T. Rowe Price, the Baltimore **** et manager with about $1.9 trillion under management, agreed late Thursday to acquire F/m Investments for an undisclosed sum, adding a fast-growing fixed-income ETF specialist to its lineup.
F/m manages about $19 billion in total, with more than $10 billion of it in 20 ETFs and the rest in separately managed accounts. Modest as that is next to T. Rowe's total AUM, it would more than double the **** ets T. Rowe holds in its own fixed-income ETFs, a corner of the market where the firm has been a minor player despite its size.
T. Rowe currently has 10 U.S.-listed fixed income ETFs with $6.5 billion in them. Across all categories, it has 34 ETFs with almost $33 billion in AUM.
F/m pioneered single-bond ETFs, funds that continuously hold a single Treasury tenor, such as the latest on-the-run 10-year note, giving investors more precise control over their exposure than a fund like the iShares 7-10 Year Treasury Bond ETF (IEF), which holds a range of maturities.
Its flagship is the F/m US Treasury 3 Month Bill ETF (TBIL), which at $7.2 billion accounts for more than 70% of F/m's ETF **** ets and charges 0.15% a year.
Since launching its initial suite of single-bond funds, F/m has kept innovating. It created an ultrashort take on inflation-protected bonds, the F/m Ultrashort Treasury Inflation-Protected Security ETF (RBIL).
It also designed the F/m Compoundr U.S. Aggregate Bond ETF (CPAG), which rotates among broad bond ETFs to sidestep distributions, and therefore taxes, giving investors a way to hold bonds as a diversifier without generating yield.
The firm was also the first to launch a dual-share-class ETF and has filed a first-of-its-kind application for tokenized ETF shares.
For T. Rowe, the acquisition of F/m brings in a focused, methodical issuer whose products are clearly resonating with investors. The firm manages roughly $1.9 trillion in total, but ranks just 29th among US ETF providers.
Buying F/m brings instant scale in fixed-income ETFs and a team with a record of building products investors want, at a moment when T. Rowe's leadership has made growing the ETF business a priority.
The deal is the second acquisition of an ETF manager announced this month. Last week, Goldman Sachs agreed to buy NEOS Investments for up to $2.25 billion, months after closing its roughly $2 billion purchase of Innovator Capital in April.
Together the deals are a part of a wave of consolidation taking place across the $16.3 trillion U.S. ETF industry, as large **** et managers buy their way into the fast growing industry. The T. Rowe transaction is expected to close in early 2027.
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F/m manages about $19 billion in total, with more than $10 billion of it in 20 ETFs and the rest in separately managed accounts. Modest as that is next to T. Rowe's total AUM, it would more than double the **** ets T. Rowe holds in its own fixed-income ETFs, a corner of the market where the firm has been a minor player despite its size.
T. Rowe currently has 10 U.S.-listed fixed income ETFs with $6.5 billion in them. Across all categories, it has 34 ETFs with almost $33 billion in AUM.
F/m pioneered single-bond ETFs, funds that continuously hold a single Treasury tenor, such as the latest on-the-run 10-year note, giving investors more precise control over their exposure than a fund like the iShares 7-10 Year Treasury Bond ETF (IEF), which holds a range of maturities.
Its flagship is the F/m US Treasury 3 Month Bill ETF (TBIL), which at $7.2 billion accounts for more than 70% of F/m's ETF **** ets and charges 0.15% a year.
Since launching its initial suite of single-bond funds, F/m has kept innovating. It created an ultrashort take on inflation-protected bonds, the F/m Ultrashort Treasury Inflation-Protected Security ETF (RBIL).
It also designed the F/m Compoundr U.S. Aggregate Bond ETF (CPAG), which rotates among broad bond ETFs to sidestep distributions, and therefore taxes, giving investors a way to hold bonds as a diversifier without generating yield.
The firm was also the first to launch a dual-share-class ETF and has filed a first-of-its-kind application for tokenized ETF shares.
For T. Rowe, the acquisition of F/m brings in a focused, methodical issuer whose products are clearly resonating with investors. The firm manages roughly $1.9 trillion in total, but ranks just 29th among US ETF providers.
Buying F/m brings instant scale in fixed-income ETFs and a team with a record of building products investors want, at a moment when T. Rowe's leadership has made growing the ETF business a priority.
The deal is the second acquisition of an ETF manager announced this month. Last week, Goldman Sachs agreed to buy NEOS Investments for up to $2.25 billion, months after closing its roughly $2 billion purchase of Innovator Capital in April.
Together the deals are a part of a wave of consolidation taking place across the $16.3 trillion U.S. ETF industry, as large **** et managers buy their way into the fast growing industry. The T. Rowe transaction is expected to close in early 2027.
Permalink | © Copyright 2026 etf.com. All rights reserved
#treasury #income #year #trillion
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