At a glance
TCAL charges 0.34% a year. It has $275.7M in assets; it paid 4.13% of its price in distributions over the past 12 months, monthly. Its ten largest positions make up 17.7% of the fund, out of 99 in all.
The short version
T. Rowe Price Capital Appreciation Premium Income ETF (TCAL) is an actively managed fund. It holds about 99 hand-picked stocks and sells call options on them to raise extra cash. That option income and the stocks' dividends are paid out monthly, and the trailing 12-month yield was 4.13% as of October 27, 2026. The trade-off is that the options cap some of the fund's upside in strong markets. The fund has also been around only since March 2025.
Price history
The interactive chart needs JavaScript.
TCAL — over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| TCAL price data to Oct 27, 2026 | +8.8% | — | — | — | — | — |
- The deepest fall in its price history was 4.9% (Aug 25, 2026 to Sep 30, 2026), recovered by Oct 20, 2026.
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
No distribution history is available for this fund.
Distributions through Oct 27, 2026.What's inside
As of Jun 30, 2026, the fund held 99 securities; the ten largest made up 17.71% of assets.
| Holding | Weight | |
|---|---|---|
| DANAHER CORP | 2.02% | |
| WATERS CORP | 1.99% | |
| VERALTO CORP | 1.89% | |
| WASTE CONNECTIONS INC | 1.82% | |
| YUM BRANDS INC | 1.73% | |
| MCDONALD S CORP | 1.71% | |
| VISA INC-CLASS A SHARES | 1.71% | |
| LINDE PLC | 1.65% | |
| LOCKHEED MARTIN CORP | 1.62% | |
| NORTHROP GRUMMAN CORP | 1.58% | |
| TELEDYNE TECHNOLOGIES INC | 1.57% | |
| AMAZON.COM INC | 1.55% | |
| MASTERCARD INC - A | 1.51% | |
| MICROSOFT CORP | 1.51% | |
| STRYKER CORP | 1.51% |
By country
United States 92.57%Ireland 4.37%Canada 1.82%Switzerland 1.01%Denmark 0.56%By asset type
Stocks 100.84%By sector
Sectors of the companies held, for the 81.3% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $5.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.62%, -1.10%, +1.68%.
How it works
TCAL does not track an index. T. Rowe Price's managers pick stocks one at a time, from the "bottom up." They look for companies whose expected return seems attractive for the risk involved, and the companies can be any size. Sector weights come out of those picks, so at times the fund may lean heavily on one sector. As of June 30, 2026, industrials made up 15.7% of the fund, health care 12.3% and financials 11.1%. The largest holdings were Danaher, Waters and Veralto, each about 2%, and the top 10 holdings came to 17.7%.
The fund then sells call options on stocks it owns. A call option gives the buyer the right to buy a stock at a set price (the "strike") before a set date. These calls usually expire in about one to two months. The fund keeps the buyer's payment, called a premium. If the stock rises above the strike, though, the fund's gain stops at the strike price plus the premium. Premiums depend on stock prices and on how much prices are swinging, so the income changes from month to month. The fund may also use index futures to manage risk.
Turnover, the share of the portfolio replaced in a year, was 157.4% in the prospectus filed February 25, 2026. That much trading can add costs and capital gains distributions in taxable accounts.
What it really costs
- TCAL charges 0.34% a year.
- Using the prospectus's standard example, $10,000 invested would cost about $35 in the first year and $431 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| TCAL | $35 | $109 | $191 | $431 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
In a retirement portfolio
TCAL pays monthly distributions from dividends and option premiums, and still holds a broad mix of stocks.
TCAL could add monthly cash flow on top of a stock portfolio. The trailing 12-month yield was 4.13% as of October 27, 2026. Much of that comes from option premiums, which are usually taxed as ordinary income, not as qualified dividends. The track record is very thin. The fund launched in March 2025, after the 2008, 2020 and 2022 downturns, and our price history begins June 9, 2026, so it has no full calendar year to judge. Its deepest drop in that window was 4.9%, from August 25 to September 30, 2026, and it recovered by October 20. A short stretch like that says little about how it would hold up in a real bear market. In a deep sell-off, the stocks can fall almost as far as the market, and the premiums cushion only part of the drop. Expenses are 0.34% a year, or $35 in the first year on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want monthly income from a stock fund, with a 4.13% trailing yield as of October 27, 2026, and accept a cap on gains.
- Investors who prefer active stock picking in names like Danaher, Waters and McDonald's over an index-based covered call fund.
- Income seekers holding shares in an IRA or 401(k), where taxes on option income and high-turnover gains matter less.
Look elsewhere if
- Investors who want the full upside of a stock rally, since the fund's written calls limit gains above the strike prices.
- Investors who need a long record, since the fund launched in March 2025 and hasn't been through a major bear market.
- Taxable investors who want qualified dividends, since option income is usually taxed as ordinary income and 157.4% turnover can bring capital gains.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
Does TCAL pay monthly dividends?
Yes. TCAL pays distributions monthly. Over the 12 months to October 27, 2026, it paid about $0.96 per share, a trailing yield of 4.13%. The payments come from two sources: dividends on the fund's stocks and premiums from selling call options. Option premiums depend on stock prices and market volatility, so the amount can change from month to month. Option income is also usually taxed as ordinary income rather than at the lower qualified dividend rate.
What is TCAL's expense ratio?
TCAL's expense ratio is 0.34%, all of it a management fee, according to the prospectus filed February 25, 2026. In the SEC's standard example, $10,000 invested with a 5% annual return would cost about $35 after one year, $109 after three, $191 after five and $431 after ten. Trading costs from the fund's 157.4% turnover are not part of the expense ratio, and they can also eat into returns.
How does TCAL's covered call strategy work?
TCAL owns stocks and sells call options on them, usually expiring in about one to two months. Buyers pay the fund a premium up front, and that cash adds to the dividends paid out to shareholders. In return, if a stock climbs past the option's strike price, the fund's gain on that stock stops at the strike plus the premium. So the fund earns extra income but gives up some upside in strong rallies. It is still fully exposed to falling prices.
What are TCAL's top holdings?
As of June 30, 2026, TCAL's largest holdings were Danaher, Waters, Veralto, Waste Connections, Yum Brands, McDonald's and Visa, each about 1.7% to 2% of the fund. The top 10 made up 17.7%, spread across about 99 companies. Industrials were the largest sector at 15.7%, followed by health care at 12.3% and financials at 11.1%. About 93% of assets were in US companies. Because the fund is actively managed, these holdings can change often.
How did TCAL do in the 2022 bear market?
TCAL didn't exist then. It launched in March 2025, so it has no record from the 2008, 2020 or 2022 downturns. Our price history begins June 9, 2026. In that short window, its deepest drop was 4.9%, from August 25 to September 30, 2026, and it recovered by October 20. That brief stretch says little about how the fund would do in a long bear market, when its stocks could fall sharply despite the option income.