At a glance
TMSL charges 0.55% a year, above the 0.07% average of the 8 funds most like it (the most expensive of 9). It has $2.70B in assets, the 5th largest of that group; it paid 0.48% of its price in distributions over the past 12 months, annual. Over the past year it returned +16.5% with distributions reinvested (S&P 500: +11.5%), 2nd of those 9 funds; over three years it returned +22.2% a year. Its ten largest positions make up 9.8% of the fund, out of 297 in all.
The short version
T. Rowe Price Small-Mid Cap ETF (TMSL) is an actively managed fund. Its managers pick about 300 stocks of mostly US small- and mid-sized companies instead of tracking an index. Its 0.55% expense ratio is far above the 0.07% average of similar funds and ranks last of nine on cost. Its three-year return of 22.2% a year, as of October 27, 2026, ranks first of the nine, but its record covers only 3.4 years.
Price history
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TMSL +16.5% 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 | |
|---|---|---|---|---|---|---|
| TMSL official prospectus, to Dec 31, 2025 | — | +11.73% | — | — | — | +15.74% |
| TMSL price data to Oct 27, 2026 | +15.8% | +16.5% | +22.2% | — | — | +16.4% |
- Over the year to Oct 27, 2026, TMSL returned +16.5%, 2nd of 9 among similar funds.
- Its worst full calendar year was 2025 (+11.9%); its best was 2024 (+15.8%).
- The deepest fall in its price history was 24.4% (Nov 25, 2024 to Apr 8, 2025), recovered by Sep 5, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +15.8% | — |
| 2025 | +11.9% | +11.73% |
| 2024 | +15.8% | +15.77% |
| 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
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.2000 | +42.9% |
| 2024 | $0.1400 |
What's inside
As of Jun 30, 2026, the fund held 297 securities; the ten largest made up 9.77% of assets.
| Holding | Weight | |
|---|---|---|
| POPULAR INC | 1.18% | |
| MKS Inc | 1.13% | |
| MIDDLEBY CORP | 1.06% | |
| NVENT ELECTRIC PLC | 1.01% | |
| TELEDYNE TECHNOLOGIES INC | 0.98% | |
| GUARDANT HEALTH INC | 0.93% | |
| TENET HEALTHCARE CORP | 0.89% | |
| EAST WEST BANCORP INC | 0.88% | |
| RAMBUS INC | 0.88% | |
| ACUITY INC | 0.83% | |
| STANDARDAERO INC | 0.82% | |
| AXIS CAPITAL HOLDINGS LTD | 0.81% | |
| PERMIAN RESOURCES CORP | 0.81% | |
| TECHNIPFMC PLC | 0.80% | |
| STONEX GROUP INC | 0.80% |
By country
United States 86.21%United Kingdom 2.67%Bermuda 2.46%Ireland 1.97%Puerto Rico 1.93%By asset type
Stocks 99.7%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $765.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +9.95%, +3.71%, +4.94%.
How it works
TMSL does not follow an index. T. Rowe Price's managers choose the stocks. The fund normally keeps at least 80% of its net assets in small- and mid-cap companies. It defines these as companies smaller than the largest members of the Russell Midcap Index, the MSCI USA Mid Cap Index or the MSCI World Mid Cap Index, after outliers at the top end are removed. As of December 31, 2025, that ceiling was $98 billion. The fund invests mainly in US stocks.
The managers pick stocks "bottom up." That means they study individual companies more than the economy. They look at return on equity, projected growth, capital spending, and price-to-earnings, price-to-cash-flow and price-to-book ratios. They also weigh profitability, stability, earnings quality and how management uses capital. The fund can own growth or value stocks. Sector weights follow from these stock choices, so the fund may sometimes have a large share of its assets in one sector.
As of June 30, 2026, the fund held 297 stocks. No position was much above 1.2% of assets, and the 10 largest made up 9.77%. Popular Inc., MKS, Middleby, nVent Electric and Teledyne Technologies led the list. The fund held no derivatives, and about 86% of its assets were in US companies. The prospectus reports portfolio turnover of 43.3%, a measure of how much of the portfolio is traded in a year.
What it really costs
- TMSL charges 0.55% a year, versus an average of 0.07% for the similar funds below (9th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $56 in the first year and $689 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| TMSL | $56 | $176 | $307 | $689 |
In a retirement portfolio
It is a pricier, actively managed small- and mid-cap stock fund that has swung more than the market, so it fits better as a smaller add-on than as a foundation.
TMSL could add smaller US companies, which large-cap funds hold little of. It launched on June 15, 2023, so it missed the 2008, 2020 and 2022 crashes and has never been through a long bear market. Its deepest drop was 24.4%, from November 25, 2024, to April 8, 2025. It recovered by September 5, 2025, about five months later. Anyone forced to sell during a drop like that would have locked in losses. Its weakest calendar year, 2025, was still a gain of 11.73%. Its one-year beta of 1.15 suggests it has moved more than the market. Income is small: the yield was 0.48% as of October 27, 2026, paid once a year. Under the SEC's standard example, $10,000 would cost $689 in fees over 10 years. 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 managers picking about 300 small- and mid-cap stocks rather than an index, and who accept a 0.55% fee for that.
- Holders of large-cap funds who want a spread-out slice of smaller companies; no stock was much above 1.2% of assets as of June 30, 2026.
- Long-term investors who can sit through drops like the 24.4% fall from November 2024 to April 2025 without needing to sell.
Look elsewhere if
- Cost-focused investors: mid-cap index funds such as IJH (0.05%) and SPMD (0.03%) charge a small fraction of TMSL's 0.55% expense ratio.
- Investors seeking income: the yield was 0.48% as of October 27, 2026, and the fund pays only once a year.
- Anyone who wants a long track record: the fund launched in June 2023 and has never been through a full bear market like 2008 or 2022.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| TMSL this fund | — | 0.55% | $2.70B | +16.5% | +22.2% |
| SPMD SPDR Portfolio S&P 400 Mid Cap ETF | 33% | 0.03% | $18.39B | +15.3% | +16.6% |
| IJH iShares Core S&P Mid-Cap ETF | 33% | 0.05% | $124.33B | +15.3% | +16.6% |
| IVOO Vanguard S&P Mid-Cap 400 ETF | 33% | 0.07% | $5.87B | +12.0% | +18.0% |
| BBMC JPMorgan BetaBuilders U.S. Mid Cap Equity E… | 32% | 0.07% | $2.03B | +16.5% | +22.2% |
| BKMC BNY Mellon US Mid Cap Core Equity ETF | 31% | 0.04% | $647.8M | +8.5% | +17.9% |
| SCHM Schwab US Mid-Cap ETF | 30% | 0.04% | $14.86B | +20.5% | +18.9% |
| IQSM NYLI Candriam U.S. Mid Cap Equity ETF | 27% | 0.15% | $329.7M | +14.3% | +18.0% |
Questions investors ask
Is TMSL an index fund or actively managed?
TMSL is actively managed. It does not track an index. T. Rowe Price's managers pick stocks one company at a time, looking at measures such as return on equity, growth rates and price-to-earnings ratios. The fund keeps at least 80% of its net assets in small- and mid-cap companies and can own growth or value stocks. The risk is that the managers' picks lag the market or similar index funds.
What's the difference between TMSL and IJH?
The main differences are approach and cost. IJH, from iShares, is an index fund with a 0.05% expense ratio. TMSL is actively managed and charges 0.55%. The two funds share about 33% of their holdings. TMSL returned 16.5% over one year and 22.2% a year over three years as of October 27, 2026. IJH returned 15.2% and 18.5% as of October 29, 2026. IJH also has a much longer history and held $124.3 billion as of June 30, 2026, compared with TMSL's $2.7 billion.
Does TMSL pay dividends?
Yes, but only a small amount, once a year. As of October 27, 2026, TMSL's yield over the past 12 months was 0.48%, or about $0.20 per share. Small- and mid-cap companies often put their profits back into the business instead of paying them out, and the fund aims for long-term growth, not income. Investors who need regular cash from a fund may find this payout too small and too infrequent.
What is TMSL's expense ratio?
TMSL's expense ratio is 0.55% a year, according to the prospectus filed February 25, 2026. All of it is the management fee, and no fee waiver is listed. In the SEC's standard example, $10,000 earning 5% a year would pay about $56 in costs after one year, $307 after five years and $689 after ten. Similar mid-cap funds averaged 0.07%, and TMSL ranked last of nine on cost.
How has TMSL performed since it launched?
TMSL has posted gains every calendar year so far. The prospectus shows returns of 15.77% in 2024 and 11.73% in 2025, and an average of 15.74% a year since its June 2023 launch, as of December 31, 2025. Through October 27, 2026, it was up 15.8% for the year. Its strongest quarter was a gain of 11.95% in early 2024, and its weakest was a loss of 5.58% in early 2025. That record covers only about three years.