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TCAL - ETF AI Analysis

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TCAL

T. Rowe Price Capital Appreciation Premium Income ETF (TCAL)

Rating:71Outperform
Price Target:
TCAL’s rating suggests it is a solid, quality ETF, supported by strong core holdings like Veralto and Northrop Grumman, which benefit from healthy financial performance, positive earnings outlooks, and strategic initiatives such as share buybacks and international growth. However, some holdings like Yum! Brands and McDonald’s introduce risks through high leverage, overvaluation concerns, and mixed technical trends, and the fund’s exposure to several stocks with potential overvaluation and bearish momentum is an important risk factor to keep in mind.
Positive Factors
Balanced Sector Mix
Holdings spread across health care, industrials, financials, technology, and several other sectors help reduce the impact of weakness in any single industry.
Quality Blue-Chip Holdings
The fund’s top positions include well-known, established companies like Microsoft and McDonald's, which can provide stability over time.
Moderate Expense Ratio
The fund’s fee level is reasonable for an actively managed strategy, helping investors keep more of their returns compared with higher-cost products.
Negative Factors
Recent Weak Performance
The ETF has shown weak results over the year-to-date and recent three-month period, which may concern investors looking for near-term strength.
Underperforming Top Holdings
Several of the largest positions, including Waters, Waste Connections, Microsoft, and others, have lagged this year, weighing on overall fund performance.
Heavy U.S. Concentration
With almost all assets invested in U.S. companies, the fund offers limited geographic diversification and is highly tied to the U.S. market’s fortunes.

TCAL vs. SPDR S&P 500 ETF (SPY)

TCAL Summary

TCAL is the T. Rowe Price Capital Appreciation Premium Income ETF, an actively managed fund that invests mainly in U.S. companies across many sectors, including health care, industrials, and financials. It doesn’t track a specific index, but follows a broad total-market theme while using options to try to generate extra income. Well-known holdings include Microsoft and McDonald’s. Someone might consider TCAL for a mix of income, diversification, and long-term growth potential. A key risk is that stock prices and income from options can go up and down, so your investment value is not guaranteed.
How much will it cost me?The T. Rowe Price Capital Appreciation Premium Income ETF (TCAL) has an expense ratio of 0.34%, meaning you’ll pay $3.40 per year for every $1,000 invested. This is higher than the average for passively managed ETFs because TCAL is actively managed, using strategies like covered call options to enhance income and manage risk.
What would affect this ETF?Positive drivers for TCAL could include stable or declining interest rates, which may support growth in sectors like health care and technology, as well as strong consumer demand benefiting defensive stocks like PepsiCo and Kroger. On the negative side, rising interest rates or economic slowdowns could pressure financial and industrial sectors, while regulatory changes in health care or real estate could impact top holdings like Thermo Fisher and SBA Communications. TCAL’s covered call strategy may help mitigate volatility in uncertain market conditions.

TCAL Top 10 Holdings

TCAL leans heavily into U.S. health care and industrial names, with lab-testing leaders Danaher and Waters quietly doing the heavy lifting as their shares have been rising or staying resilient. On the flip side, consumer giants McDonald’s and Yum! Brands have been losing steam, while defense contractors like Lockheed Martin and Northrop Grumman are dragging the fund with more recent weakness. Linde stands out as a bright spot, helping offset some of that pressure. Overall, it’s a U.S.-centric, sector-diversified mix with a few clear winners and laggards shaping returns.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Danaher2.01%$5.67M$125.40B-9.24%
75
Outperform
Waters1.97%$5.53M$34.90B4.50%
70
Outperform
Veralto Corporation1.88%$5.30M$20.64B-15.74%
76
Outperform
Waste Connections1.76%$4.96M$38.92B-18.23%
75
Outperform
Yum! Brands1.72%$4.83M$41.89B6.61%
59
Neutral
Visa1.71%$4.82M$616.56B-4.99%
70
Outperform
McDonald's1.67%$4.71M$197.95B-6.71%
65
Neutral
Linde1.66%$4.66M$236.92B12.39%
66
Neutral
Lockheed Martin1.62%$4.56M$117.81B4.47%
70
Outperform
Northrop Grumman1.58%$4.44M$74.07B1.53%
76
Outperform

TCAL Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
21.99
Positive
100DMA
22.16
Positive
200DMA
22.30
Positive
Market Momentum
MACD
0.15
Negative
RSI
67.45
Neutral
STOCH
89.37
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For TCAL, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 22.12, equal to the 50-day MA of 21.99, and equal to the 200-day MA of 22.30, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 67.45 is Neutral, neither overbought nor oversold. The STOCH value of 89.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TCAL.

TCAL Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$277.64M0.34%
71
Outperform
$940.18M0.59%
69
Neutral
$876.23M1.30%
69
Neutral
$799.05M0.45%
74
Outperform
$776.04M0.22%
63
Neutral
$705.26M0.18%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TCAL
T. Rowe Price Capital Appreciation Premium Income ETF
22.69
0.52
2.35%
SYLD
Cambria Shareholder Yield ETF
ULTY
YieldMax Ultra Option Income Strategy ETF
BGDV
Bahl & Gaynor Dividend ETF
AVTM
Avantis Total Equity Markets ETF
VFMF
Vanguard U.S. Multifactor ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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