for periods less than one year. |
| (5) | Annualized |
| (6) | Portfolio turnover excludes securities received or delivered through in-kind share transactions. |
The accompanying notes are an integral part of these financial statements.
2
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
December 31, 2025
| PORTFOLIO OF INVESTMENTS‡ | Shares | $ Value |
| (Cost and value in $000s) | ||
| COMMON STOCKS 99.5% | ||
| COMMUNICATION SERVICES 10.2% | ||
| Diversified Telecommunication Services 0.0% | ||
| AT&T | 15,552 | 386 |
| 386 | ||
| Entertainment 1.2% | ||
| Electronic Arts | 2,404 | 491 |
| Liberty Media-Liberty Formula One, Class C (1) | 9,976 | 983 |
| Netflix (1) | 158,537 | 14,865 |
| Spotify Technology (1) | 1,916 | 1,113 |
| TKO Group Holdings | 17,236 | 3,602 |
| Walt Disney | 32,744 | 3,725 |
| 24,779 | ||
| Interactive Media & Services 8.1% | ||
| Alphabet, Class A | 142,413 | 44,575 |
| Alphabet, Class C | 227,707 | 71,454 |
| Meta Platforms, Class A | 83,397 | 55,050 |
| Pinterest, Class A (1) | 19,576 | 507 |
| 171,586 | ||
| Media 0.1% | ||
| Comcast, Class A | 30,291 | 906 |
| Trade Desk, Class A (1) | 14,206 | 539 |
| 1,445 | ||
| Wireless Telecommunication Services 0.8% | ||
| T-Mobile US | 90,474 | 18,370 |
| 18,370 | ||
| Total Communication Services | 216,566 | |
3
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| CONSUMER DISCRETIONARY 10.2% | ||
| Automobiles 2.3% | ||
| General Motors | 43,216 | 3,514 |
| Tesla (1) | 99,550 | 44,770 |
| 48,284 | ||
| Broadline Retail 4.0% | ||
| Amazon.com (1) | 362,427 | 83,656 |
| eBay | 4,951 | 431 |
| 84,087 | ||
| Distributors 0.0% | ||
| Pool | 1,400 | 320 |
| 320 | ||
| Hotels, Restaurants & Leisure 1.8% | ||
| Airbnb, Class A (1) | 6,300 | 855 |
| Booking Holdings | 1,396 | 7,476 |
| Chipotle Mexican Grill (1) | 113,661 | 4,206 |
| Darden Restaurants | 3,304 | 608 |
| Domino's Pizza | 1,941 | 809 |
| DoorDash, Class A (1) | 16,773 | 3,799 |
| Hilton Worldwide Holdings | 16,349 | 4,696 |
| Las Vegas Sands | 21,109 | 1,374 |
| McDonald's | 32,844 | 10,038 |
| Royal Caribbean Cruises | 11,653 | 3,250 |
| Wingstop | 4,505 | 1,074 |
| 38,185 | ||
| Household Durables 0.1% | ||
| NVR (1) | 396 | 2,888 |
| 2,888 | ||
4
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| Specialty Retail 1.9% | ||
| AutoZone (1) | 923 | 3,130 |
| Carvana (1) | 8,628 | 3,641 |
| Home Depot | 41,386 | 14,241 |
| Lowe's | 18,734 | 4,518 |
| O'Reilly Automotive (1) | 44,219 | 4,033 |
| Ross Stores | 23,313 | 4,200 |
| TJX | 32,962 | 5,063 |
| Ulta Beauty (1) | 2,490 | 1,507 |
| 40,333 | ||
| Textiles, Apparel & Luxury Goods 0.1% | ||
| NIKE, Class B | 16,510 | 1,052 |
| 1,052 | ||
| Total Consumer Discretionary | 215,149 | |
| CONSUMER STAPLES 4.6% | ||
| Beverages 1.0% | ||
| Coca-Cola | 168,024 | 11,747 |
| Keurig Dr Pepper | 85,235 | 2,387 |
| Monster Beverage (1) | 31,922 | 2,447 |
| PepsiCo | 34,252 | 4,916 |
| 21,497 | ||
| Consumer Staples Distribution & Retail 1.6% | ||
| Costco Wholesale | 15,810 | 13,634 |
| Target | 4,300 | 420 |
| Walmart | 166,390 | 18,538 |
| 32,592 | ||
| Food Products 0.2% | ||
| Lamb Weston Holdings | 24,537 | 1,028 |
| Magnum Ice Cream (1) | 9,263 | 147 |
| Mondelez International | 37,755 | 2,032 |
5
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| Tyson Foods, Class A | 11,844 | 694 |
| 3,901 | ||
| Household Products 0.9% | ||
| Colgate-Palmolive | 55,295 | 4,369 |
| Kimberly-Clark | 3,505 | 354 |
| Procter & Gamble | 94,298 | 13,514 |
| 18,237 | ||
| Personal Care Products 0.3% | ||
| elf Beauty (1) | 10,937 | 832 |
| Estee Lauder, Class A | 24,641 | 2,580 |
| Kenvue | 61,811 | 1,066 |
| Unilever, ADR (2) | 41,179 | 2,693 |
| 7,171 | ||
| Tobacco 0.6% | ||
| Altria Group | 49,206 | 2,837 |
| Philip Morris International | 64,226 | 10,302 |
| 13,139 | ||
| Total Consumer Staples | 96,537 | |
| ENERGY 2.8% | ||
| Energy Equipment & Services 0.2% | ||
| Baker Hughes | 37,711 | 1,717 |
| SLB | 78,284 | 3,005 |
| 4,722 | ||
| Oil, Gas & Consumable Fuels 2.6% | ||
| Chevron | 80,104 | 12,209 |
| ConocoPhillips | 74,406 | 6,965 |
| Diamondback Energy | 17,319 | 2,604 |
| EOG Resources | 17,990 | 1,889 |
| EQT | 28,846 | 1,546 |
| Expand Energy | 11,096 | 1,225 |
6
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| Exxon Mobil | 133,457 | 16,060 |
| Marathon Petroleum | 13,035 | 2,120 |
| Targa Resources | 16,663 | 3,074 |
| Valero Energy | 15,342 | 2,497 |
| Williams | 81,992 | 4,929 |
| 55,118 | ||
| Total Energy | 59,840 | |
| FINANCIALS 14.0% | ||
| Banks 3.9% | ||
| Bank of America | 309,658 | 17,031 |
| Citigroup | 115,633 | 13,493 |
| East West Bancorp | 19,520 | 2,194 |
| Fifth Third Bancorp | 50,506 | 2,364 |
| Huntington Bancshares | 126,742 | 2,199 |
| JPMorgan Chase | 94,127 | 30,330 |
| KeyCorp | 83,554 | 1,725 |
| Popular | 7,041 | 877 |
| Truist Financial | 11,075 | 545 |
| U.S. Bancorp | 118,712 | 6,334 |
| Wells Fargo | 39,244 | 3,658 |
| Western Alliance Bancorp | 13,336 | 1,121 |
| 81,871 | ||
| Capital Markets 3.5% | ||
| Ares Management | 19,523 | 3,156 |
| Bank of New York Mellon | 37,057 | 4,302 |
| Blackrock | 5,490 | 5,876 |
| Blackstone | 14,798 | 2,281 |
| Cboe Global Markets | 2,386 | 599 |
| Charles Schwab | 102,772 | 10,268 |
| CME Group | 21,114 | 5,766 |
| Goldman Sachs Group | 8,603 | 7,562 |
| Intercontinental Exchange | 9,688 | 1,569 |
7
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| KKR | 35,411 | 4,514 |
| Moody's | 8,387 | 4,284 |
| Morgan Stanley | 38,577 | 6,849 |
| MSCI | 2,800 | 1,606 |
| Robinhood Markets, Class A (1) | 21,198 | 2,397 |
| S&P Global | 10,680 | 5,581 |
| State Street | 11,244 | 1,451 |
| TPG | 27,989 | 1,787 |
| Tradeweb Markets, Class A | 37,539 | 4,037 |
| 73,885 | ||
| Consumer Finance 0.5% | ||
| American Express | 19,333 | 7,152 |
| Capital One Financial | 15,704 | 3,806 |
| 10,958 | ||
| Financial Services 4.1% | ||
| Apollo Global Management | 18,893 | 2,735 |
| Berkshire Hathaway, Class B (1) | 43,561 | 21,896 |
| Block (1) | 80,909 | 5,266 |
| Corebridge Financial | 40,946 | 1,235 |
| Corpay (1) | 17,074 | 5,138 |
| Equitable Holdings | 51,314 | 2,445 |
| Fiserv (1) | 10,489 | 705 |
| Global Payments | 590 | 46 |
| Klarna Group (1) | 9,395 | 272 |
| Mastercard, Class A | 32,575 | 18,596 |
| Rocket, Class A | 72,816 | 1,410 |
| Visa, Class A | 70,817 | 24,836 |
| Voya Financial | 34,784 | 2,591 |
| 87,171 | ||
| Insurance 2.0% | ||
| Allstate | 34,094 | 7,097 |
8
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| American International Group | 61,288 | 5,243 |
| Arthur J. Gallagher | 2,400 | 621 |
| Axis Capital Holdings | 10,602 | 1,135 |
| Chubb | 33,333 | 10,404 |
| Hartford Insurance Group | 19,656 | 2,709 |
| Marsh & McLennan | 38,319 | 7,109 |
| MetLife | 63,925 | 5,046 |
| Progressive | 14,545 | 3,312 |
| RenaissanceRe Holdings | 3,529 | 992 |
| 43,668 | ||
| Total Financials | 297,553 | |
| HEALTH CARE 9.4% | ||
| Biotechnology 1.7% | ||
| AbbVie | 55,898 | 12,772 |
| Amgen | 4,045 | 1,324 |
| BeOne Medicines, ADR (1) | 7,732 | 2,349 |
| Gilead Sciences | 72,965 | 8,956 |
| Regeneron Pharmaceuticals | 4,761 | 3,675 |
| Vertex Pharmaceuticals (1) | 15,408 | 6,985 |
| 36,061 | ||
| Health Care Equipment & Supplies 1.9% | ||
| Abbott Laboratories | 74,995 | 9,396 |
| Boston Scientific (1) | 52,813 | 5,036 |
| Edwards Lifesciences (1) | 10,585 | 902 |
| IDEXX Laboratories (1) | 2,730 | 1,847 |
| Intuitive Surgical (1) | 17,626 | 9,983 |
| Medkine, Class A (1) | 28,393 | 1,192 |
| Medtronic | 21,086 | 2,025 |
| ResMed | 8,057 | 1,941 |
| Stryker | 18,097 | 6,361 |
| Zimmer Biomet Holdings | 13,909 | 1,251 |
| 39,934 | ||
9
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| Health Care Providers & Services 1.6% | ||
| Cardinal Health | 12,581 | 2,586 |
| Cencora | 10,319 | 3,485 |
| Centene (1) | 27,564 | 1,134 |
| Cigna | 12,026 | 3,310 |
| CVS Health | 60,727 | 4,819 |
| Elevance Health | 4,505 | 1,579 |
| McKesson | 3,019 | 2,477 |
| Quest Diagnostics | 5,642 | 979 |
| Tenet Healthcare (1) | 15,093 | 2,999 |
| UnitedHealth Group | 35,122 | 11,594 |
| 34,962 | ||
| Life Sciences Tools & Services 1.1% | ||
| Danaher | 35,775 | 8,190 |
| IQVIA Holdings (1) | 5,029 | 1,133 |
| Mettler-Toledo International (1) | 659 | 919 |
| Thermo Fisher Scientific | 17,686 | 10,248 |
| Waters (1) | 2,100 | 798 |
| West Pharmaceutical Services | 4,244 | 1,168 |
| 22,456 | ||
| Pharmaceuticals 3.1% | ||
| Bristol-Myers Squibb | 15,853 | 855 |
| Eli Lilly | 30,967 | 33,280 |
| Johnson & Johnson | 76,231 | 15,776 |
| Merck | 94,515 | 9,949 |
| Pfizer | 87,626 | 2,182 |
| Viatris | 263,580 | 3,281 |
| Zoetis | 7,793 | 980 |
| 66,303 | ||
| Total Health Care | 199,716 |
10
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| INDUSTRIALS & BUSINESS SERVICES 7.3% | ||
| Aerospace & Defense 1.9% | ||
| Boeing (1) | 38,175 | 8,289 |
| GE Aerospace | 46,434 | 14,303 |
| Howmet Aerospace | 21,102 | 4,326 |
| L3Harris Technologies | 10,968 | 3,220 |
| Northrop Grumman | 10,090 | 5,754 |
| RTX | 17,929 | 3,288 |
| TransDigm Group | 1,547 | 2,057 |
| 41,237 | ||
| Building Products 0.4% | ||
| Carrier Global | 34,527 | 1,825 |
| Johnson Controls International | 28,036 | 3,357 |
| Trane Technologies | 8,536 | 3,322 |
| 8,504 | ||
| Commercial Services & Supplies 0.3% | ||
| Cintas | 15,044 | 2,829 |
| Veralto | 3,688 | 368 |
| Waste Connections | 11,557 | 2,027 |
| Waste Management | 10,607 | 2,330 |
| 7,554 | ||
| Construction & Engineering 0.1% | ||
| API Group (1) | 45,317 | 1,734 |
| 1,734 | ||
| Electrical Equipment 0.6% | ||
| AMETEK | 4,100 | 842 |
| Emerson Electric | 11,641 | 1,545 |
| GE Vernova | 4,411 | 2,883 |
| Hubbell | 7,938 | 3,525 |
11
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| Vertiv Holdings, Class A | 23,374 | 3,787 |
| 12,582 | ||
| Ground Transportation 0.9% | ||
| Canadian National Railway | 22,949 | 2,268 |
| CSX | 141,561 | 5,132 |
| Old Dominion Freight Line | 31,870 | 4,997 |
| Saia (1) | 11,334 | 3,701 |
| Uber Technologies (1) | 16,536 | 1,351 |
| Union Pacific | 3,933 | 910 |
| 18,359 | ||
| Industrial Conglomerates 0.3% | ||
| 3M | 13,658 | 2,187 |
| Honeywell International | 17,480 | 3,410 |
| 5,597 | ||
| Machinery 2.2% | ||
| Caterpillar | 21,752 | 12,461 |
| Cummins | 5,407 | 2,760 |
| Deere | 14,114 | 6,571 |
| Dover | 16,193 | 3,162 |
| Esab | 17,427 | 1,947 |
| Fortive | 70,312 | 3,882 |
| Ingersoll-Rand | 22,015 | 1,744 |
| Middleby (1) | 16,024 | 2,382 |
| PACCAR | 24,388 | 2,671 |
| Parker-Hannifin | 8,498 | 7,469 |
| Stanley Black & Decker | 10,800 | 802 |
| Xylem | 7,164 | 976 |
| 46,827 | ||
| Passenger Airlines 0.1% | ||
| United Airlines Holdings (1) | 17,718 | 1,981 |
| 1,981 |
12
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| Professional Services 0.3% | ||
| Automatic Data Processing | 1,902 | 489 |
| Booz Allen Hamilton | 6,947 | 586 |
| Dayforce (1) | 5,996 | 415 |
| Equifax | 7,629 | 1,655 |
| Verisk Analytics | 10,923 | 2,443 |
| 5,588 | ||
| Trading Companies & Distributors 0.2% | ||
| SiteOne Landscape Supply (1) | 9,006 | 1,122 |
| WW Grainger | 2,903 | 2,929 |
| 4,051 | ||
| Total Industrials & Business Services | 154,014 | |
| INFORMATION TECHNOLOGY 35.1% | ||
| Communications Equipment 0.7% | ||
| Arista Networks (1) | 45,183 | 5,920 |
| Cisco Systems | 115,355 | 8,886 |
| 14,806 | ||
| Electronic Equipment, Instruments & Components 1.3% | ||
| Amphenol, Class A | 52,000 | 7,027 |
| CDW | 5,433 | 740 |
| Corning | 28,264 | 2,475 |
| Keysight Technologies (1) | 31,610 | 6,423 |
| TE Connectivity | 25,996 | 5,914 |
| Teledyne Technologies (1) | 8,791 | 4,490 |
| 27,069 | ||
| IT Services 0.8% | ||
| Accenture, Class A | 22,794 | 6,116 |
| International Business Machines | 35,473 | 10,507 |
| 16,623 | ||
13
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| Semiconductors & Semiconductor Equipment 14.8% | ||
| Advanced Micro Devices (1) | 74,288 | 15,910 |
| Analog Devices | 5,900 | 1,600 |
| Applied Materials | 20,699 | 5,319 |
| Broadcom | 186,847 | 64,668 |
| First Solar (1) | 6,329 | 1,653 |
| Intel (1) | 162,531 | 5,997 |
| KLA | 8,363 | 10,162 |
| Lam Research | 52,165 | 8,930 |
| Marvell Technology | 16,075 | 1,366 |
| Microchip Technology | 5,900 | 376 |
| Micron Technology | 41,319 | 11,793 |
| Monolithic Power Systems | 7,185 | 6,512 |
| NVIDIA | 906,091 | 168,986 |
| QUALCOMM | 44,934 | 7,686 |
| Teradyne | 11,888 | 2,301 |
| Texas Instruments | 6,700 | 1,162 |
| 314,421 | ||
| Software 10.3% | ||
| Adobe (1) | 9,336 | 3,268 |
| AppLovin, Class A (1) | 12,299 | 8,287 |
| Autodesk (1) | 4,526 | 1,340 |
| Crowdstrike Holdings, Class A (1) | 9,328 | 4,373 |
| Datadog, Class A (1) | 27,872 | 3,790 |
| Descartes Systems Group (1) | 30,229 | 2,650 |
| Fair Isaac (1) | 497 | 840 |
| Fortinet (1) | 41,269 | 3,277 |
| HubSpot (1) | 1,312 | 527 |
| Intuit | 10,812 | 7,162 |
| Microsoft | 275,649 | 133,309 |
| Oracle | 60,418 | 11,776 |
| Palantir Technologies, Class A (1) | 83,596 | 14,859 |
14
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| Palo Alto Networks (1) | 34,636 | 6,380 |
| PTC (1) | 8,869 | 1,545 |
| Salesforce.com | 22,841 | 6,051 |
| ServiceNow (1) | 39,287 | 6,018 |
| Synopsys (1) | 2,200 | 1,034 |
| Workday (1) | 5,061 | 1,087 |
| 217,573 | ||
| Technology Hardware, Storage & Peripherals 7.2% | ||
| Apple | 528,002 | 143,542 |
| Dell Technologies, Class C | 8,246 | 1,038 |
| Sandisk (1) | 4,266 | 1,013 |
| Seagate Technology Holdings | 12,622 | 3,476 |
| Western Digital | 15,122 | 2,605 |
| 151,674 | ||
| Total Information Technology | 742,166 | |
| MATERIALS 1.9% | ||
| Chemicals 0.9% | ||
| CF Industries Holdings | 9,908 | 766 |
| Corteva | 23,643 | 1,585 |
| Dow | 15,874 | 371 |
| Ecolab | 10,594 | 2,781 |
| Linde | 22,731 | 9,692 |
| Mosaic | 18,592 | 448 |
| RPM International | 3,029 | 315 |
| Sherwin-Williams | 9,587 | 3,107 |
| 19,065 | ||
| Construction Materials 0.3% | ||
| CRH | 23,500 | 2,933 |
| Martin Marietta Materials | 4,300 | 2,677 |
| Vulcan Materials | 1,815 | 518 |
| 6,128 | ||
15
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| Containers & Packaging 0.2% | ||
| Ball | 30,262 | 1,603 |
| International Paper | 56,371 | 2,221 |
| Packaging of America | 3,599 | 742 |
| 4,566 | ||
| Metals & Mining 0.4% | ||
| Agnico Eagle Mines | 3,145 | 533 |
| Franco-Nevada | 15,510 | 3,215 |
| Freeport-McMoRan | 48,882 | 2,483 |
| Steel Dynamics | 13,763 | 2,332 |
| 8,563 | ||
| Paper & Forest Products 0.1% | ||
| West Fraser Timber (2) | 21,274 | 1,300 |
| 1,300 | ||
| Total Materials | 39,622 | |
| REAL ESTATE 1.7% | ||
| Health Care REITs 0.3% | ||
| Ventas, REIT | 13,665 | 1,057 |
| Welltower, REIT | 26,947 | 5,002 |
| 6,059 | ||
| Industrial REITs 0.4% | ||
| Prologis, REIT | 40,651 | 5,189 |
| Rexford Industrial Realty, REIT | 75,300 | 2,916 |
| 8,105 | ||
| Office REITs 0.0% | ||
| BXP, REIT (2) | 11,999 | 810 |
| 810 | ||
| Real Estate Management & Development 0.1% | ||
| CBRE Group, Class A (1) | 16,405 | 2,638 |
16
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| CoStar Group (1) | 5,237 | 352 |
| 2,990 | ||
| Residential REITs 0.2% | ||
| AvalonBay Communities, REIT | 7,255 | 1,315 |
| Equity LifeStyle Properties, REIT | 6,788 | 412 |
| Essex Property Trust, REIT | 5,650 | 1,479 |
| Sun Communities, REIT | 6,289 | 779 |
| 3,985 | ||
| Retail REITs 0.2% | ||
| Kimco Realty, REIT | 33,608 | 681 |
| Regency Centers, REIT | 12,873 | 888 |
| Simon Property Group, REIT | 9,274 | 1,717 |
| 3,286 | ||
| Specialized REITs 0.5% | ||
| American Tower, REIT | 26,144 | 4,590 |
| CubeSmart, REIT | 30,941 | 1,115 |
| Equinix, REIT | 5,441 | 4,169 |
| Public Storage, REIT | 6,954 | 1,805 |
| 11,679 | ||
| Total Real Estate | 36,914 | |
| UTILITIES 2.3% | ||
| Electric Utilities 1.4% | ||
| Alliant Energy | 52,578 | 3,418 |
| Constellation Energy | 10,456 | 3,694 |
| NextEra Energy | 106,236 | 8,529 |
| PG&E | 259,733 | 4,174 |
| Southern | 39,765 | 3,467 |
| Xcel Energy | 75,913 | 5,607 |
| 28,889 | ||
17
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| Gas Utilities 0.1% | ||
| Atmos Energy | 15,985 | 2,679 |
| 2,679 | ||
| Independent Power & Renewable Electricity Producer 0.1% | ||
| Vistra | 17,453 | 2,816 |
| 2,816 | ||
| Multi-Utilities 0.7% | ||
| Ameren | 16,708 | 1,668 |
| CMS Energy | 24,081 | 1,684 |
| Consolidated Edison | 35,630 | 3,539 |
| DTE Energy | 14,089 | 1,817 |
| Sempra | 53,471 | 4,721 |
| 13,429 | ||
| Total Utilities | 47,813 | |
| Total Common Stocks (Cost $1,750,638) | 2,105,890 | |
| SHORT-TERM INVESTMENTS 0.5% | ||
| Money Market Funds 0.5% | ||
| State Street Institutional U.S. Government Money Market Fund, 3.74% (3) | 10,705,189 | 10,705 |
| Total Short-Term Investments (Cost $10,705) | 10,705 | |
18
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| SECURITIES LENDING COLLATERAL 0.2% | ||
| Investments in a Pooled Account through Securities Lending Program with State Street Bank and Trust Company 0.2% | ||
| Money Market Funds 0.2% | ||
| T. Rowe Price Treasury Reserve Fund, 3.75% (3)(4) | 3,636,621 | 3,637 |
| Total Investments in a Pooled Account through Securities Lending Program with State Street Bank and Trust Company | 3,637 | |
| Total Securities Lending Collateral (Cost $3,637) | 3,637 | |
|
Total Investments in Securities 100.2% of Net Assets (Cost $1,764,980) |
$2,120,232 | |
| ‡ | Shares are denominated in U.S. dollars unless otherwise noted. |
| (1) | Non-income producing. |
| (2) | See Note 3. All or a portion of this security is on loan at December 31, 2025. |
| (3) | Seven-day yield |
| (4) | Affiliated Companies |
| ADR | American Depositary Receipts |
| REIT | A domestic Real Estate Investment Trust whose distributions pass-through with original tax character to the shareholder |
19
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
AFFILIATED COMPANIES
($000s)
The fund may invest in certain securities that are considered affiliated companies. As defined by the 1940 Act, an affiliated company is one in which the fund owns 5% or more of the outstanding voting securities, or a company that is under common ownership or control. The following securities were considered affiliated companies for all or some portion of the year ended December 31, 2025. Net realized gain (loss), investment income, change in net unrealized gain/loss, and purchase and sales cost reflect all activity for the period then ended.
| Affiliate |
Net Realized Gain (Loss) |
Changes in Net Unrealized Gain/Loss |
Investment Income |
| T. Rowe Price Government Reserve Fund | $- | $- | $-++ |
| T. Rowe Price Treasury Reserve Fund | - | - | -++ |
| Totals | $-# | $- | $-+ |
| Supplementary Investment Schedule | ||||
| Affiliate |
Value 12/31/24 |
Purchase Cost |
Sales Cost |
Value 12/31/25 |
| T. Rowe Price Government Reserve Fund | $- | ¤ | ¤ | $- |
| T. Rowe Price Treasury Reserve Fund | - | ¤ | ¤ | 3,637 |
| Total | $3,637^ | |||
| ++ | Excludes earnings on securities lending collateral, which are subject to rebates and fees as described in Note 3. |
| # | Capital gain distributions from underlying Price funds represented $0 of the net realized gain (loss). |
| + | Investment income comprised $0 of dividend income and $0 of interest income. |
| ¤ | Purchase and sale information not shown for cash management funds. |
| ^ | The cost basis of investments in affiliated companies was $3,637. |
The accompanying notes are an integral part of these financial statements.
20
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
December 31, 2025
STATEMENT OF ASSETS AND LIABILITIES
($000s, except shares and per share amounts)
| Assets | |
| Investments in securities, at value (cost $1,764,980) | $2,120,232 |
| Receivable for shares sold | 1,496 |
| Dividends receivable | 1,086 |
| Receivable for investment securities sold | 313 |
| Cash | 282 |
| Other assets | 1 |
| Total assets | 2,123,410 |
| Liabilities | |
| Obligation to return securities lending collateral | 3,637 |
| Payable for investment securities purchased | 2,492 |
| Investment management and administrative fees payable | 608 |
| Total liabilities | 6,737 |
| NET ASSETS | $2,116,673 |
| Net Assets Consists of: | |
| Total distributable earnings (loss) | $314,213 |
|
Paid-in capital applicable to 49,530,000 shares of $0.0001 par value capital stock outstanding; 4,000,000,000 shares of the Corporation authorized |
1,802,460 |
| NET ASSETS | $2,116,673 |
| NET ASSET VALUE PER SHARE | $42.74 |
The accompanying notes are an integral part of these financial statements.
21
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
STATEMENT OF OPERATIONS
($000s)
|
Year Ended |
|
| 12/31/25 | |
| Investment Income (Loss) | |
| Income | |
| Dividend (net of foreign taxes of $22) | $19,598 |
| Securities lending | 3 |
| Total income | 19,601 |
| Investment management and administrative expense | 5,799 |
| Net investment income | 13,802 |
| Realized and Unrealized Gain / Loss | |
| Net realized gain (loss) | |
| Securities | (29,812) |
| In-kind redemptions | 29,991 |
| Net realized gain | 179 |
| Change in net unrealized gain / loss on securities | 273,061 |
| Net realized and unrealized gain / loss | 273,240 |
| INCREASE IN NET ASSETS FROM OPERATIONS | $287,042 |
The accompanying notes are an integral part of these financial statements.
22
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
STATEMENT OF CHANGES IN NET ASSETS
($000s)
|
Year Ended |
|||
| 12/31/25 | 12/31/24 | ||
| Increase (Decrease) in Net Assets | |||
| Operations | |||
| Net investment income | $13,802 | $5,305 | |
| Net realized gain | 179 | 34,468 | |
| Change in net unrealized gain / loss | 273,061 | 73,280 | |
| Increase in net assets from operations | 287,042 | 113,053 | |
| Distributions to shareholders | |||
| Net earnings | (13,159) | (5,160) | |
| Capital share transactions* | |||
| Shares sold | 914,888 | 1,008,789 | |
| Shares redeemed | (128,484) | (155,412) | |
| Increase in net assets from capital share transactions | 786,404 | 853,377 | |
| Net Assets | |||
| Increase during period | 1,060,287 | 961,270 | |
| Beginning of period | 1,056,386 | 95,116 | |
| End of period | $2,116,673 | $1,056,386 | |
| *Share information (000s) | |||
| Shares sold | 24,075 | 29,520 | |
| Shares redeemed | (3,155) | (4,150) | |
| Increase in shares outstanding | 20,920 | 25,370 |
The accompanying notes are an integral part of these financial statements.
23
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
NOTES TO FINANCIAL STATEMENTS
T. Rowe Price Exchange-Traded Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The U.S. Equity Research ETF (the fund) is a diversified, open-end management investment company established by the corporation. The fund seeks to provide long-term capital growth.
The fund is considered an actively-managed exchange-traded fund (ETF) that does not disclose its portfolio holdings daily, which is different from a traditional ETF and may create additional risks. In order to provide market participants with information on the fund's investments, the fund publishes a "Proxy Portfolio" on its website daily. A Proxy Portfolio is a basket of securities that is designed to closely track the daily performance of the fund's portfolio holdings. While the Proxy Portfolio includes some of the fund's holdings, it is not the fund's actual portfolio. The fund does disclose its full portfolio holdings on a quarterly basis, similar to mutual funds.
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
The fund is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards CodificationTopic 946 (ASC 946). The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), including, but not limited to, ASC 946. GAAP requires the use of estimates made by management. Management believes that estimates and valuations are appropriate; however, actual results may differ from those estimates, and the valuations reflected in the accompanying financial statements may differ from the value ultimately realized upon sale or maturity.
Investment Transactions, Investment Income, and Distributions
Investment transactions are accounted for on the trade date basis. Income and expenses are recorded on the accrual basis. Realized gains and losses are reported on the identified cost basis. Income tax-related interest and penalties, if incurred, are recorded as income tax expense. Dividends received from other investment companies are reflected as dividend income; capital gain distributions are reflected as realized gain/loss. Dividend income and capital gain distributions
24
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
are recorded on the ex-dividend date. Distributions from REITs are initially recorded as dividend income and, to the extent such represent a return of capital or capital gain for tax purposes, are reclassified when such information becomes available. Non-cash dividends, if any, are recorded at the fair market value of the asset received. Proceeds from litigation payments, if any, are included in either net realized gain (loss) or change in net unrealized gain/loss from securities. Distributions to shareholders are recorded on the ex-dividend date. Income distributions, if any, are declared and paid annually. A capital gain distribution, if any, may also be declared and paid by the fund annually. Dividends and distributions cannot be automatically reinvested in additional shares of the fund.
Capital Transactions
The fund issues and redeems shares at its net asset value (NAV) only with Authorized Participants and only in large blocks of 5,000 shares (each, a "Creation Unit"). The fund's NAV per share is computed at the close of the New York Stock Exchange (NYSE), normally 4 p.m. Eastern time, each day the NYSE is open for business. However, the NAV per share may be calculated at a time other than the normal close of the NYSE if trading on the NYSE is restricted, if the NYSE closes earlier, or as may be permitted by the SEC. Individual fund shares may not be purchased or redeemed directly with the fund. An Authorized Participant may purchase or redeem a Creation Unit of the fund each business day that the fund is open in exchange for the delivery of a designated portfolio of in-kind securities and/or cash. When purchasing or redeeming Creation Units, Authorized Participants are also required to pay a fixed and/or variable purchase or redemption transaction fee as well as any applicable additional variable charge to defray the transaction cost to a fund.
Individual fund shares may be purchased and sold only on a national securities exchange through brokers. Shares are listed for trading on NYSE Arca, Inc. and because the shares will trade at market prices rather than NAV, shares may trade at prices greater than NAV (at a premium), at NAV, or less than NAV (at a discount).
Indemnification
In the normal course of business, the fund may provide indemnification in connection with its officers and directors, service providers, and/or private company investments. The fund's maximum exposure under these arrangements is unknown; however, the risk of material loss is currently considered to be remote.
25
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
NOTE 2 - VALUATION
Fair Value
The fund's financial instruments are valued at the close of the NYSE and are reported at fair value, which GAAP defines as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fund's Board of Directors (the Board) has designated T. Rowe Price Associates, Inc. as the fund's valuation designee (Valuation Designee). Subject to oversight by the Board, the Valuation Designee performs the following functions in performing fair value determinations: assesses and manages valuation risks; establishes and applies fair value methodologies; tests fair value methodologies; and evaluates pricing vendors and pricing agents. The duties and responsibilities of the Valuation Designee are performed by its Valuation Committee. The Valuation Designee provides periodic reporting to the Board on valuation matters.
Various valuation techniques and inputs are used to determine the fair value of financial instruments. GAAP establishes the following fair value hierarchy that categorizes the inputs used to measure fair value:
Level 1 - quoted prices (unadjusted) in active markets for identical financial instruments that the fund can access at the reporting date
Level 2 - inputs other than Level 1 quoted prices that are observable, either directly or indirectly (including, but not limited to, quoted prices for similar financial instruments in active markets, quoted prices for identical or similar financial instruments in inactive markets, interest rates and yield curves, implied volatilities, and credit spreads)
Level 3 - unobservable inputs (including the Valuation Designee's assumptions in determining fair value)
Observable inputs are developed using market data, such as publicly available information about actual events or transactions, and reflect the assumptions that market participants would use to price the financial instrument. Unobservable inputs are those for which market data are not available and are developed using the best information available about the assumptions that market participants would use to price the financial instrument. GAAP requires valuation techniques to maximize the use of relevant observable inputs and minimize the use of unobservable inputs. When multiple inputs are used to derive fair value, the financial instrument is assigned to the level within the fair value hierarchy based on the lowest-level input that is significant to the fair value of the financial
26
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
instrument. Input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level but rather the degree of judgment used in determining those values.
Valuation Techniques
Equity securities, including exchange-traded funds, listed or regularly traded on a securities exchange or in the over-the-counter (OTC) market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made. A security that is listed or traded on more than one exchange is valued at the quotation on the exchange determined to be the primary market for such security. Listed securities not traded on a particular day are valued at the mean of the closing bid and asked prices for domestic securities.
Investments in mutual funds are valued at the mutual fund's closing NAV per share on the day of valuation. Assets and liabilities other than financial instruments, including short-term receivables and payables, are carried at cost, or estimated realizable value, if less, which approximates fair value.
Investments for which market quotations are not readily available or deemed unreliable are valued at fair value as determined in good faith by the Valuation Designee. The Valuation Designee has adopted methodologies for determining the fair value of investments for which market quotations are not readily available or deemed unreliable, including the use of other pricing sources. Factors used in determining fair value vary by type of investment and may include market or investment specific considerations. The Valuation Designee typically will afford the greatest weight to actual prices in arm's length transactions, to the extent they represent orderly transactions between market participants, transaction information can be reliably obtained, and prices are deemed representative of fair value. However, the Valuation Designee may also consider other valuation methods such as market-based valuation multiples; a discount or premium from market value of a similar, freely traded security of the same issuer; discounted cash flows; yield to maturity; or some combination. Fair value determinations are reviewed on a regular basis. Because any fair value determination involves a significant amount of judgment, there is a degree of subjectivity inherent in such pricing decisions. Fair value prices determined by the Valuation Designee could differ from those of other market participants, and it is possible that the fair value determined for a security may be materially different from the value that could be realized upon the sale of that security.
Valuation Inputs
On December 31, 2025, all of the fund's financial instruments were classified as Level 1, based on the inputs used to determine their fair values.
27
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
NOTE 3 - OTHER INVESTMENT TRANSACTIONS
Consistent with its investment objective, the fund engages in the following practices to manage exposure to certain risks and/or to enhance performance. The investment objective, policies, program, and risk factors of the fund are described more fully in the fund's prospectus and Statement of Additional Information.
Securities Lending
The fund may lend its securities to approved borrowers to earn additional income. Its securities lending activities are administered by a lending agent in accordance with a securities lending agreement. Security loans generally do not have stated maturity dates, and the fund may recall a security at any time. The fund receives collateral in the form of cash or U.S. government securities. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities; any additional collateral required due to changes in security values is delivered to the fund the next business day. Cash collateral is invested in accordance with investment guidelines approved by fund management. Additionally, the lending agent indemnifies the fund against losses resulting from borrower default. Although risk is mitigated by the collateral and indemnification, the fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities, collateral investments decline in value, and the lending agent fails to perform. Any non-cash collateral received cannot be sold, re-invested or pledged by the fund, except in the event of borrower default. Securities lending revenue consists of earnings on invested collateral and borrowing fees, net of any rebates to the borrower, compensation to the lending agent, and other administrative costs. In accordance with GAAP, investments made with cash collateral are reflected in the accompanying financial statements, but collateral received in the form of securities is not. At December 31, 2025, the value of loaned securities was $4,166,000; the aggregate value of collateral was $4,268,000 and consisted of cash collateral and related investments of $3,637,000 and U.S. government securities of $632,000.
Other
Purchases and sales of portfolio securities excluding in-kind transactions and short-term securities aggregated $749,205,000 and $739,353,000, respectively, for the year ended December 31, 2025. Portfolio securities received and delivered through in-kind transactions aggregated $882,740,000 and $110,421,000, respectively, for the year ended December 31, 2025.
28
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
NOTE 4 - FEDERAL INCOME TAXES
Generally, no provision for federal income taxes is required since the fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and distribute to shareholders all of its taxable income and gains. Distributions determined in accordance with federal income tax regulations may differ in amount or character from net investment income and realized gains for financial reporting purposes.
The fund files U.S. federal, state, and local tax returns as required. The fund's tax returns are subject to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.
Capital accounts within the financial reporting records are adjusted for permanent book/tax differences to reflect tax character but are not adjusted for temporary differences. The permanent book/tax adjustments, if any, have no impact on results of operations or net assets. The permanent book/tax adjustments relate primarily to redemptions in kind.
The tax character of distributions paid for the periods presented was as follows:
| ($000s) | ||
| December 31, | December 31, | |
| 2025 | 2024 | |
| Ordinary income (including short-term capital gains, if any) | $13,159 | $5,160 |
At December 31, 2025, the tax-basis cost of investments, (including derivatives, if any) and gross unrealized appreciation and depreciation were as follows:
| ($000s) | |
| Cost of investments | $1,770,923 |
| Unrealized appreciation | $381,738 |
| Unrealized depreciation | (32,429) |
| Net unrealized appreciation (depreciation) | $349,309 |
29
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
At December 31, 2025, the tax-basis components of accumulated net earnings (loss) were as follows:
| ($000s) | |
| Net unrealized appreciation (depreciation) | $349,309 |
| Loss carryforwards and deferrals | (35,095) |
| Other temporary differences | (1) |
| Total distributable earnings (loss) | $314,213 |
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement purposes versus for tax purposes; these differences will reverse in a subsequent reporting period. The temporary differences relate primarily to the deferral of losses from wash sales. The loss carryforwards and deferrals primarily relate to capital loss carryforwards. Capital loss carryforwards are available indefinitely to offset future realized capital gains. Other temporary differences relate primarily to differences in treatment of corporate actions.
NOTE 5 - FOREIGN TAXES
The fund is subject to foreign income taxes imposed by certain countries in which it invests. Additionally, capital gains realized upon disposition of securities issued in or by certain foreign countries are subject to capital gains tax imposed by those countries. All taxes are computed in accordance with the applicable foreign tax law, and, to the extent permitted, capital losses are used to offset capital gains. Taxes attributable to income are accrued by the fund as a reduction of income. Current and deferred tax expense attributable to capital gains is reflected as a component of realized or change in unrealized gain/loss on securities in the accompanying financial statements. To the extent that the fund has country specific capital loss carryforwards, such carryforwards are applied against net unrealized gains when determining the deferred tax liability. Any deferred tax liability incurred by the fund is included in either Other liabilities or Deferred tax liability on the accompanying Statement of Assets and Liabilities.
30
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
NOTE 6 - RELATED PARTY TRANSACTIONS
The fund is managed by T. Rowe Price Associates, Inc. (Price Associates), a wholly owned subsidiary of T. Rowe Price Group, Inc. (Price Group). The investment management and administrative agreement between the fund and Price Associates provides for an annual all-inclusive fee equal to 0.34% of the fund's average daily net assets. The fee is computed daily and paid monthly. The all-inclusive fee covers investment management services and ordinary, recurring operating expenses but does not cover interest and borrowing expenses; taxes; brokerage commissions and other transaction costs; fund proxy expenses; and nonrecurring and extraordinary expenses.
T. Rowe Price Investment Services, Inc. (Investment Services) serves as distributor to the fund. Pursuant to an underwriting agreement, no compensation for any distribution services provided is paid to Investment Services by the fund.
Mutual funds, trusts, and other accounts managed by Price Associates or its affiliates (collectively, Price Funds and accounts) may invest in the fund. No Price Fund or account may invest for the purpose of exercising management or control over the fund. At December 31, 2025, 1% of the fund's outstanding shares were held by Price Funds and accounts.
Effective November 12, 2025, cash collateral from securities lending, if any, is invested in the T. Rowe Price Treasury Reserve Fund (the Price Reserve Fund), a money market fund offered as a short-term investment option to mutual funds, trusts, and other accounts managed by Price Associates or its affiliates and is not available for direct purchase by members of the public. Prior to November 12, 2025, cash collateral from securities lending, if any, was invested in the T. Rowe Price Government Reserve Fund. The Price Reserve Fund does not pay investment management fees.
As of December 31, 2025, T. Rowe Price Group, Inc., or its wholly owned subsidiaries, owned 845,632 shares of the fund, representing 2% of the fund's net assets.
The fund may participate in securities purchase and sale transactions with other funds or accounts advised by Price Associates (cross trades), in accordance with procedures adopted by the fund's Board and Securities and Exchange Commission rules, which require, among other things, that such purchase and sale cross trades be effected at the independent current market price of the
31
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
security. During the year ended December 31, 2025, the aggregate value of purchases and sales cross trades with other funds or accounts advised by Price Associates was less than 1% of the fund's net assets as of December 31, 2025.
NOTE 7 - SEGMENT REPORTING
Operating segments are defined as components of a company that engage in business activities and for which discrete financial information is available and regularly reviewed by the chief operating decision maker (CODM) in deciding how to allocate resources and assess performance. The Management Committee of Price Associates acts as the fund's CODM. The fund makes investments in accordance with its investment objective as outlined in the Prospectus and is considered one reportable segment because the CODM allocates resources and assesses the operating results of the fund on the whole.
The fund's revenue is derived from investments in a portfolio of securities. The CODM allocates resources and assesses performance based on the operating results of the fund, which is consistent with the results presented in the statement of operations, statement of changes in net assets and financial highlights. The CODM compares the fund's performance to its benchmark index and evaluates the positioning of the fund in relation to its investment objective. The measure of segment assets is net assets of the fund which is disclosed in the statement of assets and liabilities.
The accounting policies of the segment are the same as those described in the summary of significant accounting policies. The financial statements include all details of the segment assets, segment revenue and expenses; and reflect the financial results of the segment.
NOTE 8 - OTHER MATTERS
Unpredictable environmental, political, social and economic events, including but not limited to, environmental or natural disasters, war and conflict, terrorism, geopolitical and regulatory developments (including trading and tariff arrangements), and public health epidemics or threats, may significantly affect the economy and the markets and issuers in which a fund invests. The extent and duration of such events and resulting market disruptions cannot be predicted. These and other similar events may cause instability across global markets, including reduced liquidity and disruptions in trading markets, while some events
32
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
may affect certain geographic regions, countries, sectors, and industries more significantly than others, and exacerbate other pre-existing political, social, and economic risks. The fund's performance could be negatively impacted if the value of a portfolio holding were harmed by these or such events.
33
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors of T. Rowe Price Exchange-Traded Funds, Inc. and Shareholders of T. Rowe Price U.S. Equity Research ETF
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of T. Rowe Price U.S. Equity Research ETF (one of the funds constituting T. Rowe Price Exchange-Traded Funds, Inc., referred to hereafter as the "Fund") as of December 31, 2025, the related statement of operations for the year ended December 31, 2025, the statement of changes in net assets for each of the two years in the period ended December 31, 2025, including the related notes, and the financial highlights for each of the years ended December 31, 2025, 2024, 2023 and 2022 and for the period June 8, 2021 (inception) through December 31, 2021 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2025, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2025 and the financial highlights for each of the years ended December 31, 2025, 2024, 2023 and 2022 and for the period June 8, 2021 (inception) through December 31, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
34
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
(CONTINUED)
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2025 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Baltimore, Maryland
February 18, 2026
We have served as the auditor of one or more investment companies in the T. Rowe Price group of investment companies since 1973.
35
T. ROWE PRICE U.S. EQUITY RESEARCH ETF
TAX INFORMATION (UNAUDITED) FOR THE TAX YEAR ENDED 12/31/25
We are providing this information as required by the Internal Revenue Code. The amounts shown may differ from those elsewhere in this report because of differences between tax and financial reporting requirements. The fund's distributions to shareholders included:
For taxable non-corporate shareholders, $17,813,000 of the fund's income represents qualified dividend income subject to a long-term capital gains tax rate of not greater than 20%.
For corporate shareholders, $17,055,000 of the fund's income qualifies for the dividends-received deduction.
36
This page intentionally left blank.
This page intentionally left blank.
1307 Point Street
Baltimore, Maryland 21231
Call 1-800-638-5660 to request a prospectus or summary prospectus; each includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.
T. Rowe Price Investment Services, Inc.
ETF967-050 02/26
Item 8. Changes in and Disagreements with Accountants for Open-EndManagement Investment Companies.
Not applicable.
Item 9. Proxy Disclosures for Open-EndManagement Investment Companies.
Not applicable.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-EndManagement Investment Companies.
Remuneration paid to Directors is included in Item 7 of this Form N-CSR.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
If applicable, see Item 7.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-EndManagement Investment Companies.
Not applicable.
Item 13. Portfolio Managers of Closed-EndManagement Investment Companies.
Not applicable.
Item 14. Purchases of Equity Securities by Closed-EndManagement Investment Company and Affiliated Purchasers.
Not applicable.
Item 15. Submission of Matters to a Vote of Security Holders.
There has been no change to the procedures by which shareholders may recommend nominees to the registrant's board of directors.
Item 16. Controls and Procedures.
(a) The registrant's principal executive officer and principal financial officer have evaluated the registrant's disclosure controls and procedures within 90 days of this filing and have concluded that the registrant's disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSRwas recorded, processed, summarized, and reported timely.
(b) The registrant's principal executive officer and principal financial officer are aware of no change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
Item 17. Disclosure of Securities Lending Activities for Closed-EndManagement Investment Companies.
Not applicable.
Item 18. Recovery of Erroneously Awarded Compensation.
Not applicable.
Item 19. Exhibits.
| (a)(1) |
N-CSR |
|
| (2) |
Listing standards relating to recovery of erroneously awarded compensation: not applicable. |
|
| (3) |
30a-2(a) |
|
| (b) |
30a-2(b) |
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| T. Rowe Price Exchange-Traded Funds, Inc. | ||||
| By |
/s/ David Oestreicher |
|||
| David Oestreicher | ||||
| Principal Executive Officer | ||||
| Date | February 18, 2026 | |||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By |
/s/ David Oestreicher |
|||
| David Oestreicher | ||||
| Principal Executive Officer | ||||
| Date |
February 18, 2026 |
|||
| By |
/s/ Alan S. Dupski |
|||
| Alan S. Dupski | ||||
| Principal Financial Officer | ||||
| Date |
February 18, 2026 |
|||
T. Rowe Price Exchange-Traded Funds Inc. published this content on February 23, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on February 23, 2026 at 16:46 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]